Occupy LA protesters descend on Pasadena home of BofA executive

Lauren Gold, Pasadena Star-News

About 100 Occupy protesters seeking to reverse an eviction gathered Tuesday outside the Pasadena house of a Bank of America executive in the San Rafael neighborhood.

The protest began at 4 p.m. at the house of bank executive Raul Anaya, and specifically focused on the plight of homeowner Dirma Rodriguez.

“Every crook in history has victimized her and it’s shocking,” said Lydia Breen, 64, of Altadena, a Hurricane Katrina evacuee who relocated to Southern California.

No one was arrested during Tuesday’s protest, which was one of many across the nation surrounding the annual Bank of America Shareholder’s meeting today in Charlotte, North Carolina. No Pasadena police personnel were present at the scene.

Rodriguez’s home was foreclosed after she allegedly fell behind on loan payments on a second for her house in the West Adams district of Los Angeles.

Rodriguez was evicted March 26, but allowed back into her home that night after Occupy protesters rallied in her support, said Occupy member Cheryl Aichele.

Rodriguez, a widow, said the process has been difficult, full of frustration and tears.

“I want my home legally returned to me and I want fair payments and an end to this horrific situation that me and my family have had to go through,” Rodriguez said in Spanish translated by Occupy member Julie Levine. “I felt terrible, I couldn’t sleep worrying that I was going to lose my home and what would happen to my daughter.”

Rodriguez’s 27-year-old daughter, Ingrid Ortiz, has toxoplasmosis cerebral palsy. Rodriguez said she was granted a loan modification and began making payments but then the bank sent her checks back and sold her home at a foreclosure auction in September.

Levine said Rodriguez was following the bank’s instructions to make loan payments into a special account when they “sold the house out from under her.”

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Occupy Detroit Stages “Foreclosure Monoply” Protest At BofA Branch

Occupy Detroit staged a pretty creative protest at a Bank of America branch in downtown Detroit modeled after the board game, “Monopoly”.  They even had a guy dressed up like Rich Uncle Moneybags.

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Lehman Docs Show Wall Street Arrogance Led To Financial Collapse

William D. Cohan, Bloomberg

If one wants to understand the full complicity of Wall Street in the Great Recession, look no further than the voluminous package of pre-collapseLehman Brothers documents that have been made available by the law firm Jenner & Block LLP, which has acted as the coroner in the Lehman post-mortem.

Most important, the cache dispels the myth that Dick Fuld, chief executive officer of Lehman Brothers Holdings Inc., and his close associates were unaware of the risks their business faced in 2007 and 2008. That would be bad enough, but the more devastating reality is that Fuld and his sycophants were warned repeatedly but were blinded by their hubris.

The records confirm, yet again, that the “forces-out-of- our-control” argument we hear from Wall Street leaders is bunk. It is the ill-advised behavior of one banker after another, day in and day out, that leads to the sort of devastating financial crisis we are only now emerging from.

For instance, at a Lehman board meeting in September 2007, according to a copy of the presentation in the data cache, Lehman executives presented a clear summary of the brewing crisis. “The initial tremors were felt at the end of 2006,” the board was told, “when the poor loan performance of sub- prime borrowers began to be a cause for concern in the marketplace. This was evidenced by a gradual spread widening in the asset backed index.” The presentation continued: “The market continued to widen as it became apparent that the performance problems in mortgage loans was not going to abate and was no longer limited to the sub-prime market but also affecting the Alt-A product.”

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Biden and Schneiderman Investigating Improper MBS Bundling

David McLaughlin, Bloomberg

New York Attorney General Eric Schneiderman and Delaware’s Beau Biden are investigating banks for failing to package mortgages into bonds as advertised to investors, three months after a group of lenders struck a nationwide $25 billion settlement over foreclosure practices.

The states are pursuing allegations that some home loans weren’t correctly transferred into securitizations, undermining investors’ stakes in the mortgages, according to two people with knowledge of the probes. They’re also concerned about improper foreclosures on homeowners as result, said the people, who declined to be identified because they weren’t authorized to speak publicly.

The probes prolong the fallout from the six-year housing bust that’s cost Bank of America Corp., JPMorgan Chase & Co. (JPM) and other lenders more than $72 billion because of poor underwriting and shoddy foreclosures. It may also give ammunition to bondholders suing banks, said Isaac Gradman, an attorney and managing member of IMG Enterprises LLC, a mortgage-backed securities consulting firm.

“The attorneys general could create a lot of problems for the banks and for the trustees and for bondholders,” Gradman said. “I can’t imagine a better securities law claim than to say that you represented that these were mortgage-backed securities when in fact they were backed by nothing.”

Countrywide Faulted

Schneiderman said Bank of America Corp. (BAC)’s Countrywide Financial unit last year made errors in the way it packaged home loans into bonds, while investors have sued trustee banks, saying documentation lapses during mortgage securitizations can impair their ability to recover losses when homeowners default. Schneiderman didn’t sue Bank of America in connection with that criticism.

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