Citigroup Agrees to Pay $120 Million to Settle SEC Allegations

The perception is that the financial crisis is to be credited to 'low-income housing'? Referencing the proclamation from President Bush in 2003, what was involved in the "Administration-wide effort to bring new tools and resources to would-be homeowners."?



June 13, 2003

National Homeownership Month, 2003

By the President of the United States of America

A Proclamation

Homeownership is more than just a symbol of the American Dream; it is an important part of our way of life. Core American values of individuality, thrift, responsibility, and self-reliance are embodied in homeownership. I am committed to helping more families know the security and sense of pride that comes with owning a home.

The Department of Housing and Urban Development is leading an Administration-wide effort to bring new tools and resources to would-be homeowners. We are providing financial assistance to qualified families through the American Dream Downpayment Fund, funding educational programs that stress financial literacy, and offering a compassionate hand to those who dream of moving from subsidized housing into homeownership. And through the Self-Help Homeownership Opportunity Program, my Administration partners with nonprofit organizations that offer homeownership opportunities to families willing to contribute their skills and labor to help build a home of their own. We are also proposing ways to make it easier to shop for a mortgage and to make mortgages available to more families through the Federal Housing Administration.

Today, the United States is fortunate in that our homeownership rate is at an all-time high, and low interest rates continue to encourage millions of Americans to become first-time homeowners. Although a record number of Americans own their own homes, we continue to see a gap between the homeowner-ship rates of minorities and nonminorities. By a significant margin, minority families are less likely to own their own homes. Therefore, I have called upon the entire housing industry to join with my Administration to expand minority homeownership across the Nation. Our goal is to help at least 5.5 million minority families become homeowners by the end of this decade, and our Blueprint for the American Dream Partnership is taking bold steps to make this a reality.





The idea of "re-regulate the industry along the lines of Glass-Steagall" may help; however we should understand what happened shortly after this de-regulation? We need to get to the root of this problem!



Corporate Bankruptcy, DIP (Debtor in Possession) Financing (Darla Moore's invention) and Healthcare fraud would be a great start. To credit 'mortgage-back securities' as the problem I believe is leading us down the wrong path to the root of our financial meltdown. If anyone can follow this, I believe it is you Mr. Kucinich.

Darla Moore, wife of Richard Rainwater, "All of a sudden, this product I had created was the 'product du jour.' ((DIP) financing) Nobody in the country had any kind of infrastructure or knowledge that could address this, other than what I had developed over a several-year period. I was the only person with the expertise, and our area was the only one making any money. It had become a powerful profit center within the bank." (Chemical Bank, then Chase, Now J P MorganChase)



One must wonder about the mortgage-related securities JPMorgan is taking onto its books. JPMorgan is taking on about $176 billion of WaMu home loans, and marking down almost $31 billion of that right off the bat. Just before the Real Estate crash in 2007, JPMorgan Chase financed Richard Rainwater's REIT, Crescent (CEI) sale. These are not the only questionable liabilities JPMorgan has taken on.

Jul 28, 2003

2003-87
SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud