Sunday, December 4, 2016

Trump's Secretary Of The Treasury Nominee Has An Unfortunate Pasadena Connection

Pasadena's gift to America?
Mod: The Pasadena Patch broke this story locally, a sign that under its new ownership this hyper-local national network of info sites is getting into some meatier news reporting. And this is a pretty good one. Local bad boy prospers in an unfortunate kind of way, one that should set your teeth on edge. That is assuming you aren't merely a blind Trump partisan, or haven't got any choppers left. Instead of draining the Washington D.C. swamp like he once promised us, the Orange One is now stocking it with piranha instead. 

Trump's Treasury Pick Steven Mnuchin has Ties to Controversial Pasadena Bank (Pasadena Patch link): President-elect Donald Trump's pick to be secretary of the treasury has a deep and wide Southland connection, with a mansion in Bel-Air, an extensive relationship with Hollywood as a prolific film financier, and a job history that includes the chairmanship of a controversial bank headquartered in Pasadena.

Now 53, Steven Mnuchin began his career at Goldman Sachs, leaving after 17 years and founding Dune Capital Management in 2004. He also was part of a team that, in 2009, bought IndyMac from the federal government for $1.6 billion, later serving as chairman of the Pasadena-based institution, which was renamed OneWest Bank Group and later sold.

In 2011, protesters gathered in front of Mnuchin’s home in Bel-Air -- it's reported to be worth $26.5 million -- to protest OneWest’s foreclosure on homeowners, many of whom were alleged to belong to minority communities.

Mod: So how did this dude become so unpopular? Kicking people out of their homes.

Trump Treasury pick made millions after his bank foreclosed on homeowners (Politico link): Donald Trump wasn’t the only person to see opportunity in the 2008 housing collapse. As the economy recovered from the rubble of failed banks, foreclosed homes and government bailouts, Steven Mnuchin emerged a winner.

That success is coming back to haunt the hedge fund manager and Hollywood producer who is Trump’s choice for Treasury secretary. OneWest, a bank Mnuchin and his partners established during the collapse, has taken steady fire from regulators and consumer advocates for myriad failures ever since.

In Florida, the company foreclosed on a 90-year-old woman after a 27-cent payment error. New York Gov. Andrew Cuomo singled out the lender for squeezing Superstorm Sandy victims. Last month, the company’s successor, CIT Bank, was accused of discriminating against minority borrowers.

“We’re just coming out of a foreclosure crisis and a serious economic downturn. It’s not the time to appoint someone who sided with corporate America over real people,” said Alys Cohen, an attorney with the National Consumer Law Center. “Mr. Mnuchin comes from Wall Street and has served monied interests over homeowners.”

Mnuchin, OneWest and the Trump transition team did not return calls for comment.

Mod: So who or what was IndyMac? Here is how Wikipedia describes it (link): 

"IndyMac, a contraction of Independent National Mortgage Corporation, was an American bank based in Pasadena California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation (FDIC). Before its failure, IndyMac Bank was the largest savings and loan association in the Los Angeles area and the seventh largest mortgage originator in the United States. The failure of IndyMac Bank on July 11, 2008, was the fourth largest bank failure in United States, and the second largest failure of a regulated thrift at that time. It was heavily involved in Alt-A mortgages and reverse mortgages which in part resulted in its dramatic rise and has been suggested as the cause for its demise as large number of these questionable loans failed during the US subprime mortgage crisis of 2007-2009."

Mod: Interesting, right? The collapse of sub-prime lenders like IndyMac cost the taxpayers billions. But Little Steven Mnuchin's controversial connections to Pasadena's worst bank ever, and its equally toxic offspring OneWest Bank, doesn't end there. This from the Los Angeles real estate news site TheRealDeal.com.

OneWest Bank, founded by Steven Mnuchin, accused of redlining in SoCal (The RealDeal link):  Two housing advocacy groups have accused OneWest Bank, which is headquartered in Pasadena, of discriminating against black and hispanic borrowers.

He's coming for Granny's house
Steven Mnuchin, a contender for the position of Treasury Secretary in Donald Trump’s administration, founded the bank in the wake of the 2008 mortgage crisis. The groups allege the bank made few mortgages to minority homeowners and had very few branches in minority neighborhoods.

Their complaint requests the Department of Housing and Urban Development investigate whether OneWest violated federal discrimination laws, including redlining, Bloomberg reported.

Historically, redlining referred to the Federal Housing Administration flagging neighborhoods, usually black neighborhoods, as high-risk, making it difficult for homeowners to get loans, and putting them at the mercy of lenders who could easily exploit them.

OneWest has 52 branches in Los Angeles alone, but lent to only two black borrowers across six Southern California counties throughout the years of 2014 and 2015, according to an analysis by the two housing groups, California Reinvestment Coalition and Fair Housing advocates of Northern California.

Mod: It gets worse, of course. Newsweek picked up on the Mad Munchkin's unkind ways, and filed the following story.

Trump's Treasury Pick Steven Mnuchin Ran A Bank Critics Call ‘A Foreclosure Machine’ (Newsweek link): Rose Guidel was in trouble. It was 2009 and the United States was in the grips of the Great Recession. Her brother, who had helped pay the mortgage on her modest home outside of Los Angeles, had been murdered, so she contacted her bank to say her payment would be late. The bank apparently told her it couldn’t help until she was actually behind. So she waited. When Guidel was in fact behind, the bank said she would need to modify her mortgage. But that process dragged on for two years, until she came home from work one day to find a foreclosure notice attached to her door.

“It was a moment of all my dreams crumbling down,” Guidel says. She went “from being a person, a citizen that paid her stuff and needed assistance this one time,” to someone on the verge of homelessness. Her parents, who were in their 60s and lived with her, would be out on the street too. Her mother was in a wheelchair.

The bank behind the foreclosure was OneWest. And the man behind OneWest was Steven Mnuchin. On Wednesday, President-elect Donald Trump announced he is nominating Mnuchin for treasury secretary, a move that has people like Guidel concerned. Those who have challenged his banking and housing practices for years through protests, federal complaints and in court are worried that what his bank customers experienced could prove to be a microcosm of how he might treat the country.

“It’s actually very concerning,” says Guidel. “He was in charge of OneWest Bank. Now we’re talking about giving him a position that’s way bigger and can affect a lot more families.”

(Later): In 2008, when the recession hit, Mnuchin saw an opportunity. He and a handful of investors purchased the failed Pasadena California-based bank IndyMac from the Federal Deposit Insurance Corp. It was unusual for unregulated private investors to buy it instead of a bank holding company, The New York Times reported in 2009, and only possible because the federal government had eased regulations on such transactions.

The buyers renamed the bank OneWest and worked out a loss-share agreement with the FDIC so the agency would partially reimburse the bank for handling foreclosures. This meant OneWest could get federal money for kicking someone like Guidel out of her home.

Fair-housing advocates have decried OneWest’s loss-share agreement, prompting the FDIC to issue a statement in 2010 saying, “OneWest has not been paid one penny by the FDIC in loss-share claims.” But through the Freedom of Information Act, the California Reinvestment Coalition, which monitors housing issues facing communities of color and low-income communities, found that between 2009 and 2015, the FDIC paid the bank more than $1 billion for at least 36,000 foreclosures.

As chairman and CEO of OneWest, Mnuchin was likely largely behind those foreclosures and strategies. “This is someone who profited by running a bank that foreclosed on tens of thousands of people in our state, so making money off of the misfortune of working families,” says Kevin Stein, deputy director of the California Reinvestment Coalition. He has called OneWest “a foreclosure machine.”

Mod: One more Mean Munchkin story for you.

"I just wish that I had not voted": Trump voter lost her home to new Treasury secretary (Associated Press link): When Donald Trump named his Treasury secretary, Teena Colebrook felt her heart sink. She had voted for the president-elect on the belief that he would knock the moneyed elites from their perch in Washington, D.C. And she knew Trump's pick for TreasurySteven Mnuchin – all too well.

OneWest, a bank formerly owned by a group of investors headed by Mnuchin, had foreclosed on her Los Angeles-area home in the aftermath of the Great Recession, stripping her of the two units she rented as a primary source of income.

"I just wish that I had not voted," said Colebrook, 59. "I have no faith in our government anymore at all. They all promise you the world at the end of a stick and take it away once they get in."

Mod: This guy is a real sweetheart. Here is a video of some of the people Munchkin foreclosed on demonstrating at his Bel-Air mansion. I'm sure a few of you are going to be horrified at the sight of these people doing such a thing. 

Link here

sierramadretattler.blogspot.com

53 comments:

  1. "Drain the swamp." How's that working out Trumpies?

    ReplyDelete
    Replies
    1. But I thought 'Indymac' meant l was being independent. I thought an 'Alt-A' was for 'alt-right' supporters. I thought OneWest meant a vote for the Chosen One. I thought Trump told me Goldman Sachs was bad because Lyin' Ted's wife worked there.

      But I still trust Trump because I know he will make America be great again for everyone not just entitled white men.

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  2. Trump is the swamp.

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  3. Brings to mind that song "Baby, You Ain't Seen Nothing Yet". This Mad Man isn't even president yet and look what damage he's done so far. Many Trump voters are going to crying in their beer's.

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  4. You guys are getting who you voted for. Unfortunately so is the rest of our soon to be formerly great country.

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  5. America has the greatest war machine on earth, and guess who's going to use it? More people are going to die under your new president than any time since WWII.

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  6. Drain the swamp? I think he is dredging the swamp.

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  7. Leave no Goldman Sachs employees behind!

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  8. DONALD TRUMP PICKING NEW HIRES FROM GOLDMAN SACHS ALUMNI DIRECTORY
    Maybe when he said the bank has “total control” over Hillary he meant it as a compliment?
    http://www.vanityfair.com/news/2016/11/donald-trump-picking-new-hires-from-goldman-sachs-alumni-directory

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  9. We'll be lucky if this idiot doesn't get us all killed in a nuclear holocaust.

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  10. I agree 7:09. I'm afraid, very afraid!

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  11. trump is no idiot. but the fools who voted for him are.

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    Replies
    1. Everytime Trump attacked Wall Street during the campaign all the Wall Street insiders must have roared with laughter. Now he's hiring them all fir swamp duty. Bye bye Medicare!

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    2. 7:35 - Buckle up buttercup. The adults are back in charge.

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    3. Yes. And they're grabbing houses and pussies.

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    4. 10:22 = creepy

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  12. He is on the news media saying he would use nuclear weapons if need be. A power hungry maniac is now our leader, a lot of innocent people are going to have their lives changed for ever. This time in our history will be talked about for years to come as the beginning of the end of a great country.

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  13. Your new president is far to busy for those things

    "Just tried watching Saturday Night Live - unwatchable! Totally biased, not funny and the Baldwin impersonation just can't get any worse. Sad"
    — Donald J. Trump (@realDonaldTrump) December 4, 2016

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    Replies
    1. The Baldwin SNL skit was about Trump's twitter addiction. So naturally Trump twittered about it.

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    2. I am dismayed that Trump is going to be our president, but even so, I feel sorry for him that none of his people have convinced him to stop tweeting.

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  14. It's not what he says but what he does, and then it's too late!

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  15. And "down the rabbit hole we go". I love how the OCD press can't handle how the new President just says what's on his mind!
    Forget Saterday Night Live, that show hasn't been funny since the late 80's. The real show is unfolding for all the Trump supporters. The last laugh is on the Elites and Media.

    ReplyDelete
    Replies
    1. Sorry, but it was hilarious. And because Trump whined about SNL links to the skit are all over the web this morning.

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    2. He's his own worst enemy. No wonder Hillary beat his big butt by 2.5 million votes.

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  16. Was it too late for the housing bubble and lender Freddy Mac to be addressed by the old Democratic Party that created the second time around mess? Just create a diversion to hide the guilt and ownership of a financial housing fall out and blame everyone else.

    ReplyDelete
    Replies
    1. The housing collapse happened under Junior Bush. Get out a calendar and check for yourself.

      Delete
  17. The Party of Hope and Change, gave the "Power" to Iran for Nuclear War. Don't try to lie about what's been done already and all of this with no outcry from a majority of American citizens.

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    Replies
    1. Pasadena is in Iran now? Well I for one am not surprised.

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    2. Iran has the legal right to develop nuclear power and, if the US threatens it, the legal power to leave the non-proliferation treaty. The outcry is coming from your remote circle of fringe radicals.

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    3. If North Korea launches a nuclear missile the most obvious target is Los Angeles. I'm thinking about Alaska.

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  18. don't blame me. i voted for the guy with a boot on his head.

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    Replies
    1. Gary Johnson?

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    2. vermin supreme

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    3. I don't recall seeing him on the ballot. Is he a Republican?

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  19. Reverse mortgages. Didn't we used to have a city councilman who sold those?

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    Replies
    1. Yep.
      And he sold the house he lived in while he was on the council, and now it has been undergoing extensive renovations. Looks like the whole place is being gutted.

      Delete
  20. Didn't we have zero down home purchase incentives, set up by those leaning heavily in the Democratics Party? You know; you sigh on the dotted line and those mortgage lenders will "work" with you, even if your unemployed.

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    Replies
    1. It is called subprime lending. Happened during the Jr. Bush administration.

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  21. 9:54am. "You"are can't have it both ways. If the jr. Bush administration created subprime lending; then jr. Bush was for the poor and down trodden. Why have "you" not given him credit? More research into which party initiated the lending practices should be done by you, unless "you" use the moniker hypocrite.

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    Replies
    1. Having their houses taken away by Munchkin is helping the poor? Whaddaya, nuts?

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    2. Every time the trump chump dumps here i have to go drain my swamp

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    3. Trump Chump seems upset today.

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    4. Buyer's remorse.

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    5. Dear 10:10 - Bush wrecked the economy two times over. Not just the push for the housing bubble but also for invading two sovereign states against international law. Just for good measure he created the Department of Homeland Security, now the biggest federal agency. So much for compassionate conservatism and small government. Trump played you like a fool.

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  22. He will fit right in....

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  23. If tou can afford a house, you ain't so poor.

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    Replies
    1. Who is Tou? Asian person I assume

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  24. 12:47pm. Why should the new President stop tweeting? The media can't handle how communications going forward will be handled.

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    Replies
    1. I am sure the late night comedy shows would prefer him tweeting. Especially when it shows him acting like a fool.

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    2. Trump is a megalomaniacal narcissist. The thing he fears the most is being laughed at. Laugh at him. Hard.

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  25. Hearings Will Unmask ‘Swamp Creatures’ in Trump’s Cabinet
    http://www.nytimes.com/2016/12/03/us/politics/donald-trumps-cabinet-democrats.html?_r=0

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  26. I enjoyed Fred Macmurray in My 3 Sons.Is he still alive? That one boy was hott!

    ReplyDelete