The WilliamBanzai7 Blog: September 2010

MARKET WATCH-- Ohio Secretary of State Jennifer Brunner has referred J.P. Morgan Chase & Co.'s Chase Home Mortgage unit and Mortgage Electronic Registration Systems Inc. to the federal prosecutor in connection with the so-called "robo-signers" foreclosure controversy, according to a statement posted on the state secretary's website Thursday. "Secretary Brunner, in two letters dated Aug. 11, 2010 and Sept. 1, 2010, referred matters of alleged notary abuse in thousands of home mortgage foreclosures by Chase Home Mortgage and the Mortgage Electronic Registration Systems Inc. to U.S. District Attorney Steven Dettelbach in Cleveland," the statement said. It cited depositions that include sworn testimony that Chase Home Mortgage improperly processed 18,000 documents a month.

INSTITUTIONAL INVESTOR--Quantitative Hedge fund firm D.E. Shaw & Co. laid off 150 people today, according to sources familiar with the situation.

The cuts, which amount to around 10 percent of the New York–based alternative asset manager’s work force, were across the board and included partners and portfolio managers, these sources confirmed.

The decision to reduce head count came about as a direct result of the D.E. Shaw’s diminished asset size, stemming from redemptions that began in 2008. (The firm’s flagship multistrategy fund was down that year 8 to 9 percent, depending on the share class.) D.E. Shaw’s assets have fallen from more than $30 billion in 2008 to $21 billion today.

WB7: Don't send your resume here Larry, they don't want you back.