Banking Misconduct Blog


Wells Fargo Sanctioned for Illegal Fees

Bankruptcy is designed to provide a fresh start for honest but unfortunate debtors and to ensure creditors are treated fairly. A federal bankruptcy court judge in Manhattan recently ruled that Wells Fargo failed miserably in its treatment of several of its business clients. By taking money to...

Special Servicing: the Ultimate Hardball Tactics

An article recently appeared on Syracuse.com. The title of the article was Inside Destiny USA’s Mortgage Emergency… Crisis or Hardball Bargaining? Destiny USA is the 6th largest retail mall in the United States. The journalist who wrote the article, Rick Moriarty, noted that the...

Second Mortgage Grounds for a Default? (Material vs Technical Breach)

Can a Lender Put Me in Default for a Technical Breach?  
Here is a chilling scenario that happens more than you think.  Borrower secures commercial mortgage back securities (CMBS) or other financing for the purchase of an office building or shopping mall. After a major tenant...

CMBS Mall Loan in Default? We Can Help

There are hundreds of troubled loans across the United States involving shopping centers and strip malls. And things are getting worse. Boston Store, K-Mart and Sears. Lose an anchor tenant and very often it is the end of the mall.
 
We represent property owners and not banks, loan...

RICO Claims Must Cover 12 Months of Activity

Appeals Court Rules that Illegal Activity Must Continue at Least One Year to Establish Racketeering  
How long must illegal behavior continue before it becomes racketeering? A federal appeals court in Philadelphia recently answered that question in an alleged Ponzi scheme...

Voting with Your Feet – Wells Fargo Customers Leave in Droves?

Wells Fargo just won’t die. Billions of dollars in fines and penalties. Countless lawsuits. Even probation from bank regulators. Yet the company not only hangs on, it is still earning a profit too.
For many big banks, fines and penalties are a cost of doing business. Their business plan...

Special Servicers – Do They Answer to Anyone? CMBS Post

Anyone commercial property owner facing a special servicer soon learns the deck is stacked. Many commercial loans today are securitized and packages into loan pools. These pools are sold to a trust that is owned by institutional investors. Unlike a bank that has offices and employees, a CMBS trust...

CMBS Mortgage Post – Mall Vacancies at Record High

As I write this post from my hotel room in Kingston, New York, a Toys R Us store sits empty in the parking lot across the street. Toys R Us is one of many big box retailers that have either closed completely or are going through a dramatic downsizing. For mall owners, that could mean...

Fraud Alert: Having Trouble with Your Bank? Don’t Tweet!

We don’t often publish fraud warnings, social media is full of them already. This one comes to us from our friends in the U.K. and is certainly worth repeating.
 
Tweeting about Problems with Your Bank Makes You a Target for Fraudsters  
Think about it… you...