Tag Archives: fifth third bank

BUY TO THE SOUND OF CANNONS AND SELL TO THE SOUND OF TRUMPETS

MARCH 5, 2022 – A friend shared the above quote by Baron Nathan Rothschild. Nowadays we say buy the rumor and sell the news.
Just as the time to buy oil and gas and all commodities was 2 years ago during the worldwide lockdown. Soon will be the time to buy Russian assets.
I recall people saying I was crazy to buy when oil traded at -$30 a barrel (no one gives credit to President Trump ordering the USA to stock up its oil reserves when the price of oil was so cheap…brilliant move). Exxon traded at $31 (over $84 yesterday). Freeport-McMoran I had bought around $6. Yesterday it broke $50. With virtually every commodity at record highs, I will start to slowly take my cards off the table. You sell when everyone in the world is wanting to buy. As is the case now and for awhile longer.
The challenge will be figuring out when to buy Russian assets. And which ones. Russia isn’t going away. Their oil and gas will be needed by Europe, and others, for the remainder of this century. 25% of the world’s wheat goes thru Russia/Ukraine (that is why the price was up 40% this week!). Even if Russia/Ukraine is limited to trading with China, Iran, Venezuela, Cuba, and other members of that alliance, their companies will come back and do well. China alone has enough people to buy Russian goods forever. Remember, Russia’s economy is only the size of Italy’s. It doesn’t take much buying to support that economy.
The key is figuring out which companies and ETF funds will survive. I remember in early 2009 when Fifth Third Bank traded at $1.01 and I believe Bank of America was below $5. The fear was these banks would not survive. But, if you knew they would survive, you had minimal downside risk. As we say, at those prices it is like buying an option. You are prepared to lose 100%. But, also prepared to hit a 5x or 10x winner.
We are in a similar period for Russian stocks and other stocks invested in Russia. I don’t have definitive answers, yet. But, I think I am getting a handle on what to watch for re the Smart Money. The Smart Money will be investing heavily long before the public, and Fake News Media, know things have turned the corner.
I have long thought about writing a paper about markets that have declined 75%-90%+ and bounced all the way back. Those opportunities occur enough for you to make large killings throughout your life. The key factor is KNOWING that market will survive. The DJIA was going to survive The Great Depression. It declined 89%, but it was going to stay around and rebound. The NASDAQ did about the same in the Dot Com Bubble. There are dozens of such events. There are lots more where the stock went 100% under and did not survive. Again, the key is KNOWING the asset will survive no matter what.
If you are crazy enough to want to invest in depressed Russian assets, stay in touch with me. I am not 100% certain I will dive in. But, I do know this is a rare opportunity to keep an eye on. Rare because many of these assets are down 99% right now.
And, yes, you can tell I am totally against companies boycotting Russia. I have always said corporations owe society nothing. If you want something to help society, that is what Not-For-Profits are for! Corporations need to stay out of politics. In fact, they should be banned from donating to political campaigns. Just make money for the owners, pay your employees, buy supplies from other companies, et al. All of that done ethically and within existing laws, of course.
Albeit, I would say the Russian people are lucky right now to have no Facebook and Instagram and so on!!! That is a dream world! Can you imagine if your kids had no social media to waste their lives on!!!! Your kids had to spend that time with you:) I have a dream….
These are times I live for. I look forward to seeing how this evolves. And possibly, making money off of it:) We shall see.
Shalom,
The Mann

THE BIG SHORT – A Movie All Americans Need To See

January 16, 2016 – I went to see The Big Short today.  I encourage everyone to go see it.

After seeing this movie, you will know why I list Banks among The World’s 3 Greatest Evils (I won’t go into the other 2 at this time).  You will know why I took on Fifth Third Bank and suffered for 7 years to achieve vindication.  And why I look so forward to all of the other whistleblowers out there getting their share of that and many other banks.

For me, it was an emotional movie.  I lived it and knew it at the time.  I can totally relate to Mark Baum, and really the others who went short, as it was an obvious winning bet – but, to win, the American public had to be decimated and we knew banks and Wall Street would be bailed out by the taxpayer.  Corporate Socialism I heard it called recently.

It was good to see the few other people that forecast what I termed in June 2005 The Great Depression II (c).  Unlike them, I just didn’t make a few billion dollars:(  I am glad they did at the cost of ‘the smart money’ on Wall Street.  Yes, a few of us can be right and 99.99% of the World can be wrong.   Remember Mann’s Axiom….

Money will be made shorting the current Echo Bubble during this Echo Depression(c).  It just won’t be as much as last time since the bullish housing people know what the shorts are doing this time around.

I was interviewing with the OCC in the Summer of 2008 and they asked me if I thought banks had learned their lesson.  I said ‘NO’ and that as soon as the pendulum swung back to optimism they would do everything all over again.  I have been told things are even worse today than in the bubble years.  Scary.  The OCC then asked me what it would take to stop banks from being so wreckless.  My answer was to enforce the FIRREA penalties that would allow the government to fine and imprison individuals – the corporate veil does not protect employees that violate FIRREA.  I won’t give it away, but the movie tells us how many bankers have been arrested for the housing debacle – you won’t be surprised, but should be disappointed in the system.

Today, my solution to get banks to clean up their act is simple – eliminate the FDIC deposit insurance.  The public would demand 100% transparency and total safe lending and practices before they would put their money in a bank.  Of course, and saying this I sound like Mark Baum for sure, this would just move all of the unethical and greedy people from banks to non-bank lenders.  The scum keeps moving to where it can thrive.

Speaking of which, the scum have renamed CDOs today as ‘Bespoke Tranche Obligations (BTOs).  Also, a residential lender told me that lenders are starting to do ‘Statement Loans.’  They simply look at your bank statement to see your income and don’t request your tax return.  This is the first step in the direction of the old NINJA-type loans.

I encourage anyone in the industry that encounters these products to collect all of the info you can and go to the authorities so these people can be prosecuted when the time comes – I will be glad to advise you on what steps to take.  Also, investors should remember a rose is a rose is a rose.

Please go see the movie.  Please tell everyone you know to go see the movie.

 

Many Thanks To All

October 15, 2015 – Since the announcement that I had a hand in making 5/3 Bank pay an $85MM fine, I have received over a 100 emails of support. First, I must thank all of my family and friends that sent emails and supported me over the past 7 years, and longer.

Also, a special thanks to my former staff that sent congratulations.  It was with your buy in of my program that we were able to receive a Best In Class in the Nation rating from bank examiners.  We could not have achieved that without everyone believing that things can be done 100% ethically with no caving in ever.

The emails I received had similar themes:

  • You are Da Mann!
  • Good for you for fighting the good fight, and that you were vindicated. I just can’t believe their shareholders didn’t take this a little more seriously.
  • Wow!  A resounding vindication and testament to your integrity.  Well done.  You are a man to admire.
  • Wow George!  Congratulations!! And BTW as a taxpayer thank you!
  • congrats george.  thanks for winning one for the good guys
  • Glad that you are finally able to get this out in the open and be vindicated.  They certainly picked on the wrong guy back in 2008 didn’t they?!
  • Your ethics and patience are admirable.
  • It warms my heart to see 5/3 hand over $$ for their many abuses.
  • Congrats Mr. Mann. Thanks for having the guts to step up and take a rip at a monster that is out of control.

I wonder how many emails of support 5/3 received?  LOL

I will write more over the next few months.  Nothing in the settlement requires my silence.  I went the route I did because I would never agree to be silent.  It was a long, tough route, but it was worth it.  Everyone deserves to know the full truth.

For now, I leave you with the song that got me thru many tough situations over the past 20+ years.  Give it a listen any time someone wants you to compromise your ethics.

Til next time….

I Won’t Back Down

Tom Petty

Well I won’t back down
No I won’t back down
You can stand me up at the gates of hell
But I won’t back down

No I’ll stand my ground, won’t be turned around
And I’ll keep this world from draggin me down
gonna stand my ground
… and I won’t back down

Hey baby, there ain’t no easy way out
(and I won’t back down…)
hey I will stand my ground
and I won’t back down

Well I know what’s right, I got just one life
in a world that keeps on pushin me around
but I’ll stand my ground
…and I won’t back down

Fifth Third Bank Settles False Claims Act Case for $84.9 Million

PHILADELPHIA, PA, October 6, 2015 — The United States Department of Justice announced today that Fifth Third Bank will pay approximately $85 million to the federal government to settle claims under the False Claims Act (“FCA”) relating to the Bank’s practices in connection with loans insured by the Federal Housing Administration (FHA).  The settlement also resolves a whistleblower lawsuit filed by Kenney & McCafferty in June, 2011 in the Southern District of New York.

Kenney & McCafferty filed the whistleblower complaint on behalf of a former chief appraiser at the Bank, who alleged a broad range of commercial and residential mortgage violations, including fraudulent appraisal practices, which resulted in significant losses to the federal government. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act.  These provisions permit private parties to sue on behalf of the United States when they believe an individual or company has submitted false claims for government funds.

Fraud on the government’s mortgage programs has become a major source of False Claims Act recoveries in the wake of the mortgage crisis, and the Fifth Third settlement marks another significant victory for both the government and the taxpayers in this line of cases.  According to George Mann, the former Fifth Third employee who blew the whistle, “the culture of the Bank at that time emphasized profits over compliance with federal regulations.  This type of behavior is exactly what led to the financial crisis and, no matter what the outcome, I felt it was my responsibility to speak up and do the right thing.”

“We were fortunate to represent Mr. Mann in this case.  He is honest, ethical, and informed, and was willing to step forward under difficult circumstances,” said Kathryn Schilling, a whistleblower attorney at Kenney & McCafferty.  “Mr. Mann raised concerns about Fifth Third’s compliance issues internally, but no one listened to him.  He is thrilled that the government has recouped significant funds from Fifth Third to restore taxpayer dollars,” Ms. Schilling said.

Mr. Mann and his attorneys expressed great appreciation for the work of the Department of Justice, and the US Attorney’s Office for the Southern District of New York, particularly Assistant US Attorneys Pierre Armand and Jaimie Nawaday.  Mr. Mann also thanked his family, friends, former colleagues who supported his compliance efforts at Fifth Third, his co-relator John Ferguson, and the law firm of Kenney & McCafferty.

For inquiries, please contact:

Kenney & McCafferty, P.C.

Kathryn Schilling

(215) 367-4333

kschilling@kenneymccafferty.com