imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Tenants, Thugs and CDOs

by Dave Crow Tuesday, Dec. 15, 2009 at 4:06 PM
dave@crowandrose.com

A local tale of unmitigated greed and the criminal enterprise of one family to corner the residential real estate market in San Francisco led to the shady world of collateralized debt obligations and derivatives.

San Francisco Magazine’s “War of Values” is certainly a local tale of unmitigated greed and the criminal enterprise of one family to corner the residential real estate market in San Francisco, buying large rent controlled buildings and ousting long-term tenants by any means possible. When my good friend Danelle Morton began to work on this article more than a year and half ago, the story seemed to be just that. But as she dug deeper, Danelle's investigation led her to the shady world of collateralized debt obligations, derivatives and the real villains without whose free-wheeled lending, the Lembis' crimes against tenants could not have been financed. "It’s a cascade of connections that’s almost impossible to believe: that the agony of one old lady on Leavenworth Street, who couldn’t get downstairs for three days because her elevator had been shut off, could have anything to do with the annual bonus of a banker in Switzerland. Or that a sudden edict forbidding tenants in a building near Union Square from using the lobby for Friday-night happy hour might be even remotely connected to the same Wall Street financial instruments that have pushed the world economy to the brink." It turns out that this just isn't a San Francisco problem. As Robin Shulman reports in The Washington Post, November 23, "A new wave of foreclosures stands to hurt people who may have never taken out a mortgage: renters. In cities such as New York, Chicago and Los Angeles, where many investors are carrying upside-down mortgages on large rental buildings, some tenants are watching their homes fall apart along with the financing." Or as Amanda Fung writes in Crain's New York Business, December 7, "Nearly 10%, or 100,000 units, of the city's affordable housing stock were overleveraged by predatory equity investors, and several of them are heading toward financial default, according to a recent report from a housing advocacy group." The report, "Predatory Equity: Evolution of a Crisis, by The Association for Neighborhood and Housing Development," should be read as a companion piece to Ms. Morton's article. It's the same story in New York. Investors “used tenant harassment as a business model to drive out rent-regulated tenants on a wholesale level by evicting and replacing them with market-rate renters.” A driving force behind the financing in of some of the buildings analyzed in the ANHD Report is Credit Suisse Bank, a major financial backer of subprime lenders according to The Center for Public Integrity in its article, "Who's Behind the Financial Meltdown?" Ms. Morton uncovered a prospectus prepared by Credit Suisse, dated Winter 2008, to offer the best piece of a collateralized debt obligation to investors. "CitiApartments has a successful track record of relocating units upon acquisition. Since the program's inception, Lembi has relocated over 2,500 units. In 2007 the Lembis relocated 899 units. In conjunction with an aggressive relocation ramp-up, Borrower recently added a fourth team, bringing the number of employees dedicated to this effort to 18." Credit Suisse never mentions the lawsuit filed by the San Francisco City Attorney for unfair business practices. Clearly, Credit Suisse was promoting the Lembis' relocation practices as a savvy business plan while simultaneously misleading their own investors. David Jones, President and CEO, Community Service Society of New York, in his Huffington Post article, "Predatory Equity," writes about the Stuyvesant Town mess and tepidly concludes, "The individual real estate firms and banks that set up these deals can't be allowed to walk away, particularly when even cursory due diligence on many if not most of these deals indicate they weren't sustainable even in good times. They have to be examined legally, by investors, regulators, and legislators, to make sure that tenants are protected, prosecutions are brought if necessary, and taxpayers aren't left holding the bag for the excessive greed of speculators." If this is a war of values, it is a war that has not yet begun. A cadre of unscrupulous landlords and financial terrorists claiming they're doing God's work—those with no values—have declared war. But those charged with the legal and moral responsibility to prosecute and imprison these crooks have capitulated. It is no accident that the financial meltdown has been blamed on homeowners rather than the rich landlords, real estate speculators like Tishman Speyer and Walter Lembi and banks like Chase and Credit Suisse who only borrow from and lend to one another. Then when they can't sell their toxic shit to unsuspecting investors, they turn to us for a bailout and blame us for their messes. Bailout is just another name for a get-out-of-jail-free card. The banks and speculators are out on bail alright, released on their own recognizance with a little spending money to continue business as usual. To read that President Obama has to suck up and implore banks to loan money that they get for free from us (taxpayers) back to us is to understand that hope is powerless.
Report this post as:

Local News

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A13 12:39AM

lausd whistle blower A11 6:58AM

Website Upgrade A10 10:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 8:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 6:58PM

Change Links April 2018 A01 6:27PM

More Local News...

Other/Breaking News

Addendum: Benjamin Tucker American Mutualist: Tucker Did Not Advocate Voting in Businesses S25 11:45PM

OUR HOUSE Grief Support Center Celebrates 25 Years with the House of Hope Gala S24 7:10PM

Against the Rent Madness and For a Nonprofit Orientation! S24 11:56AM

Cybermonde, cyberguerre, cyberespace, cyberterrorisme S24 6:35AM

Paraphysique de psychosomatique S22 6:58AM

Chuck Grassley: Women Abusing, Animal Murdering, Illegal War Supporting Criminal S22 2:58AM

Finance Capitalism and the Digital Economy S21 4:45PM

Muselières syndicales, muselières patronales S21 7:19AM

Jeff Bezos, Amazon, The Washington Post, Whole Foods, Etc S21 2:50AM

Why Choose Nut Milk Over Cows' Milk S21 1:01AM

Antrhopocène, le grand effondrement S19 9:53AM

Abolir l'économie S18 11:18AM

The Dictatorship of Corporations S17 5:26PM

18 Lethal Consequences Of Hunting S17 3:13PM

Paraphysique de l'outplacement déontologue S15 6:51AM

Shopping du bashing S14 8:42AM

After Lehman Brothers, Experts Say Global Financial Crisis Can Happen Again S13 8:28PM

“Animaniacs in Concert!” Starring Voice Legend Rob Paulsen S12 9:30PM

Probabilités de fin d'humanité S12 6:49AM

Florida Area of Migrant Farmworkers Denied Right to Construct Health Clinic near NaplesCIW S11 2:57AM

Steer clear of work morality! S09 12:10PM

The Shortwave Report 09/07/18 Listen Globally! S06 11:23PM

August 2018 Honduras Coup update S06 12:28PM

Brett Kavanaugh Filled The 5th Circuit With Execution Judges S06 6:14AM

Augusta Georgia Woman Gets 5 Year Prison Sentence for Writing About Russians Crime Acts S05 8:29AM

Paraphysique de contextualité S05 8:29AM

Crisis Regulation in Global Capitalism S03 3:39PM

Ex-voto de réification S03 10:24AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy