Federal Reserve Board announces a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA

 

Federal Reserve Board announces a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA

Press Release

Release Date: September 1, 2011

For immediate release

The Federal Reserve Board on Thursday announced a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA to address a pattern of misconduct and negligence relating to deficient practices in residential mortgage loan servicing and foreclosure processing involving its former subsidiary, Litton Loan Servicing LP.

Goldman Sachs sold Litton to Ocwen Financial Corporation on September 1, 2011 and has ceased to conduct residential mortgage servicing. Litton is the 23rd largest mortgage servicer in the United States.

The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010. The review is intended to provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process. The foreclosure review will be conducted consistent with the reviews currently underway at the 14 large mortgage servicers that consented to enforcement actions brought by the banking agencies on April 13, 2011.

If Goldman Sachs re-enters the mortgage servicing business while the action is in effect, it will be required to implement enhanced corporate governance, risk-management, compliance, borrower communication, servicing and foreclosure practices comparable to what the 14 mortgage servicers are implementing.

As noted in the April press release, the Federal Reserve believes monetary sanctions are appropriate and plans to announce monetary penalties. These monetary penalties against Goldman Sachs will be in addition to the corrective actions that Goldman Sachs will be taking pursuant to today’s action. Goldman Sachs has acknowledged in today’s action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct.

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4closureFraud.org

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Federal Reserve in the Matter of the Goldman Sachs Group

[scribd id=63748364 key=key-1545pz0uxn9kqd33yoxc mode=list]

Comments
16 Responses to “Federal Reserve Board announces a formal enforcement action against the Goldman Sachs Group, Inc. and Goldman Sachs Bank USA”
  1. Granicus says:

    Would someone explain to me how the Federal Government is going to perfect flawed title? How does one purchase a home with a normal Warranty Deed ( not a special Warranty Deed) and also get a real deal title policy? The Feds, AGs seem to be totally ignoring 400 years of law covering land transfers with these settlements.

  2. Ron Moss says:

    How would you calculate anappropriate fee for a punititive damage for a billionaire to be discouraged from ever wanting to return to the scene of the crime considering to recomitt a similar crime?

  3. talktotennessee says:

    http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html
    When it rains, it pours!
    All aboard! Timing is everything!
    Well, now that the SOL is tolling, watch how quick it takes to once again
    bail out the big boys. Probably why Geithner is staying on really. It may be done secretly or under the table or pressure brought to bear on settlement, amnesty or whatever but something will have to be done now.
    When one rat gets on board everyone follows. Watch all the legal maneuvering. There might be something in there useful for private suits.

  4. Javagold says:

    Blankfiend has got a legal attorney for something thats coming down the road soon

  5. unclean hands says:

    The action orders Goldman Sachs to retain an independent consultant to review foreclosure proceedings initiated by Litton that were pending at any time in 2009 or 2010.

    Right…consultants being considered for this most daunting task are: Pam Bondi, Austin Powers & Ron Burgundy.

    The continued dimbing down of America..I think they’re hoping we’re all watching reality shows and buying lotto tickets. I’m beginning to wonder if NY based media is in on all this as well??

    Thank GOD for Matt Tiabbi

  6. xxxx says:

    Waht a freaking JOKE, you are bed partners and have been for a long time stupid arses

    we are not that stupid truly NOW!!
    making me laugh … your higher education is not working with you bedfellows/fedfellows ploy HA!!!

    @ ivent we know this it has been that way for a very long time, growing yet dying at the same time

  7. Jim Bethea says:

    They are one and the same ~~~~~~~~~

    Where do all of the Secretary of Treasury come from? ~ of course Goldman Sachs
    Volker = Paulson = Geithner

    Paulson was to be served on a Monday a.m. for fraud @ GS ~ resigned on Friday ~ a few weeks later appointed as Sec of Tres

    Geithner was under investigation for tax evasion and fraud ~ settled while being appointed to the Sec of Tres

    BY THE WAY does anyone know where the IRS’s power was derived by????? This private corporate called IRS [collection agency for another private corporation known as the Federal Reserve] gets its limited powers through the Sec of Tres’s Office ~~~

    All of the big banks and network news medias are owned in part by the Federal Reserve and its secret owners ~~

    So when you hear that one is going after the other ~ one is suing the other ~~ it’s all BS ~ just a “dog n pony” show for the public who knows no better ~~~

    • lvent says:

      RIGHT ON JIM!!!!!!!!! THEY ARE ENFORCING THEMSELVES…SAME AS WITH THE MORTGAGE FRAUD……IT IS ALL A SHOW TO MAKE US “THINK’ THERE IS SOMETHING BEING DONE…..THE CRIMINALS ARE STILL REGULATING AND POLICING THEMSELVES…A GIANT SHAM AND A FARCE!!!!!!!!!!!!! GOLDMAN SACHS IS ONE OF THE LARGEST SMOM/VATICAN/JESUIT BANKING PROXIES IN THE WORLD AND SO IS THE FEDERAL RESERVE……..WHICH IS ALL OWNED AND CONTROLLED BY THE VATICAN VIA PROXIES…….AND ALL OWNED BY THE WORLD BANK WHICH IS OWNED AND CONTROLLED BY THE VATICAN AS WELL AS THE IMF!!!!! THIS IS GLOBAL SHAM AND A FRAUD!!!!!!!!!!!!!!!!!!!!!!! MONEY AND DEBT COUTERFEITERS ALL OF THEM, WORKING FOR THE VATICAN JESUITS!!!!!!!!!!!
      MANIACAL WORLD CONTROL THRU THE JESUITS;
      http://www.theforbiddenknowledge.com/hardtruth/jesuit_world_control.htm

  8. wpbspecial says:

    We have been fighting with Litton since March 2009. Then they started foreclosure proceedings Oct. 2009 after doing the bait & switch mods, which of course actually increased our monthly payment. I immediatley stopped giving them a single penny once I realized what was going on. Same old story as everybody else, bank can’t find the note but says they had it at some point, blah, blah, blah. Looks like they played eeny meeny miny moe to select US Bank as trustee for C-Bass that is no longer in operation. How do they determine this made-up crap? Summary judgement was not granted & since then they haven’t responded to any of our requests for discovery (because there isn’t any!). I am not going anywhere, not leaving my house. I guess Smith, Hyatt & Diaz ran through all the money they were given to foreclose & simply don’t want to deal with me anymore. I hope that someday justice will be served on the financial institutions that instigated this whole mess, but to me, this article only shows that big money can keep you out of prison if you have enough of it.

    • margowins says:

      We were in the same boat as you. Tried for 2 1/2 years to get a loan mod. Filled out paperwork a half a dozen times only to have them ask foe info we already gave. Stopped making payments, even hired a loan mod guy to help us out. Filled for bankruptcy still nothing from Litton. Finally couldn’t take the stress of it all and moved out of the house in Feb. So with all these supposed fines happen, do you think all of us victims of this fraud BS we went though, will get anything out of it? It would be nice. In the mean time there sits an empty house 8 months later. And do you know they still send us letters as if we are still there. Even after we sent a certified letter telling them we vacated. Litton is so F’d-up.

  9. talktotennessee says:

    Folks! The house of cards is falling! No crashing!

  10. talktotennessee says:

    This is major! See pages 24-26 relative to MERS and requirements to ensure their validity and accuracy! WOW has it hit the fan?.
    Now what it means and how it will play out is another matter. Is could be incentive bait for settlement negotiations by AGs, you know a shot across the bow to get everyone working to settle?
    Could be big trouble for MERS!

  11. Readdocs says:

    And no one goes to jail.

  12. Wow… This is potentially HUGE. I am shocked that the net isn’t blowing up about it yet. They are ADMITTING to FELONIOUS behavior. Watch the lawsuits waterfall onto them!

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