What really went on in the mortgage industry?

Jim Kim — Mon, 17 Nov 2008 13:36:50 -0500

Business Week offers an arresting article on so-called "mortgage wholesalers," whose job was to buy up loan applications from mortgage brokers on behalf of big lenders. The competition got so intense that some resorted to offering you know what (it rhymes with hex; the word may trigger spam filters) in exchange for apps. Of course as manicurists and others turned into millionaires, the abuses went much farther--fake documents, harassment, bribery and the like. Of course this rough-and-tumble industry niche was spawned by the Wall Street securitization machine that needed raw material the way the economy needs oil. Eventually Wall Street had to tacitly endorse these seedy practices by turning a blind eye. For all the bad practices, we've seen very little in the form of prosecutions. Will anyone be held accountable?

For more:
- here's the article

Biovail's case for short conspiracy debunked?

Thu, 22 May 2008 06:59:55 -0400

Recall that in early 2006, Biovail filed a $4.6 billion suit that charged 24 hedge funds and research analysts with engaging in a scheme to push the company's stock with lies and planted stories in the media. The debate was widely covered, and ensnared some really big names, such as SAC Capital. But Fortune notes the company just settled federal charges of kickbacks and conspiracy related to the launch of a new drug that touched on the issue raised by hedge funds. In a press statement, the feds seemed to agree with hedge funds that a program that paid doctors to prescribe the drug was a bit over the top. In short, it lent credence to the arguments from the shorts that the company was engaging in nothing short of bribery.

For more:
- here's the Fortune article

Bribery

What really went on in the mortgage industry?

Biovail's case for short conspiracy debunked?