“When is the SEC, the federal courts, and state bar associations going to crack down on these “low-class” law firms who make a living filing bogus securities class action lawsuits every time a company’s stock price declines by a certain percent and extorting financial settlements (where the merits of the allegations are never heard and decided upon by a court of law)? And what in the world is a local police and fire pension fund doing investing in a risky, non-bank, mortgage firm, especially after the 2008 crisis (where nearly all of them failed)? I can tell why,…

…I think. I believe they are deliberately investing in risky stocks like Nationstar, because they need to chase high returns, because of a combination of Fed-engineered low rates and their unsustainable pension program liabilities. And inevitably, when some of their risky investments don’t work out and they lose money, they inappropriately blame these companies and their managements. In reality, the pension plan participants should be suing their plan administrators for excessive and imprudent risk-taking, in their investing.”, Mike Perry, former Chairman and CEO, IndyMac Bank

Excerpt from June 3, 2015 Mortgage Industry Newsletter:

“But once again a large lender is the source of negative news for the industry. Nationstar Mortgage Accused of Inflating Stock Price in Lawsuit.” “The lawsuit, filed by Robins Geller Rudman & Dowd on behalf of the City of St. Clair Shores Police and Fire Retirement System, accuses Nationstar of gouging mortgagors – and illegally enhancing its profits through unsustainable means – via illicit practices, such as charging for repeated, unnecessary inspections, which resulted in additional late payment fees, and by pressuring mortgagors to carry out expensive modifications and refinancing of their mortgages.””

Posted on June 3, 2015, in Postings. Bookmark the permalink. Leave a comment.

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