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|Wednesday, January 26, 2011|
By Ben Jacklet
Oregon has filed two lawsuits against the infamous subprime mortgage lender Countrywide in an attempt to recover $14 million in losses to the state's pension and worker's comp funds.
The state bought and sold Countrywide shares on behalf of the public employees retirement fund and the SAIF worker's comp investment fund during the height of the subprime madness, between 2004 and 2008. But they didn't sell quickly enough. Attorney General John Kroger and State Treasurer Ted Wheeler argue that Countrywide misled investors about the high risk of its mortgages.
The state was due to receive $500,000 as part of a national class action settlement but Kroger and Wheeler elected to reject that settlement and to file their own lawsuits. Their complaints allege that Countrywide made "numerous statements of material facts in reporting its financial results" while aggressively selling risky products for short term gain. One high risk product that brought short term gains and long term disaster was the "pay-option" adjusted rate mortgage, which led frequently to negative amortization. The longer the borrower held the loan, the more he or she owed on it.
Not surprisingly, Countrywide went down in flames during the subprime meltdown. Bank of America bought up the remains in January 2008.
At least some of the resulting mayhem could have been avoided. The Oregon complaints, filed today in Multnomah County Court, offer numerous examples of Countrywide executives expressing deep concerns about big risks internally. The company's chief risk officer directly warned his colleagues about "high expected default rates and losses." But those concerns never made it out to investors until it was too late.
Ben Jacklet is managing editor of Oregon Business.
Tuesday, February 24, 2015
BY LINDA BAKER | OB EDITOR
At Oregon State University, a 21st century version of the bad dream — nuclear terrorism — is alive and well. This winter, the Department of Nuclear Physics and Radiation Health Physics created a new interdisciplinary graduate emphasis in nuclear forensics, a Sherlock Holmes-sounding program that aims to identify how and where confiscated nuclear and radiological materials were created.
Friday, March 20, 2015
BY OB STAFF
Join us to celebrate and network with Oregon’s best green workplaces!
Monday, February 23, 2015
BY JESSICA RIDGWAY | OB CONTRIBUTOR
Live, Work, Play: Catching up with Chris Johnson.
Saturday, February 21, 2015
BY LINDA BAKER | OB EDITOR
Will community banks survive the digital age? Three CEOs peer into banking's crystal ball.
Thursday, March 26, 2015
BY JACOB PALMER
Power lunching at the Court Street Dairy Lunch in Salem.
Friday, March 06, 2015
BY JEFF DELKIN | OP-ED CONTRIBUTOR
As a local business owner, I believe it’s important to build our economy on a platform of conservation values.
Friday, February 27, 2015
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A new report highlights how Oregon bankers are giving back to their communities.
Since 1932 Tidewater Transportation & Terminals (operating as Tidewater Barge Lines and Tidewater Terminal Company) has operated a multicommodity transportation and terminal company based in Vancouver, Washington. The friendly expression on the company’s shipping containers reflects the attitude of about 330 safety and community-conscious employees but belies how complicated the barge business really is.
The Port of The Dalles has run marine facilities since the 1930s, but they are part of a larger mission to strengthen the local economy. They focus on regional economic development with a strong bent toward adding good-paying jobs in high tech, manufacturing and other industries.
Providing attendees with unique taste of the Northwest Reception.
CFM Strategic Communications turns 25 this year and is celebrating with a revamped website, special events for firm alumni and clients, a special-label wine and a list of 25 stories about its client work over the past quarter century.
The Atkinson Graduate School of Management at Willamette University has maintained its business accreditation by AACSB International—The Association to Advance Collegiate Schools of Business.