Friday, August 10, 2007

Global stock markets fell today, in a mass sell-off stemming from the sub-prime mortgage crisis in the United States. The Dow Jones Industrial Average rebounded late in the day after falling more than 250 points, ending the day down about 31 points. The UK’s FTSE-100 index fell 232.90 points to 6038.30, and Japan’s Nikkei 225 fell 406.51 points to 16764.09.

Central banks across the world are injecting funds into their banking systems to add liquidity, fearing that many financial firms with subprime ties will be insolvent. Yesterday, the U.S. Federal Reserve transferred US$24 billion to temporary reserves, following the European Central Bank, which authorized a record €83.6 billion addition to its banks, its biggest cash infusion ever. On Friday, the Fed entered into a $38 billion repurchase agreement of mortgage-backed securities, easing stockholder worries. Also on Friday, the Bank of Japan injected ¥1 trillion into Japan’s financial system.

The Federal Reserve met this week, but decided to maintain its target rate of 5.25%, although on Friday the federal funds rate was hovering around 6%, indicating a drop in liquidity.

The volatile week began last Friday with Bear Stearns tumbling as a result from its complete loss of two major hedge funds worth more than $1.5 billion. The hedge funds had been dangerously exposed to the massive sub-prime mortgage failure, and the company announced it was unable to return any money to investors.

Washington Mutual, and Countrywide Financial, both very large U.S. home loan lenders, saw shares fall. Countrywide Financial made a statement this week, saying they will be forced to retain a greater proportion of mortgage. American Home Mortgage Investment Corp, another large lender, recently filed for bankruptcy. The U.S. housing market has been declining for more than two years after the Federal Reserve raised interest rates 17 times. Now, lenders are in a quagmire from millions of people who are unable to repay loans after taking adjustable rate mortgages, teaser rates, interest-only mortgages, or piggyback rates.

Jim Cramer, of CNBC’s Mad Money, remarked that as many as seven million people will lose their homes from bad mortgages. Last Friday, Cramer went on a tirade on CNBC’s Street Signs, saying that the “Fed was asleep” and called for them to lower rates immediately.

Asian and European markets have become increasingly entangled in the subprime mortgage crisis in the U.S. Deutsche Bank of Germany lost almost $3.5 billion in share value, forcing the government to organize a bail-out. France’s largest bank, BNP Paribas SA, halted withdrawals from three large investment funds which were crippled by sub-prime exposure.

A compilation of brief news reports for Tuesday, December 22, 2009.

Wednesday, October 3, 2007

Wayne Simmons is running for the Freedom Party in the Ontario provincial election, in the Don Valley East riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Wayne did not answer “Of the decisions made by Ontario’s 38th Legislative Assembly, which was the most beneficial to your this electoral district? To the province as a whole? Which was least beneficial, or even harmful, to your this riding? To the province as a whole?”

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

Monday, August 23, 2010

Chicago Cubs manager Lou Piniella announced Sunday that he will retire from Major League Baseball after almost fifty years of coaching, managing, and playing the sport.

Piniella’s announcement came after the Chicago Cubs lost to the Atlanta Braves 16-5 at the Cub’s Wrigley Field. The 66 year-old Piniella said that he was retiring because of family issues. For much of the 2010 MLB season, Piniella’s 90 year-old mother has been ill.

“This will be the last time I put on a uniform. This has been very special for me. I’ll go home, do what I have to do there…and enjoy my retirement,” said Piniella. “My mom needs me at home; she hasn’t gotten any better since I’ve been here. In fact, she’s had other complications. Rather than continue to go home, come back…It’s not fair to the team, not fair to the players. The best thing to do is to step down, go home and take care of my mother,” he added.

During his 18 year career as a player, Piniella logged 1,705 hits. As a manager, he also won 1,800 games over the course of 23 years. Mike Quade, The Cub’s third-base and outfield coach, will be Cubs manager for the remainder of the 2010 season.

Tuesday, January 30, 2007

Scientists have uncovered the largest Neolithic settlement in the United Kingdom at the Durrington Walls and believe that the village was inhabited by the people who built the Stonehenge monument.

Scientists say that the village was built around 2,600 B.C., roughly when Stonehenge was believed to have been constructed, and housed over 100 people.

Inside the areas which would have been the interior of houses at the time, scientists also found outlines of what they think were beds and cupboards or dressers. Pieces of pottery and “filthy” rubbish around the site. Animal bones, arrowheads, stone tools and other relics were also discovered.

“We’ve never seen such quantities of pottery and animal bone and flint. In what were houses, we have excavated the outlines on the floors of box beds and wooden dressers or cupboards,” said Sheffield University archaeologist Mike Parker Pearson.

So far, the dig has revealed at least 8 houses roughly 14-16 feet square, but scientists say that they think there may have been at least 25 altogether.

The site was likely to have been occupied only seasonally rather than year-round and evidence suggests that a lot of “partying” went on at the location.

“The animal bones are being thrown away half-eaten. It’s what we call a feasting assemblage. This is where they went to party – you could say it was the first free festival. The rubbish isn’t your average domestic debris. There’s a lack of craft-working equipment for cleaning animal hides and no evidence for crop-processing,” added Pearson.

The Durrington Walls are approximately 2 miles from the Stonehenge site.

Thursday, October 3, 2013

A review this week by Wikinews of US Consumer Financial Protection Bureau (CFPB) complaints about mortgages in the United States shows Bank of America leads all lending institutions in complaints.

Since mortgages complaints were recorded in December 2011, 77,622 total have been added to CFPB’s database. 29.2% of these complaints involved Bank of America, with the second most received by Wells Fargo, accounting for 15.5% of all complaints. JPMorgan Chase ranked third by volume of complaints with 9.8%. Ocwen was fourth with 8.7% and Citibank was fifth with 4.8%. Nationstar Mortgage; Green Tree Servicing, LLC; HSBC; PNC Bank; U.S. Bancorp; OneWest Bank; SunTrust Bank; Flagstar Bank; and Select Portfolio Servicing, Inc. each had between 1.0 and 3.8% of total complaints. The remaining 14.4% of all complaints about consumer mortgages were divided between about 530 other lending institutions.

The Motley Fool reported last month that for the past fiscal quarter, the biggest US based mortgage lenders were from first to fifth Wells Fargo, JPMorgan Chase, Bank of America, Quicken Loans and U.S. Bancorp.

According to the US Federal Reserve, debt for family residences stands at US$10.706 trillion for the second quarter of 2013. As of the end of June of this year, Bank of America is the United States’s second largest commercial bank with US$1.343 trillion in domestic assets. Wells Fargo is the fourth largest commercial bank with US$1.251 trillion in domestic assets. JPMorgan Chase is the largest US commercial bank with US$1.329 trillion in domestic assets and US$1.947 trillion in total assets.

The mortgage complaints in the CFPB report include several subproducts. Conventional fixed mortgages account for 27.1% of all complaints. Conventional adjustable mortgages account for 10.0%. FHA mortgages account for 7.7% of all complaints. Home equity loans or lines of credit account for 3.8% of all complaints. VA mortgages are 1.4% of all complaints. Second mortgages and reverse mortgages each account for 0.6% of complaints. The remaining 48.7% of complaints are about other mortgages or other mortgage issues. A few years ago, FHA loans accounted for about 10% of all US mortgages while VA loans accounted for about 3%. Prime loans accounted for over 75% of the market and the rest were subprime mortgages.

California leads all states by volume of complaints with 14768. It is followed by Florida, New York, Georgia and Texas. When complaints are divided by a state’s total population, New Hampshire leads. The state is followed by Washington D.C., Maryland, Georgia and Florida. Complaints do not correlate with national rankings for August’s foreclosure rate by state where Nevada topped the list, followed by Florida, Ohio, Maryland and Delaware.

Two zip codes account for over 1,000 total complaints between them. 565 complaints originated in the 48382 zip code, which is in Commerce Township, Michigan, located in suburban Detroit. 553 complaints originated in the 33071 zip code, in Coral Springs, Florida. According to real estate website Zillow, there are currently 1,033 properties in foreclosure in Coral Springs while Commerce Township only has 131 properties currently in foreclosure. Four other zip codes have 100 plus complaints originating from them. 91730, in Rancho Cucamonga, California, had 158 complaints. 33409, in West Palm Beach, Florida, had 132. 92626, in Costa Mesa, California, had 125 complaints. 92660, in Newport Beach, California, had 122 complaints. Respectively, the towns had 534, 1,068, 153, and 134 properties currently in foreclosure. These numbers are higher than for the cities of a few sampled zip codes where there was only one complaint, such as Gold Hill, Oregon which has 4 properties in foreclosure, and Decatur, Illinois which has 6 properties in foreclosure.

The CFPB categorizes complaints into six categories: “Loan modification, collection,foreclosure” or problems when a person is unable to pay; “Loan servicing, payments, escrow account” or problems with making a payment; “Application, originator, mortgage broker”; “Credit decision / Underwriting”; “Settlement process and costs”, and “Other”. The CFPB says the complaint types indicate consumers “appear to be driven by a desire to seek agreement with their companies on foreclosure alternatives. The complaints indicate that consumer confusion persists around the process and requirements for obtaining loan modifications and refinancing, especially regarding document submission timeframes, payment trial periods, allocation of payments, treatment of income in eligibility calculations, and credit bureau reporting during the evaluation period.” Currently, 59.6% of all complaints against lenders deal with being unable to pay. 25.1% deal with problems in making a payment. 7.0% have to do with the application process.

Of the complaint-heavy zip codes, for 48382 in Commerce Township, Michigan, 98.9% of all complaints have to deal with being unable to pay. Accounting for 23.4% of all mortgage complaints in Commerce Township, 132 of the complaints for being unable to pay were made regarding Bank of America, accounting for 97.8% or all but 3 complaints against them from the zip. 121 of the Bank of America responses in Commerce Township were closed with explanation and 12 were closed with non-monetary relief. 33071 in Coral Springs is different, with 537 of the 553 complaints being categorized under other. Only 11 complaints relate to foreclosure and issues with being able to pay. 92626 in Costa Mesa, where 32% of the mortgage complaints were about Bank of America and 26.4% were about Wells Fargo, had 93.6% of its complaints dealing with being unable to pay. 5 total complaints dealt with payment issues and 3 dealt with applications.

Beyond regional variance in complaint types lodged, the top five mortgage lenders by volume of complaints all had being unable to pay as their top complaint category, ranging between 55.8% for Citibank and 69.4% for Bank of America. Problems with payment accounted for the second largest area of complaints, with Ocwen having the largest percentage of complaints at 31.9% and Bank of America having the smallest at 18.8%. Foreclosure was the top area of complaints for a number of other lending institutions including 1st Alliance Lending, OneWest Bank, Ally Bank, Banco Popular de Puerto Rico, Bank of the West, BMO Harris, BOK Financial Corp, Caliber Home Loans, Inc, Capital One, Deutsche Bank and EverBank.

Nationally, complaints reached a high of 5,840 for January 2013, 1,107 more than the next highest month of April 2013. The total emerging for September is the second lowest since records were first kept in December 2011. On a state by state level, this pattern largely repeats with a major exception for Florida which saw a peak of 849 complaints in June 2012. Then, as now, Florida was one of the top five states in the nation in its foreclosure rate. The national January spike came as the Qualified Mortgage standard required by the The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 came into play. It required mortgage lenders to take steps to insure borrowers could repay their mortgages.

Bank of America’s complaint volume follows the national trend, with a spike in January 2013 with 1,925 total complaints. Unlike nationally, the next month by volume of complaints was February of this year with 1,598 complaints. Prior to that, the highest month was May 2012 with 1,418 complaints. The lowest volume of complaints is September this year with 334.

Wells Fargo matched national trends for volume of complaints by month, with the exception of the current month being the lowest on record for number of complaints with 197 compared to the next lowest month, December 2011, when they had 221. JPMorgan’s complaint volume by month spiked in January and March of this year with 504 complaints. April of this year was the next highest month with 493 complaints, edging out May of last year with 488 complaints. September this year is on track to be the lowest month by complaint volume.

The federal government shutdown is unlikely to impact the current mortgage situation in the United States directly for most consumers, though mortgage processing by the Federal Housing Administration could be slower, resulting in fewer mortgages processed.

Tuesday, October 12, 2010

A 21-year-old Swedish man killed himself and broadcast it over the internet via his webcam feed Monday, after posting to a message board that he had swallowed some painkillers and was going to hang himself.

At 11:51 a.m. Central European Summer Time (0951 UTC), Marcus Jannes, a student from Järna, Stockholm, posted to the Mental Health Problems forum of Sweden’s Flashback message boards using the newly-registered username “LurifaxFlux”, stating that he was going to hang himself, adding that he had already swallowed 100mg of dexofen and 1500mg of paracetamol. He said that he had set up a webcam to record the event, and would post details later of a FTP server for people to watch.

People responded to his post almost immediately. Some offered messages of hope, such as, “How bad can it be? When everything is at its worst, it can only get better”, and “Think of poor people, mutilated people, people who are lame or blind. Living with a disability is hard. They can not change their lives! But you still have the ability to alter yours!” Others tried to keep him online by talking to him empathetically: “Is there anything that can make you change your mind?”, “Tell me about yourself.”

However, other users posted messages saying they didn’t believe him, wishing him luck with his attempt, and calling him an attention whore and a troll. They also goaded him by saying, “you won’t dare, you are too cowardly”, and offering advice on the best way to hang himself: “I recommend … you do it from a height that you can jump off so you are guaranteed to break your neck.”

In a later post, Jannes said that he had been feeling suicidal for about six months, but was too scared to actually attempt anything until he tried to strangle himself with his own hands. In response to questions, he stated that he was using a network cable to strangle himself because he didn’t have any rope, but he was worried that the cable would not be strong enough to take his weight. He also told them that he had Asperger syndrome and High-functioning autism, and was emotionally vulnerable and lacked normal social skills. He admitted to feeling lonely, and alluded to experiencing problems at school, but admitted that he had a good upbringing and had a rather good life. At around the same time, he also updated his Facebook status to say life was “just too difficult”, and that he was going to kill himself.

A short while later, at 1:06 p.m., Jannus posted the FTP server URL and login details, and stated that he needed to hurry up because, “I’m beginning to feel that I might change my mind.” At this point, people who logged on to the server found a series of still images taken every two seconds, showing a young man dressed in sweatpants and t-shirt, in his apartment, hanging network cable from a doorway.

At 1:13 p.m., the images show that Jannus stepped out of the shot, and at this point he posted another message to Flashback. “Alright, let’s do it,” he said. The next series of images show him walking back to the cable and hooking it around his neck. He slumps to the floor, and his body begins shaking while his head and arms turn dark purple until he stops moving. His skin color then lessens to a pink-red shade as his limp body hangs motionless for a number of minutes.

On the message board, people start to realize the seriousness of the events: “Given the last pictures, it looks like [this was serious]”, “holy crap, he has done it already”, “okay it’s getting nasty”, “this is quite sick. Not okay at all,” and “I’ve seen a lot online but this is the worst I’ve seen in my entire life” were some of the comments posted. At 1:32 p.m., a user asks, “Did someone call the police?”.

The Södertälje police state that they were first alerted to the incident at 1:44 p.m. At 2:06 p.m., the image feeds show two police officers charging into the apartment and releasing the cable from around Jannus’ neck. They begin administering CPR. Two minutes later, two paramedics arrive, and they take over CPR while one of the officers looks around the room at cables; the back of a flat-screen television set; and presumably the computer, as the images finally stop being uploaded.

Södertälje Polisen spokesperson Lotta Thyni confirmed that Jannus had died. “The police performed CPR until paramedics arrived on the scene, but his life could not be saved.”

The police have so far declined to comment on how the suicide will be investigated, but Sven-Erik Alhem, a chief prosecutor in Sweden told Aftonbladet, that psychologically inducing a person to commit suicide, or contributing to the act, can be classified as incitement to murder, and is a criminal offense.

The “Hängning” thread at Flashback continued to receive new posts until the thread was locked by a site moderator at 5:27 p.m. It had received a total of 630 posts over 53 pages. “It is unfortunate if someone knew that the man planned to kill himself and did not do anything to stop him,” said Thyni, but added that police can not control how people use social forums on the web. “They lack empathy”.

The Flashback message boards are a controversial topic in Sweden. They are seen as being similar to the English language website 4chan, and especially its “Random” /b/ board. The Flashback members are able to post with a great amount of freedom of speech. The site has been investigated by the Swedish police on numerous occasions and is under constant surveillance by the Swedish Security Service due to its members’ abundant discussions about drug use, child pornography, race science, bestiality and other controversial subjects. Other controversies include sexual harassment of celebrities and politicians, open racism, forced disconnection from its internet service provider, the hosting of nazi sites, and the sabotage of telephone votes in TV shows.

“I do not remember such a situation in Sweden before,” says Anders Ahlqvist from the Swedish national police force. A similar incident occurred in Sweden in 2008, when Oscar Ores Balingen, 34, from Stockholm attempted to kill himself online. In that case, the police were able to reach Balingen before he died, and managed to save his life. “People said that I would not dare, but it made me only more triggered,” Balingen told Aftonbladet. “I do not think they are taking the threats seriously. There is a terrible lack of empathy on these forums.”

In November 2008, a 19-year-old male from Pembroke Pines, Florida used his webcam to broadcast his suicide on the live video site Justin.tv. Abraham K. Biggs, 19, committed suicide by taking an overdose of opiates and benzodiazepine, which had been prescribed for his bipolar disorder. He also made online threats of suicide and advertised his intentions to broadcast it live over the internet.