Tuesday, September 25, 2012

Wednesday September 26 Housing and Economic stories



TOP STORIES:

Gavin Newsom: Eminent Domain 'Threats' Should Be Investigated By Justice Department - (www.huffingtonpost.com)  California Lieutenant Governor Gavin Newsom says he wants the U.S Department of Justice to investigate "threats" against local communities considering using eminent domain to seize and restructure poorly performing mortgages to benefit cash-strapped homeowners. Newsom sent a letter on Monday to U.S. Attorney General Eric Holder asking federal prosecutors to investigate any attempts by Wall Street investors and government agencies to "boycott" California communities that are considering such moves. "I am most disturbed by threats leveled by the mortgage industry and some in the federal government who have coercively urged local governments to reject consideration" of eminent domain," he wrote in a letter, a copy of which was provided to Reuters.

Top court ruling leaves Oregon's residential real estate market in limbo - (www.oregonbusinessreport.com) In a ruling the Oregon Supreme Court will soon review, the Oregon Court of Appeals on July 18 issued a major decision.The case, Niday v. Mortgage Electronic Registration Systems Inc., et al, held that MERS, when acting as a nominee for a named lender, is not a beneficiary under Oregon law. The practical effect of the holding is that any trust deed naming MERS the beneficiary may not be foreclosed in the name of MERS by the more expedient nonjudicial method. A little context is in order.

Former SEC Official Aided Targets, Documents Show- (www.cnbc.com)  A former regional enforcement official at the Securities and Exchange Commission who was sanctioned in May over alleged conflicts of interest in the multi-billion dollar Allen Stanford Ponzi case has a history of such allegations, according to documents obtained by CNBC. Former Associate Regional Director of Enforcement Spencer Barasch became a symbol of the so-called “revolving door” at the SEC — where staffers leave for the private sector and cash in on their contacts — following a 2010 investigation by the SEC Inspector General into the agency’s handling of the Stanford case. The investigation found Barasch repeatedly derailed inquiries into the Stanford Financial Group while serving as Director of Enforcement in the SEC’s Fort Worth Regional Office

Too Big To Jail: Wall Street Executives Unlikely To Face Criminal Charges, Source Says - (www.huffingtonpost.com)  A last-ditch effort by federal and state law enforcement authorities to hold Wall Street accountable for nearly bringing down the U.S. economy is unlikely to lead to any criminal charges against big bank executives, according to a source close to the investigation. Barring a "hail mary pass," said the source, who spoke on the condition of anonymity because the investigation is still ongoing, the members of a task force President Barack Obama formed in January to investigate fraud in the residential mortgage bond industry will instead most likely bring civil lawsuits against some of the banks involved, though it isn't clear when these cases might come.

Car of the Future? Why GM Loses $49,000 on Every Volt - (www.cnbc.com)  General Motors Co sold a record number of Chevrolet Volt sedans in August - but that probably isn't a good thing for the automaker's bottom line. Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts. Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.





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