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Richard_Davet

Richard_Davet
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  • Blow to government as judge recommends dismissal of case against BofA [View news story]
    'notably that the government doesn't demonstrate the alleged misstatements were material to the GSE's decision to buy the paper.'.

    Give the judge a copy of the FNMA Guidelines which bac as a major player in the GSE Business Model violated on innumerable occasions. It is what is called breaches of representations and warranties.
    Mar 28 06:06 PM | Likes Like |Link to Comment
  • Bank Of America's Day Of Reckoning [View article]
    Stevie Wonder could see that the GSEs developed willful blindness as the pilot of the "GSE Business Model" will various players milking it for what it was worth.
    Oct 28 02:47 PM | Likes Like |Link to Comment
  • Making Sense Of The JPMorgan Settlement [View article]
    Ask yourself who are the partners in the "GSE Business Model" and should they be responsible for their own actions?

    It is not rocket science:

    Richard Davet
    2009 JPM Shareholder’s meeting
    Exchange with James Dimon CEO and Chairman

    As you know, for years, the Bank has been and continues to be major players in its mortgage business in what has come to be known as the “Government Sponsored Enterprise (GSE) Business Model”.

    In September of 2008, Treasury Secretary Paulson declared that, and I quote, “these enterprises pose a systemic risk”. Your mortgage business goes 90%+ to Fannie Mae on a daily basis.
    Much has been written about the GSE flawed business model, including a Wall Street op-ed by George Soros which calls the models “hopelessly conflicted” and “it simply doesn't work”.

    ? 1, When do you and the Board intend to disclose to shareholders the consequences of the Bank's vigorous involvement with this fatally flawed business model?

    ? 2 Isn't this business a little like your running a house of ill repute while knowing that all your ladies have aids and what are you doing to your client base?

    ? 3, What would you say to the skeptics that are out there that think that all players involved with the GSE Business Model are engaged in a simple criminal scheme, albeit of a dimension that we have never seen before, that a prosecutor would call “theft by deception” with the American taxpayer as the victim?
    Oct 22 04:57 PM | Likes Like |Link to Comment
  • Bank Of America: Climbing The Wall Of Volatility And Risk [View article]
    http://bit.ly/XxLtqk

    Liability
    Jan 23 11:17 AM | Likes Like |Link to Comment
  • Bank Of America: Climbing The Wall Of Volatility And Risk [View article]
    http://bit.ly/XxLtqk
    Jan 23 11:17 AM | Likes Like |Link to Comment
  • After getting whipsawed by housing over the past 6 years - buying Countrywide as housing was imploding, then backing off the mortgage business just as it was sent to zoom higher - Bank of America (BAC) wants back in. Having jettisoned its correspondent mortgage operations and ceded ground to competitors, growing the business will be easier said than done. [View news story]
    What's new? Are they telling us that they will be carrying their own paper? Or are they telling us that now with settling with Fannie Mae, they will be going back to mother Fannie sucking on the big tit known as the government guarantee as outlined in "The GSE Business Model" described by all as "fatally flawed"?

    As the kids put it .........................
    Jan 16 03:35 PM | Likes Like |Link to Comment
  • Bank of America (BAC) is looking to sell mortgage servicing rights on another $100B in loans, reports Reuters. This follows yesterday's sale of $306B in MSRs that sent the buyers - Nationstar (NSM) and Walter Investment (WAC) - racing higher. Perhaps it's Ocwen's (OCN +2%) turn to get a piece. [View news story]
    Expert in "GSE Business Model"
    Jan 8 12:53 PM | Likes Like |Link to Comment
  • Bank of America (BAC) is looking to sell mortgage servicing rights on another $100B in loans, reports Reuters. This follows yesterday's sale of $306B in MSRs that sent the buyers - Nationstar (NSM) and Walter Investment (WAC) - racing higher. Perhaps it's Ocwen's (OCN +2%) turn to get a piece. [View news story]

    Sounds like and looks like and is a thinly veiled attempt to unload liability on some nonames.

    BAC says they are "highly rated"...............give me a break!
    Jan 8 12:52 PM | Likes Like |Link to Comment
  • Bank of America (BAC) settles for about $10.3B with Fannie Mae over repurchase claims on $1.4T of mortgages. The bank will pay Fannie $3.6B in cash and repurchase for $6.75B certain mortgages. BofA expects to take a $2.7B charge in Q4. Shares +2.4% premarket. (PR[View news story]
    As mortgagee, how does FNMA protect against borrower claims for breach of mortgage mortgage contract?
    Jan 7 08:54 AM | Likes Like |Link to Comment
  • The latest lawsuit against Bank of America (BAC) is no surprise to FBR's Paul Miller (video), who thinks the $1B being tossed around is light. Of more concern is the ongoing battle between BofA and Fannie Mae on the amount of loans the GSE is demanding the bank buy back. Chris Whalen believes BofA may put Countrywide into bankruptcy to escape liability. Not so fast, says Miller, believing the two entities are far too intertwined. [View news story]
    Huge theatre for the benefit of the taxpayers who are footing the bill for this scam called "The GSE Business Model". If you think that the GSEs were not fully complicit, I have a bridge for you in Brooklyn.

    http://bit.ly/Y0rvHE


    Richard Davet v Federal National Mortgage Association
    Oct 25 05:49 PM | Likes Like |Link to Comment
  • Bank Of America: Make Your Move Before Q3 Earnings [View article]
    U Must be joking!! Bac's problem is centered on a Board that is deaf, dumb and blind.

    The elephant in the room is their particpitation in the GSE Business Model for years and the consequential liabilities which has not been resolved.

    See Circa 2005:

    Bank of America Corporation 2005 Shareholders Meeting - Final
    FD (Fair Disclosure) Wire May 11, 2005
    there's a broader scenario (ph).
    Yes?
    RICHARD DAVIT, STOCKHOLDER: Yes, Mr. Chairman, Richard Davit (ph), shareholder and stakeholder. As you're aware, investors worldwide cannot help but pickup the frightening news on a daily basis about the gross irregularities at Fannie Mae. As recently as April 6, 2005, Mr. Armando Falcon, Director of the Office of Federal Housing Oversight or OFHO, testified before Congress before a House Financial Service subcommittee citing numerous violations by Fannie Mae of the generally accepted accounting practices or GAAP.
    These GAAP violations undermine the confidence in the safety and soundness of Fannie Mae activity. As you know, Bank of America is a loan servicer for Fannie Mae and Fannie Mae, therefore, could require Bank of America to repurchase its portion of the $1.5 trillion in notes that their portion serviced by Bank of America. If Bank of America fails to follow the very strict guidelines proffered by Fannie Mae as part of its charter bestowing Fannie Mae with the full faith and credit of the U.S. Treasury. Consequently, Bank of America stockholders face a huge liability if Bank of America is found not to be in full compliance with Fannie Mae guidelines.
    Recent reports indicate many problems with the loan servicing industry with predatory lending legislation sweeping the country. Consumers are demanding that mortgage servicers be stripped of any exemptions previously enjoyed by banks making them subject to all debt collection statutes, which they claim is the essence of the business.
    Predating Enron, I've been in contact with the management of Bank of America, as well as Mr. Guinn, the Chair of the Audit Committee and its members calling to their attention the numerous violations by Bank of America to Fannie Mae Guidelines. For years, when possible, I've attended these annual meetings to attest to these violations. To date, Mr. Guinn and the other members of the Audit Committee have been derelict in their duty to respond pursuant to their fiduciary responsibility to all shareholders and stakeholders.
    I have basically three interrelated questions. One, so that Bank of America stockholders around the world can gauge their potential liability, how can Bank of America assure its stockholders that Bank of America is in full compliance with all of the Fannie Mae guidelines with respect to the millions in loans Bank of America services for Fannie Mae? What specific policies and procedures followed on a daily basis are in place to ensure full compliance? And what methods are in place to audit for that compliance? And how can shareholders acquire a report of that audit of compliance?
    Two, in light of Sarbanes-Oxley, can Bank of America Audit Committee, management and legal counsel and members of the accounting firm be personally and criminally liable for the failure to comply with the Fannie Mae guidelines?
    And three, will it be necessary for me to again raise these issues at the next year's stockholder meetings or should I go elsewhere to take action?
    KEN LEWIS: Elsewhere would be fine. I don't recall the issues that you've had before being issues. It seemed to be more about your mortgage, I thought, than what you're talking about now.
    RICHARD DAVIT: The mortgage activity gave me a window of opportunity to look into this situation. And if you have consulted with your Audit Committee, it's clear that I've brought these issues to their attention.
    KEN LEWIS: And the Audit Committee has looked into every single issue and have looked at them in depth and have said that we feel that we are complying with all of the issues that would arise around Fannie Mae or Freddie Mac and we're in compliance. And we have looked very - in great detail and we do have audits of our procedures. And we think that you're incorrect with your assessments.
    RICHARD DAVIT: So, you say that you are in compliance with all the Fannie Mae guidelines?
    KEN LEWIS: Yes, to the best of my knowledge.
    RICHARD DAVIT: Your Audit Committee has evidence to the contrary, sir. Thank you.
    Oct 17 02:02 AM | 1 Like Like |Link to Comment
  • Does Pandit's departure from Citigroup mean bank boards are beginning to take their responsibilities seriously? If so, Bank of America CEO Moynihan could be next. Moynihan inherited a mess (like Pandit), but has been unable to convince investors he has a strategy for getting out of it. Of even more import is the rebuilding of BAC's brand as a leading consumer bank. [View news story]
    Nothing new, only unreported history

    Moynihan is the "Stonewall Jackson" of thre banking industry.Do nothing and hope the whole thing does not collapse.
    Oct 16 09:54 PM | 1 Like Like |Link to Comment
  • Days before BofA (BAC) shareholders approved the bank's $50B Merrill Lynch purchase, bank execs were told Merrill's losses would hit the combined companies' earnings for years, but chose not to share this info with shareholders. Court documents filed yesterday shed new light on the disconnect, and will likely put more pressure on federal officials to hold key execs accountable for their crisis-era (in)actions.  [View news story]
    Did Lewis actually lie for the country's sake ?
    Jun 4 07:19 AM | Likes Like |Link to Comment
  • 3 Reasons Why I Wouldn't Be A Buyer Of Bank Of America [View article]
    bac's involvement in the "GSE Business Model" has been extensive for years. there is no doubt that the Model is fatally flawed . Management continues to fail to disclose the true extent of the liability exposure.
    May 24 07:44 AM | 1 Like Like |Link to Comment
  • 3 Reasons Why I Wouldn't Be A Buyer Of Bank Of America [View article]
    Since 1996 , 94% of all mortgages sold to fannie mae on a daily basis.................... all subject to repurchase demand due to subsequent servicer mischief. Huge undisclosed liability. Servicing problems predate Countrywide.
    May 24 07:41 AM | Likes Like |Link to Comment
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