Countrywide defrauded Fannie and Freddie, jury rules

countrywide word fraud

Bank of America acquired Countrywide in 2008.

A sovereign jury ruled Wednesday that Countrywide Financial, now owned by Bank of America, defrauded government-backed firms Fannie Mae and Freddie Mac by offered them poor mortgages forward of a financial crisis.

A former Countrywide executive, Rebecca Mairone, was also found probable in a case.

The Justice Department lawsuit endangered a Countrywide module determined in 2007 called a High-Speed Swim Lane — nicknamed “the Hustle” — that prosecutors contend was “intentionally designed to routine loans during high speed and but peculiarity checkpoints, and generated thousands of fake and differently poor residential debt loans.” Borrowers were means to secure mortgages in many cases but even carrying their income verified.

These loans were afterwards skewed as high-quality to Fannie and Freddie, who were told Countrywide had “strengthened a underwriting discipline and scaled behind on risker loan products,” a censure says.

Bank of America (BAC, Fortune 500) acquired Countrywide in 2008 and is now obliged for a liabilities. Fannie and Freddie suffered “hundreds of millions of dollars in losses” after borrowers whose mortgages they purchased from Countrywide defaulted, according to a suit.

Judge Jed Rakoff has nonetheless to establish penalties in a case, that will be singular to fines since a charges were polite rather than criminal.

Manhattan U.S. Attorney Preet Bharara pronounced a Countrywide module “treated peculiarity control and underwriting as a joke.”


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‘Apple’s got the mojo back,’ strategist says

Apple batch is a “buy” once again, Oracle Investment Research’s arch marketplace strategist, Laurence Balter, pronounced Tuesday.

“For a final 12 months, we’ve seen extensive disastrous disposition toward Apple, that there’s no innovation, that zero new is entrance out of a tide here,” he said. “And a existence is that a 5s is a knockout.”

On CNBC’s “Fast Money,” Balter pronounced that a new top-of-the-line iPhone model, denounced concurrently with a lower-cost 5c, was a success.

“I consider what they’re proven is that Apple is a premium-product association that their business want,” he said. “Apple’s got the mojo back.”

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Why bullish technical researcher is disturbed about 2014

Ralph Acampora is not looking brazen to subsequent year. While Altaira’s executive of technical research is bullish into a finish of 2013, he fears that a year-end convene could set bonds adult for a unpleasant 2014.

“2014 is a year that we should have some arrange of a decline,” Acampora pronounced on Tuesday’s “Futures Now.”

Acampora, mostly famous as a godfather of technical analysis, afterwards went on to enumerate a 3 reasons that subsequent year creates him so nervous.

Reason one: The marketplace will be overextended

Acampora believes that bonds will have a honeyed finish to 2013, with a Dow Jones industrial average shutting out a year “somewhere between 16,500 and 17,000″—or 7 to 10 percent aloft than where a index is trade today.

But once a marketplace gets to that level, buyers competence unexpected make themselves scare.

“Assuming I’m right, and we get a small bit of a improvement here and afterwards we go aloft and it’s opposite a board—all-time highs in a Russell averages and a SP, and a Dow catches adult and everybody’s euphoric—if that happens and we go into a new year, 2014, afterwards we’re going to be confronting extended cost charts,” Acampora said. “The marketplace will be really overbought.”

(Read more: Cashin: Tech valuations remind me of dot-com bubble)

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Stocks are slumping—but not for reasons we think

In general, it’s been a severe morning for earnings, though quite for guidance. In tech, Cree, Juniper Networks, Altera, STMicro and Broadcomm all gave income superintendence that was disappointing.

Caterpillar had another large miss, obscure a 2013 gain superintendence by a full dollar to $5.50 from $6.50 and lowered 2013 income superintendence to $55 billion from $56-$58 billion. The biggest problem: a unemployment in mining.

Airgas also lowered a full year guidance, citing in partial reduced consumer certainty around a supervision shutdown.

There were a few upside surprises in a latest collection of reports: Aerospace has had a good morning. Boeing, reported a clever kick on tip and bottom lines, and lifted full year gain superintendence while affirming revenue. Northrop Grumman reported a clever gain kick and lifted 2013 full year gain and income guidance. In addition, BE Aerospace reliable their 2013 guidance.

Lumber Liquidators had another good quarter…traffic was adult roughly 10 percent, with allied store sales adult 17 percent. The association lifted full year 2013 superintendence to $2.65-$2.74, from $2.45-$2.60.

There have also been good reports from Norfolk Southern, Lilly (boosted by clever Zyprexa sales), and Wellpoint, that kick on tip and bottom line, benefiting from increases in membership.

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Europe, rising markets to outperform: Strategist

With U.S. bonds trade during near-record highs, equity investors looking for a biggest crash for their sire should instead conduct overseas, according to Stephen Parker, conduct of multiasset strategies during JPMorgan Private Bank.

“We have benefited from a U.S. disposition over a final few years, though we have been usually augmenting allocations to general markets in portfolios,” pronounced Parker, whose organisation oversees $935 billion in assets.

Parker told CNBC’s “Halftime Report” on Wednesday that he is focusing on Europe.

“Europe is no longer trade during unsettled valuations, though European companies have a lot of handling precedence on a gain front if we get even medium growth,” he said. “While distinction margins in a US.. sojourn nearby record levels, European margins have not recovered given a crisis.”

(Read more: Why a tip marketplace bear’s branch bullish)

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Midday movers: Tesla, LinkedIn, Safeway & more

CR Bard rose after a medical device builder posted gain that exceeded Wall Street expectations, interjection to softened sales of surgical collection and heart associated devices.

Norfolk Southern changed aloft after a second-largest U.S. tyrannise user posted better-than-expected third-quarter gain due to rising shipments of steel, fracking and plantation products.

Lumber Liquidators also traded aloft after a association surfaced gain as sales rose and costs fell. The company, that has 305 stores in North America, also lifted a full-year gain forecast.

Nasdaq OMX Group jumped after a association reported better-than-expected 2013 handling gain due to softened revenues.

General Dynamics fell after a invulnerability executive reported that net income fell 8.5 percent on reduce revenue.

Airgas also declined after a industrial and specialty gas retailer lowered a full-year guidance, citing in part, reduced consumer certainty due to a supervision shutdown.

Medtronic rose after Deutsche Bank upgraded a medical device builder to “buy” from “hold” with a $66 a share cost target, citing softened execution.

Exelon mislaid belligerent after Jefferies downgraded a energy association to “underperform” from “hold” with a cost aim of $24.50 formed on valuation.

AOL changed aloft after BofA/Merrill Lynch began coverage of a Internet association with a “buy” rating and a price

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