RBS bankers joked about destroying the US housing market By Rob Davies


RBS bankers joked about destroying the US housing market
By Editor August 16, 2018
http://www.theeventchronicle.com/finanace/rbs-bankers-joked-about-destroying-the-us-housing-market/


A boarded up building in Cleveland, Ohio, in January 2008. In the build up to the crisis mortgage lenders were incentivised to make as many loans as possible. Photograph: Timothy A. Clary/AFP/Getty Images
Transcripts of pre-financial crisis conversations show senior bankers’ disregard for customers

By Rob Davies

RBS bankers joked about destroying the US housing market after making millions by trading loans that staff described as “total fucking garbage”, according to transcripts released as part of a $4.9bn (£3.8bn) settlement with US prosecutors.

Details of internal conversations at the bank emerged just weeks before the 10-year anniversary of the financial crisis, which saw RBS rescued with a £45bn bailout from the UK government.

The US Department of Justice (DoJ) criticised RBS over its trade in residential mortgage backed securities (RMBS) – financial instruments underwritten by risky home loans that are cited as pivotal in the global banking crash.

It said the bank made “false and misleading representations” to investors in order to sell more of the RMBS, which are forecast to result in losses of $55bn to investors.

Transcripts published alongside the settlement reveal the attitude among senior bankers at RBS towards some of the products they sold.

The bank’s chief credit officer in the US referred to selling investors products backed by “total fucking garbage” loans with “fraud [that]was so rampant … [and]all random”.

He added that “the loans are all disguised to, you know, look okay kind of … in a data file.”

The DoJ said senior RBS executives “showed little regard for their misconduct and, internally, made light of it”.

In one exchange, as the extent of the contagion in the banking industry was becoming clear, RBS’ head trader received a call from a friend who said: “[I’m] sure your parents never imagine[d]they’d raise a son who [would]destroy the housing market in the richest nation on the planet.”

He responded: “I take exception to the word ‘destroy.’ I am more comfortable with ‘severely damage.’”

Another senior banker explained to a colleague that risky loans were the result of a broken mortgage industry that meant lenders were “raking in the money” and were incentivised to make as many loans as possible.

Employees who might raise the alarm about the riskiness of such lending “don’t give a shit because they’re not getting paid”, he said.

The bank made “hundreds of millions of dollars” from selling RMBS, the DoJ said, while disguising the risk they posed to investors, which included a group of nuns who lost 96% of their investment.

By October 2007, as signs of stress began to show in the banking system, RBS’ chief credit officer wrote to colleagues expressing his true feelings about the burgeoning volume of subprime loans in the housing market.

He said loans were being pushed by “every possible … style of scumbag”, adding that it was “like quasi-organised crime”.

“Nobody seems to care,” he added.
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The DoJ criticised RBS’ failure to do due diligence on the loans it was packaging, saying the bank feared it would lose out to rivals if it performed stricter tests.

One analyst at the lender referred to the bank’s due diligence procedures as “just a bunch of bullshit”, according to the transcripts.

When the bank became concerned about the poor quality of loans and started imposing tighter due diligence, one senior banker complained, saying: “Oh, God. Does anyone want to make money around here any more?”

RBS expected to make $20m from one deal that involved trading particularly risky loans, but faced resistance from the bank’s chief credit officer.

A senior executive responded to the concerns by telling the bank’s head trader: “Please don’t fuckin’ blow this one. We need every dollar we can get our hands on.”

Internal conversations between bankers also offer some insight into their growing realisation of the poor quality of the loans the bank owned and sold.

In September 2007, one trader referred to an appraisal of loans as giving “pretty shitty results”.

The transcripts were released by the DoJ as it confirmed the details of the settlement with the bank over its trading in RMBS.

RBS said: “Under the terms of the settlement, RBS disputes the allegations but will not set out a legal defence, while the settlement does not constitute a judicial finding.”

Certainty over the scale of the settlement will allow the bank to pay its first dividend in a decade this year.

The dividend is worth £240m and the Treasury will receive £149m as RBS is still 62%-owned by the government.

Ross McEwan, RBS chief executive, said: “This settlement dates back to the period between 2005 and 2007. There is no place for the sort of unacceptable behaviour alleged by the DoJ at the bank we are building today.”

He added that the bank could now “focus our energy on serving our customers better”.

But league tables published by the Competition and Markets Authority on Wednesday placed RBS joint bottom for customer service, with fewer than half of customers saying they would recommend the bank to a friend.

RBS will have to publish the results in branches, on its website and mobile app from today.

This article (RBS bankers joked about destroying the US housing market) was originally published on The Guardian and syndicated by The Event Chronicle.

FORECLOSURE HELL


I had been doing so much better about keeping up with my blogs, until about this last week. I had not gotten back to posting as much as I had in the past, but was doing much better.

I have to admit though, every month, beginning the week before foreclosure hell (the day they auction the homes foreclosed upon), have been particularly hellish.

I guess for a while, no one I know was being foreclosed upon. But beginning last month, my friends began being sold at auction again. It had been a whole year until just these last couple of months. Then all of the sudden, properties that the banks had lost interest in, out of the blue, and with little or no warning, were sold at auction.

We all managed to stop two of the sales, those two were cancelled, but last month, one was lost to foreclosure, and it took a lot of work to get cancelled, the two that were cancelled.

So, even though there may not be the number of foreclosures every month that there had been for a long time, looks like the banks have managed to get lined up, these companies, that will purchase damn near any house at auction. These companies that want to turn around and rent you your house they just purchased at foreclosure.

I told everyone, back in 2008-2009 when Goldman Sachs’ sorry ass said that “only the rich should own houses, everyone else should be renters”, that this is what could be expected. Yes, it took another 8 years for it to happen to this scale, but it is here, and it won’t be going away, till they get every one of our homes.

I have watched foreclosure sales every month since around 2006, and all the properties that were fought for, and the banks, just kind of fizzled away without a lot of fuss, homes that they realized would be close to impossible to get the foreclosed upon owner to leave, now that they can work it out to where these rent home companies, are the ones that has to get rid of the previous owners of the properties.

The banks see this as minor housekeeping, which they don’t mind at all.

Obama’s genie by Joan Swirsky



Obama’s genie
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By Joan Swirsky
February 27, 2018

http://www.renewamerica.com/columns/swirsky/180227

Imagine a guy in his mid-thirties walking on a beach in Hawaii and seeing an object that actually looked like the genie lamp he read about in his childhood – the kind of lamp he could rub until a genie popped out and granted his most fervent wish.

Being a pretty ordinary guy – you know, the kind who hung out smoking pot, who slacked off in school, who didn’t get the girl and actually hated and was jealous of the guys who did – he asked for power.

Poof – the Genie granted him his wish, power beyond his wildest dreams.

To be sure, the Genie certainly didn’t know that this ordinary guy didn’t want merely to embarrass the guys he was jealous of, he wanted to destroy them. And not through the ordinary methods – knives, guns, poison, etc., although all of them might play a part one day – but through politics!

The most important thing the Genie didn’t know was that all those cool, get-the-girl guys were only symbols for the thing Mr. Ordinary hated most – America!

But too late – the Genie had given him the power to mobilize the entire world against the country he claimed was the place of his birth.

ONE LUCKY GUY

Who was this ordinary guy?

He said his name was Barack Obama and he was born in 1961 to a white mother and a black father from Kenya, Africa, who met at the University of Hawaii. Reporters had no interest in finding a marriage certificate, but – as leftists are so fond of saying – it’s only a piece of paper!

Two years later, the boy’s parents divorced and young Obama’s mother met and married another U. of Hawaii student, Lolo Soetoro, a native of Indonesia. In 1966, the couple moved to Jakarta, Indonesia, with five-year-old Barack, who was adopted by his new father, which according to Indonesian law would automatically make him an Indonesian citizen. His student ID card carried the name of Barry Soetoro. Four years later, Mrs. Soetoro gave birth to a daughter named Maya and sent 10-year-old Barack back to Hawaii to be raised by her parents.

In Indonesia, the reporting grows fuzzy, some saying that Barack attended a Christian school, others saying a Madrassa where he studied the Koran. The latter seems more probable as Mr. Obama himself described the Muslim call to prayer as “one of the prettiest sounds on Earth at sunset.”

After high school, Mr. Obama studied at Occidental College in Los Angeles. But again, the media weren’t curious enough to ask for the transcripts and so none were ever produced. Was this to conceal Mr. Obama’s status as a foreign student? Mmmmm.

Then, he transferred to Columbia University in New York City. But strangely, no first-person reports ever emerged of any associations, sightings, relationships, or dating of the Ivy League student – and, again, no transcripts.

Mr. Obama moved to Chicago in 1985 and became a community organizer – entering the profession of his and Hillary Clinton’s idol, Saul Alinsky, the America-loathing Marxist whose book “Rules for Radicals” provided a blueprint for “fundamentally changing” the United States of America from a capitalist, free-market, U.S. Constitution-respecting, freedom-loving country into either a Communist paradise or an Islamic caliphate.

In 1988, our One Lucky Guy entered Harvard Law School where he became the first African-American editor of the Harvard Law Review…quite amazingly, seeing that he wrote not one article to earn this honor and that – ta da – no transcripts of his years in the law school ever materialized! The media once again demonstrated a remarkable lack of curiosity about who paid Mr. Obama’s immensely expensive tuition.

They also had no interest in asking Mr. Obama why Simon & Schuster cancelled the contract on the book they gave him a pricey advance for – Dreams from My Father – which was finally published in 1995 by Times Books (a division of Random House). Or how on earth his publisher, editor, and the professionals employed by the literary agency, Acton & Dystel, could all have gotten it wrong when they distributed a publicity brochure for the book that featured the author’s picture and a blurb that read: “Barack Obama, the first African American president of the Harvard Law Review, was born in Kenya and raised in Indonesia and Hawaii” – a description future candidate and then Oval Office occupant Barack Obama spent multimillions of dollars on denying!

After Harvard, the new graduate joined a Chicago law firm where his supervisor was another Harvard Law School graduate, Michelle Robinson. They dated, then married. But surprise, surprise, there is no record of their marriage certificate, just as no photos of Michelle being pregnant with their two daughters, and no birth certificates of their daughters exist in the public domain.

AFFIRMATIVE ACTION

No, not the policy of favoring members of a minority group in job hiring, college admissions, etc., but rather the concrete steps a number of movers and shakers took when they began to think that Mr. Obama would be the perfect fit for Chicago “machine” politics.

In 1995, Mr. Obama’s mentor, the communist Alice Palmer, announced that she was giving up her seat in the state senate to run for the U.S. Congress and anointed Mr. Obama her successor. She had personally introduced Mr. Obama to Bill Ayers – the anti-war founder of the terrorist group the Weather Underground Organization (WUO) who advocated killing 25 million Americans to actualize his goal of overthrowing America – and to Ayers’ partner in crime, his wife Bernardine Dohrn. In fact, Mr. Obama’s political career was launched in the Ayers’ living room.

But after Mrs. Palmer suffered an unexpected defeat in the special congressional election, she decided she wanted her state senate seat back and asked Mr. Obama not to run. He not only refused to step aside, but said he was going to pose a legal challenge to the legitimacy of the signatures she had amassed to qualify for the ballot. Using that tactic, he got all four challengers – including Mrs. Palmer – knocked off the ballot so he could run unchallenged in heavily Democrat Illinois.

Mr. Obama spent three terms in the Illinois state senate – from 1997 to 2004 – when he decided to run for the U.S. Senate. And whaddaya know! Trailing in third place with only three weeks until the primary election, Mr. Obama magically – or you can blame it on the Genie – got some hack from the Chicago Tribune to publish salacious dirt on both Democrat rivals (one involving sealed records of one, no less), which destroyed their candidacies and gave the nomination to, again, the unchallenged state senator.

That was in March. The following July, Sen. John Kerry (D-MA) pushed for Senator Obama to give the keynote address at the Democratic National Convention. It was a masterful presentation in which the extreme left-wing radicalism – which defined his years in community organizing and state office and would later define his eight years in the Oval Office – was camouflaged to perfection.

“There’s not a liberal America and a conservative America,” he intoned to the audience, “there’s the United States of America. There’s not a black America and white America and Latino America and Asian America; there’s the United States of America. The pundits like to slice-and-dice our country into Red States and Blue States…. we are one people, all of us pledging allegiance to the stars and stripes, all of us defending the United States of America.”

Yeah, right.

DEFINITION OF CHUTZPAH

On February 10, 2007, only three years into his first term, Senator Obama announced his intention to seek the presidency of the United States of America. Just as his three terms in the Illinois state senate had yielded a remarkably unremarkable record of boilerplate liberal “accomplishments” – with abortion, especially late-term abortion, and also blocking legislation to protect born-alive survivors of abortions at the top of his list – so had his first three years in Washington, D.C.

But on August 28, 2008, the fledgling senator was nominated for president, defeating the perennial glass-ceiling candidate, Sen. Hillary Clinton (D-NY), and going on to defeat the Republican in Name Only (RINO), Arizona Sen. John McCain.

Who – we ask – could manage to mobilize left-wing politics worldwide, including:
The entire spectrum of the American Democrat Party,

The worldwide America-loathing Muslim Brotherhood,

The bought-and-paid-for American media whores,

The impotent socialists of the European Union,

The impotent socialists and Communists of Venezuela, Cuba, and other utterly failed regimes,

The Muslim terrorist regime of Iran,

The dictator-populated United Nations,

The mal-educated millennials raised on leftist propaganda,

The bitter abortion-loving, man-hating feminists,

The pathological jealousy of all things successful,


On and on and on and on….all negative?
Of course, that ordinary guy was Barack Obama – a member of the infamous Choom drug-inhaling gang.

But his fans yearned to believe that Mr. Obama was not half-white, but instead the Great Black Hope who would redeem Big Bad America from its racist past, and also that he was a successful author. Regarding the latter, Jack Cashill made a slam-dunk case in his blockbuster book Deconstructing Obama: The Life, Loves, and Letters of America’s First Postmodern President that it was actually Mr. Obama’s close pal – the unrepentant terrorist William Ayers – who wrote the book.

And they wanted to believe that Mr. Obama was a very honest guy, which is why they nodded their heads affirmatively when he said that in over 20 years of sitting in the pews of the “Reverend” Jeremiah Wright’s church, he never heard the preacher’s anti-American, anti-Semitic rants.

Throughout the campaign (and well into his occupation of the Oval Office), a group of 400 leftist – ahem – journalists decided they didn’t like authentic journalists questioning Mr. Obama on everything from the constitutional eligibility of his candidacy to his longtime relationships with radicals like William Ayers and anti-American, anti-Semitic bigwigs like Rev. Louis Farrakhan. To prop up their candidate of choice, and to go after any of his critics and questioners with a vengeance, they formed JournOlist.

Sure enough, this overwhelmingly left-wing and deeply corrupt group refused to ask even one question about why Mr. Obama used a state of Connecticut Social Security number when he hadn’t lived one day of his life in that state; why he lost his law license in 2002 (or if, in fact, he ever took the bar exam); why Michelle’s law license was inactivated by court order; why Mr. Obama never released more than a one-page medical report…the list of unasked questions goes on and on.

And when any moderate or conservative journalist asked him about saying during his campaign that he had traveled to “all 57 states – I think one left to go”(did he mean the 57 states of the Organization of the Islamic Conference?), or in office when he stated that the people in Austria speak Austrian, or referred to military corpsmen as corpse men, or described his grandmother as “a typical white person” – you get the picture – the media whores immediately pounced, accusing any critic of being a “racist.”

How clueless they were and are to this day of their own rank racism, in essence telling Americans that they’re not allowed to criticize a black man because he’s not smart enough or strong enough to take it…but they are smart enough and strong enough to defend him by insulting his critics. Cannot make this up!

THE COUP D’ÉTAT CABAL

America has had unlikely presidents before Mr. Obama, but none quite as unlikely. How did this happen?

For almost an entire century, and certainly since the tumultuous ’60s when Bill and Hillary Clinton and Nancy Pelosi and Chuck Schumer and Dick Durbin and other far-leftists reared their seditious heads, the left has been looking for the one defining figure to get them over the goal line, that being literally overthrowing the United States of America – the land they loathe.

Jimmy Carter was a start, but the Dolly Parton fantasizer lasted only one term before America came to its senses and elected the genuine conservative Ronald Reagan. After enjoying two terms of peace and prosperity, Americans once again voted for Republican George H.W. Bush – only to boot him out in favor of the charming southerner Bill Clinton, whose victory, political pundits claimed, was helped immeasurably by the phony third-party candidacy of Texas billionaire business mogul Ross Perot, who bowed out of the race at the last minute, de facto throwing his votes to the man who would become known forever as “slick Willy.”

Clinton’s eight long years lasted largely because of a strong economy, decent job growth, a surge in homeownership, and Family & Medical Leave for 20-million Americans, among other factors – in spite of non-stop scandals, impeachment, perjury, and the loss of his law license, the accusation of rape, the stained blue dress, the pathetic wife, the mishandling of terror attacks, the proliferation of corporate scandals (numbering 86), the floodgate of unvetted immigrants into the country, the massacre at Waco, the colossal failure of Hillarycare, betraying America by by selling advanced U.S. missile technology to our enemy the People’s Republic of China, and threatening little Elian Gonzales at gunpoint.


Once again, America came to its senses and elected #43, the former two-term Governor of Texas George W. Bush, the son of #41. The affable junior enjoyed two terms until the coup d’état cabal was ready for their full-on assault on America. But “W” facilitated that assault by joining the left in their fantasy that Islam was “the religion of peace” and acknowledged, himself, that his “Mission Accomplished” banner was a bad idea, and that he failed to push for immigration reform. Others cite a skyrocketing deficit and the fact he waged two costly and ineffective wars (in Afghanistan and Iraq).

Over all these years, leftist heavy hitters were developing their takeover. Armed with multibillions of dollars from a handful of powerful America-detesting progressives, they covered every base, starting with the media whores who proved to be the easiest to buy and control. Next they bought every member of the Democrat Party, instructing them to sing one tune and one tune only throughout the candidate’s presidential campaign and his entire tenure…and insisted that they, the real brains behind the coup, would provide both the tune and the lyrics.

Next, they implanted the consigliere, Valerie Jarrett, to basically run the presidency, and also speech writers to formulate every single solitary word that Mr. Obama spoke, even demanding that he use a Teleprompter to address a kindergarten class!

Within weeks or months, the honchos-in-chief delivered to their hand-picked puppet – that would be the guy who rubbed the genie lamp – the massive to-do list they had been working on for decades:
11,000 pages of the Affordable Care Act (aka Obamacare, aka socialized medicine),

Mountains of Environmental Protection Agency regulations that effectively killed the coal industry and other domestic energy sources, among other Draconian rules.

A blueprint for Common Core, aka socialized education (read: leftist propaganda),

An elaborate plan to destroy the military, as Matt Barber spells out here, by, among other things, purging military commanders, enacting Rules of Engagement that militate against our success in combat, cutting military pay and benefits, cutting missile defense, etc.

The introduction of members of the Islamic supremacist group, the Muslim Brotherhood, into the highest reaches of the American government.

Weaponizing the Internal Revenue Service and, we now learn, the FBI, the DOJ, the DHS, and other agencies of the U.S. Government, a function, Tom Basile writes in Forbes, of Obama’s “dangerous arrogance of power.”

On and on and on and on.
ENTER THE GENIE SLAYER

The Obama regime, as Americans have now learned, was steeped, indeed marinating, in illegality and corruption. There was virtually no dirty trick they believed was beyond the pale, no department (FBI, anyone?) and no operative (Seth Rich, anyone?) beyond exploitable or dispensable.

They believed this because every single poll told them (and told America) that Barack Obama’s successor would be his former Secretary of State, Hillary Clinton, a woman who had elevated corruption, dishonesty, and malfeasance to a virtual art form.

In other words, with Hillary’s election, their dirty secrets would remain with them.

They welcomed the sixteen Republican candidates who ran against Hillary for president in 2015, especially the mega-mogul Donald J. Trump, whose inexperience in the political world and colorful, tabloid-rich background made him the perfect target for their oppo-research team to skewer.

But as candidate Trump systematically leveled every opponent and Hillary was left to face the guy who labeled her “crooked Hillary” – inspiring the huge crowds he attracted to chant “Lock Her Up! Lock Her Up!” – Ms. Glass Ceiling began to devolve, relying on Democrat operatives like Donna Brazile to give her questions to upcoming debates and forcing her to commit unforced errors like calling Trump supporters, a month before the election, “a basket of deplorables.”

When the Obama/Hillary crew finally smelled the coffee of possible defeat, they hatched a plan to destroy a President Trump if, in fact, that eventuality came to pass. And it did. And they launched their plan – to produce a phony dossier and accuse President Trump of colluding with Russia in order to win the election. Relevant to mention here is that it was over a million dollars from Hillary’s campaign coffers that paid for MI6 agent Christopher Steele to compile the dossier.

Just as their moneybags donors had directed them during the Obama years, both the media whores and the Democrats stuck to the script – Trump-Russia, Trump-Russia, Trump- Russia. Former FBI Director Robert Mueller was anointed by another former Obama operative, Ron Rosenstein, to conduct the Russia collusion investigation.

Mr. Mueller hired – exclusively, with not one exception – Democrat prosecutors and lawyers, most of them contributors to Hillary’s campaign, to help destroy the newly inaugurated President Trump. They labored for over a year, with the oleaginous top dog on the intelligence committee, Rep. Adam Schiff (D-CA), leading the charge.

The result: The stunning revelations of widespread, massive, endemic corruption and collusion with Russia – by the Democrats themselves! But not one scintilla of evidence against President Trump.

On February 24, 2018, reporter Gabby Morrongiello of the Washington Examiner quoted former White House advisor Sebastian Gorka – who commented on the four-page memo released a few weeks ago by House Intelligence Committee Chairman Devin Nunes (R-CA), which accused FBI and Justice Department officials of abusing their power and deliberately misleading the Foreign Intelligence Surveillance Court (FISC) to gain permission to surveil former Trump adviser Carter Page because of his contacts in Moscow:

[Surprise, surprise – 10 of the 11 FISA court judges were appointed by Obama!]

“Remember,” Gorka announced at the annual Conservative Political Action Conference, “we’re only at the beginning of FISA-gate, which eventually will be Obama-gate.

“It’s not the Ben Rhodes of the world, it’s not the John Brennans, it’s not the Susan Rices, who are only culpable for the criminal regime we had that spied on Americans illegally,” Gorka said, citing several senior Obama administration officials. “Guess what – somebody had to let them.”

“And guess what?” Gorka continued. “It’s the last president of the United States.”

Rep. Nunes apparently agrees, as he identifies Mr. Obama to WorldNetDaily.com as being the person who was really in collusion with Russia “for eight years and setting the stage for orchestrating a conspiracy theory of collusion between Moscow and Donald Trump during the 2016 election.”

Daniel Greenfield writes that “the Obama era is over. It was wiped from the pages of history in one night that left Congress and the White House in Republican hands. Obama’s…frantic efforts to campaign for Hillary did no good. The public…made it clear that he did not matter. Obama once thought that he belonged to the ages. Now he belongs in the rubbish bin.”

Maybe…but maybe not. President Trump not only wiped out any shred of Mr. Obama’s so-called legacy, he effectively destroyed the fantasy of a magical genie that has guided the former community organizer’s lifelong obsessive mission to destroy America.

Is it too much for the rest of us to fantasize that the man who once chanted “We are the ones we’ve been waiting for” will have a prosecutor replace the G in genie with a G for Gitmo?

© Joan Swirsky

Countrywide Whistle-Blower to Get $57 Million


Countrywide Whistle-Blower to Get $57 Million
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Thursday, December 18, 2014 – 17:06
Phil Hall

http://nationalmortgageprofessional.com/news/52111/countrywide-whistle-blower-get-57-million?utm_source=MadMimi&utm_medium=email&utm_content=NMP+Daily%3A+Countrywide+Whistle-Blower+to+Get+%2457+Million+and+More+___&utm_campaign=20141218_m123650073_NMP+Daily%3A+Mortgage+Delinquency+Rates+Continue+to+Shrink+and+More+___+4&utm_term=Countrywide+Whistle-Blower+to+Get+_2457+Million

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Whistleblower_Pic_12_18_14

A former executive at Countrywide Financial Corporation is going to receive $57 million for his role in a whistle-blower lawsuit against Bank of America Corporation that resulted in the lender settling federal mortgage fraud charges for approximately $16.7 billion, the largest financial settlement in U.S. judicial history.

According to a Bloomberg News report, Edward O’Donnell, a former Countrywide executive vice president, filed a lawsuit against the Charlotte, N.C.-headquartered bank in August in which he accused Countrywide of selling mortgages with inadequate underwriting under the aegis of its “High Speed Swim Lane” program to Fannie Mae and Freddie Mac. Bank of America acquired Countrywide in 2008.

O’Donnell’s payout is a based on the False Claims Act, which enables whistle-blowers to claim 15 percent to 25 percent of what the federal government recovers in its successful prosecutions or out-of-court settlements.

Separate from the O’Donnell case, Bank of America’s legal problems continued yesterday when the National Credit Union Administration (NCUA), the federal regulator for the credit union industry, filed suit in federal court against the lender and U.S. Bank National Association, alleging that they violated state and federal laws by not fulfilling their trustee duties for 99 residential mortgage-backed securities trusts. The NCUA charged that five corporate credit unions-U.S. Central, WesCorp, Members United, Southwest and Constitution-purchased approximately $5.8 billion in residential mortgage-backed securities (RMBS) issued from the trusts between 2004 and 2007, but these securities lost their value and contributed to the failure of all five credit unions.