Category Archives: Bank Failure

Judge Spinner Relives Suffolk New York Home Owner of Mortgage


Judge Spinner relieves Homeowner of Mortgage to Penalize Lender



Yesterday on Long Island New York Judge Spinner  in INDY MAC v YANO HOROSKI held in  essence that a bank who is seeking foreclosure against a homeowner  whose is in default must act in good faith and negotiate in good faith in an attempt to medicate damages.  The Judge stated ” The judge concluded that the banks’ conduct was “wholly unsupportable at law or in equity, greatly egregious and so completely devoid of good faith that equity cannot be permitted to intervene on its behalf.” However he went further stating that the banks conduct made him believe they would repeat this conduct, and a penalty would not therefore be a deterrent.  SO HE EXTINGUISHED THE ENTIRE DEBT.


Facts. Ms Yano Horoski a college professor refinanced her existing mortgage and refinanced the residence for $ 292,500.00 with an adjustable whose interest rate went from 10% to 12%. Part of the monies in the refinancing went to her husband’s home doll collection business. Apparently due to some financial and medical issues they could no longer afford the mortgage. As such they approached the lender. The Judge held that the family made several efforts to mediate the matter including one in which her daughter would purchase the home.   But the law firm  Steven J Baum attorney would not agree to anything but foreclosure.

Steven Baum is the dominant law firm in New York representing banks in foreclosure sales and “short sales”. They never permit any changes in a contract, and in fact are aggressive . In their contracts they only give a purchaser 30 days to obtain a mortgage and if you don’t monetary penalties kick in which are in my opinion draconian and penalize purchaser’s unfairly.

I’m glad the Judge slammed the lenders and their attorney who all benefit from taxpayer “TARP” bailout monies but treat consumers like garbage.




Unqualified Lightweight Named to Head NY Fed.

 An AFL-CIO Lobbyist named to head N.Y. Fed

An AFL-CIO Lobbyist named to head N.Y. Fed

The Federal Reserve has selected union boss  Denis Hughes, President of the N.Y.S. AFL- CIO to be head of the powerful N.Y. Federal Reserve See

1. Unqualified- Mr. Hughes is an electrician by training and is a partisan labor union hack. . Shockingly he was anointed despite his de mini mus – education.

2. He was appointed to the Federal Reserve as a “C” director, meaning a political selection with NO , ZERO , financial experience.  Given that we are in an economic tsunami and still teetering with a recession this appointment is reckless , unconscionable and shocking as he bring nothing to the  table in terms of leadership and experience to assist us out of our dire economic straits.

He attended  ” Empire College” where they award half of your credits to “life experience”. Empire is well known as home study course for “mature adults” who want to obtain an ez- college degree while maintaining their employment. Empire’s students are largely cops, fireman and other civil servants who are required to have a four year degree in order to advance to promotion in their respective trades.

Why, was he selected ? , where is the vetting process? What does this say about selecting the “best” candidates ?   Another example of defining deviancy downward. If Hughes had any common sense or commitment to America he would decline the appointment. This is like selecting a non physic an to be the Surgeon General. Hughes took over the union after the previous President was arrested for stealing money from the union. See

Troubling Hughes stated in 2001 his top priority was “affordable housing” as such he was one of the lobbyist who pushed for “affordable mortgages” See

The Third Tower Has Fallen, The New York Financial Collapse

The Graveyard is growing in New York City and thereby the State:

Bear Stearn’s, Lehman Brother, AIG, Merrill Lynch, AIG, CitiBank,    with Goldman and Morgan becoming regular banks, to get TARP funding) see

Now  Bernand L. Maddoff Investment Securities LLC  admits running a $50 Billion dollar self described ” PONZI SCHEME”


As a cop I can tell you this ” his son’s turned him in ” I assure you there will be plenty of co -conspirators, and persons who aided and abetted in this matter.  However the New York Times is reporting that initial reports suggest he worked alone. see If they are not place in jail and prosecuted,  it will be prima farce evidence that America is on life support.

The Maddof  scandal  see ( is another example of a terrible fact for New York City and State. It will be years if ever does recover that New York City returns to be the world financial capital. In the immediate future the reckless and fraudulent conduct of  Wall Street will cause New York City to experience many of the the 70’s toxic symptoms.  See

Cop, Fireman, Teacher, layoffs, decreased city services,  and perhaps economic riots similar to what we are seeing in Greece. See my past articles here and

The firm has shut down it’s web site but the Judicial order may be seen here The Judge ordered an emergency restraining order against this firm and it’s owner . The law reads ”

Section 206 — Prohibited Transactions by Investment Advisers

It shall be unlawful for any investment adviser, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly–

  1. to employ any device, scheme, or artifice to defraud any client or prospective client;
  2. to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client;

As both a police officer and an attorney I am saddened that society has become ignorant, dismissive,reckless,and disregarding “FACTS”.  How could investors some sophisticated individuals and fims be so reckless in giving the man so much money.

Here is the biggest fact and red flag:

Maddoff didn’t use a reputable accounting firm  Big 8, they had a back room outfit  ” As I say, there were enough warning signals, including the fact that Mr Madoff’s auditors were a one man and his dog operation housed in a 13ft by 8ft office in Rockland County, New York. See

How could pension funds, and sophisticated money managers accept the audits of this outfit?  This alone is gross negligence and or a willingness to close your eyes to possible improper activities in exchange for higher returns. Pure Greed.

Second Warning Sign, the firm ran investment advice and trading in the same building separated only by one floor.  Bernie grew his firm by developing a money management business alongside his broker-dealer business. Most major Wall St. firms do have these separate lines of business but by regulation they need to have very strict “Chinese Walls” in place to make sure that customer interests are protected and that insider trading does not occur. The fact that these two separate lines of business were one floor apart in the same office building for Bernard Madoff should have been a major warning signal for the regulators at the SEC and FINRA.” see
Another fact is that Maddoff was part of the Elite Jewish Community, and as such people of his  faith ” trusted him” because of their similar beliefs. See:

The primary reason that world wide assets ,savings, investments, were invested in the United States was the belief and opinion that our nation could be ” trusted’.  The entire pension system for Cops and Fireman in Connecticut may be gone see

America was trusted because the world assumed wrongfully the we  had the proper checks and balances  in place to stop fraud. Chiefly the ( SEC, ATTORNEY GENERAL, FDIC, SPIC, FBI and Judicial System)  to protect and vigilently safeguard the worlds funds. Funds that included ( pension savings, insurance firm reserves, non for profit health care  and educational endowments.

The SEC is impotent. Why, the head of the SEC remains is beyond me. Here is their mission statement ” The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

It seems as though as we played world cop, the bandits were on the lose here unchecked and certainly unrepentant.

Hail Caesar Paulson!

On March 30th 2006, now lame duck President Bush appointed with the advice and consent of the Senate Henry “Hank” Paulson to be the Treasury Secretary


In addition on December 3rd 2006 another Goldman Alumni William Dudley was appointed to head the Federal Reserve Bank of New York. For an article on same ” Goldman Alumni wield White House Clout.


The head of Goldman Lloyd Craig Blankfein is the “sole survivor” of private investment bankers arter the 2008 Tsunami of Wall Street.  Do you think it is coincidence that the Bush administrations domination of alumni of Goldman’s  assisted this firm.  Lets not forget Governor Corzine a democrat from N.Y. is an alumni of team Goldman, as such the inference to be drawn is that partly affiliation means nothing ” green” is the color that counts on Wall Street not ” red ” or ” blue”.  Why was Bear Stearns bailed out, Fannie Bailed Out, Lehman allowed to proceed to bankruptcy, Merrill gobbled up and now AIG bailed out. Well take a look at the board of directors over at AIG.

( see

Can you believe who is in charge; Sullivan and Cromwell ( M&A Lawyers), Former Citi Bank executives, former SEC executives, Bill Cohen former Secretary of Defense ( Clinton) , Harvard economist Martin Feldstein, Merill executives, and the former head of the NASDAQ. Unbelievable with this ” blue ribbon” Board of experts how did AIG implode?  This star studded team blew up like the Hindenburg Disaster.

Here is an interesting link to Goldman Alumni and the power they yield.

So, why should we trust team Goldman and their Alumni are they suddenly an altruistic  entity, I don’t think so. Why did they remain  while all their competitors  were destroyed, merged or saved by the government.

I’m not a big conspiracy guy, but the evidence here is overwhelming probable cause exists to robustly examine how this happend and how Golman Sachs will benefit and whose pockets were lined while pensioners were nearly  wiped out.

Hey, you know the best way to remember  this disaster is to recall  The Beatles George Harrison lyrics in Piggies.


by George Harrison, The Beatles

Have you seen the little piggies
Crawling in the dirt
And for all the little piggies
Life is getting worse
Always having dirt to play around in.

Have you seen the bigger piggies
In their starched white shirts
You will find the bigger piggies
You will find the bigger piggies
Stirring up the dirt
Always have clean shirts to play around in.

In their styes with all their backing
They don’t care what goes on around
In their eyes there’s something lacking
What they need’s a damn good whacking.

Everywhere there’s lots of piggies
Living piggy lives
You can see them out for dinner
With their piggy wives
Clutching forks and knives to eat their bacon.