November 26, 2014 – Statement 505: “I’m no detective, but it looks like they (the Coronels) had themselves a really generous ATM machine…This is so typical, it’s tough to stomach. You’ll never see this side of the story in the media, but the Elizabeth Warrens of the world make a living off this narrative.”, Anonymous Reader of Blog Posting #504

November 25, 2014 – Statement 504: “Do Scott Reckard and the L.A. Times have a real mortgage victim here? The Coronel’s started with a $6,329 first trust deed mortgage when they bought their home back in 1994 and pulled over $350,000 in cash out of their home in 11 different mortgage transactions…

November 24, 2014 – Statement 503: “Some have wondered how consumers, bankers, and MBS investors around the developed world could rationally think pre-crisis home prices would continue to rise. The public words and deeds of their Central Bankers (of the E.U. and U.S.) make abundantly clear that THEY are the ones responsible for creating and ingraining long-term, rational expectations of monetary inflation in the prices of goods, services, and assets; such as stocks, bonds, and homes.”, Mike Perry

November 24, 2014 – Statement 502: “As of 2013, $198 billion in unfunded liabilities for California’s 130 public pensions, up from just $6.3 billion only 10 years ago!!! The population of California is about 38 million, so this unfunded liability is over $5,000 per person (every man, woman and child). That scares the hell out of me, for the futures of our children, grandchildren and our state. How about you?” Mike Perry

November 21, 2014 – Statement 501: “It’s ridiculous that retirees (and others) with enough liquid assets to pay off their mortgage in full and with low Loan-to-Value Ratios and excellent credit can’t get a mortgage today. The Federal Government’s ban on all no-income documentation loans is wrong and hurts Americans and the economy.”, Mike Perry, Former Chairman and CEO, IndyMac Bank

November 21, 2014 – Statement 500: “The economic crisis of 2008-09 was similar to the crisis that triggered the Great Depression. This time, foreign monetary authorities had purchased trillions of dollars in U.S. public debt, including nearly $1 trillion in mortgage-backed securities issued by two government-sponsored enterprises, Fannie Mae and Freddie Mac…

November 21, 2014 – Statement 499: “A critique of rent-seeking and political cronyism is well taken, and echoes from the left to libertarians. But if abuse of government power is the problem, increasing government power is a most unlikely solution. If we increase the top federal income-tax rate to 90%, will that not just dramatically increase the demand for lawyers, lobbyists, loopholes, connections, favors and special deals? Inequality warriors think not…

November 21, 2014 – Statement 498: “But for reasons that economists and policy makers are struggling to understand, wages have continued growing by only about 2% annually. This indicates that, despite a labor market that is clearly tightening, companies don’t have to pay up to attract workers…

November 21, 2014 – Statement 497: “With 10 million fewer Americans working full-time today than six years ago, it is not in the nation’s economic interest for Washington regulators to cause good-paying, full-time jobs to be eliminated. This overreach is just one of many in a regulatory environment that has become a major drag on the U.S. economy…

November 21, 2014 – Statement 496: “My company estimates that the $58 billion in annual interest income lost by seniors over the past six years would have boosted GDP by $115 billion a year during this period. In a $17 trillion economy that amounts to an additional 0.7% of GDP growth, by no means inconsequential – a 1% increase in GDP typically leads to an increase of more than a million jobs.”, Charles Schwab

November 19, 2014 – Statement 495: “Lenders quickly tightened their standards beginning in 2007, sending much more of business to the agency, and the FHA has shouldered large losses to mortgages made between then and 2009, when it tightened its own standards and oversight. In part because of those losses, the FHA required a $1.7 billion infusion from the U.S. Treasury in 2013, which was its first bailout in 79 years.” Wall Street Journal

November 19, 2014 – Statement 494: “As a reminder, only 25% of a VA (mortgage) loan is federally guaranteed which reportedly limits some lender participation. To that point, at the MBA conference last week HUD Secretary Castro stated that the 25% limitation ‘leaves a lot of small lenders awfully exposed and reluctant to offer veterans credit under this initiative.’”, November 2014 Mortgage Industry Newsletter

November 19, 2014 – Statement 493: “Here’s my 2 cents on raising LTVs. I can’t stand the fact that we are even debating this idea. My issue is that if you lower the required down payment, you will have more potential homeowners, thus spurring on economic growth, yadda, yadda, yadda. These buyers couldn’t even save 5% for a down payment. What are they going to do about the increased costs of home ownership versus renting? Home maintenance, yard, increased energy bills, etc…

November 19, 2014 – Statement 492: “The old saying about skin in the game is all too true. With the four components of a loan being income, credit, property, and funds, taking the skin out of it makes the rest of the loan a far greater risk than say a 50% no doc loan, there are simply a number of other type loan products that could and should be reintroduced but in this current political environment those aren’t cool…

November 19, 2014 – Statement 491: “The report also tracked affordability by area code within L.A. County. They found that in the 626 – Pasadena and the San Gabriel Valley – just 11% of median-income-earning households could afford a typical house…

November 19, 2014 – Statement 490: “Real estate in Hong Kong defies logic. The city is one of the most expensive places in the world to live and it has smashed one real estate record after another for years. As property costs continue to soar, even once improbable living spaces are now getting snapped up at astronomical prices…

November 18, 2014 – Statement 489: “The fascination with borrowing in foreign currencies spread through several countries in Central and Eastern Europe early in the current century. The benefits were obvious: Because interest rates in other currencies were much lower than those in local currencies, monthly payments on a mortgage denominated in euros or Swiss francs would be lower…

November 18, 2014 – Statement 488: “The president is now operating outside the Constitution. That fact is something that certainly must have weighed heavily on him as he considered whether to ask Congress for a discrete authorization against Islamic State, as opposed to his earlier invitation for us to merely express our support.”, Rep. Adam Schiff (D-Burbank), senior member of the House Intelligence Committee

November 18, 2014 – Statement 487: “Similarly, without scientific evidence, the president (Obama) said that global warming “means longer droughts, more wildfires” in Australia. He then urged his young audience – “keep raising your voices” – to make sure that their political demands on climate change are met.”, Greg Sheridan, Foreign Editor, Australian

November 14, 2014 – Statement 486: “The City of Los Angeles Fire and Police Pension System…is short $3 billion. The state’s pension goliath, the Calpers…needed an additional $57 billion to meet future obligations. The bill at the state teachers’ pension fund is even higher: It has an estimated shortfall of $70 billion.”, Marc Lifsher, Los Angeles Times

November 14, 2014 – Statement 485: “Kroll contends Moody’s deliberately lowballed its rating – a move that could have ripple effects through the market for National Penn’s bonds – to scare other small banks into hiring it for future deals…

November 14, 2014 – Statement 484: “One of the most abjectly false narratives about the financial crisis is that risky mortgages proliferated so that people who couldn’t afford homes could nonetheless buy them. Modern subprime lending was not about homeownership…

November 13, 2014 – Statement 483: “Anyone who understood the banks – and all top hedge fund managers did – realized that if the banks were really forced to assess their solvency based on where assets were trading at that moment, they would have been insolvent…

November 13, 2014 – Statement 482: “When he called JPMorgan, Mr. Soto said, he was told that the black mark would remain unless he paid. “It was either pay or lose the apartment,” he said. But after his bankruptcy lawyer explained the situation to the rental agency, Mr. Soto ultimately did not pay. (He got the apartment.)…

November 13, 2014 – Statement 481: “People are panicking after witnessing the reckless disregard for the Constitution and its limits on federal power. We are frightened by the rise of an omnipotent president capable of using his pen and his phone to implement whatever he fancies…

November 13, 2014 – Statement 480: “It is essential that we try to understand John Muir in all his complexity. He was a man of his times, who actively worked to disgrace California Indians by taking their lands.” Laura Pulido, a professor in USC’s Department of American Studies and Ethnicity

November 12, 2014 – Statement 479: ““The city (Detroit) must be continually mindful that a root cause of the financial troubles it now experiences is the failure to properly address future pension obligations,” (Martha E.M. Kopacz, independent fiscal expert hired by Judge Rhodes) said in her report. Judge Rhodes said on Friday that he agreed…

November 12, 2014 – Statement 478: “America is the freest and most dynamic society in history, and freedom and equality of outcome have never coexisted anywhere at any time. Here the innovator, the first mover, the talented and the persistent win out – producing large income inequality…

November 11, 2014 – Statement 477: “Check out this example of the regulatory nonsense that the (largely) nationalized U.S. mortgage industry deals with on a daily basis. Aren’t most young, talented and driven Americans going to avoid a state-controlled industry like this?”, Mike Perry, former Chairman and CEO, IndyMac Bank

November 11, 2014 – Statement 476: “It hasn’t worked. The only confidence stimulated has been the confidence of hedge funds that stocks might be a good bet in the short term if central banks are printing money. Still missing is the kind of confidence that would boost the incomes and prospects of people who don’t own stocks for a living…

November 11, 2014 – Statement 475: “Numerous firms deemed insolvent nonetheless got emergency loans, while Lehman alone was denied one before it went bankrupt. Judging by their actions, Fed officials seemed to have defined solvency on a case-by-case basis…

November 11, 2014 – Statement 474: “If you made it explicit, the healthy people pay in and sick people get money, it would not have passed (the 2010 Patient Protection and Affordable Care Act), okay? Lack of transparency is a huge political advantage. And basically, you know, call it the stupidity of American voter or whatever. But basically that was really, really critical to getting the thing to pass.”, MIT Prof. and Obamacare Architect Jonathan Gruber

November 11, 2014 – Statement 473: “Instead of the balanced rise in prices and wages that Mr. Abe (Japan’s Prime Minister) promised, pay has lagged, in effect making workers poorer. Adjusted for price changes, household incomes were down a full 6 percent in September compared with a year earlier…

November 10, 2014 – Statement 472: “The Supreme Court has the opportunity to reaffirm the principle that the law is what Congress enacts, not what the administration or others wish Congress had enacted with the benefit of hindsight. Granting tax credits to those who need help purchasing health insurance may be a good idea…

November 10, 2014 – Statement 471: “On campuses across the country, hostility toward unpopular ideas has become so irrational that many students, and some faculty members, now openly oppose freedom of speech. The hypersensitive consider the mere discussion of the topic of censorship to be potentially traumatic. Those who try to protect academic freedom and the ability of the academy to discuss the world as it is are swimming against the current…

November 6, 2014 – Statement 470: “Do I understand this correctly? The UC system is going to increase its student population by 5,000 (from its current 166,250 level) over the next five years…that’s about ½ of 1% student growth a year. So why do they need ten times that level, 5%, in annual tuition increases? The LA Times article below makes abundantly clear why: It’s the unsustainable California public pensions (a pervasive problem in California)…

November 6, 2014 – Statement 469: “…Kuehl’s (successful Los Angeles County Board of Supervisors) campaign benefited from about $3 million in spending by public employee unions, including $1.3 million from groups representing county firefighters and deputy sheriffs…

November 5, 2014 – Statement 468: “The Coalition of L.A. City Unions and its allies have repeatedly urged city leaders to get out of the deals with Bank of New York Mellon and Dexia, alleging they are bleeding the city of desperately needed money…

November 5, 2014 – Statement 467: “The ultimate measure of success (of the American justice system) is the ability to live, work and raise a family in a safe environment – secure in the knowledge that government will not abuse that power with which we entrust it. This must be our universal goal…

November 4, 2014 – Statement 466: “And (Bank of Japan Governor) Mr. Kuroda can’t keep up the act forever. If he revs the printing presses too high, the costs could be ruinous in the form of an asset bubble or currency collapse.” Aaron Back, New York Times

November 4, 2014 – Statement 465: “And some have blamed California’s state pension system, Calpers, for locking Stockton into a plan it cannot afford by erroneously contending years ago that the benefits would not cost much because investment gains would pay for them…

November 4, 2014 – Statement 464: “This is exactly right…cool technology, hooked to exorbitant bank/payment system fees to access your own money is NOT COOL!!! Why don’t we all have a digital U.S. Dollar Account at the Federal Reserve Bank?”, Mike Perry, former Chairman and CEO, IndyMac Bank

November 4, 2014 – Statement 463: “The (Federal) land banks, which had substantially higher losses than other mortgage companies at the time, finally went bust in the Great Depression. Congress bailed them out to the tune of $125 million in 1932. The land banks soon required even more funds and were nationalized a year later…

November 3, 2014 – Statement 462: “Before the recession, it was a government goal, promoted by presidents of both parties, to get the ownership rate up. Homeowners were thought to care more, and thus maintain their homes better. They could profit from rising home prices, helping poorer people who bought homes improve their economic status…

November 3, 2014 – Statement 461: “But the Fed wants higher inflation, targeting a rate of 2%. That would have certain beauties for the government if not for consumers. Inflation devalues debt, and of particular moment is federal government debt, which has soared well over $4 trillion in the past four years to $17.9 trillion…

November 3, 2014 – Statement 460: “Over the summer, Senator Leahy admitted that his earlier explanation was false: There was no failure among technology companies to agree on reform. Instead, Senator Reid had instructed Senator Leahy to drop patent reform on the orders of trial lawyers.”, L. Gordon Crovitz, Wall Street Journal

October 29, 2014 – Statement 459: “A Yuba County jury awarded $16.2 million in damages to a Plumas Lake homeowner who nearly lost his home to foreclosure after his loan servicer mishandled his mortgage…But the presiding judge has decided the jury got it mostly wrong…

October 29, 2014 – Statement 458: “Mortgage lenders dodged the proposed rule by joining homebuilders and advocates of low-income homeownership to convince hundreds of lawmakers that defining supersafe mortgages as those with significant down payments would curtail mortgage lending to the struggling middle class and poor.”, Eduardo Porter, “More Renters, Less Risk for Wall St.”, New York Times

October 29, 2014 – Statement 457: “It is extremely distressing that a select few insiders have been getting an early look at public filings for so long. It violates the basic principles of fairness that underpin our markets, and I urge the SEC to put a stop to this as soon as possible.”, Rep. Carolyn Maloney (D., N.Y.), ranking Democrat on the House Financial Services Committee’s panel that has jurisdiction over capital markets.

October 29, 2014 – Statement 456: “Yet most Americans are still actively trying to avoid fat, according to a recent Gallup poll. They are not aware of the USDA’s crucial about-face because the agency hasn’t publicized the changes. Perhaps it did not want to be held responsible for the consequences of a quarter-century of misguided advice…

October 29, 2014 – Statement 455: “The trend accelerated as attorneys general – particularly Democrats – began hiring outside law firms to conduct investigations and sue corporations on a contingency basis…

October 29, 2014 – Statement 454: “They had a job to do and we trusted them. And it turned out the trustees, the advisers, the actuaries and the accountants misled us.”, City of Detroit Pensioner Coletta Estes

October 29, 2014 – Statement 453: “But of course most economists aren’t really underdogs in need of defending. Taken together, they constitute a classic phenomenon, one to which the otherwise comprehensive Mr. Litan gives short shrift: the guild. The economists’ guild, like others, insists on adherence to a particular methodology and set of beliefs—in this case, the standard understanding of macroeconomics, with its emphasis on Keynesian categories and government-fueled aggregate demand. The guild operates with an unofficial but real license from the banks and the federal government…

October 29, 2014 – Statement 452: “We say hypocrisy because these rules from the banking regulators have been marketed since the 2010 Dodd-Frank law as a way to reduce risks by ensuring that everyone has “skin in the game.” The concept was that borrowers and the people who sell these mortgages to investors have to be on the hook for losses…

October 28, 2014 – Statement 451: “Time Magazine: And how many people have you exonerated? Lawyer and founder of the Equal Justice Initiative Bryan Stevenson: Under 10. Even when we’ve shown that they’re innocent, we make concessions where the person might plead to something just to get out of prison, because the (criminal-justice) system is so unreliable.”

October 28, 2014 – Statement 450: “Policy makers around the world have been taking measures to address incipient housing bubbles. Singapore, Hong Kong and Dubai all have targeted home prices with tighter mortgage-lending criteria and transaction taxes. In New York, the median sales price of Manhattan luxury co-ops and condos was $5 million in the third quarter of 2014, up 22% from a year earlier…

October 27, 2014 – Statement 449: “The Fortune author of “Warren Buffett’s bad housing advice” (see below) doesn’t provide the data/assumptions to audit his financial results and conclusion that stocks are a better investment than buying a home, with a 30-year mortgage. I agree with Mr. Buffett. At current rates, you definitely should get a 30-year, fixed-rate mortgage if you own (by refinancing) or are going to buy a home. A 30-year, fixed-rate mortgage IS a tremendous hedge against inflation…

October 23, 2014 – Statement 448: “Tracy S., 59, a technical writer for a large bank, divorced her husband just as the housing market spiraled downward. They were forced to sell their home, just outside Phoenix, for less than they owed, and the bank agreed to absorb the difference, about $25,000…

October 23, 2014 – Statement 447: “Today’s rule-making takes the untenable (government) housing policy that injected irrational exuberance into mortgage lending and, as a result, caused a catastrophic financial crisis and chisels that failed policy into the stone tablets of the code of federal regulations.”, SEC Commissioner Daniel Gallagher

October 23, 2014 – Statement 446: “There is a profound sense in defense circles that there is a scrum of various regulators and enforcement bodies: the S.E.C., the Justice Department, state attorneys general, the New York State financial regulator and so on. These enforcers have become increasingly politicized and are trying to one-up each other…

October 23, 2014 – Statement 445: “Since its inception, the Federal Reserve’s monetary policies have been a primary cause of artificial booms that lead to recessions and depressions…

October 22, 2014 – Statement 444: “In one case, the European Commission fined JPMorgan Chase €61.7 million euros for manipulating the Swiss franc Libor benchmark interest rate in an “illegal bilateral cartel” with the Royal Bank of Scotland. R.B.S.”, Jenny Anderson, New York Times

October 22, 2014 – Statement 443: “It’s certainly possible that this is only the beginning of government pressure to make (home) loans with lower lending standards,” Alex Pollock, fellow at the American Enterprise Institute

October 22, 2014 – Statement 442: “If an investor wants to put his own money at risk and lend to (mortgage) borrowers who are putting down just 3%, he’s welcome to call it “sensible and responsible.” And we agree with House Financial Services Chairman Jeb Hensarling that if private lenders and borrowers are operating without a federal backstop, they should be free to set the terms of their mortgage contracts without interference from Washington…

October 22, 2014 – Statement 441: “It will really be up to the investors. If they want better lending standards, it is up to them.”, former FDIC Chair Sheila Bair

October 22, 2014 – Statement 440: “As I have said on this blog, why isn’t the SEC requiring more investor disclosure about major stock buyback plans like IBM’s: their historical and cumulative return on invested capital (as the stock price rises or falls) and even more importantly, requiring disclosure of EPS growth with and without the effect of buybacks, so investors understand how the core business is performing?”, Mike Perry

October 21, 2014 – Statement 439: “(Barry Bonds) was convicted of obstruction of justice on a reed-thin argument that he had tried to deprive a jury of the truth….Bonds appealed, and last month a federal appeals court in California appeared to signal unease with his conviction…

October 21, 2014 – Statement 438: “Paulson’s Advantage Fund, which owned Shire shares, was down nearly 11% for October through last Tuesday, bringing the $21 billion firm’s losses in that fund for the year to nearly 22%, according to data from Lyxor, the wealth-management arm of Société Générale SA…That was before Shire fell 30% on Wednesday in New York.”, Wall Street Journal

October 21, 2014 – Statement 437: “There’s this myth that government regulation is well intentioned and benign, and implemented properly. That’s the myth. And then when people actually run into this in the real world, they’re, ‘Oh, [f—], I didn’t realize.’”, Marc Andreessen, Silicon Valley investor and Netscape Founder, New York Magazine

October 21, 2014 – Statement 436: “No matter how many times Lucy pulled the football away, she always managed to persuade Charlie Brown to trust hope over experience and try to kick again. Federal housing-finance regulators are attempting a similar feat as they try to expand access to home loans…

October 21, 2014 – Statement 435: “(I am of a mixed mind), but a down payment of just 3% doesn’t leave borrowers with much of a cushion. If prices fall, it risks a repeat of what happened before the downturn…

October 21, 2014 – Statement 434: “Let’s see. You start a business or build a business and employees voluntarily decide to come to work for your firm at a mutually- agreed-upon package of wages and benefits….and if these employees aren’t happy or find a better job (or for any reason), they can leave at any time they wish…and then an external, third party comes in and attempts to force you to unionize. That’s not right.”, Mike Perry

October 20, 2014 – Statement 433: “THE ONLY REASON DEPOSITORS in the U.S. have become indifferent to risk-taking by banks, Selgin explains, is that the federal government now insures individual deposits running in the millions of dollars. When deposit insurance was originally introduced, none other than Franklin D. Roosevelt opposed it…”, Gene Epstein, Barrons

October 20, 2014 – Statement 432: “The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” Bundesbank President Jens Weidmann

October 20, 2014 – Statement 431: “Fundamentally, stock markets are driven by popular narratives, which don’t need basis in solid fact. True or not, such stories may be described as “thought viruses.” When they are pernicious, they are analogous to the Ebola virus: They spread by contagion…

October 20, 2014 – Statement 430: “Nobody wants zero regulation, and every company should follow the law. But policy should begin with admiration for new ways that citizens can build their lives, not with hostility to profits or the impulse to protect entrenched industries…

October 17, 2014 – Statement 429: “When is the last time you heard of a college or university talking about getting more operationally efficient in a way that would allow it to reduce tuition?”, Dave Cooper and Robert Schaefer

October 17, 2014 – Statement 428: “My analysis of 1999-2013 reveals that the CBO’s real GDP growth forecasts for the next year were off, on average, by 1.7 percentage points, either too high or low. Administration forecasts were similarly off…1.8 percentage points on average…

October 16, 2014 – Statement 427: “…after an uproar from real-estate agents, lenders and civil rights groups, banking regulators dropped the 20% down payment requirement in a new proposal issued last year…

October 16, 2014 – Statement 426: “(The Fed’s policies and actions post-crisis are) diametrically opposed to Friedman’s deeply American insight that a central bank, if it has to exist, should be modest, and that monetary policy should be predictable and simple enough that businesses concentrate on profits and employees rather than central bankers’ economic forecasts and speeches…

October 16, 2014 – Statement 426: “There is too little economic risk-taking, and too much financial risk-taking.”, International Monetary Fund Managing Director Christine Lagarde

October 16, 2014 – Statement 425: “Central bankers don’t stay up at night writing apps, and U.S. senators don’t develop natural-gas plays…Private business creates wealth and the U.S. private sector still leads the world. The U.S. is growing faster than Europe not because of QE, but because, believe it or not, our government is relatively smaller…

October 15, 2014 – Statement 424: “If general circulation models used by the climate-science community were engineering models (subject to validation and verification), they would have been in the dustbin some time ago.”, Mark Strauch, Livermore, California

October 14, 2014 – Statement 423: “More often, debt relief takes place implicitly, through “financial repression”: government policies hold interest rates down, while inflation erodes the real value of debt.”, Paul Krugman, “How Righteousness Killed the World Economy”, New York Times

October 14, 2014 – Statement 422: “The government calls it ‘fair housing’ when they lower underwriting standards to fringe borrowers. When the loan origination sector (private mortgage lenders, including banks) attempts to assist a wider range of borrowers, however, they are called ‘predatory’.”, Brad, October 2014 Mortgage Industry Newsletter

October 14, 2014 – Statement 421: “Rules like this, Fine told me in an interview, create unreasonable barriers for seniors and retirees who may have significant wealth tied up in stocks and bonds in IRAs….The lenders “don’t trust us to manage our own finances,” he said, despite excellent credit histories and prudent financial management over a lifetime.”, Kenneth R. Harney, Los Angeles Times

October 14, 2014 – Statement 420: “Yet the central message that emerges from three conversations with Prof. Shiller over the past few weeks isn’t a cocksure forecast; it is a deep humility in the face of irreducible uncertainty…

October 14, 2014 – Statement 419: “(Dodd-Frank) empowers the federal government to centrally manage the risks of the American financial system, as it seeks to prevent another crisis and eliminate the problem of too-big-to-fail banks. Yet large banks still reap a $70 billion annual subsidy from the continued market perception that they will be rescued if trouble arises, according to a March report from the International Monetary Fund.”, Donald J. Boudreaux and Todd J. Zywicki, George Mason University

October 14, 2014 – Statement 418: “In any case, it seems wise to keep in mind that low wages are the symptom, not the problem. The problem is too many workers chasing too few low-wage jobs. To solve this problem, we either need fewer workers or more jobs. Unfortunately, a minimum wage of $13.25, compared with $7.25 in Texas and $5 in Mexico, repels jobs and attracts workers…

October 14, 2014 – Statement 417: “The rest of the world sort of laughs at the United States – how can a great country like the United States get so many things wrong?” Keith Ambachtsheer, Dutch pension specialist, Rotman International Center for Pension Management, a global clearinghouse of information on how successful retirement systems work, the University of Toronto

October 14, 2014 – Statement 416: “The warming hiatus, combined with assessments that the climate-model sensitivities are too high, raises serious questions as to whether the climate-model projections of 21st-century temperatures are fit for making public-policy decisions…

October 10, 2014 – Statement 415: “The U.S.’s huge trade deficits (since about 1980), mean that the rest of the world is awash in U.S. dollars. Trading partners like China, who have run big trade surpluses with the U.S., are forced to retain U.S. dollars and re-invest these funds back in U.S. assets…

October 10, 2014 – Statement 414: “(Under oath, Ben Bernanke) affirmed that the global financial system had been on the verge of collapse in September 2008. He agreed that A.I.G.’s collapse would have been “basically the end” of the financial system, so connected was it to other parts of the financial world.”, New York Times

October 9, 2014 – Statement 413: “…Baer opines that…business leaders “(need to) show how they use their positions of power to contribute to the common good.” On the contrary, the primary purpose of business leaders is to make profits. Out of profits, come jobs. Out of good jobs come happy citizens who can raise their families and undertake charitable activities of their choosing. What’s sorely missing in the West is an understanding that what we have today isn’t capitalism.”, Ellen Sandles, New York

October 9, 2014 – Statement 412: “Certainly Citi and B. of A. were insolvent.” former U.S. Treasury Secretary Timothy F. Geithner (during the book interview), New York Times

October 8, 2014 – Statement 411: “Late in the day Tuesday, Mr. Boies pressed Mr. Geithner on how the government came up with the higher interest rate that would be levied on AIG. Mr. Geithner said the rate was based in part on an assessment made by J.P. Morgan Chase & Co. and Goldman Sachs in the 11th-hour effort.”, Wall Street Journal

October 7, 2014 – Statement 410: “Again, the truth is finally emerging. FHA’s audit of mortgage loans insured by them in Q1 2014 apparently has uncovered huge, “material” underwriting error rates. If this is true, it goes a long way to disprove the mainstream view that pre-crisis mortgage underwriting deficiencies were a material cause of mortgage (and mortgage securities) losses during the financial crisis…

October 7, 2014 – Statement 409: “The feeble recovery is tempting officials to devalue their currencies, a policy that prices their exports more favorably for international buyers…

October 7, 2014 – Statement 408: “The big question is whether a 15-year mortgage can be affordable. We think it can.”, William M. Isaac and Edward Pinto

October 7, 2014 – Statement 407: “Hong Kong became rich on the small government, laissez-faire, rule-of-law-not-men principles of its late colonial administrators. It has remained rich because, by comparison to mainland China, it remains relatively free and uncorrupt. Hong Kong is what China could be if it weren’t, well, China – if state intervention were minimal; if government weren’t a vehicle for self-enrichment; if people could worship, write, exercise and associate just as they please…

October 7, 2014 – Statement 406: “In 2011 Calpers adopted a policy of discounting the termination fee at a rate tied to 10- and 30-year Treasurys in lieu of the 7.5% rate it ordinarily uses to calculate unfunded liabilities. This sleight-of-hand blows Stockton’s $212 million unfunded pension liability up to $1.6 billion. Welcome to the Hotel Calpers. You can check out anytime you want, but you can never leave…

October 7, 2014 – Statement 405: “To pretend that the rescue of A.I.G. was anything but an effort to make sure the rest of the (banking) industry didn’t go under is to misunderstand history. The entire point of the A.I.G. bailout was to bail out Wall Street and reinstall confidence in the system so that it didn’t collapse under even more uncertainty…

October 7, 2014 – Statement 404: “Mr. Paulson said (under oath in the U.S. Court of Federal Claims in Washington), among other things, that Citigroup Inc. would have failed without government assistance…”, New York Times

October 7, 2014 – Statement 403: “(Martin Wolf the Financial Times economics commentator says) Blaming American homebuyers for their liar loans or Greece for its overleveragedness doesn’t fly. These agents behaved logically, given the forces at play. In the grand scheme of things, economics and economists failed, not economic agents…

October 6, 2014 – Statement 402: “Pre-crisis, Mr. Bernanke would have been able to refinance with highly competitive rates/terms, utilizing an Alt-a mortgage that was not based on his current income, but based on the substantial equity in his home, his outstanding credit (including paying the very mortgage he intended to refinance on time), and his ample other assets…

October 6, 2014 – Statement 401: “…in the past year of listening to testimony from government officials, there is something different about the boredom and indifference with which government testifiers skirt, dodge and withhold the truth. They don’t seem furtive or defensive; they are not in the least afraid…

October 6, 2014 – Statement 400: “What is the value of a guaranty from a guarantor with hugely negative capital? Zero. It is solely the fact that the government guarantees Fannie and Freddie’s obligations that gives this business any revenue or profit at all.”, Alex Pollock, American Enterprise Institute

October 6, 2014 – Statement 399: “Today, the acceptance of fiat money — currency not backed by an asset of intrinsic value — rests on the credit guarantee of sovereign nations endowed with effective taxing power, a guarantee that in crisis conditions has not always matched the universal acceptability of gold…

October 2, 2014 – Statement 398: “Yet along the way has come the perverse growth of the term “denier” not for those (if any exist) who deny any possible human impact on climate, but for anyone who does not join in demanding the issue be treated with maximal urgency above every other consideration…

October 1, 2014 – Statement 397: “China’s central government loosened mortgage restrictions on Tuesday in its first direct move this year to address the country’s ailing housing market, which is becoming a significant drag on the economy amid other signs of weakness.” Wall Street Journal

October 1, 2014 – Statement 396: “Mr. Galston fails to recognize the most important shift in the economy over the last 50 years – the move from free-market-based capitalism with light regulation to crony capitalism with heavy regulation…

September 30, 2014 – Statement 395: “When an economy is growing rapidly, and the population is increasing, house prices are likely to rise (and vice versa)…That is what has happened in the United States since the summer of 2007, when house prices peaked, as measured by the Federal Housing Finance Agency index…

September 30, 2014 – Statement 394: “But the (Los Angeles) City Council never seemed interested in really examining the potential economic consequences of the ordinance…

September 30, 2014 – Statement 393: “…the agency has touted its enforcement statistics as a gauge of its effectiveness for the past decade. But police chiefs often rate success in terms of falling crime rates…The SEC’s increasing numbers of cases and “ever-growing penalty amounts” could show a need to re-evaluate…”, Bradley Bondi, former SEC Commission Counsel, partner Cadwalader, Wickersham, & Taft, LLP

September 30, 2014 – Statement 392: “The 8th Amendment bans cruel and unusual punishment. Yet it happens every day in prisons across the country…We are a nation of laws, and the Constitution is the highest law in the land. Do we (any American) really find this kind of treatment of prisoners acceptable?”, Martin Garbus, trial attorney

September 29, 2014 – Statement 391: “If you had to boil it down to ‘What’s the number one problem in the world?’ well, it would be poor decision making,” says (Ralph) Adolphs (Professor of Pyschology and Neuroscience and biology, and director of Caltech’s Conter Center for Neuroscience). “It’s very hard to make complex decisions, especially when the consequences of those decisions will occur far in the future…

September 29, 2014 – Statement 390: “After all, misguided energy policy can have very bad outcomes. For instance, in the 1970s, the U.S. thought it was running out of natural gas, and Congress prohibited building any new power plants that used it. Instead, we built lots of coal plants…

September 29, 2014 – Statement 389: “There is not much evidence that these policies (macroprudential regulations) prevent financial bubbles. But there is great risk in allowing a small group of unelected technocrats to determine the allocation of credit in the U.S. economy…

September 29, 2014 – Statement 388: “Monopolies invariably produce bad products at high prices.”, Ted Forstmann, legendary financier

September 29, 2014 – Statement 387: “It’s about an abusive system (SEC enforcement) that threatens the nation’s economic vitality by jeopardizing small business and its entrepreneurial spirit.”, Nelson Obus, co-founder Wynnefield Capital, Chief Executive Magazine

September 29, 2014 – Statement 386: “In July, Federal Reserve Chair Janet Yellen suggested in congressional testimony that social media and biotech valuations “do appear substantially stretched.” Has she looked at Treasurys lately? Treasury yields actually turned negative this week…

September 25, 2014 – Statement 385: “Changes in ocean circulation as a result of weaker winds were the main cause of about 1 degree Fahrenheit of warming in the northeast Pacific Ocean and nearby coastal land between 1900 and 2012, according to the analysis of ocean and air temperatures over that time…

September 25, 2014 – Statement 384: “The Catholic Church does incalculable good, providing immeasurable comfort – material as well as spiritual – to so many. But it contradicts and undercuts that mission when it fails to recognize what more and more parishioners do: that gay people deserve the same dignity as everyone else…

September 25, 2014 – Statement 383: “Do bigger loan files mean better loans? A fascinating article in the latest Mortgage Banking reviewed a study that showed the following: (a) 85% of all loan files contained 400-2,000 pages…

September 25, 2014 – Statement 382: “This right (to a competent attorney) is so fundamental to the operation of the criminal justice system that its diminishment erodes the principles of liberty and justice that underpin all of our civil rights in criminal proceedings.”, Molly J. Moran, Acting Assistant Attorney General, U.S. Department of Justice

September 25, 2014 – Statement 381: “The devices, lawyers for borrowers argue, violate those laws because they may effectively repossess the car only days after a missed payment. Payment records show that Ms. Bolender, the Las Vegas mother with the sick daughter, was not in default in any of the four instances her ignition was disabled this year.”, New York Times

September 24, 2014 – Statement 380: “However, the Court will briefly discuss the FDIC’s claim that the “Great Recession” was not only foreseeable, but was actually foreseen by the defendants. The Court discusses this claim only due to the absurdity of the FDIC’s position…In sum, the FDIC claims that defendants (former Officers and Directors of Cooperative Bank) were not only more prescient than the nation’s most trusted bank regulators and economists, but that they disregarded their own foresight of the coming crisis in favor of making risky loans. Such an assertion is wholly implausible…

September 22, 2014 – Statement 379: “Hefty overdraft fees are often imposed for transactions that are quite small, the Consumer Financial Protection Bureau found in a July study…

September 22, 2014 – Statement 378: “Officials at the White House and the Federal Reserve point to tight credit as they flag worries about a soft housing recovery. Fed Chairwoman Janet Yellen last week labeled mortgage-market conditions “abnormally tight.”…

September 22, 2014 – Statement 377: “I am going to give equal opportunity here. Below is a New York Times article from one the top experts concerned about climate change: Robert N. Stavins is a professor and the director of the environmental economics program at the Harvard Kennedy School…

September 18, 2014 – Statement 376: “Congress should eliminate federal corporate income taxes, which in 2012 contributed only 9% of federal tax revenues. After all, corporations pay no taxes; their customers pay them in higher costs for products and services.”, Jon Titus, Herriman, Utah

September 18, 2014 – Statement 375: “There are now 10,000 lawyers in the Department of Defense. The legal staff assigned to Gen. Dempsey alone could fill a law firm. No one goes to war in this country until those DoD lawyers – plus lawyers at the Justice Department and White House – define in detail the parameters of battle…

September 17, 2014 – Statement 374: “The only reason people choose Uber over us is the money part. If we could, we would love to be cheaper.”, Michael Linke, 60, taxi driver in Frankfurt, Germany for more than 30 years

September 17, 2014 – Statement 373: “There is no rational reason Tesla – or any other automobile manufacturer – should be restricted from selling new cars directly to those who seek to buy them…

September 16, 2014 – Statement 372: “The key was to make it a 15-year loan, which allows borrowers to pay off the principal – and build equity – much faster and generally at a lower interest rate because shorter-term loans are less risky for lenders. Still, a shorter term also means higher monthly payments…

September 16, 2014 – Statement 371: “Real estate (a home) is by far the most important asset that most individuals will ever own. It is comparable in market capitalization to the exhaustively-studied stock and bond markets. To not know whether U.S. residential real estate fell by 23% or 43% in the last bear market (or whether it rose by 50% or 80% in the eight years before that) is troubling…

September 16, 2014 – Statement 370: “It is hard to make money in real estate (a home) in the long run, unless there is unanticipated inflation (that is, inflation not impounded in the mortgage interest rate). A capital asset that appreciates at a 0.5% real annual rate…

September 15, 2014 – Statement 369: “This lending freeze is not just preventing people like the Sleimans, who have struggled to document their income, from chasing their dreams. It’s bad for the overall economy too…

September 15, 2014 – Statement 368: “…if the Fed isn’t so all powerful, then the same unexpected external shocks that might cripple the private sector also will wreak havoc on our $4.5 trillion central bank money-manager…

September 15, 2014 – Statement 367: “This suggests that without a significantly stronger economy or easier credit standards, the pace of renters flowing into home buying is unlikely to pick up…

September 15, 2014 – Statement 366: “The Obama administration is moving to ease access to student loans for parents with damaged credit, a policy reversal that could saddle poor families with piles of debt but also boost college enrollment…

September 15, 2014 – Statement 365: “It’s not economic (it’s irrational) for banks to offer fixed-rate jumbo mortgage at rates below government guaranteed mortgages…

September 15, 2014 – Statement 364: “It’s pretty interesting that when the WSJ interviewers pressed VCer Gurley about what Benchmark and the companies they invest in are doing about it (the tech bubble he warns about), he essentially says, “it’s hard (to decide what to do)”…

September 15, 2014 – Statement 363: 2002-Government: “YOU MUST PUT MORE MINORITIES AND LMI (Low-to-Moderate Income Borrowers) IN HOMES!”

September 15, 2014 – Statement 362: “This country has achieved its success due to capitalism, entrepreneurship, risk-taking…Yet the government sees fit to forgive student debt for people who choose careers in regulation, wealth redistribution and just plain giving stuff away. Talk about turning your back on what works. Talk about “fundamentally changing America.”, Guy Randolph, Savannah, Ga.

September 12, 2014 – Statement 361: “The FHFA hopes that increasing demand for low-income mortgages from Fannie and Freddie will spur lenders to make more of these loans. That is certainly the way things worked before the financial crisis, when lenders could be counted upon to quickly adapt their lending practices to satisfy the appetites of the mortgage giants…

September 12, 2014 – Statement 360: “…the Obama administration has not even published a legal opinion attempting to justify the president’s assertion of unilateral war-making authority. This is because no serious opinion can be written…

September 12, 2014 – Statement 359: “…believing that “we can only exercise our right to free speech insofar as we feel safe and respected in doing so?” Of course not—it’s when we feel unsafe and disrespected that the exercise of free speech is most effective, and even obligatory. Those who would only speak out when comfortable do not merit the privilege.”, Jon Oelrich, Letters to the Editor: Wall Street Journal

September 12, 2014 – Statement 358: “So much for fairness and the rule of law when the government has its fat finger on the scales of justice. Invest in blue state or blue city bonds? Just one word: Argentina.”, Robert Bell, Encinitas, Calif.

September 11, 2014 – Statement 357: “Syncora’s dispute with the banks goes back to a $1.4 billion borrowing by Detroit in 2005. The city was already in dire financial straits and did not have enough to make its required pension contributions. After city unions sued, Detroit decided to borrow the money…

September 11, 2014 – Statement 356: “Jeremy Stein, an economist at Harvard who just left the Federal Reserve board of governors this summer, told me, “I’m broadly sympathetic to the argument that central bankers should be attentive to financial stability ex ante. You can’t just look at unemployment and inflation and little else.”…

September 11, 2014 – Statement 355: “How are these SBA franchise loans (federal student loans and even FHA loans), all with high default rates, any different than the private sector’s subprime credit card, auto, or home loans?”

September 11, 2014 – Statement 354: “Government agencies like the SEC force institutional investors (banks, insurers, pension plans, and others) to follow the credit raters’ advice. In 2010 Dodd-Frank required the SEC to remove credit raters from its rules, but much of this work remains undone…

September 10, 2014 – Statement 353: “The Fed’s multibillion-dollar assistance to financial institutions – including lending commitments to Citigroup and Bank of America, supporting J.P. Morgan’s purchase of Bear Stearns, rescuing AIG and through that aid to Goldman Sachs and many others – occurred without transparency…

September 10, 2014 – Statement 352: “I thought it was illegal to require prospective employees to possess some skill or expertise that is not required to perform the job? Requiring a college degree for almost any position is unnecessary and should be illegal. Today, we can test job candidates on what they actually know and can do and that and what they have accomplished is all that should matter…

September 10, 2014 – Statement 351: “It’s hard to conceive of a more destructive national policy (federal student loan policies) – encouraging tuitions to rise and students to avoid productive enterprise while burdening taxpayers with another unsustainable entitlement.”, Wall Street Journal Editorial Board

September 8, 2014 – Statement 350: “Of course the lenders want to lend but as pointed out in this article, when any and every default can result in a far more costly response for frivolous and immaterial errors it creates a defensive lending strategy…

September 8, 2014 – Statement 349: “The image of the U.S. as bursting with entrepreneurial zeal, it turns out, is more myth than reality. In truth, the rate at which new companies are being formed has fallen steadily for more than three decades. Many factors appear to be contributing to the trend…

September 8, 2014 – Statement 348: “…in their quest to explain the pause (15+ years without warming), scientists have made the future sound even less alarming than before. Let’s hope that the United Nations admits as much…and asks the delegates to pack up, go home and concentrate on more pressing global problems like war, terror, disease, poverty, habitat loss and the 1.3 billion people with no electricity.”, Matt Ridley, member, British House of Lords

September 4, 2014 – Statement 347: “The reason the banking system’s loan-to-deposit ratio has declined significantly, from over 90% pre-crisis to just 69% today, is banks aren’t lending the several trillion dollars printed by the Fed to implement QE…

September 3, 2014 – Statement 346: “The Financial Times reports that Wells Fargo CEO John Stumpf has warned the GSEs (government-sponsored enterprises) that they must stop being so quick to accuse banks of faulty underwriting and then forcing them to repurchase soured loans. “We’re just not going to make those loans and there’s going to be a whole bunch of Americans that are underserved in the mortgage market…

September 3, 2014 – Statement 345: “(Meltzer’s “Cronyism vs. the Constitution” Op-Ed, Aug. 26) points to Dodd-Frank and its Consumer Financial Protection Bureau…A primary mission of the CFPB is to make sure that the financial system directs credit toward individuals and groups deemed to be disadvantaged. The CFPB now wants banks to make more loans to disadvantaged borrowers who generally cannot meet tighter lending standards…

September 2, 2014 – Statement 344: “The rapid increase in new credit lines is the direct result of the significant gains in home prices in most parts of the country during the last year, researchers say…

September 2, 2014 – Statement 343: “ATP Tour should have sparked a robust debate among institutional shareholders, corporate managers and their respective counsel about the merits of loser-pays bylaws…

September 2, 2014 – Statement 342: “Monetarists will soon have to abandon the myth that a managed market for money can coexist with a free market for everything else.”, Daniel Oliver Jr., New York

September 2, 2014 – Statement 341: “We are bumping up against the Fed’s 2% (inflation) trigger to begin raising rates…Funding our $17 trillion national deficit at the current rate of about 2% is a challenge. Having to fund it at double digits would result in our turning out the lights…

September 2, 2014 – Statement 340: “Some of the factual assertions in recent amicus briefs would not pass muster in a high school research paper. But that has not stopped the Supreme Court from relying on them. Recent opinions have cited “facts” from amicus briefs that were backed up by blog posts, emails or nothing at all.”, New York Times, September 2, 2014

September 2, 2014 – Statement 339: “The suit offers a detailed look at the uneasy state of lending in the United States. In the heady days before the 2008 financial crisis, as Wall Street’s mortgage machine hummed, the nation’s largest banks made loans in black and Hispanic neighborhoods…

September 2, 2014 – Statement 338: “From our statistical sample, we project that 1,772 loans, worth $208 million (22 percent of the universe), may have similar noncompliance issues related to ineligible borrowers and properties,” The Office of Inspector General, USDA

September 2, 2014 – Statement 337: “The cost of consumer checking accounts at U.S. banks and thrifts hit new highs during the first six months this year, according to the latest survey of 100 banks by”, Los Angeles Times, August 2014

August 30, 2014 – Statement 336: “During his career, Mr. Staubach had six major concussions, but he says he hasn’t felt any lasting effects. While other former players have claimed problems like dementia and depression after their careers were over, he doesn’t fault the NFL for any issues…

August 30, 2014 – Statement 335: “The Fed’s loose policies have pushed up stock, bond and real estate prices – which is, in fact, the point of a low-rate policy. There is legitimate debate about how overvalued assets may be. But low rates, by fostering investments with borrowed money, invariably create the conditions for bubbles.”, New York Times Editorial Board, August 24, 2014

August 30, 2014 – Statement 334: “I’m becoming increasingly uneasy,” Scott Grundfor…(Mr. Grundfor’s company also restores and consults on classic cars.) “I’ve firmly believed at least 50 percent of the dramatic rise in car values can be attributed to the printing of money and the manipulation of interest rates by central banks.”…

August 28, 2014 – Statement 333: “September and October of 2008 was the worst financial crisis in global history, including the Great Depression. Of the 13 most important financial institutions in the United States, 12 were at risk of failure within a period of a week or two.” Former Federal Reserve Chairman Ben Bernanke (From a document filed with the U.S. Court of Federal Claims, August 22, 2014.)

August 28, 2014 – Statement 332: “After three years of procedure, the sole surviving allegation is that through inadvertency or inattention I may have failed to intervene to block the arbitration that brought to an end the long-standing Tapie litigation,” Christine Lagarde, head of the IMF and former French Finance Minister

August 22, 2014 – Statement 331: “I. Bank of America acknowledges the facts set out in the Statement of Facts set forth in Annex 1, attached hereto and hereby incorporated…21. Miscellaneous C. The Parties acknowledge that this Agreement is made without any trial or adjudication or finding of any issue of fact or law, and is not a final order of any court or governmental authority.” Excerpts from BofA’s August 20, 2014, Settlement Agreement

August 22, 2014 – Statement 330: “The point is that when you see people clinging to a view of the world in the teeth of the evidence, failing to reconsider their beliefs…you have to suspect that there are ulterior motives involved…Well, when economic myths persist, the explanation usually lies in politics – and, in particular, in class interests. There is not a shred of evidence…”, Paul Krugman, New York Times

August 22, 2014 – Statement 328: “Attitudes have been changing, and the more than 2,000 apartments at the Barbican estate (London) are now in hot demand. A three-bedroom, 1,200-square-foot apartment is on the market for $3 million, up from $1.8 million two years ago, according to real-estate agency Frank Harris and Co…

August 22, 2014 – Statement 327: “In 2008, the Treasury lured private investors into Fannie and Freddie, at an extremely risky moment, with the promise of a return if the entities returned to profitability. Once they started to generate a profit, the Treasury, with the stroke of a pen, changed the rules of the game and decided that all profits should go to the government’s coffers…

August 22, 2014 – Statement 326: “Please also don’t look for an analysis of how and why the fine was calculated because it doesn’t seem to exist. For all we can tell the lawyers made it up…

August 21, 2014 – Statement 325: “…since I first asked Congress to raise the minimum wage, 13 states have gone ahead and raised theirs – and those states have seen higher job growth than the states that haven’t raised their minimum wage.”, President Obama, July 9, 2014

August 21, 2014 – Statement 324: “Uber has the chance to be a once in a decade if not a once in a generation company. Of course, that poses a threat to some, and I’ve watched as the taxi industry cartel has tried to stand in the way of technology and big change. Ultimately, that approach is unwinnable.” David Plouffe, President Obama’s former Chief Political Strategist

August 20, 2014 – Statement 323: “But like in London, an equally potent driver of the property market in Germany is the good old “search for yield”…With 10-year Bund yields at 1 percent, free money will have to flow towards property at some point…

August 21, 2014 – Statement 322: “Former Obama senior adviser David Axelrod dismissed it as “pretty sketchy.” (The indictment of Texas Governor Rick Perry for “abuse of power.”) Harvard law professor Alan Dershowitz said this is “what happens in totalitarian societies.”…

August 21, 2014 – Statement 321: “It wasn’t entirely accidental that Theresa’s debts ended up in the hands of thieves. When the original creditor, Washington Mutual, sold her debt, it stopped caring about what Theresa owed, how she was treated or what happened to her personal information. This is true for many banks…

August 20, 2014 – Statement 320: “If I had been told to get out of the street as a teenager, there would have been a distinct possibility that I might have smarted off. But, I wouldn’t have expected to be shot…

August 19, 2014 – Statement 319: “…the Fed should also take into consideration the possibility of excesses brought on by low interest rates that could create financial crises. In making interest-rate decisions, the Fed should have a realistic view of the broad range of the existing systemic risks and of the limits of the government’s currently extant macroprudential tools…

August 19, 2014 – Statement 318: ““The collapse of Lehman was not an isolated failure of a single broker-dealer, but rather one of a string of crises for multiple broker-dealers,” Mr. Rosengren (Boston Fed President) said in his speech. While repo borrowing has fallen from its peak before the financial crisis, it is still by far the largest source of borrowing for broker-dealers…

August 19, 2014 – Statement 317: “When I finally realized that we were talking past each other, I felt kind of dumb. Because essentially this very realization – that people who favor expansion of government imagine a State different from the one possible in the physical world – has been a core part of the argument made by classical liberals for at least three hundred years.”, Michael Munger

August 19, 2014 – Statement 316: “We were told the science was settled. Yet new research suggests that salt is not nearly as dangerous as the government medical establishment has been proclaiming for many decades—and a low-salt diet may itself be risky.”, Wall Street Journal

August 19, 2014 – Statement 315: “…the political philosopher Liu Junning, declared, to the applause of students and faculty, that many Chinese would gladly take our crisis – if they could enjoy our freedoms. Crisis and freedom are surely bound together, since the West is essentially driven toward self-criticism and what economists call “creative destruction,”…

August 18, 2014 – Statement 314: “This then is the way the world works: Autocratic hypercapitalism without Western checks and balances produces new elites whose dream is an American or British lifestyle and education for their children, and whose other goal, knowing how their own capricious systems really function, is to buy into the rule of law by acquiring real estate…

August 18, 2014 – Statement 313: “So why don’t they back off Risen? It’s hard to fathom how the president who started with the press fluffing his pillows has ended up trying to suffocate the press with those pillows. How can he use the Espionage Act to throw reporters and whistle-blowers in jail even as he defends the intelligence operatives who “tortured some folks,”…

August 18, 2014 – Statement 312: “A large California pension manager is using complex derivatives to supercharge its bets as it looks to cover a funding shortfall and diversify its holdings…San Diego’s approach is one of the most extreme examples yet of a public pension using leverage – including instruments such as derivatives – to boost performance.”, Dan Fitzpatrick, Wall Street Journal

August 15, 2014 – Statement 311: “Most of the living wills, including those for the four largest banks – J.P. Morgan Chase, Bank of America, Citigroup and Wells Fargo – are based on a combination of Chapter 11 bankruptcy of the parent firm and sales of subsidiaries. But selling business units in a liquidity or solvency crisis is hardly a viable plan.” Steven Gjerstad and Vernon L. Smith

August 15, 2014 – Statement 310: “NewLeaf came out with VA guidelines that have been enhanced to allow 100% LTV on Cash-Out Transactions…Minimum credit score is 640, Conforming Loan Limits, Maximum Cash-out $100,000 for all LTVs…” Excerpt from August 2014, Mortgage Industry Newsletter

August 5, 2014 – Statement 309: “Of greater concern, however, are the implicit admission and hubristic conceit behind the talk about macroprudential supervision. In effect, its proponents say: Yes, we know that interest rates are too low, but trust us, we’ll rig the rest of the market as well so that nothing bad happens. To which one can only respond, good luck with that! Or more constructively: Simpler is usually better.”, Klaus Chavanne, LaGrangeville, N.Y.

August 5, 2014 – Statement 308: “The case will most likely rest on how a judge interprets the S.E.C.’s arcane rule, known as 14e-3.”, Andrew Ross Sorkin, “Perhaps Too Clever To Be Legal”, New York Times

August 5, 2014 – Statement 307: “More important, the proceedings violate the Constitution’s separation of powers. Every phase of the proceeding, and every government official involved, is controlled by the agency in its role as chief prosecutor. The SEC assigns and directs a team of employees to prosecute the case…

August 5, 2014 – Statement 306: “One misguided CFPB regulation is ‘for the best interest of the consumer’ is the 3-day appraisal rule.”, Mortgage Industry Newsletter

August 5, 2014 – Statement 305: “And those Millennials sure don’t like 40 pages of upfront disclosures…but then again, who does? If someone can buy a $100,000 car and fill out 1-2 pages, but the file for a $100,000 home is 4 inches thick, how long do we think folks will put up with that?”, Mortgage Industry Newsletter

July 31, 2014 – Statement 304: “The House lawsuit is no “stunt,” as Mr. Obama has characterized it. The lawsuit is necessary to protect the Constitution’s separation of powers, a core means of protecting individual liberty. Without a judicial check on unbounded executive power to suspend the law, this president and all who follow him will have a powerful new weapon to destroy political accountability and democracy itself…

July 31, 2014 – Statement 303: “It is still crazy to me that the lender who gives money to a defaulting borrower is the bad guy here. PHH gave a borrower $280,000 that he never repaid. Then PHH offered to voluntarily modify the loan terms. And because the modification is not processed correctly or to the borrowers liking, the lender owes this defaulting borrower $16 million?? What happened to contract law?”

July 30, 2014 – Statement 302: “Top Fed officials including former Chairman Ben Bernanke have argued that rising asset prices are less a risk than a plus, because the rising value of houses, stocks and bonds makes families feel wealthier, so they spend more and boost the economy…

July 30, 2014 – Statement 301: “She had run into financial difficulty (paying her mortgage) after separating from her husband and owed nearly $300,000 on her home, which was valued at less than $200,000, she said.”, Wall Street Journal, July 30, 2014

July 30, 2014 – Statement 300: “A little non-bank mortgage broker has to develop and maintain a federal Anti-Money Laundering program and have it regularly tested by an independent party or be in violation of U.S. law???”

July 29, 2014 – Statement 299: “The unusual price pattern, with prices rising at an increasing rate, was already well entrenched before the widespread adoption of alternative mortgage products…such as adjustable rate mortgages, interest-only mortgages, negative equity mortgages…

July 29, 2014 – Statement 298: “For more than sixty years, Federal Reserve intervention in the market for Treasury securities has been used as the principle monetary policy instrument in the United States. We show that these interventions, which alter short-term interest rates, had their primary impact on residential mortgage lending until the Great Recession…

July 29, 2014 – Statement 297: “What May Have Sustained and Continued the Housing Bubble (2002-2006)?”

July 29, 2014 – Statement 296: “What May Have Triggered the Housing Bubble (1997-2001)?”

July 28, 2014 – Statement 295: “One can review the century-long track record of the Fed, since its founding in 1913, in executing the congressional constitutional task (Article 1, Sec. 8) “to coin money and regulate the value thereof” by comparing the purchasing power of the 1913 dollar with the equal purchasing power, per CPI comparisons, of the comparable $24.30 needed today. That’s a 96% shrinkage…

July 28, 2014 – Statement 294: “I believe we are at risk of doing what the Fed has too often done: overstaying our welcome by staying too loose, too long…Those of us who are the current trustees of the Fed’s reputation – the FOMC…

July 28, 2014 – Statement 293: “It’s just a painful business (health care) to be in…the regulatory burden in the U.S. is so high that I think it would dissuade a lot of entrepreneurs.”, Google co-founder Sergey Brin

July 24, 2014 – Statement 292: “The rescue of incumbent investors in the government bailout of the largest U.S. banks in the autumn of 2008 has been widely viewed as unfair, as indeed it was in applying different rules to different players…

July 24, 2014 – Statement 291: “The status quo of implicit guarantees for money funds is unacceptable, just as it was for Fannie Mae and Freddie Mac in the decades leading up to the financial crisis.” SEC Commissioner Daniel Gallagher

July 24, 2014 – Statement 290: “At present, there are no federal laws that sufficiently protect lesbian, gay, bisexual and transgender (LGBT) workers from being fired simply because of who they are or who they love. American workers should be judged by one thing only: their ability to get the job done…

July 23, 2014 – Statement 289: “Mr. Blinder says that Fed policy has been working well, so a fix is unnecessary. But it has not been working well. Since the time the Fed deviated from the rules-based policy that had worked well in the 1980s and 1990s, we have had a financial crisis, a deep recession and a very disappointing recovery…

July 23, 2014 – Statement 288: “…Harvard researchers who examined a large sample of 2007 bankruptcy filings found that, “using a conservative definition, 62.1% of all bankruptcies…were medical.” That research, published in the American Journal of Medicine…

July 23, 2014 – Statement 287: “…for example, if someone took out a (FHA) loan 10 years ago, and maybe they got a $5,000 gift from their parents, well, technically, you’re supposed to get a gift letter from the parents. Well, let’s say we didn’t get the gift letter. The loan has been handled perfectly well for 10 years…

July 23, 2014 – Statement 286: “The average federal debt per household will soon exceed $140,000…Federal debt is now nine times greater than revenue legally available for debt service. The U.S. last maintained its debt at that high level in the 1790s.”, Bill White, Barrons

July 22, 2014 – Statement 285: “We have gone through two World Wars, the Great Depression, the Cuban trade embargo, smoking bans, excessive taxation and competition from low-wage countries. The toughest challenge of all these is the F.D.A. regulations.” Eric Newman, co-owner of the country’s oldest premium cigar business, founded in 1895, New York Times

July 22, 2014 – Statement 284: “In early July, Janet Yellen made an admirably clear statement that she is sticking faithfully to the Greenspan- Bernanke policy of extreme moral hazard. She will not use interest rates to head off or curtail any asset bubbles encouraged by the extremely low rates that might appear. And history is clear: very low rates absolutely will encourage extreme speculation…

July 22, 2014 – Statement 283: “Investors, seeking a higher return when interest rates are low, recently flocked to buy a bond issue from (subprime auto lender) Prestige Financial Services of Utah. Orders to invest in the $390 million debt deal were four times greater than the amount of available securities…

July 22, 2014 – Statement 282: “More than any other single individual in the U.S. financial system, (Fed Chair) Janet Yellen is in a position to see what is taking place in the economy and its financial markets…

July 21, 2014 – Statement 281: “Although the left’s narrative placed all blame on the private sector, these numbers show that private firms were responsible for less than a quarter of the problem. Yet Dodd-Frank said nothing about government housing policies and ignored Fannie and Freddie…

July 21, 2014 – Statement 280: “…none of these issues is an excuse to delay accountability. Children have only one chance for an education and every year in which that education falls short is another impediment to their success…

July 18, 2014 – Statement 279: “But it does amount to a government official (The Fed Chair and nation’s top economist) substituting her own judgment for that of the marketplace, the prices arrived at by thousands of buyers and sellers for an app maker or a leveraged loan…

July 17, 2014 – Statement 278: “Check out the California Supreme Court ruling below re. commissioned sales employees and overtime pay. Bad labor laws like this are another reason why companies are moving out of California. Commissioned employees’ hours-worked are almost impossible to track accurately and their only objective work-product is sales (of products and/or services)…

July 17, 2014 – Statement 277: “When (property rights) are threatened, or uncertain, the result is inefficiency, rent-seeking, a larger underground economy and capital flight…Ultimately, behind this and other attacks on property rights is the notion that the government owns all income, leaving to you only what it doesn’t demand…

July 17, 2014 – Statement 276: “Many monetary experts refer to the 2000 equity crash as a benign event. But the unemployment rate rose by 2½ percentage points after the decline, and the monetary policy response to that rise in unemployment contributed to the housing bubble and the 2008 financial crisis…

July 16, 2014 – Statement 275: “Ah…I’ll stop there because we’re running out of time, but I have to say, Chairman Yellen, I think the language in the statute (section 165 of Dodd-Frank requiring orderly liquidation plans for Too Big to Fail institutions) is pretty clear, that you are required, the Fed is required to call it every year on whether these institutions have a credible plan…

July 16, 2014 – Statement 274: “It’s certainly true that from a psychological standpoint, the Federal Reserve has induced the same sort of yield-seeking speculation that drove investors into mortgage securities (in hopes of a “pickup” over depressed Treasury-bill yields), fueled the housing bubble, and resulted in the deepest economic and financial collapse since the Great Depression…

July 16, 2014 – Statement 273: “Sound money and free markets go hand in hand…When (Fed monetary) policy became more ad hoc, interventionist and discretionary during the past decade, the economy deteriorated and we got a financial crisis, a Great Recession, and a not-so-great recovery…

July 16, 2014 – Statement 272: “The CFPB should only create programs to educate consumers about payday loans, pass regulations to ensure that lenders follow existing laws and prosecute businesses that don’t treat borrowers honestly. The Dodd-Frank law requires these actions, and no more. The CFPB wasn’t created to protect consumers from themselves…

July 15, 2014 – Statement 271: “Regulators have taken to warning that investors may be underestimating the risks still lurking in the euro zone – perverse given that central-bank policies have been explicitly designed to encourage investors to take such risks.”, Simon Nixon, WSJ

July 15, 2014 – Statement 270: “Most of (San Francisco) City College’s problems, however, remain unsolved…With no state leadership, and with boards and faculty unable to resolve their many differences, institutions like City College have achieved terrible results for students…

July 15, 2014 – Statement 269: “Our desire to artificially maintain our standard of living through massive public- and private-sector debt (currently 348% of GDP, not including our unfunded liabilities of Medicare, Social Security, prescription-drug program, et al.). We’ve seen dramatic monetary-based expansions…

July 15, 2014 – Statement 268: “When the federal government is good, it’s very, very good. When it’s bad (or at least deeply inefficient), it’s the norm. The evidence is abundant…

July 15, 2014 – Statement 267: “…Nobel Prize winner Milton Friedman’s scientific conclusions are in accordance with Mr. Volcker’s policy views. Mr. Volcker emphasizes that the “responsibility of the government is to have a stable currency,” period. By establishing a single rule, Fed authorities will have no need to determine the optimal mix of inflation and unemployment rates…”, Bertrand Horwitz

July 15, 2014 – Statement 266: “How we as a nation treat these refugee children fleeing for their lives will speak volumes about what we truly value. More than compassion or pity, what these kids need is for Congress and the president to exhibit the characteristic that unites us as Americans: a fundamental sense of fairness and due process…

July 15, 2014 – Statement 265: “…on Monday it (The Department of Justice) announced a civil settlement with Citigroup over failed mortgage investments that covers almost exactly the period when current Treasury Secretary Jack Lew oversaw divisions at Citi that presided over failed mortgage investments. Now, that’s funny…

July 10, 2014 – Statement 264: “…in vivid contrast to the Swiss central bank, which marks its investments to market, the Federal Reserve has designed its own regulatory accounting so that it will never have to recognize any losses on its $4 trillion portfolio of long-term bonds and mortgage securities…

July 10, 2014 – Statement 263: “The amounts here are absolutely staggering,” said Rep. John Mica, R-Fla. “It’s over $100 billion each of the last five years (self-estimates of improper payments by Federal agencies provided to Congress). That’s a staggering half a trillion dollars in improper payments.”, Associated Press

July 9, 2014 – Statement 262: “The inappropriate cronyism (for these LA firefighting jobs) that occurred in the first-place (and caused a scandal) and now the solution, a lottery, are symptoms of the fact that free competitive markets aren’t allowed to operate when it comes to these unionized, government jobs…

July 8, 2014 – Statement 261: “Welcome to the Everything Boom – and, quite possibly, the Everything Bubble. Around the world, nearly every asset class is expensive by historical standards (and fundamentals). Stocks and bonds; emerging markets and advanced economies; urban office towers and Iowa farmland; you name it…

July 8, 2014 – Statement 260: “Washington is stuck because that serves its interests. Long laws and vague regulations amount to arbitrary power. The administration uses this power to buy off allies and to silence opponents…

July 7, 2014 – Statement 259: “To justify its position against granting discovery to plaintiffs, the government argues that disclosure of current and future plans for the conservatorship (of Fannie and Freddie) could be “disruptive to the housing market and to the nation’s economy.”…

July 7, 2014 – Statement 258: “Often…those against corporatism seem to favor the existence of large government-sponsored enterprises that fill a void left by the imperfection of the market. But the justification for these institutions usually goes beyond helping Americans, with supporters citing evidence that these institutions give money back to the Treasury…

July 7, 2014 – Statement 257: “Most of the investigations involve trumped-up charges of misleading job placement rates, which federal law requires for-profits – but not public and nonprofit colleges – to document and disclose. But here’s the rub: There’s no standard definition of “job placement.”, Wall Street Journal

July 7, 2014 – Statement 256: “Religious freedom was a founding principle of our republic…We now have unelected agencies of the government bullying the citizenry on a daily basis, even in our most private decisions.”, Susan Bryan, Hendersonville, N.C.

July 7, 2014 – Statement 255: “It began with $550 million loans in…2004-2005. Thereafter (Puerto Rico sovereign) borrowing, largely to finance…(deficits) took off. The Federal Reserve’s low interest policy and the appetite for triple-tax exempt debt (which throws off income that is free of federal, state and local tax) among municipal bond investors fed the frenzy.”, Wall Street Journal 

July 2, 2014 – Statement 254: “Thanks to 30-year fixed rate, government-guaranteed mortgages and government tax breaks for mortgage interest and capital gains, the largest institutional investors in the world can’t (financially) compete with individual American homebuyers…

July 2, 2014 – Statement 253: “Successful economic upward mobility requires steps – such as employment and education – that lead to a move to a better neighborhood. A better ZIP Code is the result, not the precursor, to a better life…

July 1, 2014 – Statement 252: “Stop Us Before We Kill Again: Central bankers warn the world about…central bankers.”, Wall Street Journal

June 30, 2014 – Statement 251: “Given the clear trajectory of U.S. (monetary) policy, the turmoil in emerging-market currency and bond markets over the past year should spur more effective collective action to defend the global financial system against future Fed-induced whiplash…

June 30, 2014 – Statement 250: “The overall, somewhat gloomy message from the central bankers was that the world is drunk on easy money and has already forgotten the lessons of recent years.”, New York Times

June 30, 2014 – Statement 249: “The narrative proceeds…to John Law, the 18th-century Scotsman who, as banker to the French court, gave quantitative easing a try 300 years before Ben Bernanke ran with the idea. Lots of paper credit is the thing, Law contended. Who needed gold? The experiment ended with exploding asset bubbles…

June 30, 2014 – Statement 248: “During my Wall Street days, the individual was never talked about.” (For example, patients often don’t know how much a procedure at a doctor’s office costs ahead of time.) “That’s why I felt we had to drive this revolution where an individual had more of a say in health care.” , Anne Wojcicki, CEO, 23andMe

June 30, 2014 – Statement 247: “If you’re self-employed, you’re hosed. If you just started a job, you’re hosed. If you get a bonus, you’re hosed. Just got a severance payment? Can’t count that. I don’t have to do a lot to be a lender. I just have to be normal. Banks have forgotten that (mortgage) loans are collateralized by the home itself.” William D. Dallas

June 27, 2014 – Statement 246: “From 2003 to 2005, however, the Fed kept interest rates lower than such a rules-based approach would imply. This contributed mightily to the housing bubble and the risk-taking search for yield…

June 27, 2014 – Statement 245: “In any event, the limitation upon the President’s appointment power is there not for the benefit of the Senate, but for the protection of the people; it should not be dependent on Senate action for its existence…

June 27, 2014 – Statement 244: “The average rate for such (subprime credit card) customers was 21.1% in the first quarter, up from 20.2% a year earlier, according to research firm In contrast, the highest-quality borrowers paid 12.9% on average in the first quarter, virtually unchanged from a year earlier…

June 26, 2014 – Statement 243: “But as interest rates began their long fall, pension funds faced a dilemma. Staying heavily invested in bonds would force governments either to set aside more cash upfront or to cut pension promises. So instead, pension funds radically changed their investment strategies, embracing investments that produce higher returns but also involve more risk. This shift has replaced an explicit cost with a hidden one…

June 26, 2014 – Statement 242: “The American colonial slogan “No Taxation Without Representation” described our grievance with Britain and led to our Country’s founding. Shouldn’t the inverse also be true; “No Representation Without Taxation”? With Mississippi getting $3 from the federal government for every $1 they send in (a situation that has occurred for years), should its citizens continue to have voting representatives in Congress or is there some other way to address this flaw inherent in our beautiful U.S. democracy?”, Mike Perry

June 24, 2014 – Statement 241:  “On and on it went. Eight grueling years passed before we had our day in court. Even after a U.S. district court dismissed the case in 2010, ruling in our favor on all claims made by the SEC, the agency appealed. On May 30, 2014, our 12-year odyssey ended when a federal jury unanimously found in favor of every defendant and against the SEC…

June 24, 2014 – Statement 240: “(The “implicit guarantee”) describes a peculiar belief widely held before the financial crisis, that Fannie Mae and Freddie Mac would be rescued by the government if they fell into distress. Despite evidence that this idea enabled them to borrow at rates close to Treasury yields, government officials denied any such guarantee existed – right up until they rescued the two of them in 2008…

June 24, 2014 – Statement 239: “Check out this NY Times example of a Pay as You Earn program (PAYE) student loan…It’s negatively amortizing: the balance owed increases over time, because the payment required by the government does not cover the interest owed!!! Isn’t this similar to the pre-crisis, much-derided Option-Arm mortgage loans offered by the private sector…

June 23, 2014 – Statement 238: “A handful of Wall Street firms are much more vulnerable than their peers to a type of bank run (repo runs) seen during the financial crisis. Unfortunately for investors, the identity of these firms is a mystery…

June 20, 2014 – Statement 237: “The blatant discrimination that occurred here (by GE Capital) is unlawful and will not be tolerated,” said Jocelyn Samuels, the acting assistant attorney general for the Civil Rights Division…This kind of conduct has no place in the consumer financial marketplace,” said Richard Cordray, the (Consumer Financial Protection Bureau’s) director. “People deserve to be given clear information and they deserve to be treated fairly.”, Los Angeles Times

June 20, 2014 – Statement 236: “The aggregate wealth of U.S. households, including stocks and real-estate holdings, just hit a new high of $81.8 trillion. That’s more than $26 trillion in wealth added since 2009. No wonder most on Wall Street applaud the Fed’s unrelenting balance-sheet recovery strategy. It’s great news for those households and businesses with large asset holdings, high risk tolerances and easy access to credit. Yet it provides little solace for families and small businesses that must rely on their income statements to pay the bills…

June 19, 2014 – Statement 235: “But the antifat message went mainstream, and by the 1980s it was so embedded in modern medicine and nutrition that it became nearly impossible to challenge the consensus. Dr. Walter Willett, now the head of the department of nutrition at the Harvard School of Public Health, tells me that in the mid-1990s, he was sitting on a piece of contrary evidence that none of the leading American science journals would publish…

June 18, 2014 – Statement 234: “Driving the demand for this debt are the easy-money policies of the world’s major central banks, which has depressed yields on debt of wealthy nations…Many money managers consider Ecuador (who defaulted on $3.2 billion in 2008) and Kenya (their first-ever international bonds) to be “frontier” markets, a loosely defined term used to refer to countries that are a step below emerging markets…”. Wall Street Journal

June 17, 2014 – Statement 233: “Persistently low interest rates set by the BOE (Bank of England), alongside government policies intended to spur home buying, have sent prices soaring in the past year—especially in the past six months. The low rates and galloping prices, in turn, have encouraged buyers to take on ever-growing quantities of potentially destabilizing debt to afford a house…

June 17, 2014 – Statement 232: “Immigration is an economic issue. Fundamentally, it is about the movement of workers, entrepreneurs and consumers to locations where they can maximize the value of their labor, businesses and purchasing power…

June 17, 2014 – Statement 231: “Federal loan programs “encourage students to pursue any degree regardless of price,” Mr. Palacious says. Students can borrow cash directly from the feds through Stafford loans. Parents have an even easier line of credit: Under the federal Parent PLUS program, mom and dad can borrow up to the cost of tuition after a credit check. “People are sometimes mortgaging their homes on what their kids will do,” Mr. Palacios says…

June 17, 2014 – Statement 230: “The federal government is stepping up wage garnishment of student-loan borrowers who have defaulted, another lingering effect of the nation’s ballooning college debt. Just over 174,800 people who had defaulted on federal student loans saw the Education Department take some money out of at least one paycheck…

June 17, 2014 – Statement 229: “Lending to weaker companies on easy terms is becoming more and more common as investors’ appetite for higher-yielding debt grows stronger and the Federal Reserve keeps money flowing at ultralow rates. Since the financial crisis, companies have been able to borrow more without offering investors what were once considered standard protections against possible losses…

June 17, 2014 – Statement 228:  “In America, what is holding back entrepreneurs from using digital technology to re-invent consumer banking and finance, including mortgage banking, is federal deposit insurance, federally-guaranteed mortgages, student loans (and other loans), the Fed’s manipulation of market rates, and the Consumer Financial Protection Bureau. Digital financial entrepreneurs can’t compete on a level playing field with the government subsidies provided to Too Big to Fail Banks, Fannie, Freddie, and FHA…

June 16, 2014 – Statement 227: “…the frequency and breadth of the Ninth’s Circuit’s defeats (10 of 11 cases before the Supreme Court this term and 8 of 10 of these defeats were unanimous!!!) suggest that many of its 29 active judges are willfully ignoring precedent and law to do as they please…”, Wall Street Journal

June 12, 2014 – Statement 226: “We can all recite a rather long list of culprits contributing to the financial crisis. What I want to raise is what seems to be a neglected question. Has the absence of a well-functioning international monetary system been an enabling (or instigating) condition? Did the absence of international oversight, of discipline in financing, of exchange rate management permit…even encourage…unsustainable imbalances in international payments and in domestic economies to persist too long?”, Paul A. Volcker

June 11, 2014 – Statement 225: “History provides ample evidence that when allowed to function properly free market capitalism generates massive national prosperity with high employment, a strong currency and rising standards of living. It is only when the state manipulates and over regulates free markets that capitalism fails. However, capitalism usually takes the blame for the failures of statism.” John Browne, Euro Pacific Capital

June 10, 2014 – Statement 224: “Housing experts advise on market comparables/values and whether you qualify for a mortgage and terms, but are silent on what should be your most important financial question: Is this home purchase (with this mortgage) likely to be a good investment for me? After our national housing bubble/bust, it seems wrong that no one: not your Realtor, not your mortgage lender, and not your appraiser (Consumer Financial Protection Bureau where are you?) even attempts to answer this question…

June 10, 2014 – Statement 223: “Beginning July 1, lenders will no longer have to perform an analysis of cash flow or debt-service coverage on loans of $350,000 or less, provided business owners meet the agency’s credit standards. Eliminating the two requirements is expected to cut the time needed to originate a small-dollar loan by as much as 50%, SBA officials say…

June 9, 2014 – Statement 222: “Taken together, both international and U.S. evidence reveals a strong pattern: Economic disasters are almost always preceded by a large increase in household debt. In fact the correlation is so robust that it is as close to an empirical law as it gets in macroeconomics. Further, larger increases in household debt and economic disasters seemed to be linked  by a collapse in spending…

June 9, 2014 – Statement 221: “WSJ Money: What lessons should people draw about their own finances, based on what we’ve just been through? Timothy Geithner: The basic lesson is you have to be careful with how much you borrow relative to your income and the value of your house or assets. You want to live with a greater cushion against the unknown…

June 6, 2014 – Statement 220: “The longer [very low inflation] lasts, the higher are the risks,” Mr. Draghi (ECB President) said at a news conference. “That is what we are reacting to.”, The Wall Street Journal, June 6, 2014

June 6, 2014 – Statement 219: “Credit unions in search of higher returns are loosening lending standards and piling into longer-term assets, exposing the firms to potentially significant losses if interest rates rise and worrying regulators in the process.”, Wall Street Journal

June 6, 2014 – Statement 218: “As a presidential candidate in 2007, Obama rightly suggested that the Bush administration’s use of signing statements was “a clear abuse of power [designed] to evade laws that the president does not like or as an end run around provisions designed to foster accountability.” Obama promised that, if elected president, he “[would] not use signing statements to nullify or undermine congressional instructions…

June 6, 2014 – Statement 217: “If anything, the report suggests that the army unit’s lack of security and discipline was as much to blame for the disappearance, given the sergeant’s history.” New York Times OpEd, June 6, 2014

June 5, 2014 – Statement 216: “It is a problem of their (the Fed’s) own making. They can’t have it both ways,” said Martin Barnes, chief economist at BCA Research. “If they want to sustain zero interest rates and push up asset prices, how can they expect to have that with no excesses and no risk taking?”, Wall Street Journal

June 4, 2014 – Statement 215: “In the 2012 presidential race, according to Federal Election Commission data, 96% of all campaign contributions from Ivy League faculty and employees went to Barack Obama. Ninety-six percent. There was more disagreement among the old Soviet Politburo than there is among Ivy League donors…

June 4, 2014 – Statement 214: “…Government never will be able to satisfy demand for a valuable service given away free or nearly free…If a private hospital operator in a competitive market saw wait times growing, it would raise prices to maximize profits, which would have the effect of reducing demand. Another hospital, seeing this, might keep prices low to fill empty beds…

June 3, 2014 – Statement 213: “Combine a 30-year, fixed-rate, first mortgage, with an interest-only home equity line of credit (a major product of the Too Big To Fail Banks) and you have economically created a synthetic version of the much-derided (and banned by regulators) Option-Arm mortgage!!!”, Mike Perry

June 2, 2014 – Statement 212: “This process has been what central banks have been seeking: Squeeze out any return from risk-free assets, and force investors into riskier ones. The lowering of risk premiums on equities and nongovernment bonds has boosted asset prices. Viewed alternatively, the rise in asset prices spurred by monetary authorities has pulled future returns forward…

June 2, 2014 – Statement 211: “…a key harm resulting from many programs is “government-promoted moral hazard,” in which public policies encourage people to engage in risky behavior, often causing immense collateral damage. The federal government’s promotion of home-ownership via Fannie Mae (ticker: FNMA) and Freddie Mac (FMCC), essentially government agencies, helped bring “catastrophic damage to the larger economy”…

May 28, 2014 – Statement 210: “The confusion here may lie with HUD itself, as it appears to stem from a mortgagee letter HUD issued in 2008 that would have limited lenders’ ability to accept less than the full mortgage balance as payment from family members or heirs. HUD rescinded that letter in 2011 and stated at the time that it would issue a replacement letter, but has yet to do so.”

May 28, 2014 – Statement 209: “The excess profits companies can extract from their customers when they face little or no competition – known to economists as “rents” – may be deepening income inequality, Professor Stiglitz and others have argued. The evidence shows up in fatter corporate bottom lines and a rising share of national income that goes to profits…

May 28, 2014 – Statement 208: “Who wants an index fund that yields 2%?” said Jeffrey Gundlach, whose Total Return Bond Fund at DoubleLine Capital LP has $32.1 billion under management, up 10 times from its start four years ago. Mr. Gundlach, in an interview, said investors “want exposure to these high-yield and distressed securities and they’ve become comfortable with what we’re doing.”…

May 28, 2014 – Statement 207: “Those who perform these vital services (feeding, clothing, and sheltering their fellow citizens) are activated by the incentives of the marketplace, perhaps even by “greed,” another fashionable buzzword that puts the anointed and the benighted on different moral planes…

May 28, 2014 – Statement 206: “The federal government runs two giant health-care programs…Medicare is provided by private physicians and other providers. Its finances are a mess, but the care that seniors receive is by and large outstanding. The VA health-care system is run by a centrally controlled federal bureaucracy. Ultimately, that is the source of the poor care veterans receive…

May 27, 2014 – Statement 205: “From the bare facts of the American financial crisis, many different narratives have already been spun. They can be classified by whom they blame: Wall Street bankers, feckless American debtors, government incompetence, the Chinese. “The fundamental causes of this crisis were familiar and straightforward,” Geithner writes. “It began with a mania…

May 27, 2014 – Statement 204: “They (the S.E.C.) are an administrative agency that is holding up this process because they are demanding unconstitutional new powers,” Chris Calabrese, legislative counsel, American Civil Liberties Union…

May 23, 2014 – Statement 203: “The spread of the free market has undoubtedly led to a tremendous increase in overall wealth and well-being around the world…Yet the answer to problems with the free market is not to reject economic liberty in favor of government control. The church has consistently rejected coercive systems of socialism and collectivism, because they violate inherent human rights to economic freedom and private property…

May 22, 2014 – Statement 202: “Intuitively, an accurate forecast is more likely to have been made by a forecaster who has better judgment and is better able to evaluate the situation. Here we argue that there is a simple reason why this intuition may be wrong. Rather than being an indication of good judgment, accurately forecasting a rare event…may in fact be an indication of poor judgment…

May 21, 2014 – Statement 201: “The initial investment thesis was to invest in these homes, make a nice return on the way, and be positioned to sell them for a nice profit,” said Gary Beasley, co-CEO of Starwood Waypoint Residential Trust, one of four public companies in the business…

May 21, 2014 – Statement 200: “Money illusion occurs when people think in terms of nominal values rather than real values – meaning, they consider the face value of money instead of its actual purchasing power. In other words, homeowners who sell their home for a higher dollar amount than what they bought it for see themselves as coming out ahead—even if inflation eats the gains…

May 20, 2014 – Statement 199: “…thanks to a 1993 Supreme Court decision, homeowners saddled with mortgage debt on their primary residences have not been able to take refuge in the bankruptcy courts. The unanimous ruling by the court found that when Congress rewrote the bankruptcy code in 1978, it specifically gave “favorable treatment” to mortgage lenders “to encourage the flow of capital into the home-lending market,” as Justice John Paul Stevens wrote in a concurring opinion…

May 20, 2014 – Statement 198: “Large investors are rushing into the riskiest corporate bonds, frustrated by low interest rates on safer investments and convinced that even companies with shaky finances are in little danger of default. The demand for low-rated debt is raising concerns that investors are stockpiling future risk…

May 19, 2014 – Statement 197: The below explains the recently falling 10-year Treasury yield this year. The bottom line is the Fed’s QE has taken all the supply out of the market (it’s on their balance sheet). They are doing this to keep mortgage rates low, which are priced off the 10-year Treasury. Shouldn’t the government be issuing as much long-term debt now as possible and locking in these historically low rates (only 5% is 10 years or longer outside of the Fed)? That’s what Fortune 500 companies seem to be doing these days, issuing 30-year debt (one even issued 50-year debt)…

May 19, 2014 – Statement 196: “But the booming tech economy, which underpins the Bay Area housing market, has some asking whether Silicon Valley is in a bubble, similar to the one that popped in 2001 and led to a national economic downturn…

May 19, 2014 – Statement 195: “In a financial crisis, the natural instinct is to let creditors suffer losses, let firms fail, and protect taxpayers from any risk of loss. But in a financial panic, a strategy based on those instincts will lead to depression-level unemployment. Instead, the government and the central bank have to step in and take risks on a scale that the private sector can’t and won’t…

May 19, 2014 – Statement 194: “The Obama administration and federal regulators are reversing course on some of the biggest postcrisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery…

May 19, 2014 – Statement 193: “One of the themes in “Stress Test” is Mr. Geithner’s difficulty in understanding the health of large financial firms. He admits that he didn’t see the mortgage crisis coming and didn’t grasp the severity of the problems after it appeared. He didn’t require that the banks he was overseeing raise more capital because his staff’s analysis couldn’t foresee a downturn as bad as the one that occurred…

May 19, 2014 – Statement 192: “At a minimum, Mr. Mian and Mr. Sufi say, they cannot understand why the government encourages borrowing, for example, through tax deductions for mortgage interest payments. “You need some kind of limit on where people can smoke, and you need some kind of limit on debt,” Mr. Mian said…

May 19, 2014 – Statement 191: “Hilariously credulous are certain reports in the California press claiming Toyota’s decision to move its U.S. headquarters, along with 5,000 jobs, to the Dallas suburbs was in no way a reflection on California’s business or political climate…

May 19, 2014 – Statement 190: “Let us pause for a moment to state the plain fact that the entire college financing system is a national disgrace. College costs are high, universities don’t counsel undergraduates well enough, families get in over their heads, there are too many types of loans, the repayment options are dizzying…

May 19, 2014 – Statement 189: “…led by Liu Shiyu, a vice governor of the People’s Bank of China, central-bank officials discussed mortgage-lending policies with executives from 15 major banks….China’s central bank asked the nation’s major lenders to give priority in mortgage lending to first-time home buyers, as concerns increase over the sluggish property market.”, Wall Street Journal, May 14, 2014

May 14, 2014 – Statement 188: “Hey, I have an idea! Let’s have the government encourage expanding lending to riskier borrowers. That way we can sell more houses, real estate agents can make their commissions, and when things go south, we’ll blame the lenders! Didn’t we try all that about ten years ago?…

May 13, 2014 – Statement 187: “(An employee of) BB&T writes, “Speaking of low down payment loans for first timers- As part of their CRA requirement, BB&T Bank offers a 97% LTV conventional loan with no PMI called CHIP: “Community Homebuyers Incentive Program.” All of the 3% down payment can be a gift. They lend to borrowers who are at or below 80% of the median income for their area, and will go down to a 620 credit score…

May 7, 2014 – Statement 186: “Fed Chair Yellen recently admitted they don’t have a good model of inflation….(and yet) The Fed (ignores Milton Friedman’s dictum and) focuses far too much attention on distracting monthly and quarterly (inflation) data, while ignoring the longer-term effects of money growth…

May 6, 2014 – Statement 185: “I’m not predicting that the market is going to fall 12 percent or 50 percent. (And if I did, you should stop reading this column.) As (Nobel Laureate) Mr. Shiller says, ‘There is no way to predict the future.’”, David Leonhart, New York Times

May 6, 2014 – Statement 184: “Here’s a little-known fact: Berkshire Hathaway, the fifth-largest company in the United States, with some $162.5 billion in revenue and 300,000 employees worldwide, has no general counsel that oversees the holding company’s dozens of units. There is no human resources department, either…

May 6, 2014 – Statement 183: “How in the world can the National Statistical Rating Agencies rate 50-year bonds or even 30-year bonds for one corporation? Who knows what CAT’s cash flows or EBITDA will be in even five or ten years, let alone whether or not (in a competitive marketplace) CAT will have survived that long. It’s nuts!!!….

May 5, 2014 – Statement 182: “(The FERC) Shooting random people for following the law, that sets the markets and the world back.”, Rich Gates

May 1, 2014 – Statement 181: “Only one lender, OneWest, the former IndyMac bank, would not settle, opting instead to continue with the review of loan files. After completing most of the review this year, OneWest, a California-based bank that has a former Goldman Sachs partner as its chairman, doled out a relatively modest $8.5 million and only to homeowners who had actually suffered financial harm…

April 30, 2014 – Statement 180: “Fostering cyclical resilience means ensuring that the key securitization infrastructure on which the secondary mortgage market relies is not exposed to financial risk resulting from swings in housing prices or the economy…

April 30, 2014 – Statement 179: “Piketty also ignores other problems that would surely stem from so much wealth redistribution and political control of the economy, and the book suffers from Piketty’s disconnection from practical politics — a condition that might not hinder his standing in the left-wing intellectual circles of Paris but that seems naive when confronted with broader global economic and political realities…

April 30, 2014 – Statement 178: “The roots of the problem, say many Italians, lie in how vested interests in the private and public sectors gum up the economy, preventing change that replaces old practices with new, more efficient ones, and repeatedly frustrating political attempts to shake up the country.”, WSJ

April 29, 2014 – Statement 177: “Barely a month after Toyota settles a politically-tinged criminal case with the U.S. Government for $1.2 billion and in related civil matters is being sued by class action attorneys for billions more, is it any surprise that they are moving their North American headquarters from California to Texas? Texas, like nearly every other State and unlike California, respects the common law Business Judgment Rule and protects BOTH directors AND officers from ordinary negligence lawsuits and hindsight judgments.”, Mike Perry

April 29, 2014 – Statement 176: “Isn’t Berkshire Hathaways’ (Buffet’s son is the director on Coke’s board) decision to abstain from approving Coke’s equity plan a material piece of information that Coke was obligated to publicly disclose to its shareholders before they voted on the plan? What do you think? What does the SEC think?”, Mike Perry

April 28, 2014 – Statement 175: “If you thought mortgage-underwriting standards were lax right before the housing crisis, wait until you take a closer look at student loans. Borrowing for a house at least requires an appraisal of the property and an assessment of the borrower’s future capacity to pay. Student loans require neither. Instead, students and families are encouraged to invest in any program at any price…

April 28, 2014 – Statement 174: “The German economic thinker Max Weber believed that for capitalism to work, average people needed to know how to do double-entry bookkeeping. If we want stable, sustainable capitalism, a good place to start would be to make double-entry accounting and basic finance part of the curriculum in high school, as they were in Renaissance Florence and Amsterdam.”, Jacob Soll, USC Professor of History and Accounting

April 28, 2014 – Statement 173: “Meanwhile, the rest of the country slouches along, unemployment high, wages stagnant, credit tight. But Silicon Valley feels like a foam party. It turns out that one might have more to do with the other than you would think. The Federal Reserve is currently keeping interest rates very, very low. They’ve been keeping them very, very low for a long, long time. The idea is to spur investors…”

April 28, 2014 – Statement 172: “No one knew how many transfusions would be necessary. Heated disagreement ensued. We were trying, as Isaac does now at the poker table, to calculate with incomplete information the probability of various outcomes. We knew that any action would have to be predicated on our understanding of probabilities.”, Brooks Haxton, Time Magazine

April 28, 2014 – Statement 171: “Low-interest-rate policies have helped bail out banks, the stock market and real estate, but the Fed has not publicly acknowledged the cost of those policies….it cost (American) savers $758 billion.”, Richard Barrington,

April 28, 2014 – Statement 170: “A West that prefers debt-subsidized welfarism over economic growth will not offer much in the way of an attractive model for countries in a hurry to modernize. A West that consistently sacrifices efficiency on the altars of regulation, litigation and political consensus will lose the dynamism that makes the risks inherent in free societies seem worthwhile.”, Bret Stephens, Wall Street Journal

April 28, 2014 – Statement 169: “The CFPB has more than 1,300 employees, yet so far its chief accomplishments are a rule that lets taxpayer-backed Fannie Mae and Freddie Mac stay in the subprime mortgage business; research that attacks arbitration (which pleases the trial bar); and a ginned-up campaign to label bankers unintentionally racist for not lending enough to minorities. It is a thoroughly politicized bureaucracy with a distinctly antibusiness bent.”, Mary Kissel, Wall Street Journal

April 25, 2014 – Statement 168: “Finally, one of the great aspects of the American system is that it is okay to fail and to try again. But even that seems to be diminishing as failure, other than in Silicon Valley, is severely punished.”, Jamie Dimon

April 11, 2014 – Statement 167: “Even that wouldn’t cure a second level of constitutional infirmity. Based mostly on precedent established before the SEC had any power to punish, courts have exempted SEC prosecutions from many bedrock due-process protections taken for granted in criminal cases. The presumption of innocence…

April 8, 2014 – Statement 166: “Freddie Mac’s former President, the one who was their Chief Operating Officer right up to the financial crisis and left just about a year before they were placed in conservatorship by the U.S. government (from 2004 through September 2007) is now going to postpone his retirement, so that he can ‘save’ Citi from its regulatory problems with the Fed?”, Mike Perry

April 8, 2014 – Statement 165: “Just to clarify, the difference between being pro-business and pro-market is categorical. A politician who is a “friend of business” is exactly that, a guy who does favors for his friends. A politician who is pro-market is a referee who will refuse to help protect his friends (or anyone else) from competition…and opposes special treatment for anyone.”, Jonah Goldberg, Los Angeles Times

April 7, 2014 – Statement 164: “If you were ill at the beginning of the 19th century, a physician was your best bet, but his knowledge was so rudimentary that his remedies could easily make things worse rather than better. And so it is with economics today. That is why we economists should be sure to apply the principle “first, do no harm.””, N. Gregory Mankiw, Harvard Economist

April 7, 2014 – Statement 163: “The Nobel Prize-winning economist Daniel Kahneman has noted that it’s our nature to overestimate how much we understand the world and to underestimate the role of chance. And it’s our folly to assume we know very much at all. There’s “a highly objectionable word,” he writes, “which should be removed from our vocabulary in discussions of major events,” and that word is “knew.””, New York Times

April 7, 2014 – Statement 162: “And there was Washington Mutual. TPG led a group of investors in extending a $7 billion lifeline to the struggling bank in the spring of 2008. Just months later, the government seized WaMu, and TPG lost every penny.”, New York Times

April 7, 2014 – Statement 161: “By the way, if the feds knew about this, why wasn’t it disclosed to investors when the reborn GM sold shares to the public in 2010 or when the government sold the last of its shares in 2013? This would seem to be an issue for the SEC, which never tires of sanctioning companies that fail to disclose material facts. Does GM get a pass because it was Government Motors?”, Wall Street Journal

April 7, 2014 – Statement 160: “Buying high-quality debt alone is not going to put meat on the table, and you have to take a little more risk.’”, John Kerschner, Janus Capital Group Inc.

April 7, 2014 – Statement 159: “The government’s job as a criminal prosecutor is not to obtain convictions, but ‘to do justice’….It should be required to follow the Brady rule in civil trials…but the SEC does not, even when it accuses a citizen of fraud.”, Mark Cuban and Thomas Melsheimer, WSJ, April 4, 2014

April 7, 2014 – Statement 158: “Monetary policy should be less accommodative…willing to tolerate a larger forecast shortfall of the path of the unemployment rate from its full employment level…when estimates of risk premiums in the bond market are abnormally low.”, Jeremy C. Stein, Federal Reserve Board Governor, March, 2014

April 7, 2014 – Statement 157: “As our culture moves both in form and substance from a “rule of law” society to an “ends justifies the means” approach, we will see our country begin to resemble Russia and China in the courtroom. Those people that the state wants to hammer will be indicted for political reasons.”, Russell Dodds, WSJ, April 4, 2014

April 3, 2014 – Statement 156: “This is a great OpEd by American entrepreneur Charles Koch. I share these views based on my 30 plus years of business experience and academic study; including the last five where I (and my family) personally experienced a federal government bureaucracy that did not seem to care about the facts and the truth (and the law) and certainly does not seem to care much about individual American’s freedom and liberty.”, Mike Perry

March 13, 2014 – Statement 155: “No matter which city wins, California will be losing yet another Fortune 500 company…Texas gets Oxy and is looking for more.”, Los Angeles Times, March 13, 2014

March 13, 2014 – Statement 154: “Thus, (securities) cases certified as class actions—and 77% of decided motions for class certifications are granted, according to a 2014 study by consulting firm NERA—threaten defendants with financial ruin. They subject defendants to relentless pressure to settle, even in cases with weak merits.”, Andrew N. Vollmer, former Deputy General Counsel, the Securities and Exchange Commission

March 12, 2014 – Statement 153: “So, I think it will take a while for scholars to decide exactly what role easing monetary policy had in contributing to the financial crisis.  I would not argue with the idea that a long period of low interest rates does contribute to the buildup of leverage and may have touched off a housing bubble.”, Federal Reserve Board Chair, Janet Yellen, February 27, 2014

March 12, 2014 – Statement 152: “Advocates of it say it never costs anything and so that sometimes begs the question: Do you need the federal backstop there?” said Rep. Scott Garrett (R., N.J.). “If other countries want to make bad economic decisions, they’re free to—it’ll benefit the U.S.,” said Rep. Justin Amash (R., Mich.), who has introduced legislation with Sen. Mike Lee (R., Utah) to eliminate the (Export-Import) bank over three years., Wall Street Journal, February, 2014

March 10, 2014 – Statement 151: “In December, almost 40 percent of the home sales were all cash. Redfin estimates that, on average, 60 percent to 80 percent of San Francisco homes are selling for prices over the original asking price. Most are gobbled up within 16 days of being listed….”, New York Times, March 3, 2014

March 10, 2014 – Statement 150: “Sounds a lot like the short sellers who attacked IndyMac and the U.S. housing, mortgage and financial system. I think they might have coordinated. I read that short seller Paulsen donated millions to the Center for Responsible Lending. Then they issued misleading reports about us (and others). Did they get New York, U.S. Senator Schumer to publicly release his letter of concern and spur our bank run (and failure)? Don’t we all deserve to know the truth?”, Mike Perry, Former Chairman and CEO, IndyMac Bank

March 10, 2014 – Statement 149: “Aggressive (U.S. government) housing programs have not always helped the poor and middle class. The median net worth of American adults is now one of the lowest among developed nations—less than $45,000, according to the Credit Suisse Global Wealth Databook. That compares with approximately $220,000 in Australia, $142,000 in France and $54,000 in Greece.”, Michael Milken, WSJ, March 6, 2014

February 27, 2014 – Statement 148: “It is very hard to make the judgment now that the financial system as a whole or the banking system as a whole is undercapitalized. Based on everything we know today, if you look at very pessimistic estimates of the scale of losses across the financial system, on average relative to capital, they do not justify that concern.”, Timothy F. Geithner, President of New York Federal Reserve and Vice Chairman Federal Reserve Board of Governors, FOMC Minutes, March 18, 2008

February 27, 2014 – Statement 147: “Although Mossberg was not alone when he was appointed lead plaintiff in this action, finding him an adequate class representative in the face of the information the Court now has before it would render the PSLRA’s protections and Rule 23’s requirements toothless…”, Judge George H. Wu, United States District Court Judge, November 14, 2011 (in granting (!!!!) Lead Plaintiff’s Motion for Class Certification, Sven Mossberg vs. IndyMac Financial, Inc. and Michael Perry)

February 27, 2014 – Statement 146: “Tapping this data (land availability “elasticity scores”), economists Atif Mian at Princeton University and Amir Sufi at the University of Chicago’s Booth School of Business have shown that more constrained areas saw bigger booms in the housing bubble—but also bigger busts on the way down.”, Wall Street Journal, February 27, 2014

February 27, 2014 – Statement 145: “From 1997 to 2013, there were 3,200 private securities class-action lawsuits, costing $75 billion (in settlements). There are only about 5,400 U.S. publicly-traded companies on the NYSE Euronext, NASDAQ, and NYSE Amex!!! Based on my experience, I believe that most of these suits are the real fraud; designed to “extort” public companies, by exploiting our dysfunctional civil legal system.”, Mike Perry, Former Chairman and CEO, IndyMac Bank

February 20, 2014 – Statement 144: “The stock price is withering. Investors and analysts are feeling burned….if Mr. Zuckerberg has a revolution up his sleeve, let’s see it. Otherwise, he should settle the lawsuits, expect large staff turnover, and get on with running a business whose scope, prospects, and share price are limited by the limited prospects of advertising on Facebook.” Holman W. Jenkins, WSJ, August 18, 2012

February 19, 2014 – Statement 143: “Mr. Perkins first came to widespread attention a few weeks ago by comparing anti-tech demonstrators to Nazis. We might be heading, he said, to a new Kristallnacht, when Hitler Youth and stormtroopers were unleashed against Jews and their businesses. He quickly disavowed the analogy, but not the reasoning behind it.”, David Streitfeld, New York Times

February 19, 2014 – Statement 142: “Dr. Friston has proposed that our brains are prediction-generating machines. Our brains, Dr. Friston argues, generate predictions about what is going to happen next, using past experiences as a guide.”, New York Times, February, 2014

February 19, 2014 – Statement 141: “Securities laws require material information — that is, information that might affect an investor’s view of a company — to be disclosed. That the government would deny a company’s shareholders all its profits certainly seems material, but the existence of this policy cannot be found in the financial filings of Fannie Mae.”, Gretchen Morgensen, New York Times, February 15, 2014

February 18, 2014 – Statement 140: “Crisis Management Discussion with Mike Perry, former Chairman and CEO IndyMac Bancorp”, UCLA Anderson School of Management, May 13, 2013

February 18, 2014 – Statement 139: “Discussion with Mike Perry Regarding the Financial Crisis”, University of Redlands, March 28, 2012

February 18, 2014 – Statement 138: “Profits are at a record high as a share of G.D.P., yet corporations aren’t reinvesting their returns in their businesses. Instead, they’re buying back shares, or accumulating huge piles of cash. This is exactly what you’d expect to see if a lot of those record profits represent monopoly rents.”, Paul Krugman, NY Times, February 17, 2014

February 13, 2014 – Statement 137: “The Lira has lost as much as a third of its value against the dollar, since the Federal Reserve in Washington began making noises last May about cutting back on its stimulus program, prompting investors to move their money from risky emerging markets…”, Wall Street Journal, February 9, 2014

February 13, 2014 – Statement 136: “In December 2008, Citi was effectively insolvent. (It’s) equity-to-assets ratio, measured in market value—the best single comprehensive measure of a bank’s financial strength—fell steadily from about 13% in April 2006 to about 3% by September 2008. And that low value reflected an even lower perception of fundamental asset worth, because the 3% market value included the value of an expected bailout.”, Charles W. Calomiris and Allan H. Meltzer, February 12, 2014

February 13, 2014 – Statement 135: “The recent turn has been abrupt. The flop reflects a broader turning point in one of the U.S.’s biggest recent asset booms. From 2009 to mid-2013, average prices for agricultural land in the U.S. rose by half, while in Iowa, Nebraska and some other Midwest farm states, prices more than doubled….”, Wall Street Journal, February 12, 2014

February 13, 2014 – Statement 134: “The fact is they (Asian countries) bulked up on savings, held back on consumption and investment, and amassed huge caches of foreign reserves. Sunk into Treasury bonds, these reserves drove a speculative boom in the “emerging market” of the moment: American subprime mortgages.”, Eduardo Porter, New York Times, February 11, 2014

February 12, 2014 – Statement 133: “I find that mandate (the Fed’s dual mandate: stable prices and full employment) both operationally confusing and ultimately illusory. It implies a trade-off between economic growth and price stability, a concept that I thought had long ago been refuted not just by Nobel Prize winners but by experience.”, former Fed Chairman Paul Volker, 2013

February 12, 2014 – Statement 132: “Annual earnings dropped for the first time since Rackspace went public. The stock price has plunged more than 55% over the past 12 months. Rackspace is far from dead, but its business of offering Web hosting and other cloud-based tech services has undergone a big shift since Amazon’s AWS operation got into the game with that company’s usual playbook of driving down prices.”, Heard on the Street, WSJ, February 11, 2014

February 10, 2014 – Statement 131: “… the financial crisis hammered the Harvard endowment and exposed its weaknesses, including a lot of illiquid investments. The endowment declined by 27.3% in its fiscal year ended in June 2009 and still hasn’t gotten back to its pre-crisis peak of $36.9 billion.” Andrew Barry, Barrons

February 10, 2014 – Statement 130: “The Peterson Institute of International Economics estimates that 39% of the increase in U.S. income inequality is because of this imbalanced trade. Yet Washington keeps negotiating so-called free-trade agreements that seem to open the U.S. market while leaving others relatively closed.”, Clyde Prestowitz

February 10, 2014 – Statement 129: “Mr. Hamman suggested a $1 billion prize for nailing every game in the NCAA tournament. Before coming to terms, SCA and Mr. Buffett, along with his reinsurance-business chief, Ajit Jain, set about answering a tough question: What was the chance of a winner? Mr. Buffett said the odds can’t be calculated.”, Wall Street Journal, February 10, 2014

February 7, 2014 – Statement 128: “This debate is fundamental, and the answers affect nearly everyone. Are speculative market booms and busts — like those that led to the recent financial crisis — examples of rational human reactions to new information, or of crazy fads and bubbles? Is it reasonable to base theories of economic behavior, which surely has a rational, calculating component, on the assumption that only that component matters?”, 2013 Nobel Laureate in Economics, Robert J. Shiller

February 7, 2014 – Statement 127: “Yelp sells ads through a mix of a self-service model similar to Google’s and a “full-service” model using a sales force. The company doesn’t disclose how much revenue comes from each method, but said it plans to invest more in the business in the coming year to capture more market share.”, Heard On The Street, Wall Street Journal

February 6, 2014 – Statement 126: “Investor Jim Chanos is quietly building an investment thesis around the idea that buybacks are a sign of corporate weakness, not strength. We were both left agog at what his analysis shows.”, Dennis K. Berman, The Wall Street Journal

February 6, 2014 – Statement 125: “Flailing investors…frustrated by low returns and desperate for yield…can delude themselves, pouring money into ill-conceived projects, be they subprime lending or capital flows to emerging markets.”, Nobel Laureate Paul Krugman, January 30, 2014

February 6, 2014 – Statement 124: “M2 has grown so fast in China not just because the central bank has been issuing a lot of renminbi, but also because the state-owned banking system has lent and relent those renminbi with encouragement from the government, creating a multiplier effect….The Federal Reserve pays little attention to money supply measures, since they do not provide much guidance to setting monetary policy.” The New York Times, January 16, 2012

February 6, 2014 – Statement 123: “I don’t think the (Fed’s) QE policies are so benign for inflation since 40% of my former retirement income has been rerouted to support the life styles of Messrs. Bernanke and Goolsbee’s friends. With my income so deflated, I’m spending a much higher percentage of my income for my essentials (not unlike you’d expect from wild inflation).”, Larry Noertker, Letter to the WSJ Editor, January 20, 2014

February 6, 2014 – Statement 122: “To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”, Nobel Laureate Paul Krugman, August 2, 2002

February 6, 2014 – Statement 121: “Mr. Bernanke was the board’s intellectual leader in its decision to cut the fed funds rate to 1% in June 2003 and keep it there for a year despite a rapidly accelerating economy and soaring commodity and real-estate prices. The Fed’s multiyear policy of negative real interest rates produced a credit mania that led to the housing bubble and bust. His record before the crisis was a clear failure.” Wall Street Journal, January 25, 2014

February 5, 2014 – Statement 120: “All of these things….the pushing around of nuns, the limiting of freedoms that were helping kids get a start in life, the targeting of conservative groups—have the effect of breaking bonds of trust between government and the people. They make citizens see Washington as an alien and hostile power.”, Peggy Noonan, WSJ, January 31, 2014

February 4, 2014 – Statement 119: “This (FTC) opinion is the most problematic agency action I have seen in terms of the potential to cause harm to consumers. It demonstrates a distinct lack of regulatory humility. This is a product-design case brought in the guise of alleged unfairness to consumers. Do you really want a regulatory agency designing your iPad?”, Dissenting FTC Commissioner Joshua Wright

February 4, 2014 – Statement 118: “Chris Kostman, who operates the Badwater run, Furnace Creek bike race and three other Death Valley events, called it “mind-blowing” and “unprecedented” to have to cancel or relocate the competitions, given that they have had no deaths, serious accidents or citations over 24 years. (The National Park Service does not dispute the events’ clean safety records.)”, The Los Angeles Times, February 2, 2014

February 3, 2014 – Statement 117: “What the SEC has done here is highly questionable and vulnerable to challenge…it is hard to fathom what they were thinking (in deciding to redact interviews on grounds of personal privacy).”, Daniel J. Metcalfe, former head of the U.S. Justice Department’s Office of Information and Privacy and director of American University’s Collaboration on Government Secrecy project

January 30, 2014 – Statement 116: “Nothing distinguishes more clearly conditions in a free country from those in a country under arbitrary government than the observance in the former of the great principles known as the Rule of Law.” Nobel Laureate F.A. Hayek, “The Road to Serfdom”

January 23, 2014 – Statement 115: “Central banks cannot simply move economic growth and employment to a desired level. Monetary policy (cannot) replace a sustainable growth policy, a well-balanced fiscal policy, a well functioning labour market, or an open world trade regime. It is important to avoid illusions in this respect. Monetary policy cannot assume responsibility for everything.”, Thomas Jordon Chairman, Swiss National Bank

January 23, 2014 – Statement 114: “I did not have sexual relations with that woman, Miss Lewinsky.”, President Bill Clinton, Jan. 26, 1998

January 14, 2014 – Statement 113:  “During the pre-crisis boom, homebuyers were encouraged to borrow heavily to finance undiversified investments in a single home, while governments provided guarantees to mortgage investors. In the U.S., this occurred through implicit guarantees of assets held by the Federal Housing Administration (FHA) and the mortgage agencies Fannie Mae and Freddie Mac.”, 2013 Nobel Laureate in Economics, Robert J. Shiller

January 14, 2014 – Statement 112: “The private plaintiffs’ litigation against me, as CEO of IndyMac Bank, was entirely without merit. From day one they never intended to prove a single allegation (and they didn’t). It was all about extracting settlement money from D&O insurance policies, like their scamming brethren in asbestos suits.”, Mike Perry

January 13, 2014 – Statement 111: “And part of the (economic stimulus from FED monetary policy) comes through higher house and stock prices, which causes people with homes and stocks to spend more, which causes jobs to be created throughout the economy and income to go up throughout the economy.”, Janet Yellen

January 6, 2014 – Statement 110: “Look at me. Helpless, tortured, shot, blown up, my best buddies all dead, and all because we were afraid of the liberals back home, afraid to do what was necessary to save our own lives. Afraid of American civilian lawyers.”, Marcus Luttrell

December 17, 2013 – Statement 109: “Public plans have historically assumed roughly an 8% rate of return. But thanks to falling yields on safe assets, pensions must invest in riskier assets to have any hope of getting 8% returns….investment risk to budgets has risen roughly tenfold over the past four decades.” Andrew G. Biggs

December 17, 2013 – Statement 108: “Instead of encouraging innovation, patent law has become a burden on entrepreneurs, especially startups without teams of patent lawyers….the direct and indirect costs of litigation against technology companies (are estimated to be) $80 billion per year.” L. Gordon Crovitz

December 17, 2013 – Statement 107: “A clash between the management of Banca Monte dei Paschi di Siena SpA (The world’s oldest bank and Italy’s third largest financial institution) and the bank’s largest shareholder threatens to throw into chaos a plan to raise cash needed to stave off its full nationalization.” The Wall Street Journal

December 16, 2013 – Statement 106: “(we) worked together to fully vindicate both our clients after their lives were needlessly disrupted and their reputations were needlessly tarnished by years of litigation (by the SEC). As the Court aptly noted, the evidence showed our clients acted with ‘absolute integrity, prudence, and honesty.'”, David C. Scheper

December 13, 2013 – Statement 105: “Would you pay this claim? The Gulf Settlement Program did.” BP

December 13, 2013 – Statement 104: “Mega Millions recipe: longer odds, bigger pots and fewer winners….Many who enrolled in health plans still await confirmation”, Los Angeles Times

December 12, 2013 – Statement 103: “The financial sector has become a self-sustaining perpetual motion machine that extracts money from the rest of the economy.” Jesse Eisenger, ProPublica

December 11, 2013 – Statement 102: “Given these facts, further regulation of the financial system through the Dodd-Frank Act was a disastrously wrong response. The vast new regulatory restrictions in the act have created uncertainty and sapped the appetite for risk-taking that had once made the U.S. financial system the largest and most successful in the world.” Peter J. Wallison, American Enterprise Institute

December 11, 2013 – Statement 101: “And the Fed’s trillions in interest rate risk is supported by only $55 billion of capital; their capital is just 1.4% of assets. They have debt (leverage) that is about 70 times their capital!” Mike Perry

December 10, 2013 – Statement 100: “…you can buy your own stock (with borrowed funds) at a 14% return with a negative or zero or 1% to 2% cost of capital for at least a 12% spread.” Larry Haverty, Gabelli Multimedia Trust

December 10, 2013 – Statement 99: “One of the problems we have in the United States is that prosecutors like to make a name for themselves and they all try to distinguish themselves in one way or another. One way to distinguish yourself is to get the highest penalty ever against a bank…I don’t think it bears much resemblance to anything else. It is not rational.” Commissioner Daniel M. Gallagher, The Securities and Exchange Commission

December 4, 2013 – Statement 98: “So what is it with the Norwegians? Well, they have a kind of superiority complex.” Nobel Laureate Robert Shiller (explaining his psychological theory for what appears to be a current Norwegian housing bubble)

December 4, 2013 – Statement 97: “If you simply announce that things are irrational, then that alone doesn’t get you very far. You have to replace rational agents with some concrete notion of what it means to be irrational. You need to test that notion in a formal, mathematical model.” Nobel Laureate Lars Peter Hansen

December 3, 2013 – Statement 96: “Again, the evidence suggests that we have become an economy whose normal state is one of mild depression, whose brief episodes of prosperity occur only thanks to bubbles and unsustainable borrowing.” Paul Krugman

December 2, 2013 – Statement 95: “Now we’re seeing another upswing in risky behavior. It began surprisingly soon after the crisis, spurred on by central bank policies that depressed the return on safe investments.” Howard Marks

December 2, 2013 – Statement 94: “The recognition of the insuperable limits to his knowledge ought indeed to teach the student of society a lesson of humility which should guard him against becoming an accomplice in men’s fatal striving to control society—a striving which makes him not only a tyrant over his fellows, but which may well make him the destroyer of a civilization…” Nobel Laureate Friedrich A. Hayek

December 2, 2013 – Statement 93: “Venezuelans need a moral authority that defends their rights…they need a champion for a rule of law that will limit the power of the state over their person. Mother Church ought to be that voice. In siding with Mr. Maduro, however inadvertently, she harms her cause in the region.” Mary Anastasia O’Grady

November 26, 2013 – Statement 92: “These agencies (like the CFPB, FDA, FDIC, NSA, and SEC) have assumed frightening new powers over the everyday lives of American citizens, giving government entities free rein over you and me in ways unprecedented in our country’s history.” Sen. Rand Paul

November 25, 2013 – Statement 91: “Allow me to highlight—and then question—some of the prevailing wisdom at the basis of current Fed policy”, Kevin Warsh

November 25, 2013 – Statement 90: “Too much money is chasing too few assets, pure and simple. Artificially low rates deliver artificially high asset prices, accentuating financial fragility.” Tad Rivelle, TCW

November 25, 2013 – Statement 89: “How can 12 men and women sit on a committee and think they can fine-tune the economy without creating imbalances and unintended consequences?” John Mauldin

November 25, 2013 – Statement 88:  “Our current civil legal system, which once was the envy of the world, is slowly destroying America, both economically and culturally.” Mike Perry

November 18, 2013 – Statement 87: “One can hope that in a future financial crisis and there will surely be one…economists, investors, and regulators will better understand how fat-tail markets work. Doing so will require better models, ones that more accurately reflect predictable aspects of human nature…” Alan Greenspan

November 14, 2013 – Statement 86: “The banking system in the United States has been highly crisis-prone, suffering no fewer than 14 major crises in the past 180 years…A country gets the banking system it deserves..”, Charles W. Colomiris and Stephen H. Haber

November 13, 2013 – Statement 85: Does Amazon Have a Special Exemption From the SEC in Complying with Securities Disclosure Laws?

November 12, 2013 – Statement 84: “..ask a U.S. citizen if some semi-governmental agency should control the prices of cars, morning newspapers, and wine…he would jump in anger, as it appears to violate every principle the country stands for….this is not France.” Nassim Nicholas Taleb

November 12, 2013 – Statement 83: “My worst fears are confirmed. This is what I was afraid of, that the euro would be preserved and it would pervert the venture and destroy the European Union.” George Soros 

November 11, 2013 – Statement 82: “It’s a common observation in the context of emerging-market financial crises that they’re often preceded by large capital inflows from abroad and that the problem is that the local banking system can’t handle the massive inflow of capital. So by analogy, sort of a similar story may have happened in the United States.” Ben Bernanke

November 11, 2013 – Statement 81: “The global economy is just as dysfunctional now as it was before the financial crisis. Imbalances that helped fuel the crisis–including the U.S.’s easy monetary policy…..still exist. In fact, they’ve gotten worse.” Rana Foroohar, Time Magazine

November 8, 2013 – Statement 80: “The Experts Keep Getting It Wrong. And The OddBalls Keep Getting It Right.” Is This Really True, or Is it Survivorship and Outcome Bias That Make You Think So?

November 7, 2013 – Statement 79: Should housing and other asset bubbles and busts (and related banking crises) that occurred throughout the developed world, raise doubts as to whether nonconforming mortgages and securitization caused the U.S. housing bubble, as many claim?

November 7, 2013 – Statement 78: “We’ve been bouncing from investment bubble to deficit spending to offset the income that is being drained out of the economy by trade deficits” Jared Bernstein and Dean Baker

November 6, 2013 – Statement 77: Pre-Crisis, World Bank Data Shows That Iceland Grew Its Money Supply 5.4 Times Faster Than Its GDP Growth! Spain 4.9 Times! The U.K 4.4 Times! The U.S. 3.3 Times! What Were Central Bankers Thinking?

November 5, 2013 – Statement 76: “Booms and Busts Around the World Happen Whenever Central Banks Tighten or Loosen Monetary Policy.” John Mauldin

November 5, 2013 – Statement 75: “It all fell apart, in the sense that not a single major forecaster of note or institution caught it (predicted the financial crisis)….I was actually flabbergasted, it (studies about market behavior) upended my view of how the world works.” Alan Greenspan

November 4, 2013 – Statement 74: Foreign Trade and Investment Imbalances Were a Major Cause of the U.S. and Global Financial Crisis. They Remain a Huge Unaddressed Risk, Because It was Easier Politically to Just Blame the Bankers.

November 4, 2013 – Statement 73: “The first and most important lesson that history teaches about what monetary policy can do….and it is a lesson of the most profound importance…is that monetary policy can prevent money itself from being a major source of economic disturbance.” Milton Friedman 

October 29, 2013 – Statement 72: “The evidence against Fan and Fred is voluminous, but the feds want to whitewash Washington’s role in the panic.”

October 28, 2013 – Statement 71: The Fed’s Low-Rate Policies Prompt Investors to Make Dicier Tech Bets; Just Like They Did in The Dot-Com and Housing Bubbles/Busts

October 22, 2013 – Statement 70: Does JP Morgan Have a Special Exemption from the SEC in Complying with Securities Disclosure Laws Too?

October 21, 2013 – Statement 69: Does Goldman Sachs Have a Special Exemption from the SEC In Complying with the Securities Disclosure Laws?

October 21, 2013 – Statement 68: FDIC Chair Gruenberg Stunningly Admits That Prior to the Financial Crisis They Had No Plans To Address a Big Bank Failure!

October 21, 2013 – Statement 67: “In a post Dodd-Frank world, banks are public utilities and no CEO can afford to resist government’s demands.”

October 18, 2013 – Statement 66: “I’m glad I’m able to be the person who can afford to stand up to them. I don’t want anything from the SEC; except them to act like American citizens and treat other American citizens the way they deserve to be treated.” Mark Cuban

October 15, 2013 – Statement 65: India’s New Central Bank Head Warns the Fed to Pay More Attention to the Global Consequences of Their Actions

October 4, 2013 – Statement 64: “(Federal) Student loans are the new subprime; were talking about hundreds of billions of (government) losses…”, Jim Rickards

October 2, 2013 – Statement 63: Federal Judge Rules HUD/FHA Violated Reverse Mortgage Statute by Improperly Directing Lenders to Foreclose on Elderly Widows!!!

October 1, 2013 – Statement 62: We are back in another ‘epic credit bubble’ according to Blackstone; who is the Fed/government going to blame this time when it collapses?

October 1, 2013 – Statement 61: “Monetary policy (set by central bankers like the Fed) insidiously plays with our time preferences and our very ability to engage in economic calculation. The greater the distortion, the greater the destruction needed to correct it.” Mark Spitznagel

September 27, 2013 – Statement 60: “They (central bankers) believe that flooding the world with money will somehow solve the very problems that such interventionism created in the first place.” Ron Paul, 2013

September 27, 2013 – Statement 59: “…the Fed in good measure is the source of risk”, Jim Grant, Founder and Editor Grant’s Interest Rate Observer

September 26, 2013 – Statement 58: “There is an Interaction Between The Monetary Excesses (by the Fed) and Risk-Taking Excesses; Rapidly Rising Housing Prices and Resulting Low Delinquency Rates Threw Underwriting Programs Off Track…”, John B. Taylor

September 25, 2013 – Statement 57: “So if we want them (banks) to be a free capitalist company, they have to be able to fail. If we don’t, we might as well treat them as a utility, because that’s what they are.” Ben Bernanke

September 24, 2013 – Statement 56: “…We believe that the government deserves quite a lot of the blame for getting our financial system and our nation into trouble in the first place.” FCIC Minority Report

September 24, 2013 – Statement 55: “Could the breakdown that so devastated global financial markets have been prevented? I very much doubt it.” Alan Greenspan, February 2010

September 24, 2013 – Statement 54: “With nominal interest rates around 6% and inflation around 6% (in 2004), the real interest rate was near zero, so household borrowing took off” Vernon L. Smith and Steven Gjerstd

September 20, 2013 – Statement 53: “Your No. 1 Client is the Government”

September 19, 2013 – Statement 52: It’s Not Politically Correct To Say, but Individuals Pursuing Their Self-Interest is Essential for Free Markets; Greed Did Not Cause the Financial Crisis

September 19, 2013 – Statement 51: The Simple Explanations for the Global Financial Crisis and Western Slowdown are Wrong

September 18, 2013 – Statement 50: Five Years Later: Don’t Mention the Feds

September 18, 2013 – Statement 49: Unbelievably, the Government’s National Statistical Rating Agency Problem Remains Unsolved!!!

September 17, 2013 – Statement 48: No Down Payment Required (for home mortgages) in Latest Government QRM Proposal!!!

September 10, 2013 – Statement 47: One Thousand One Hundred and Forty Seven Pages: My Entire Sworn Testimony Before the SEC Staff

September 4, 2013 – Statement 46: The Porridge was Too Hot. Now it’s Too Cold. Only Wise Government Knows When It’s Just Right!!!

April 23, 2013 – Statement 45: MBIA Dismisses Lawsuit Against M. Perry and Others

March 13, 2013 – Statement 44: The Securities and Exchange Commission v. The State of Illinois

March 1, 2013 – Statement 43: Did You Know A Government Official Can Intentionally Defame a Private, U.S. Citizen and Not Be Held To Account? They Have Sovereign Immunity!

February 26, 2013 – Statement 42:  Is FHA “A home wrecker”?

February 26, 2013 – Statement 41:  HUD/FHA is Not More Capable or Noble Than Their Private Sector Counterparts

February 7, 2013 – Statement 40: “Never Explained is Why Some Were Bailed Out and Some Were Not.”

February 4, 2013 – Statement 39: Resolution of All Government Civil Litigation Re. M. Perry: Summarized

January 29, 2013 – Statement 38: “Each of the actors: bankers, politicians, the poor, foreign investors, economists, and central bankers did what they thought was right”

January 29, 2013 – Statement 37: Discussion of IndyMac Bank’s 2007 Safety and Soundness Regulatory Examination

January 17, 2013 – Statement 36: “Many People Like Cheap Moralizing…In the West, Intellectuals Like to Blame the Markets”

January 9, 2013 – Statement 35: FDIC Settlement Documents and M. Perry’s Comments Re. Settlement

January 3, 2013 – Statement 34: IndyMac’s (Credit Quality) Performance as a Loan Originator

January 2, 2013 – Statement 33: “Informal Mortgage Industry Talk By Michael Perry”

January 2, 2013 – Statement 32: “IndyMac Bank OMG Not TBTF”

September 27, 2012 – Statement 31: SEC Settlement Documents and M. Perry’s Attorney’s Comments Re. Settlement

September 24, 2012 – Statement 30: U.S. Judge Manuel L. Real’s Signed “Findings of Uncontroverted Facts and Conclusions of Law: Related to Order Granting Partial Summary Judgment in Favor of Perry on SEC’s Risk-Weighting and Section 17(a)(2) Claims”

September 24, 2012 – Statement 29: U.S. Judge Manuel L. Real’s Signed “Order Granting Partial Summary Judgment in Favor of Perry on SEC’s Risk-Weighting and Section 17(a)(2) Claims”

September 10, 2012 – Statement 28: Transcript of 2nd Partial Summary Judgment Motion Hearing Before Judge Real

August 30, 2012 – Statement 27: The Truth is Emerging Despite the SEC’s Attempts to Conceal It.

August 30, 2012 – Statement 26: I think the SEC is engaging in denialism in their statements to the Court.  

August 29, 2012 – Statement 25: How about this recent SEC Statement to the Court; is it misleading? I think so.

August 28, 2012 – Statement 24: Are these recent SEC Statements to the Court inaccurate or misleading? I think so.

August 28, 2012 – Statement 23: Status update on SEC vs. Michael W. Perry

August 24, 2012 – Statement 22: Excerpt from Michael W. Perry’s Sworn SEC Testimony

August 23, 2012 – Statement 21: Supplemental Brief in Support of M. Perry’s 2nd Motion for Partial Summary Judgment in SEC Matter

July 2, 2012 – Statement 20: Reply in Support of M. Perry’s Motion for Partial Summary Judgment: SEC’s Risk Weighting and 17(a)(2) Claims

June 13, 2012 – Statement 19: M. Perry’s Motion for Partial Summary Judgment: SEC’s Risk-Weighting and Section 17 (a)(2) Claims

May 31, 2012 – Statement 18:  U.S. Judge Manuel L. Real’s Signed “Order Granting Partial Summary Judgment in Favor of Perry and Keys”

May 31, 2012 – Statement 17: U.S. Judge Manuel L. Real’s Signed “Findings of Uncontroverted Facts and Conclusions of Law”

May 25, 2012 – Statement 16: M. Perry’s Motion in Limine to Exclude Testimony of Professor Anthony Saunders

May 25, 2012 – Statement 15: M. Perry’s Motion in Limine to Exclude Analyst Testimony

May 21, 2012 – Statement 14: Transcript of Partial Summary Judgment Motion Hearing Before Judge Real

May 18, 2012 – Statement 13: M. Perry’s Memorandum of Contentions of Fact and Law

May 7, 2012 – Statement 12:  Reply Memorandum in Support of M. Perry’s Motion for Partial Summary Judgment

April 23, 2012 – Statement 11: Former FASB Director MacDonald Opines on $18 million Intercompany Payable/Receivable at March 31, 2008

April 23, 2012 – Statement 10: FTI’s Beloreshki Opines on 2008 DSPP Stock Issuance/Impact on Book Value

April 6, 2012 – Statement 9:  Former OTS Regional Director Vigna Opines on Disclosure of Various Regulatory Matters

April 6, 2012 – Statement 8: Former SEC Chief Economist Lehn Opines on Materiality of SEC Allegations and Defendants’ Intent

April 6, 2012 – Statement 7: Former SEC Commissioner Fleischman Opines on Indymac’s Disclosure Controls

April 6, 2012 – Statement 6: Declaration of M. Perry In Support Of His Motion For Partial Summary Judgment

April 6, 2012 – Statement 5: M. Perry’s Motion for Partial Summary Judgment

November 30, 2011 – Statement 4: M. Perry’s Responses to SEC’s First Set of Interrogatories

November 21, 2011 – Statement 3: SEC’s Responses to M. Perry’s First Set of Interrogatories

September 29, 2011 – Statement 2: M. Perry’s Motion to Dismiss FDIC Complaint

September 1,2011 – Statement 1: Initial Statement

“To sin by silence when they should protest makes cowards of men” -Abraham Lincoln

My name is Michael Perry. I am the former Chairman and Chief Executive Officer of Indymac. I have kept silent for three years in the hope that I would be left alone and allowed to rebuild my professional life, but unfortunately that has not been the case. I have been forced to defend myself against unwarranted and false, public allegations.

On July 11, 2008, Indymac Bank was seized by the Federal Deposit Insurance Corporation (FDIC) after a U.S. Senator’s inappropriate public statements during the financial crisis caused a “run on the bank” that rapidly depleted the bank’s ample liquidity. As a result of this bank run and the fact that Indymac was deemed by banking regulators to be “Not Too Big To Fail”, it was not around just a few months later, at the height of the financial crisis, to receive any of the significant and unprecedented assistance the government provided to every “Too Big To Fail” financial institution and hundreds of smaller financial firms. Without this assistance, many, if not most would have suffered the same fate as Indymac, including some of the largest and oldest firms.

Since that time, I and others have been the subject of various government investigations and named as defendants in numerous civil lawsuits, including ones filed by the Securities and Exchange Commission (SEC) on February 11, 2011 (31 months after Indymac was seized), and the FDIC on July 6, 2011 (3 years after Indymac was seized).

The plaintiffs in these civil lawsuits apparently don’t care about the facts or the truth; these suits are filled with distortions and inaccuracies. They are primarily being pursued to gain access to potential settlement proceeds from directors and officers liability insurance, or in the case of the SEC to show politicians, the press, and the public that they are now tough enforcers of the securities laws. The FDIC, for its part, is seeking a significant share of D&O insurance proceeds, but it is also inappropriately seeking to blame former banking executives like me for the FDIC’s own failures. The private deposit insurance fund, for which the FDIC is responsible, became insolvent during this crisis and remains so; without the full faith and credit of the U.S. behind them, they like Indymac and many others, would have failed.

Importantly, Indymac decided in 2000 to carry out its business model through the acquisition of a depository institution whose deposits were insured by the FDIC. Because of this decision, Indymac — unlike government-sponsored mortgage lenders Fannie Mae and Freddie Mac (and others) — has not cost U.S. taxpayers one penny. And while the seizure of Indymac Bank has cost the FDIC’s insurance fund billions, industry experts and others (including me) believe that much of the insurance fund’s loss was avoidable, if only the FDIC had worked with us to save the bank when that was still possible or if the FDIC had made better decisions as conservator once it took over the bank.

Not one of the lawsuits against me has any merit.

I, and the management team and directors of Indymac Bank, made prudent and appropriate business decisions based on the facts available to us at the time and always with the primary goal being to keep Indymac Bank safe and sound, within the parameters of our regulatory-approved, mortgage lending business model. And importantly, we always acted with honesty, integrity and complete transparency and properly complied with all relevant regulations and laws.

The plaintiffs know this and as a result do not want these matters to go to trial where they will lose. This is what happens in America today. Frivolous lawsuits rarely go to trial and nearly always settle despite their lack of merit, because of the time and cost to defend against them (and perversely having a “pot” of liability insurance, or even better a deep-pocket, corporate indemnification, encourages more lawsuits and more settlements). It is particularly disheartening though, to have U.S. government agencies like the SEC and FDIC engaged in this type of behavior in order to further their own image without regard to the damage done to the reputation, career, and finances of honest individuals like myself and others. And it’s not just me and my family that is adversely affected. I believe these legal tactics have a long-term cost to our country’s economic potential and erode our standards. In regard to my latter assertion, I don’t think most Americans are aware (I wasn’t until recently), but there is an exemption in our defamation laws that “privileges” plaintiff’s lawyers and allows them to distort facts and make untrue statements and defame defendants like myself, without any consequence, even if the defendant proves so later in a court of law. This doesn’t seem right, does it?

In conclusion, this site’s purpose is to counter the allegations in these lawsuits (and regurgitated in the press as authoritative, when they are not) with the truth and the facts, for those who care to spend the time to read the documents on this site and understand them. I plan to start out slowly, focus on the government cases, and then if I have the time and it is warranted, expand the site to include my views based upon my experiences and post-crisis study of its true systemic and macroeconomic causes.

Site Visitors:Travel how to

  1. I left OWB this year. I was offered extensions and accepted through the transition as they sold the servicing arm but when I rec’d a job offer I realized it was time to move on. When I came on in 2008 I was told what the salary would be and that the company was restructuring. To me that was an adventure/opportunity that I was open for. Shortly after my hire date a politician made a statement which caused turmoil. I realized quite quickly I was in for an interesting experience. It sure was that. I don’t regret a moment of my whole experience and I had a great boss throughout. I just want you to know that I wish I had a longer opportunity to work under your leadership. That was what I was looking forward to at the time when I accepted the position after reading what your values were as they related to employees and the company.

  2. I am glad you spoke up about this. Anybody that knows you or worked with you knows who you are and your integrity. The government doesn’t care. Brad

  3. I’m interested in what movie do you think best represents what truly happened in 2008? I googled and their seems to be more than one ….From an ex-employee who surely enjoyed working for your company. I watched the movie “To Big To Fail” which was interesting. It was also interesting that Indymac was never mentioned. Take Care.

    • IndyMac could be it’s own movie – or a damn good documentary; but, the government and Wall Street would probably keep it fom distribution if the truth were told. At the very least Chuck Schumer (and his friends) would have a fit. I’m surprised Mr. Perry hasn’t written a book. IndyMac was well branded and certainly appears that if Schumer hadn’t made his (intentional) rumor-esque statements, IndyMac could have survived with the bailout. It was the Wall Street big bad boys that have stalled recovery. If they weren’t allowed to own securitization tranches or oppose modification, banks like IndyMac (IMHO) would have worked with their customers when the economy collapsed and tried to keep people in their homes and money flowing to the trusts.

  4. Am I wrong when my intuition tells me that some of the owners who were previous gov’t employees who now own the new company is not accidental? I’m scared to even suggest this.

  5. Mabel Johnson

    Mr. Perry, thank you for the information contained on this blog. My mortgage is currently with Indy Mac and my service provider is One West. It has become very confusing reading all of the negative information on the internet regarding One West/Indy Mac and the “sweetheart deal” with the FDIC. I am in foreclosure right now but have been notified by One West that it’s on hold because of my application for a HAMP loan. Can you answer one question for me? How do I know if my current mortgage loan is part of the FDIC deal wherein One West will re-coop 80% of any losses once it forecloses. I guess what I’m trying to find out is will it benefit One West to foreclose on my loan because of the generous loss agreement with the FDIC or will they want to modify my loan. I believe the investor on my loan is Deutsch Bank. Just trying to figure out if they do foreclose on my home, was it because of the shared loss program with the FDIC. How do I know if I am the so called (7%) of mortgages that are in the shared loss program with the FDIC? I am underwater on my home by $200,000 and because of income will not qualify for the HAMP program. The only possibility would be of an in house modification from One West. Any information would be greatly appreciated and you can email me personally. Thank you.

  6. Mike – Your stamina to fight has opened up a lot of information. As I read your blog and the FDIC and OneWest documents I realize there was more to this than a failed thrift. Your Dec. 2007 10K was strong enough you could have survived especially under TARP. Looks like they took down (sacrificed) IndyMac and Lehman so they could feed the animals with TARP bailout funds. One question haunts me, and only you can answer it – why didn’t IndyMac make the Assignment of Mortgages pursuant to the PSAs?

    You can answer me privately. I’d really like your input on the overall securitization process. Something tells me the investment banks dictated to you…otherwise why would FDIC seal the “Unassigned Records” and eliminate the transparency? And why are the investors not complaining about the failed REMICs? Because IndyMac wasn’t the only one not to make assignments. If you can discuss – please contact me.

  7. Mr. Perry,
    What are your thoughts on collusion between Schumer, Paulson and the CRL on a deliberate attack on IndyMac? Did Issa ever get the communications info amongst these people he wanted?

  8. Mike,

    I applaud you for having the courage to break the silence and defend yourself against the bs. You’re a good role model to honest citizens who are wrongly oppressed but can never muster the courage to protest. Our world wouldn’t have so much corruption if more good people stood up for themselves and fought for what they deserved. You’re a brilliant and honest businessman. I’m sure good things will come back around to you. You can’t fail unless you quit trying. The last few years might have been the worst times of your life, but that could only mean one thing: things can only get better from here. :)


  9. Hey Mike,
    I love Statement 35 that you posted to NTBTF re: your recent settlement with the FDIC. As always, you tell it like it is, this time exposing the FDIC as an unethical thug of the federal government that used its brute power, and the circumstances of depleted insurance coverage for your legal defense, to extract this settlement and the related banking prohibition.

    Those of us who have known you well and worked with you closely over the years know that the claims by the SEC and FDIC were completely baseless…..and so do those in these oppressive agents of our government. They spent years and tens of millions of dollars on these sham actions, and come away with almost nothing (as the FDIC will likely not recover anything from the insurance) – a complete waste of resources and unfairly punitive for you and your family. With these matters behind you, I know you will do something exceptional once again. Go and show ‘em, Mike!

  10. Mr. Perry, I apologize for not recognizing this earlier as I’ve been engulfed with “reinventing” myself and supporting my family since the collapse of IMB. I was an 8 year tenured employee with the majority of my career firmly entrenched within the Construction Lending Division as a Regional VP. I started off in 2000 as a wholesale RSM, climbing the ranks to AVP within HCL before ultimately accepting a most generous severance package months before the seizure as an RVP East Coast HCL Division. Your leadership, integrity and business savvy will forever be instilled into my business accumen and strategies. Hopefully under your leadership I will have learned enough to help continue to bring myself and family out of these treacherous times. No doubt my time at IMB where the best times of my Life and I only hope and pray you will be able to pull out of this situation and get back into doing what you do best, leading a major corporation. I would go to battle with you anytime. I hope at the time of this print that you are already beginning your next journey. Godspeed Mike…

  11. Mr. Perry – I worked for IMB as an Executive Assistant for a couple years, later I was promoted to the telesales dept, and then CAPS. I thoroughly value my experiences there. All of the wonderful quality training that was made available to me, through IMB, has helped me in all of my jobs after my chapter at IMB. I firmly believe that many politicians and federal agencies used IMB as a scapegoat to further their images or political careers. I am currently writing a 15pg thesis paper for school on the crash of the mortgage industry, starring of course, IMB. I plan on highlighting the improper way that both politicians and the media handled this sensitive situation. I will also address the fact that “blaming the lenders” is a strategy doled out by both the politicians and the media… when in reality there is enough blame to go around, not only from politicians and media, but also stemming from the brokers, and even the borrowers themselves. I thank you for making this information available to me, as they will make extremely useful references for my thesis paper. I also want you to know that my chapter at IMB (I think about 4-5yrs) was one of the best times in my life. IMB was a wonderful company to work for, and I had such positive learning experiences while working there.

  12. Mr. Perry, I had the pleasure of working with you once. Your direct, take charge business style in fixing the issue was impressive and a story I have shared with many over the years. This occurred around 2000-2002. I was the owner of Signature Mortgage in Houston. I was refinancing a $2M new construction loan in Sante Fe, NM for a client in Houston. The file had fallen through the cracks and the lady running your B2B division was completely unresponsive. The client was going to have to pay a huge penalty to his construction source if not taken out that week. I sent you an email detaling the issues. You phoned me within 20 minutes and told me the file would close the next day. I remember that the title company called your firm after that to set up the closing and the IndyMac employee told her “ma’me, everyone in this company is aware of the ( clients name) file, anything you need you just let me know.” You heard my concerns, identified the problem and fixed it….all the while thanking me for my business. I am sorry for the troubles you are going through with the courts and the SEC. Keep the faith and know you have made a positive impact on many people over the years. Good luck.
    Ben Vogler

  13. Mr. Perry, I had the pleasure of working for Indymac Bank for two years in the Schaumburg location up until it’s receivorship in July 2008. I know through it all, we allowed many business owners and blue collared individuals to enter into the mortgage market, who would otherwise have been shut out. These people, started businesses, took risk, and hired people and created opportunities as a result. Most bought and sold, and refinanced responsibly. This is an industry where a failed 2% negatively affect the other 98%. In the end, debt and overleveraging is not an issue banks and individuals just have to deal with, it is also a local and federal governmental issue. That spirit and drive to take risk is a rollar coaster ride we as Americans were willing to profit from on the way up, so we must in turn take that scary (high G force drop) ride down. I, like my brokers, the bankers, the realtors, the appraisers, attorneys, builders, Cpa’s, inspectors, agencies, and most of all, consumers, must share in any blame we attempt to push off on a CEO like some general who gives field commands to their soldiers who must blindly take orders. This is a business of free will, and I hope you can find solace that choices available to some, will always dominate the lack of choices offered to most. The question we must ask ourselves when this all shakes out, is not why the money was offered in the first place, but rather what people did with it. Thank you and I hope you are running a thrift again someday.

  14. Mike – I applaud you for standing tall, sharing and fighting for what is right! I truly believe you had IMB shareholders, customers and employees best interests’ in mind at all times. No one could have predicted and forseen the events that transpired during this financial crisis. Nearly 4 years later, I find it incredibly irresponsible for Schumer to walk away unscathed while you continue to fight the ridiculous allegations. Ironically, some former IMB employees have received letters requesting campaign fund contributions to Schumer. That’s a letter I would be happy to respond to saying “Not a cent! Acknowledge & accept responsibility for causing a run on IMB that was the direct result of it’s failure…not the BOD, CEO, CFO or any of the executive team!” It may not solve your legal battles, but it may soften the blow to your reputation that has been tanished when it should be shined!!! I will proudly support and work under your leadership again, should the opportunity be available. Fight On Mike!!!!

  15. Mike,

    This blog typifies the straightforward and open style of communication and disclosure that is one of your personal hallmarks. Whether one-on-one, speaking to your management team, the company overall, or in formal disclosures to the public, your consistency in being open, frank, and “telling it like it is” is central to your character. Those close to you understand this with absolute clarity, which is why it is so particularly frustrating that the SEC, FDIC, and those of similar ilk would choose to seek a gap in this part of your armor. Even with the benefit of hindsight, and the opportunity to dig through mountains of records and data, their arguments are incredibly weak.

    Unencumbered by having to deal with the reality of the extreme challenges presented by the failure of the real estate and mortgage markets, the bureaucrats enjoy the time, resources, and luxury of playing “Monday morning quarterback,” having never stepped on the field of play themselves. These are the weak and cowardly that arrive after the battle is fought, scour the battlefield for booty, and bayonet the wounded. Despicable, and yet allowed to run without restraint….even encouraged and enabled by those such as Charles Schumer who inspired the mayhem for the benefit of their cronies.

    I have the utmost confidence in you and the facts supporting your position. I was present with you for 9+ years as the company transitioned from REIT to bank, and rose through the ranks, producing great returns for our shareholders. I witnessed the level of effort you made, and the strong leadership that you provided every step of the way. You drove all of us to perform, and required a lot from your management team, but no more than you demanded of yourself. I know the strength of your integrity, view the claims against you as baseless, and stand in the ranks of those who respect and support you. Go get ‘em, Mike….you know that I and many will be honored to support you any way we can!

    Mark Nelson

  16. SEC looks into Deutsche Bank CDO shorted by Paulson
    Tuesday, January 31, 2012
    Deutsche Bank is facing an SEC investigation for its role in structuring a synthetic CDO, according to a report by Der Spiegel. The German publication states that the bank’s actions in raising a CDO under its Start programme will come under question after it allegedly allowed hedge fund Paulson to select assets to go into the fund. The bank is then said to have neglected to have told investors about Paulson’s role in the transaction as well as concealing the fact that the hedge fund had taken a short position on the assets, allowing it to profit as the deal collapsed.

    Chuck Schumer fund-raiser John Paulson is key figure in Goldman Sachs fraud case, records reveal
    Saturday, April 24, 2010

    LA TIMES February 20, 2010|By E. Scott Reckard
    In taking over IndyMac’s assets, the investor group, led by Steven Mnuchin of Dune Capital Management, put up $1.55 billion to revitalize the bank. Other investors included hedge-fund operators George Soros and John Paulson, bank buyout expert J. Christopher Flowers and computer mogul Michael S. Dell.

  17. Just another example of the Potomac two step crushing honest businessmen while rewarding and bailing out the wall street firms that caused the liquidity crisis to begin with. I was one of your RVP’s and believe you have no guilt nor anything to be ashamed of.

    • The Trillion dollar question, would we be better off if Citibank and BofA were allowed to fail and the crisis didn’t get intervention; we ripped off the band-aid and the mess of Mortgage Backed securities were sold to voltures for 40 cents on the dollar, all of them. The voltures would short-refinanced all the borrowers to what their house was worth and provided a floor for values as people stopped walking away from their homes because they were even or had equity.

      Or would we be better of it IMB, WAMU, Lehman were allowed to live and we averted the major panic of 2008. If we didn’t have the liquidity crisis, TARP, and all the programs to prop up Wall St, would this have been less of a crisis or just dragged things on with a more socialized banking in the US.

      I think there will be an economic debate for years on that. I still remember how surreal it was to get fired on a conference call with 4000 of your fellow employees at IMB.

  18. I was a 10+ year employee at IndyMac Bank. Whether addressing employess at monthly meetings, addressing shareholders/investors at annual shareholders meetings or behind closed doors at senior management meetings, Mike was consistent and transparent. He was and continues to be a visionary – he taught us to take off our blinders and step out of each of our respective disciplines in order to better understand the mortgage industry in its entirety. MIke’s number one goal had always been to achieve long term growth and success for the bank and its shareholders . . . . . he never lost his way. I thank you Mike.

  19. Settle and be done with it and move on with you life. Your mentor Mozilo did it. Your peers at Wamu just did it. This website is nice, but I don’t see how it will help you fight the lawsuits to your advantage. It only gives gossip mongers materials to, well, talk and gossip about you. In any case, I will always and forever wonder if you booted Scott Keyes (who was my boss’ boss) or if he left you at the last moment. Medical reasons…yeah, whatever.

  20. Mike,
    I am a former executive/owner of a family owned bank that was Too Small to Fight. It was the policy OTS management including Mr. Dochow, Michael Finn who preceeded Dochow and the rest of OTS Senior Management to promote Alt A mortgage lending and othe practices e.g. backdating capital injections for the sole purpose to keep their jobs. If Indy Mac were the only OTS regulated instittuition to have done this i may not believe that Dochow instructed you to do so, however this practice was not isolated to Indy Mac. My situation is different we didnt fail but were forced to sell for political expediency. We were involved in an OTS approved charter rental agreement with Decision One Mortgage a subsidiary of HSBC Bank originating $250mm of volume per month of ALT A mortgages. When the political winds changed and this type of lending fell out of favor we bacame an easy target. I applaud you for standing up. Keep it up!

  21. Uh, you as the Chairman and the CEO too “close to home”; these functions and responsibilities should be separated; but, perhaps this would mean your remuneration would be reduced. Lastly, in that position, job you were responsible for the entity; for it’s success or failure.

  22. Mr. Perry..

    I hope all is well, . I am so glad you are getting the truth out for everyone to understand what really happened. I knew from day one that it is not your fault Mr. Perry. I was reading the blog with tears in my eyes. Mr. Perry you are a respectable , honest genuine Man. I know its been a while since my last email to you. It is not that I forgot what a great man and wonderful person you are, but I went thru some rough times as well,, I am OK now. I still live in pasadena and I totally avoid driving on lake avenue, for some reason I feel like my heart was pulled out when this happened. Mr. Perry, You have a special place in my heart and my family’s heart, We all wish you and your family the best always.


  23. I worked for IndyMac Bank since 1993 left in 2007. My kids had a dream to work for Indymac Bank and they did. Mr. Perry you made Indymac Bank the best place to work at. I Live in Pasadena and do not drive by Lake avenue anymore… You are a great man Mr. Perry . Wish you the best always and I have no doubt you will make a comeback.. Good Luck to you and your family..

  24. We had no liquidity crisis and the capital raised through Goldman Sachs to meet our PCA. Notified the regulators and they seized us the next day. United Western Bank vs. OTS. I was shocked as the Chairman of the Board. Half the branches where closed and half the employees lost there jobs. How does this help rebuild our economy? Oh by the way, I’ve never been personally audited in my live, the minute I sued the government, guess who shows up? The IRS.

    • Mr. Gibson,
      I have followed the UWB story, what a crime and a shame. You are right in asking the question; how does tis help rebuild the economy? I think it is pretty evident that the economy needs to be rebuilt from the bottom up. The top-down model is obviously flawed and broken. What drives the economy? Consumer participation. Financially weak consumers = a weak economy (too few participants). A financially strong consumer = a strong economy (many active participants). This economy needs willing and financially capable participants. The banking community itself can make that transition happen. They just need to open up their minds and see they have everthing needed to turn everything around. Unfortunately, decades of conventioanl practice has left banking institutions blinded.

      I have ideas to discuss with visionary bankers. Proven models of profitability for both institution and consumer.

      What are you doing today?

  25. Mike,

    I unfortunately only was able to work for Indy Mac for a short period of time before the events that eventually led to the closing of the company. In my short time there I really came to appreciate the culture and leadership of the company. Having to work through the chaos that began in 2007 it felt great to be at a company with the principles and foresight to change and succeed in our new financial world. I am also a person who personally bought a lot of the stock based on my confidence in the direction our company was going. I specifically remember the day Schumer had made his comments and the instant negative impact it had on our company and was/continue to be furious by the ability a politician has with reprucissions to cause the damage he did. I had looked forward to my future with Indy Mac and still regret that I didn’t get the opportunity to see where it could have gone. Though short, I am glad that I was part of company you created.


  26. Hats off to you Mike. Right, wrong or indifferent, someone has to step up and expose the corrupt. This is the 1920’s all over again. Shurmer; what a snake. Unfortunately we are pretty much powerless to enforce justice against him, unless of course we bring back shackles in the town square and let the public take care of him.

    There is one thing we can do as a consumer base though, as it relates to the “too big to fail” banks; quit doing business with them! You don’t need rumors to start a run on a bank. Just make a decision, collectively to not do business with any particular institution. Take your money and give it to a community bank or credit union in your own neighborhood. Do you want to get the big boys out of your town? Then don’t do business with them. It’s that simple. Don’t feed the cat if you don’t want it hanging around the back door.

    The whole banking model has to change from the ground up, NOT the top down. Build a stronger consumer and you build a stronger bank. Build an insititution the regulators applaud (or ignore). Everybank has the tools to help consumers become much stronger financially, but NONE of them can provide the education on how to use what they sell. Most bankers don’t know how to use what they sell. The model has to change if we expect financial change in this country. It can work if you know how to work it.

    Keep up the good fight!!!

  27. I worked for Indymac for almost a year. We were hopeful this would be a great place to retire after 20 years working at Southern California’s biggest community bank. Big surprise a year later. Waht would have happened if IMB, WaMu and Lehman had been given life support to succeed? Wouldn’t we have been better off if we had wound down over a few years while other business lines increased revenues. What was holding that back? I see AHM, they didn’t have a sustainable capital base, but IMB had all those deposits. The BK only gave Government Support to the firesale buyers, and wiped the investors. Did that accomplish anything positive? Could it have worked out better?

  28. Mr. Perry. While I worked for IMB, I was tasked with resolving disputes with the bank. I learned quickly that you were a “stand up guy” and when I presented facts that we screwed up, I saw you make it right. When there was a question on consumer reaction to options arms, I was tasked was presenting the truth with how they worked and not once was there anything asked but to present the truth. You impressed me the entire time. I never saw the Mike Perry they try to portray. I saw a tough but sound businessman who treated us like family at IMB.



  29. Mike:

    IndyMac was a great company and you were a great leader..But I’m personally over the entire nightmare, and have moved on with my life. I learned a lot from you during my 11 years at IndyMac, and hope carry it on to my new career.

    Take Care friend,


  30. Best of Luck, Mike. I enjoyed working with you and other senior leaders in my sphere. Tony, John, JK, Eric and many others are people I respect and still communicate with. I hope that all the other IMB associates were like me and able to take the values we gained under your leadership and use them in our post IMB careers

  31. I too was a CEO of a failed Bank. Why does no one mention the rapid decline in Net Interest Margin? We were only six years old when our NIM went from 6.5% to 2.2%. That rapid 4.3% decline in NIM resulted in a reduction of interest income of $40 million per year! As a relatively small financial institution of $1 billion in assets we simply could not manage the $3 million per month charge to our capital position. Throw in a few bad loans (still less than 2% in the first depression in 80 years) as we were an SBA boutique lender, and the complete shutdown of the SBA secondary market and our liquidity was stressed.

    We were audited annually by our wonderful CPA firm, a “special” SBA audit firm, as well as the combined State and FDIC regulators. Of course they nit picked as us on small issues but in the end they all rated us “experts in credit and documentation. In 2006 we were rated by Bauer Financial and the American Banker Association the number one performer in our asset class. Now however the FDIC in its “always wrong” stance has been threatening to sue the entire BOD on issues of poor performance, bad management, etc…

    I guess what really gets my heart pounding are two facts:

    First, no one not even our esteemed regulators had a chrystal ball. If the FDIC were blamless then they should have predicted the financial crisis themselves long befor the crash. But instead they want to point the finger at people who have been honest hard working men and women for 40 years, and say now they we are crooks. After spending our whole life in banking and always doing whats right even went it hurt….we’re crooks! The fact is 99% of us loved what we did, and loved banking. We had our whole personal and professional careers and most of our personal resources invested in our institutions. So why would we ever hurt them?

    Second, we were strong in our community. We were the number one small business lender in our community for many years. Creating thousands of jobs! Yet we, as the american people were also, were deemed not too big to fail. The Federal government chose to bail out the “Big Boys” and let the small community banks and the american people fail. Now the “Big Boys” all still have their jobs and their stock has value. Yet they charge the american people $35 for and overdraft, 30% interest on credit cards, and foreclose on our homes using our own money to throw us out!

    I guess I am bitter. I’m bitter because the regulators want to chase the D & O monies with attorneys who would be unemployed if not for this job. They have to discredit us to succeed. And I’m sorry for you Mr. Perry because they have to make an example of someone to hid their own fault. This time it is you. But for the rest of us…… There were only two insurance companies of any merrit which wrote the D & O coverage across the United States. The same people who own them are the same people who own the “too big to fail banks” . People not corporations. I’m sure they have contacted their congressmen and senators and after a few of the scapegoats are publically admonished all will fade away.

    Mr. Perry you only have one life. You must for your own sake and the sake of your family get out of this asap. It is not your fault …it is like getting cancer. Find a nice consulting job with Accenture……they have been thru this before. Hug your kids …go to church….. stand up tall. Be proud of your accomplishments. You have a lot to be proud of. Unfortunately only a few of us will understand. I think there are about 400 of us CEO’s out there. CEO’s who were not too big to fail.

    • Mr. Harold,

      Based on your comments above and other comments you have left at various locations across the internet it appears you are a bank executive that understands the fundamentals of a strong financial institution (or a country for that matter): the foundation is built upon the financial strength of the consumer. As the old saying goes: S&@t flows down hill and boy are we all sitting in it. It’s like the boys on the hill, the Fed, the Treeasury and the “too big to failers” all took a laxative on the same day back in 2008. Now they’re coming after guys like Mike Perry and blaming guys like you for the mess. It’s madness.

      However, crisis delivers TWO elements; disaster and opporutnity. The disaster has already occurred. The opportunity is still present.

      I would like to talk to you (or anyone of the 400 CEO’s you referenced) about an innovative business model. The pilot program of this model has deemed itself wildly successful from July 2007 to today. This model attracts an A+ consumer base and provides the ability to reach 100% SOW with that consumer. This business model has the makings to change the financial landscape of this country WITHOUT the need for big government and big business/banks.

      Here’s one thing I don’t anyone truly understands in this country, expecially the citizens. Remember the “golden Rule'; He with the gold rules. Well, everyone thinks “He” is the government and big banks, but that’s not the case. “He” is “We”! We the people are the ones who earn and spend. We are the ones that hand over our income to deposit accounts, the same accounts that keep the banking machine running. What happens if We stop depositing our income? What would happen? Want to make the big boys (BofA, WF, USB) fall to their knees? Have 50% of their customers cash their paycheck instead of deposit it. Wow, could you imagine? You can ALWAYS take down a bully. You just need to know his weakness.

      If you want to force change you need to act. To gain allegiance you need to lead. The country needs a financial revolution and it needs a leader to direct its purpose.

      If there is a banking executive reading this who considers themselves a leader, a visionary and has the capacity to bring change to a failed business model? If you want to discuss the possible future in banking and borrowing then please contact me directly at

      Face it guys; the current banking model has proven itself to be outdated, antiquated and ineffective. It’s time for a change.

  32. Mr. Perry:

    You’re to be commended for having the courage and tenacity to work to clear your name. The system of justice in America is about as crisp as the regulatory regime that oversaw the mortgage industry. Sadly, you are suffering from both. I hope you’re successful. Get good help and post everything you can within the parameters of confidentiality. Sunshine has a great way of cleansing misconceptions.

  33. Mike,
    In my short tenure with IMB I always respected you as a leader and knew that youand the mangement team did every thing possible to save IMB. We were all hard working employees that had a goal. . to continue to make IMB the successful company it was for many years. As a former IMB employee and now OneWest Bank employee I truly miss working for you and would not hesitate to work for you again!

  34. Hi Mike
    I have been your corner since you were a “pup” and remain there now. I’m retired now for 4 years but if you need me just ask.

    Tom Rafferty

  35. Mr. Perry I had the best 10 years of my career at IndyMac, our leadership , our culture cannot be replicated!! I respected your decisions during that tenure and I respect them today. Keep your head held high. Thank you for all IndyMac has done for me as a person and more importantly my family.


    Ann M DiCola

  36. Mike,

    I have always known you to be a person of high integrity. I have seen how important your family is to you and I know you viewed your fellow employees at IndyMac as an extended family. Seeing so many of them post here on your behalf is a testament to that.

    Your courage and fortitude through all of this is admirable. The easiest thing to do would be to roll over and make it go away. The fact that you did not take the easy road tells me you are a man of true conviction…something lacking in so many of our “leaders”.

    All the best,

  37. Mike: I bought stock in IndyMac in 2006 after listening to a couple of your quarterly earnings conference calls. I was totally blown away by your deep and broad understanding of the business, openness about the risks and clear thinking about the strategy. There are not too many CEO’s who could do what you did. I may have lost a little money when the bank was closed after Shumer’s comments caused a panic driven run, but I regret more that the industry lost you as a leader…at least until now.

  38. Mike,

    I too was an alt A lender who sold loans to IndyMac through your correspondent channel. MY company went from 150 hard working individuals to nothing in the span of 3 years. Eventually we were forced to close our doors due to the exact same issues. We were confronted with by plaintiffs attorneys exhausting our E and O insurance and then doing exactly as you describe filing countless frivolous lawsuit after frivolous lawsuit that we were having to spend hundred of thousands a dollars per year to fight just to get to a settlement. Eventually our net worth was exhausted and we felt it was not a fight worth fighting any more and we closed our doors in early 2010. In the 3 years since Indymac was shut down I have spoken to many of your former employees and I can tell you that so many people appreciated working for you. It truly seems as though it was a special time in their lives. I hope to one day soon rebuild my next company and follow in your foot steps of building a great company. The witch hunts and political posturing in the mortgage and banking industry has been a very hard lesson for me to learn and has opened my eyes to the unfairness of the powers that be. I appreciate you telling your story and I believe that the truth will prevail at some point.

    Best of Luck,


    • DM –

      In the court of historic retrospect in too many cases ALT A = Shouldn’t have gotten a mortgage to begin with. Unfortunately, alot of what we perceived as an economic recovery during the early 2000s was an illusion fueled by easy money and easier cash out refinances which subsidized and inflated what appeared to be real economic growth. I am sorry for your 150 hard working employees who thought they had long term jobs that were not built on pillars of sand.


  39. Michael, although I briefly worked under your regime I found IndyMac — for the most — to have many intelligent forward thinking employees at all levels who worked extremely hard and brought forward a wealth of knowledge from other institutions. If you knew what is going on now you would vomit, scream, yell and hollar. Yes, IMB failed on your watch. But did the FDIC not give the Bank away rather than assist in repairing the damages created by Schumer’s allegations. Many former IMB folks understand the failure was not of your doing, nor was it your intent. And many former IMB / IMFB folks would work for you again in a heart beat. Keep this blog alive and let true facts be known. Many are curious to know why you are not an executive at OneWest Bank. It would be better to have you as an executive than the current executive vice president of 1st Federal Bank which failed as well. Wishing you the best!

  40. A leader is only as good or bad as the information he or she receives. Not Too Big To Fail might be an appropriate title on many different levels. Thank you for your open candor. How our Country has been taken down with be something of discussion to debate for many years, where time and the rearview mirror will tell.
    Once tarnished from accurate or inaccurate information, a reputation and a career can be something very strenuous to re-build.
    Good luck salvaging your own.

  41. Hi Mike! It’s GREAT to hear you speak out. Well said! You have my 100% support. As long-term members of the Indymac Family, Ernie and I are happy to have our side of the story told. Chin up, fight the good fight. I’m honored to add my name to the list of your personal and professional supporters!


  42. Hi Mike. I have tried many times to find and reach out to you.Thankfully, I stumbled onto this blog. We have a shared business relationship going back to the Commerce days. It had always been open and successful. Keep you bobber up, things WILL get better. Just be who you are and move forward with your integrity, as always.

  43. I used to run a mortgage company with over 300 wonderful, hardworking employees. Unfortunately, I experienced first hand how a democracy works when times get tough. Every legislator, regulator and rule maker want scalps. They don’t care how they get them, it’s about quantity and perp walks. New laws, regulations and rules were coming at our company with such fervor, I knew that I had to get out fast or be one of those scalps. It’s a sad way for such a proud country to run and unfortunately most Americans have no idea what their federal and state governments have done to real estate in America.

  44. I worked for FInancial Freedom when this happened. Before that I watched the mortgage market from the inside. Before that I worked with IndyMac as an institutional customer. I am continuously disgusted by the ignorance and incompetence of our political population throughout this chain of events. Why is Schumer not under indictment or at least investigation? Why aren’t we watching trials of the management of the Federal agencies that were supposed to be doing their regulatory jobs – instead of watching Washington attempting to scapegoat and persecute executives like Perry?

    • Fred,

      I share in your disgust. Why you ask? Why are we just watching everyone get robbed by the government? Dirty, greedy politics. In order to fully understand possible motives, we have to go back a little ways to 2007 when John Paulson invested $15 million into Center for Responsible Lending (CRL). Paulson also contibuted over 100k to the Democratic Senatorial Campaign Committee. 6 months later, on a Thursday, Schumer released his “concerns” for Indymac. 4 days later on Monday, for the first time ever, the CRL released their report on Indymac. They had never released a full research report on an individual company ever!

      Fast forward another 6 months and you will find John Paulson and his buddy George Soros getting the coupon extreme of a deal on whats left of Indymac. Just for pennies on the dollar and getting some amazing kickbacks from the FDIC, One West has really landed the deal of a lifetime.

      Oh, just to make sure that our Treasury Department is in line, Eric Stein who was a top executive of CRL is now in charge of the Proposed Consumer Financial Protection Agency.

      If this was a murder trial and we were searching for motive….that sounds like a good start. What can we do? I don’t know, but I do know that Mike Perry taught us all to scream like hell when something wasn’t right and to treat each other with candid respect.

      I’ve learned to stop asking why and start asking what…what can I do? What can we do?

  45. All of the big banks deserved to fail. They were made whole at huge expense to the American taxpayer and the US dollar. I don’t know if IndyMac was singled out as a scapegoat or not, buy the whole affair stinks to high hell.

  46. I am the former CEO of a “failed” Bank. I feel for you and know what your going thought we were a 46 Million Dollar bank, but what the “regulators” but us thought is unbelievable. On one call with the regulators seem to be blaming me and our tiny little bank for the global economic crisis..I considered myself to be a patriotic person, and still do. But seeing what the government does is just unbelievable to me. People would not believe it.
    Stay strong…..

  47. You have a vision and you go for it; one of the reasons I enjoyed working for Indymac for 10 years. Hang in there Mike. Let the truth be told and you will win!!! Blessings to you and your family.


  48. Jennifer Seely, leader of IndyMac Employees for Justice

    For those of you that missed it, here was the petition letter:

    IndyMac Employees for Justice

    July 15, 2008

    Hon. Edmund G. Brown, Jr.
    Attorney General
    State of California
    1300 “I” Street
    P.O. Box 944255
    Sacramento, CA 94244-2550

    Re: FDIC Seizure of IndyMac Bank, FSB

    Dear Attorney General Brown:

    The individuals joining in this letter are all former employees of IndyMac Bank until it was closed by the FDIC on Friday, July 10, 2008. We have been hard working, dedicated staff (tellers, operations, compliance, lending staff) who strived to make IndyMac an excellent bank in difficult times. We provided for our families, paid our taxes, contributed to our communities and assisted our customers. In short we were living the American dream and doing our part to make this a better place to live.

    That all ended on Friday. Because of a malicious, politically motivated act of Charles Schumer, our lives have been shattered. His deliberate publication of what should have been a confidential letter to bank regulators was the direct cause of the failure of IndyMac Bank. From the day his letter was made public on June 26 until the closure of the Bank, a run on the bank took place and the failure became inevitable. Mr. Schumer can’t hide behind legislative immunity for taking this deliberate step. He may have immunity for acts as a member of congress but not for his deliberate personal act in publishing the private letter.

    We allege that Charles Schumer has violated the law of the State of California. Specifically, Section 3369 of the California Financial Code reads:

    Any person who willfully and knowingly makes, circulates, or transmits to another or others, any statement or rumor, written, printed, or by word of mouth, which is untrue in fact and is directly or by inference derogatory to the financial condition or affects the solvency or financial standing of any bank doing business in this State, or who knowingly counsels, aids, procures, or induces another to start, transmit, or circulate any such statement or rumor, is guilty of a misdemeanor punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment for not more than one year, or both.

    We are angry and want you personally and your office to immediately and vigorously pursue justice under the laws of California. We are all citizens of California and are the very people who the laws of California are intended to protect. Moreover, we are not the only people who have been harmed by Mr. Schumer’s violation of our State’s laws. A lot of our customers lost their savings and have little hope of recovery.

    We hereby demand that you immediately commence a California Department of Justice investigation into the crime of Charles Schumer and indict him when you have confirmed his malicious acts. We request that you keep us informed of the investigation and that it not be delayed. When Charles Keating caused the failure of a bank, he went to jail. Mr. Schumer deserves the same fate and we won’t rest until this job has been done.

    Thank you for your expected cooperation.


    The Employees of IndyMac Bank, FSB

    Jennifer Seely
    [list names]

  49. Jennifer Seely, leader of IndyMac Employees for Justice


    I am thrilled to hear you speak out. These last 3+ years have been filled with sheer injustice and have been unsettling. I fought as hard as I personally could by writing the petition letter to have Schumer investigated. So many amazing employees stepped up to sign the petition and I had many customers write to me and share with me their stories. I didn’t expect anything going into it, but I have never been one to sit back on the sidelines and watch. Although unsuccessful, at it allowed people to know the truth about Schumer and the events leading to the bank run which directly caused the demise of Indymac.

    You are so well respected by the thousands that worked for you. If there is anything we can do to support you, please let us know.

    Kind Regards,

    Jennifer Seely

  50. Hi Mike,

    I enjoyed the fact that in my short three years at Indymac as a review appraiser, I always felt able to carry out my job to the best of my ability according to corporate quidelines. No one pressured me to approve appraisals if I had concern about the value. I was also an Indymac customer and as a self employed business woman prior to working at Indymac, I was grateful for the opportunity to invest in real estate which had been unavailable to me in the past as it is once again due to credit tightening. That California loan was long ago paid in full. I had a great relationship with the bank and the appraisal department as a ” go to” California appraiser in the San Francisco Bay area.

    What I really appreciated was that at any time I could communicate with you directly by email.

    I do not think it fair that Indymac was singled out and Countrywide bailed out.

    Good luck to you and your family- you will prevail and rebuild based on your strength of character and optomistic viewpoint.

    God bless.

    Susan Cheng
    Weatherford, TX

  51. Roger B.A. McMillan

    Mike, being an Indymac Alum, I very much appreciate you putting the truth out there. I agree 100% with your statements. Hopefully “truth” will beat out “politics”, but given American history, I’m skeptical. You are one of the wisest and most brilliant business leaders that I’ve ever met – except for your temper:<)

    Have courage and keep pushing forward!!!

  52. Amen, Mike. You know I have given you my support in private, and I do so publicly here.

    Jorge Mena, Jr.

  53. As a former employee of Indy Mac who saw the organization grow, from the 6th Floor of 35 North Lake, I can tell you that many share your sentiments and feelings. Way to go Mike, you will make it happen. Best wishes and prayers are with you.

  54. I worked for you at Indymac for 13 years. I am also in touch with many of the banking and non-banking business leaders both locally in LA and nationally that know you personally and or professionally. Every single person that I have spoken to believes that you are one of the smartest, most capable, honest and fair business leaders they have ever met, and that you have been singled out unfairly by a government that doesn’t care about the truth—A government that only cares about headlines and deflecting blame. This blog is the right vehicle for the truth and we are all proud that you had courage to create it.

  55. You are a very brave man. Seems like this story should be told on Dateline, 60 Minutes, CNBC or Fox Business. Perhaps as you develop the story, they will pick it up. Jeff N.

  56. Mike,

    Thank you for your commentary. You were always very open, un-biased and communicative. I hope you and your family are doing well.

    Lance Lemoine

  57. You don’t get it. You failed to manage risks and your bank failed. All the banks should have failed. We need banks but not yours or any of TBTF. Banking is a utility company. Start over with new boring banking, low leverage.

  58. Mike – I am glad that you have come forward like this. Life is certainly not fair in matters such as this one. i look forward to catching up on what the future might hold for you.

  59. My heart goes out to you. As an orthopaedic surgeon, I have been sued frivollously on a few occasions, and regardless of the merit of the suit, it exacts its toll from your soul. Goldman Sacs, GE, Fannie and Freddie, et al get the bennies, because lf the greased skids of politics, and those like you remain sacrificial lambs. Time for the Judas Goat to get his due……

  60. Amen Mike,

    Your blog is excellent . You should go on a speaking tour that funds taking these siuts to court. If they new you had the will and the resources to fight, they will probably cower.

  61. Mike,

    While in hindsight we (and the rest of the financial world) may have made different business decisions, in the 5 years I worked at IndyMac I always admired your candor, transparency & integrity. I still do, and would now add resiliancy to that list as well. Hang in there – I’m confident those qualities will see you through this as well, however long that may take. In the meantime, all the best to you and your family.

    Ted Tekippe

  62. Thanks Mike,
    Appreciate your courage and willingness to finish the story…..Schummer’s irresponsible comments incited panic and put a target on your back. The consequences are unconscionable. Let’s not forget the recognition and respect you earned from peers and industry leaders for your innovation, leadership, character and integrity that drove one of the consistently most competitive platforms of its day. Your leadership inspired thousands, including myself. You instilled a performance accountability discipline and invested into cutting edge technology that helped reshape the business.
    “You can’t keep a good man down.”

    Rick Glass

  63. Way to go, Mike. I suspect like so many others, you and Indy Mac became Schummer’s target to raise his political profile (along with Dodd, Polousi and Reid, not to mention their mandate (Ted Kennedy) to force lenders to make loans to unqualified consumers.
    Like all of us, I am disheartened not only by the behavior of our elected officials (regardless of party) but of their focus on re-election, not problem solving.
    Hang in there.

    Brad Ball

  64. Mike,
    As a former IndyMac employee, I have to say that in my years of services at the organization, I have always seen the type of integrity and due-diligence that my colleagues had practiced matching those considered socially and ethically responsible. Although I may not be exposed to all the details of every move made by the organization, I did see many hard working people on projects that benefited people and communities. I sincerely wish you all the best of luck. Many ex-colleagues and I very much look forward to be able to work with you again.

    • Mike,

      As a former IndyMac employee, too, I share John’s sentiments. A lot of good people did a lot of good things there. I truly miss the company and appreciate you providing this information.

  65. Glad to see your your telling the “back story”. Your courage is admirable. Hopefully others who are in a similar situation will follow your example. Mark K.

  66. A great characteristic of a leader is to take risk, Mike you had great courage, and still do evident in your blog. When leaders inevitably come to a place where a tough decision is required, it is their personal courage that enables them to stand firm and get through difficult situations.
    I stand firm on my belief, that if it was not for the run on the bank, caused by the senators public comment, today Indymac will still be a player as a financial institution in the market.

  67. Best of luck Mike – too often the “victor” writes the history.

  68. Mike,

    This story needs to be told. It doesn’t surprise me that you have the courage to do so. From what I have read so far, this blog is “vintage” Mike Perry…Honest, straight forward, with no holds barred.


  69. It is great to see you sharing this information. This obviously took not only a deal of time, it also took a great deal of courage. As you know, the internet is a vey public place and may not always be kind. Thanks for sharing, and keep it up! You were always open and honest in your communications, and this is just another great example. Thanks, Gary

  70. Mike, thank you for coming forward to inform the public. In case you are not already aware of the private investigations presently proceeding by Mark Mitchell at, I recommend particularly that you see Chapter 21 of his reports at

  71. Good for you, Mr. Perry. I do not understand the banking industry well enough to be a judge of whatever documents you post, but in other areas I am certainly aware of malicious, unfounded, and prejudicial statements by government agents and of the hopeless feeling as one considers the cost and improbability of getting justice. If you still have the bucks to do so, go out and make it a big deal.

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