Bank of America (BofA), a trustee of Countrywide Financial, uncovered some suspicious evidence after it hired an underwriting consultant to review some nonperforming loans. The consultant looked at a small sample, 786 loans out of 4,484 mortgages, and found that two-thirds of the loan sample contained one or more breaches of representations and warranties. About 90% of those breaches involved fraud or violations of Countrywide's underwriting guidelines. Countrywide deals were originally worth $424 billion and are now expected to lose about $100 billion. Bank of America calculates the average Countrywide defect rate to be 36%.
These bribes were mainly from four business men trying to use legislature to create a monopoly on their adult day care business. Stevenson had agreed to try to pass a bill that would prevent other centers like theirs from opening in New York. Earlier in that week a New York Senator was arrested and charged for trying to buy his way into the mayoral election. Also around that time five other New York politicians were arrested for accepting more then one hundred thousand dollars in bribes. While that was very recent, political corruption has been around since 1795 and before.
After researching this situation, three proposals came to mind. For one, banks could reconstruct their mortgage loan interest rates to fit each family’s situation and secondly, twice a year, the U.S. government could tax each American citizen that is working, $.75 from their paycheck each year to help decrease the $11 trillion U.S. mortgage debt that we are in. Thirdly, banks all over the U.S. could lower their mortgage loan interest rates to a very low standard rate for not only people who want to buy homes but for people who already have homes. In the first proposal, banks could possibly reconstruct their mortgage loan interest rates to fit each family’s situation. In this case, the mortgage loan interest rates would fluctuate from family to family.
We noticed multiple areas of concern before even seeing the financial statements and my concerns were confirmed upon further investigation. The fraud started with Mr. Workman taking control over the entire business and putting himself on the bank signatory, which allowed him to write checks. After this he decided to hire his longtime friend and recent CPA Mr. Hess as company accountant, who was there to help Mr. Workman with finances of both personal and business. Mr. Hess had just started his new CPA firm, whenever he was hired and was not liked by all employees of business. Sue Bryant actually says that she thinks that Mr. Hess saw JD’s death as an opportunity.
The gap number measures only a portion of the underground economy. Because the number is extrapolated from audited returns, it makes no allowances for criminal enterprises that report no income, and it even fails to capture some garden varieties of nonreporting. The unreported wages of illegal immigrants alone could be costing the government another $50 billion a year, says Justich. Growth of the underground economy is partly a result of corporate downsizing, which has forced many former employees to go out on their own. "We have had an 85% taxpayer compliance rate," says Nina Olson, the IRS's taxpayer advocate.
Under the fair credit reporting act, Americans are allowed to obtain one free credit report from each agency per year. This is the easiest way to discover if someone has been using your identity. However, most Americans do not give their credit report a second thought until they need the report to obtain a loan or credit. Americans tend not to give a lot of things a second thought when it comes to credit, which is what makes our society so vulnerable to identity thieves. There are usually clues given to a person that an identity theft has occurred and many people ignore the clues.
The $2.5 trillion has been borrowed over the years by the federal government and spent on other programs. In a promised to pay off the surpluses Treasury department has issued bonds to Social Security, Guaranteeing payments with interest (Ohlemacher, 2011). If the situation gets worst for social security and asks federal government to pay off, there’s no way that social security will obtain the money because there’s no federal funds to pay off the debts to Social Security.
Credit card companies need to check out individuals before offering them more credit cards. Credit cards cannot be offered to anyone who wants one. I have a friend who has been on unemployment for over 6 months. This friend applied for several credit cards last month and was issued all of the credit cards. This friend is making $300 a week on unemployment; they have a house payment of $800 a month, a car payment of $300 a month, and utility bills and grocery bills.
3. Background and impact: Zappos has got a customer base of nearly twenty-four million people. In the period of January 2012, Zappos has undergone suffering due to data security breach which provided hackers private info of their customers. The securities breach shown customer names, their addresses, and phone numbers but did not provide the credit card information of customers. After Zappos got to know about the security breach, Zappos have sent bulk emails to all the customers informing them about the security breach and recommended that they change their login details on the website.
Everywhere else in the world college is free but the United States. I believe that people would feel more obligated to go to college if it was free. College is the main reason Americans are having to live such a hard lifestyle. My father did not go to college and makes eighteen dollars an hour. On the other hand my aunt did go to college and make twenty-four dollars an hour but is still paying back student loans so after paying all of her stuff back she only makes around fifteen dollars an hour that she gets to bring back and that doesn’t include taxes.