The First American Corporation conspired with WaMu. Together they connived to overstate real estate values. New York Attorney General, Andrew Cuomo, filed suit against the First American Corporation. Cuomo denounced their fraudulent practice towards New Yorkers and the whole sub prime industry. Indeed the Attorney General blamed First American for being at the root of the world financial crisis!
But! Why worry? Be happy! It will soon be business as usual! If we are to believe a post read on the First American Corporation/Yahoo message board!
The First American Corporation can count on the other First American to bail them and all the other American financial criminals out!
A bird named Bush in the hand is most definitely worth two eagles in the bush!
Consider the following statement picked up on the Yahoo – Finance – FAF message board on October 24, 2008
“Re: First American Involved in Fraud 24-Oct-08 04:27 pm
Yes I just read the complaint again. Even after they get to respond they will probably be found to have violated business statutes. So what's the downside for FAF? Disgorgement of profits and fees ($12.5MM if one-fourth of the $50MM in appraisal revenues were affected); pay actual damages (big unknown? how to establish in this dropping housing value environment?); punitive damages ($37.5MM at 3x 12.5MM, a wild guess?); terminate that business or divestment. Incidently, the appraisal adjustments quoted in the complaint seem to be about 1-5% for a $500,000 property, and that seems minor against the backdrop of a 25% drop in subsequent housing values. What if they settled for $100MM? That's not so much for a company with a current market cap of about $3B, and which has seen its price already drop from highs: Jun'07=55, Feb'08=42; Sep'08=32; now=18, and with a comparable low in 2001. Houses are selling much better this month than a year ago. Revenues should be going up now. There is an outstanding issue of future regulation and fee capping in this business. Shouldn't we be starting to buy FAF here? Any non-nasty comments? Disclosures: holding FAF common bought around $38/sh awhile ago (ouch!); and bought a house this month with a First Amer Title Policy attached.
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It is most definitely not a question of ethics. Might is right. It all boils down to a ‘meaningless’ fine for a company worth – excuse me sir - how many billions today? Oh! I almost forgot: The U.S. Govt will provide the bail out funds if need be! No mighty, naughty and haughty could ever become a jail bird! We are having too much fun… The party must go on… at any cost…!
This time it will cost a minimum of $1.5 trillion to feed the greed of the mighty. Jail bail omitted for committed crooks!
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1 comment:
Dear Louie,
It's been a long time. I see you wrote last November about Wamu and 1st American.
My current parking garage job is right across the street from one of the Wamu bdlgs dowtown, which is now almost emptied out. It certainly hurt our business.
I'm kind of having a tought time there now, because of a new boss who is disagreeable and hard on his workers. Pray for me.
I am still doing the rosary making and ushering, etc. I am working on a young man who lives upstairs. God told me he should be a priest. The problem is he is a fundamentalist. But I got him to come to our Lenten bible study at Blessed Sacrament and in turn I have been going to his. (He runs one up in his room-- it's almost like a house church thing.
All for now. Please respond.
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