neglected neighborhoods

Upload: foreclosuretaskforce

Post on 07-Apr-2018

227 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/3/2019 Neglected Neighborhoods

    1/16

    Prepared by the

    as Vegas Foreclosure Task ForceOctober 2011

    Deutsche Bankand the Las Ve asForeclosure Crisis

    g

  • 8/3/2019 Neglected Neighborhoods

    2/16

    3 Executive Summary

    5 Our Campaign

    6 Devastating our Neighborhoods

    7 Mapping Deutsche Banks Real Estate Owned

    8 Deutsche Bank Comes to Your Neighborhood

    10 Building the Housing Bubble

    11 Benefitting from the Bailout

    12 Evading Financial Reform

    13 Demanding Accountability

    14 Notes

    Contents

    2 Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    3/16

    The Las Vegas Foreclosure Task Force is a coalition

    o community, labor, and aith-based organizations

    n southern Nevada who care about the impact o

    oreclosures on our neighborhoods and are standing

    up or our communities.This report provides an

    analysis o Deutsche Banks role in the Las Vegas

    housing and fnancial crises. As a major stakeholder

    n the Las Vegas Valley and a large benefciary o

    US taxpayer bailout dollars, Deutsche Bank should

    be held responsible or its actions in our community.

    Key fndings o the report include:

    Deutsche Bank is devastating Las Vegas neighborhoods

    and lacks local accountability.

    Deutsche Bank owns over 500 houses in Clark

    County, Nevada. The Las Vegas Foreclosure Task

    force has surveyed over 250 of these houses, and

    many are vacant, abandoned and dilapidated.

    Some of Deutsche Banks houses had garbage, dead

    vegetation, graffiti and boarded up windows. Others

    contained animal carcasses, exposed wires, broken

    glass, and rancid pools. Such houses may violate

    local housing codes and also pose serious threats to

    neighborhood and youth safety.

    The foreclosure crisis is having a devastating impact

    on Las Vegas neighborhoods, and Deutsche Bank

    continues to contribute to the problem. As a result

    of falling property values, Las Vegas residents face

    painful budget cuts and increased crime and safety

    issues.

    Deutsche Bank is a major stakeholder and employ

    in Las Vegas. Yet Deutsche has neither establishe

    Las Vegas home loan modification centers nor ma

    all necessary repairs to bank owned properties.

    Deutsche Bank has moved in the opposite directio

    by (unsuccessfully) challenging the constitutionalit

    of Nevadas Foreclosure Mediation Program.

    Deutsche Bank helped build the housing bubble and

    benefted rom a US taxpayer-fnanced bailout.

    Deutsche Bank was a central contributor to the

    housing bubble, and to its collapse. Deutsche

    Bank originated subprime and At-A mortgage loans

    and packaged these mortgage loans into complex

    financial products called Collateralized Debt

    Obligations (CDOs). Deutsche Bank also created

    financial derivatives which also allowed institution

    investors and the bank itself to bet against the veCDO securities it was creating and selling.

    When the housing bubble burst, the US governmen

    was forced to intervene to stabilize the financial

    system. Deutsche Bank became a major beneficia

    of Federal Reserve programs to stabilize the shaky

    financial system. Deutsche Bank benefited from

    $11.8 billion from the US taxpayer-financed AIG

    bailout and $2 billion in emergency low-cost funds

    made available by the Federal Reserve.

    Executive Summary

    Continued on next p

    Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    4/16

    Deutsche Bank is attempting to evade new Dodd-Frank

    fnancial regulations that may mitigate uture housing

    and fnancial crises.

    In July 2010, the Dodd-Frank Wall Street Reform

    and Consumer Protection Act was signed into law,

    with the express purpose of reducing systemic risk,

    increasing transparency and promoting integrity in

    the financial system. Many of the Dodd-Frank rules

    have yet to be written by federal agencies.

    Deutsche Bank is attempting to circumvent capital

    requirements under Dodd-Frank while holding onto

    substantial US tax benefits. Under Dodd-Franks

    Collins Amendment, Deutsche Bank could be

    required to inject as much as $20 billion to its US

    bank holding company, Taunus Corporation. But

    instead of raising the capital needed to comply

    with the law, the bank has decided to restructureTaunus in order to avoid the new rule altogether.

    Restructuring executed solely to circumvent new

    capital requirements undermines the intent of the

    Dodd-Frank Act to reduce systemic risk.

    The Las Vegas Foreclosure Task Force calls on

    Deutsche Bank to take a comprehensive approach

    o mitigating the oreclosure crisis, both locally and

    ationally. Our demands include:

    Responsible Foreclosure Process. In order

    to ensure a responsible, fair and accessible

    foreclosure process for homeowners, Deutsche

    Bank should require its servicers to open loan

    modification centers in southern Nevada and

    identify local representatives to make necessary

    repairs on Deutsche Bank owned properties.

    Rehabilitation Fund. We call on Deutsche Bank

    to contribute $25 million to a Rehabilitation Fund

    which will be used to purchase, rehabilitate and

    resell properties in concentrated areas.

    Vigorous Action as Trustee. We call on Deutsche

    Bank to aggressively pursue its responsibilities as

    trustee of dozens of mortgage trusts to maximize

    investor returns by pursuing loan modifications

    when warranted. Deutsche Bank should use its

    trustee authority to either require servicers to entein to modification agreements with homeowners or

    replace those servicers with other servicers who

    will act in the best interest of the trust.

    Financial Reorm. We call on Deutsche Bank to

    abandon its plan to evade new rules requiring

    additional capital at its US holding company.

    Executive Summary continued

    4 Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

    Clergy & Laity

    United for Economic Jus

  • 8/3/2019 Neglected Neighborhoods

    5/16

    Las Vegas has been devastated by the economic

    crisis and the downturn in the housing market.

    n act, Clark County has the highest density o

    oreclosures in the country and has been called

    ground zero o the housing and fnancial crises.1

    The Las Vegas Foreclosure Task Forcea consortium

    f community, labor and faith-based organizations that

    epresent Las Vegas residentsis launching a campaign

    o hold Deutsche Bank, a Frankfurt, Germany-based bank,

    ccountable to our community.

    hrough our research, we have learned that Deutsche

    Bank owns over 500 houses in the Las Vegas

    alley. We surveyed over 250 Deutsche Bank owned

    properties. Many of these properties are dilapidated,

    acant and abandoned. These properties cause

    remendous problems for our neighborhoods: safety

    ssues for citizens, neighborhood deterioration, andecreased property values. As a result, local authorities

    re spending taxpayer dollars on additional building

    nspections, as well as fire and police services.

    As a major owner of casino companies, Deutsche Bank

    s an important stakeholder and employer in Las Vegas.

    With significant, potentially long term investments in

    he Las Vegas gaming industry, Deutsche Bank has a

    esponsibility to be accountable to local communities.

    Yet Deutsche Bank has neither established Las

    Vegas home loan modifcation centers nor made all

    ecessary repairs to bank owned properties. Indeed,

    Deutsche has moved in the opposite direction by

    unsuccessfully) challenging the constitutionality of

    Nevadas Foreclosure Mediation Program, a process

    in which lenders and homeowners can meet in person

    and exchange proposals to avoid foreclosure and keep

    families in their homes.2

    We view this situation as unacceptable. Deutsche Ban

    is a global bank that had a hand in producing the hous

    crisis and also received rom an $11.8 billion payout

    a part of the US taxpayer-financed AIG bailout. The La

    Vegas Foreclosure Task Force is committed to holding

    Deutsche Bank accountable for its business practices

    our neighborhoods.

    Our Campaign

    Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    6/16

  • 8/3/2019 Neglected Neighborhoods

    7/16

    Mapping Deutsche BanksReal Estate Owned

    Source: RealtyTrac, June 2011

    Figure 1:Deutsche Banks real

    estate owned Figure Deutsche Banks re

    estate owned per 10

    single-family un

    2005-2008 2008 2008 2008-2010

    Deutsche Bank

    participates in

    Federal Reserve

    Board programs to

    provide low

    interest loa

    buy toxic

    assets, an

    stabilize th

    system.

    Deutsche

    Bank is

    identified as the

    largest owner of

    foreclosed homes

    in Kansas City.

    Deutsche Bank receives

    $11.8 billion of taxpayer

    bailout money through

    AIG counterparty

    contracts.

    eutsche Bank

    cts as sponsor for

    ver $150 billion

    n total mortgage

    ecurities and

    s underwriter

    or over

    105 billion

    n mortgage

    ecurities. 32

    Timeline:DeutscheBanksRecord

    Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    8/16

    In 2008, Deutsche Bank was the largest

    owner of foreclosed properties in Kansas

    City. According to the local Legal Aid society,

    Deutsche Bank had allowed many properties

    to fall into disrepair. The Legal Aid society sent

    letters to Deutsche Bank demanding some

    attention to the community.13

    In 2011, Deutsche Bank sued to

    stop a Nevada program aimed at

    keepingNevada borrowers in their

    homes. In August, a Nevada judge

    ruled against Deutsche Bank to

    uphold the program. As of

    September 15, Deutsche Bank has

    not appealed the decision.22

    In 2011, the City ofLos Angeles reportedlyfiled suit against Deutsche Bank for allegedly

    being one of the major slumlords in the

    city.21 Deutsche Bank has denied the

    allegations and claims that the case has been

    filed against the wrong party. Deutsche

    claims that as trustee rather than as a servicer

    it is not contractually responsible for the

    upkeep of foreclosed properties. As of

    September 22, the case remains ongoing.

    A Milwaukee community group has brou

    attention to Deutsche Banks foreclosure

    presence in Wisconsin. Milwaukee

    representatives traveled to the Deutsche B

    shareholder meeting last year and receive

    commitment from the bank to help stabili

    their neighborhoods.19

    Deutsche Bank Comesto Your Neighborhood

    The Las Vegas Foreclosure Task Force joins a chorus o voices rom around th

    nation who are standing up to Deutsche Bank and demanding accountability.

    8 Las Vegas Foreclosure Task Force

  • 8/3/2019 Neglected Neighborhoods

    9/16

    Las Vegas Foreclosure Task Force

    In 2009, a Florida task force created by the Florida

    Supreme Court identified Deutsche Bank as one of

    the banks with the most foreclosures in its state. The

    task force recommended that the Florida Supreme

    Court address the explosion of foreclosures as soon

    as possible for the welfare of our courts, our

    communities, our businesses, and our state.14

    In early 2010, Deutsche Bank was the large

    owner of foreclosed homes in New Haven,

    Connecticut. The bank has allowed many of

    the properties to fall into disrepair.15 New

    Haven community groups have organizedmeetings with Deutsche Bank representative

    to protest the banks foreclosure practices.16

    In July 2011, the New York Daily News identified

    Deutsche Bank as the largest owner of foreclosed

    homes in the City and, also, the owner of the most

    homes with open code violations. In response, the

    New York legislature has passed a law requiring

    banks to maintain foreclosed properties before a

    foreclosure auction.17

    In Ohio, in 2007, a federal judge dismissed

    several Deutsche Bank foreclosure cases

    because the Bank lacked necessary

    documentation.18 Deutsche Bank has not

    appealed the decision.

    In an effort to stem foreclosures, the cit

    Providence enacted an ordinance to

    require banks to take part in homeowne

    mediation before foreclosing. Deutsche

    Bank sued the city to rescind the ordina

    In May 2010, a Rhode Island Superior

    Court judge ruled against Deutsche Ban

    Deutsche Bank has not appealed.

    Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    10/16

    Building the Housing Bubblehe financial crisis of 2008 was precipitated by a bubble

    n the US housing market. In many areas, Deutsche Bank

    was a central contributor to this housing bubble, and

    o its collapse. Deutsche Bank, through subsidiaries,

    riginated subprime and Alt-A mortgage loans, packaged

    hese mortgage loans into complex financial products

    alled Collateralized Debt Obligations (CDOs), and sold

    hese CDOs, piecemeal, to investors. According to its

    nancial statements, between 2005 and 2008, Deutsche

    Bank packaged together over $150 billion in total

    mortgage securities, and also, sold about $105 billion in

    mortgages directly to investors.23

    Deutsche Bank also created fnancial derivatives which

    allowed institutional investors and the bank itsel to

    bet against the very CDO securities it was creating and

    elling. This practice magnified the effects of the crisis.24

    When the mortgage bubble burst, the US government

    was forced to intervene to stabilize the financial system.Deutsche Bank became a major beneficiary of Federal

    Reserve programs to stabilize the shaky financial

    ystem. In the years following the crisis, Deutsche, in

    ts capacity as a trustee for the owners of the mortgage-

    acked securities it sold to investors, has become

    n increasing, if unwelcome and allegedly negligent,

    presence in many

    communities across

    the United States.

    In many of the

    foreclosures, Deutsche

    Bank was acting as the

    trustee for investors

    in mortgage pools. As

    a trustee, Deutsche

    Bank has a duty to

    act in the interest of

    those investors. Among the duties of the trustee is to

    ensure that the underlying mortgages were properly

    transferred to the mortgage trust and that the financial

    institution sponsoring the trust has accurately describe

    the mortgages so transferred. If a trustee discovers tha

    mortgages were not properly transferred, for example,

    it has a responsibility to compel the trust sponsor torepurchase those mortgages. Trustees also oversee th

    mortgage servicers who process payments on behalf o

    the trust. If the trustee determines that servicers have

    been derelict in their contractual obligations to the trus

    or have otherwise engaged in improper activity, it may b

    able to terminate such servicers and bring in new ones

    Deutsche Bank waspart of a CDO machine

    run by investment banks that produced hundreds

    of billions of high risk CDO securities.

    US Senate Permanent Subcommittee on Investigations

    Timeline:DeutscheBanksRecord

    2008-2011 2010 2010 2011

    City of Los Angeles

    suit against Deutsc

    Bank. Deutsche Ba

    denies allegations.

    of September

    2011, the

    case

    is ongoing.

    Deutsche

    Bank is

    identified as

    the largest owner of

    foreclosed homes in

    New Haven, CT.

    Securities Exchange

    Commission reportedly

    starts criminal probe into

    Deutsches CDS

    business.Multiple

    investors file

    separate suits

    against Deutsche

    for losses sustained

    in mortgage backed

    securities.

    10 Las Vegas Foreclosure Task Force

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    11/16

    Timeline:DeutscheBanksRecord

    2011 2011 2011 2011

    The FederalHousing FinanceAgency files suitagainst DeutscheBank for allegedlymisrepresenting the quof mortgages they sold Fannie Mae and FreddieMac during the housingbubble. No response tosuit has yet been filed.

    Deutsche Bank lobbies

    Commodities Futures

    Trading Commission

    and other

    government

    bodies on

    derivatives

    rules.

    Wall Street Journal

    Reports that

    Deutsche Bank

    tries to maneuver

    around Dodd

    Frank regulations

    intended to ensure the

    stability and integrity of

    the financial system.

    S Attorney files suitgainst Deutsche andortgageIT. Deutscheank files motiondismiss. As of

    eptember 2011, theS Attorney files anmended and expandedomplaint. These is ongoing.

    Benefitting from the BailoutWhen the mortgage market crashed, Deutsche

    Bank was a major benefciary o US taxpayer

    support meant to stabilize the fnancial system.

    Specifcally:

    As one of the largest counterparties of failed insurer

    AIG, Deutsche Bank received $11.8 billion of the funds

    used to bail out AIG.25

    The Federal Reserve made emergency low-cost funds

    widely available to foreign as well as US member

    nstitutions through its discount window. Deutsche Bank

    was the second heaviest user o such unds, borrowing

    more than $2 billion.26

    The Federal Reserve also created a program known as

    the Term Asset-Backed Securities Lending Facility, which

    allowed banks to use their assets, including troubled or

    hard-to-value assets, as collateral for short term loans.Deutsche Bank was the largest user of the program,

    sending the Fed more than $290 billion worth o

    mortgage securities.27

    According to the Congressional Oversight Panel, the

    AIG bailout distorted the marketplace by transforming

    highly risky derivative bets into fully guaranteed

    payment obligations, and, in 2010, continued to

    have a poisonous effect on the marketplace.28 In

    2009, Deutsche Bank had profits of over $5 billion.29

    Incredibly, a few months before receiving billions of

    dollars from the Federal Reserve as part of the AIG

    bailout, the bank paid out to its shareholders more tha

    $3 billion in dividends. And since then it has paid out

    additional $2 billion in dividends.30

    In 2008, the financial system failed. The

    financial regulatory system failed. Though

    there were many causes of the 2008 financ

    crisis, derivatives played a central role.

    Gary Gensler, Chairm

    Commodity Futures Trading Commis

    Las Vegas Foreclosure Task Force 1

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    12/16

    Evading Financial Reform

    12 Las Vegas Foreclosure Task Force

    As the 2008 crisis and bank bailouts proved, our existing

    nancial regulatory framework has failed us. In July

    2010, the Dodd-Frank Wall Street Reform and Consumer

    Protection Act was signed into law, with the express

    purpose of reducing systemic risk, increasing transparency

    nd promoting integrity in the financial system.

    Many of the Dodd-Frank rules have yet to be written

    y a bevy of agencies, including the Federal Reserve,

    Securities Exchange Commission and Commodity

    Futures Trading Commission. Meanwhile, many of the

    ame global banks that fueled the financial crisis are

    ow spending millions to lobby against the robustpplication of the new law, or in some cases, to quash

    he new rules altogether.33

    he regulation of financial derivatives, for example,

    s a critical component of the Dodd-Frank Act. As

    f September 2011, Deutsche Bank has met over a

    dozen times with federal regulators to water down

    proposed derivative rules.34 Deutsche Bank has argue

    that foreign banks already have extensive control

    mechanisms to regulate certain aspects of derivative

    which are subject to home country rules.35 But those

    home country rules did not protect US taxpayers fro

    the derivative bets that Deutsche Bank made with AIG

    Even more troubling, Deutsche Bank is also attemptin

    to circumvent capital requirements under Dodd-Frank

    while holding onto substantial US tax benefts. Under

    Dodd-Franks Collins Amendment, Deutsche Bank

    could be required to inject as much as $20 billion to it

    US bank holding company, Taunus Corporation.36 But

    instead of raising the capital needed to comply with

    the law, the bank has decided to restructure Taunus in

    order to avoid the new rule altogether. Restructuring

    executed solely to circumvent new capital requirement

    undermines the intent of the Dodd-Frank Act to reducesystemic risk and makes the job of preventing future

    bailouts that much harder.

    Capital regulation is the supplest and

    most dynamic tool we have to keep pace

    with the shifting sources of risk taken by

    financial firms.Daniel K. Tarullo

    Member, Federal Reserve Board of Governors

    Source: Deutsche Bank 2010 Financial Report

    What is Deutsche Bank?

    Deutsche is a global investment bank, based in Germany andoperating across the world. Heres a quick snapshot of DeutscheBanks finances at end of 2010 (all figures in millions):

    2010 Total Assets 1,905,630

    2010 Net Revenue 28,567

    2010 Net Income 2,330

    2010 bonuses, compensation, benefits 12,671

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    13/16

    4

    Demanding Accountability3

    2

    1

    Las Vegas Foreclosure Task Force 1

    As a major stakeholder in the Las Vegas, and

    benefciary o US taxpayer dollars, Deutsche Bank

    should be held responsible or its actions in our

    community. The Las Vegas Foreclosure Task Force

    calls on Deutsche Bank to take a comprehensive

    approach to mitigating the oreclosure crisis, both

    ocally and nationally.

    Responsible Foreclosure Process. In order to

    ensure a responsible, fair and accessible foreclosure

    process for homeowners, Deutsche Bank should

    implement the following measures, which will provide

    homeowners with a means to speak directly with bank

    representatives.

    Modifcation Centers Require all Deutsche Bank servicers

    to open loan modification centers in southern Nevada to

    ensure a fair and accessible foreclosure process.

    Local Representatives Identify locally based

    representatives that can be contacted to make necessary

    repairs on Deutsche Bank owned properties.

    Rehabilitation Fund. Deutsche Bank cannot

    continue to neglect our neighborhoods. In order

    to restore vacant properties, a pool of revolving

    capital is needed. With average rehabilitation costs

    of $35,000 per property, 500 houses could be

    brought back to life. In order to cover such costs,

    we call on Deutsche to contribute $25 million to a

    Rehabilitation Fund which will be used to purchase,

    rehabilitate and resell properties in concentrated

    areas.37

    Vigorous Action as Trustee. We call upon Deutsch

    Bank to aggressively pursue its responsibilities as

    trustee of dozens of mortgage trusts to maximize

    investor returns by pursuing loan modifications

    when warranted. To the extent that servicers are

    failing to pursue loan modifications, even when

    such modifications would be the best alternative t

    foreclosure, Deutsche Bank should use its trustee

    authority to either require servicers to enter into

    modification agreements with homeowners or

    replace those servicers with other servicers who

    will act in the best interest of the trust.

    Financial Reorm. Deutsche Bank was a main

    contributor to the housing bubble and its collapse

    and a recipient of bailout money. Our communities

    cannot afford another financial crisis. We call on

    Deutsche Bank to abandon its plan to evade new

    rules requiring additional capital at its US holdingcompany.

    Addressing the financial crisis cant be

    just about Wall Street, or even just about

    Main Street, it has to be about the 30,000

    homeowners in Clark County alone that h

    lost their homes this year and the families

    that are struggling all over the country.

    Elizabeth Warren (20

    Former Chair, Congressional Oversight P

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    14/1614 Las Vegas Foreclosure Task Force

    Field Hearing Before the Congressional Oversight Panel, Clark County, NV:Ground Zero of the Housing and Financial Crises, December 16, 2008;Archive-News, Clark County is U.S. Foreclosure Capital, December 10,2010.

    Reno Gazette-Journal, Real Estate: Judge rules that Nevadas foreclosuremediation is constitutional, August 30, 2011.

    See Clark County, Nevada, Municipal Code 11.06.020; Las Vegas,Nevada, Municipal Code 9.04.010; North Las Vegas, Nevada, MunicipalCode, 8.24.060; Henderson, Nevada, Municipal Code 15.12.030

    Las Vegas Review-Journal, Price-slide slowdown signals housing bottom isnear, Las Vegas Review-Journal, July 20, 2011.

    Ibid.

    Ibid.

    Las Vegas Review-Journal, Damaged foreclosures hurting Las Vegas val-es, July 17, 2011.

    Las Vegas Sun, Clark County treasurer: Property tax revenue will drop$130 million next year, January 14, 2011.

    Las Vegas Sun, District to cut 200 bus driver positions, change schoolstart times, April 8, 2011; Las Vegas Sun, School District to hang on to1,000 teachers, maintain sizes, June 8, 2011.

    0 See Las Vegas Sun, Metro takes aim at thieves targeting vacanthomes, June 22, 2011; Las Vegas Sun, Vandals suspected of starting

    fire at vacant house, May 13, 2011.

    1 KTNV 14 News, Massive bee hive found in foreclosed home plaguesneighborhood, May 5, 2011.

    2 KLAS-TV 8 News, County Addresses Vacant Home Epidemic, July 19,2011.

    3 Pitch News, As Kansas Citys largest owner of foreclosed properties,Deutsche Bank lets the city rot, August 21, 2008.

    4 Florida Supreme Court Task Force, Final Report and Recommendationson Residential Mor tgage Foreclosure Crisis, August 17, 2009.

    5 New Haven Independent, Cops Raid Deutsche Banks House, Jan. 27,2010.

    6 New Haven Independent, This is the Face of Deutsche Bank, April 28,2009.

    7 New York Daily News, Banks default on duty, let foreclosed homes be-come eyesores and disregard fines, July 24, 2011.

    8 New York Times, Foreclosures Hit a Snag for Lenders, November 15,2007.

    9 Spiegel Online, Americas Foreclosure King: How the United States Becamea PR Disaster for Deutsche Bank, June 10, 2010; Milwaukee JournalSentinel, Deutsche Bank commits $2.4 million to fight city foreclosures,June 23, 2011.

    20 Providence Journal Bulletin, Judge Upholds Citys Foreclosure Ordi-nance, May 20, 2010. See Deutsche Bank National Trust Company v.City of Providence, State of Rhode Island Superior Court, P.C. No. 10-1240.

    21 Bloomberg, Deutsche Bank Sued by City of Los Angeles for Evicting LoIncome Tenants, May 4, 2011.

    22 Reno Gazette-Journal, Judge Rules Nevadas Foreclosure Mediation Prgram Constitutional, Reno Gazette. August 30, 2011.

    23 Deutsche Bank, 2011 2Q Interim Financial Report,July, 2011; DeutscBank, SEC Form 20-F, March 2010.

    24 Financial Crisis Inquiry Commission, The Financial Crisis Inquiry Report

    January 2011, p.191

    25 Business Week, German and French banks got $36 billion from AIGbailout, March 15, 2009.

    26 Bloomberg, Foreign Banks tapped Feds Secret Lifeline Most at CrisisPeak, April 1, 2011.

    27 Huffington Post, Fed Opens Books, Revealing Foreign Megabanks WerBiggest Beneficiaries, January 31, 2011.

    28 Congressional Oversight Panel, The AIG Rescue, Its Impact on Marketand the Governments Exit Strategy, June Oversight Report, June 10,2010.

    29 Deutsche Bank, Press Release, February 4, 2010.

    30 Deutsche Bank Annual Report 2009 and 2010; Interim Repor t 2Q 201

    31 US Senate Permanent Subcommittee on Investigations, Wall Street andthe Financial Crisis: Anatomy of a F inancial Collapse, April 13, 2011.

    32 Deutsche Bank, SEC Form 20-F, March, 2010.

    33 On the relationship between the financial crisis and Dodd-Frank derivatand capital rules, see Gary Gensler, Testimony of Chairman Gary GensBefore the Financial Crisis Inquir y Commission, July 1, 2010; and DanK. Tarullo, Regulating Systemically Important Financial Firms, June 32011.

    34 Commodity Futures Trading Commission, External Meetings, CFTCwebsite, accessed September 2011.

    35 Public comment letter submitted to the CFTC and SEC by Barclays BanPLC, BNP Paribas SA, Deutsche Bank AG, Royal Bank of Canada, RoyalBank of Scotland, Societe Generale, UBS AG, Re: Application of Title Vof the Dodd-Frank Wall Street Reform and Consumer Protection Act toForeign Banks Global Swaps Businesses, January 11, 2011.

    36 Wall Street Journal, Deutsche Bank Maneuvers Around New Law, Apr13, 2011.

    37 For rehabilitation cost estimates, see Southern Wisconsin Common GrResearch and Action Report Regarding the Foreclosure Crisis in SouthEastern Wisconsin, January 1, 2010.

    *All photos taken between June and July 2011 when held by Deutsche Ban

    some properties shown may have subsequently been cleaned up and/or so

    Notes

    Deutsche Baand the Las VeForeclosure Cr

  • 8/3/2019 Neglected Neighborhoods

    15/16

  • 8/3/2019 Neglected Neighborhoods

    16/16

    he Las Vegas Foreclosure Task Force

    630 S. Commerce Street

    as Vegas, NV 89102

    Clergy & Laity

    United for Economic Jus

    www.lvforeclosuretaskforce.org