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graham steele

@grahamsteele.bsky.social

2.9K followers 850 following 570 posts

Focused on the law & politics of finance. Currently Rock Center at Stanford Law School & Roosevelt Institute. Former Assistant Secretary, US Treasury Department & Democratic chief counsel, Senate Banking Committee. https://law.stanford.edu/graham-steele/

law.stanford.edu

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graham steele @grahamsteele.bsky.social · 18d

With the US potentially coming to Argentina's financial rescue, I'm sharing my new paper on "Financial Statecraft."

It critiques the government's deployment of the banking system for geopolitical purposes and proposes reforms to rebalance public and private power.
papers.ssrn.com/sol3/papers....

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graham steele @grahamsteele.bsky.social · 32m

Is there any reasonable way to square the assertion that James’ niece did not pay rent with the allegation in paragraph 7 of the complaint that James is “renting the property to a family of three”?

bsky.app/profile/josh...

Joshua J. Friedman @joshuajfriedman.com · 1d

NEW: Here's the two-count indictment against NY AG Letitia James. storage.courtlistener.com/recap/gov.us...

INDICTMENT
October 2025 Term - at Alexandria, Virginia
THE GRAND JURY CHARGES THAT:
GENERAL ALLEGATIONS
At all times relevant to this Indictment:
1. Letitia A. James ("JAMES) was a resident of Brooklyn, New York, and the borrower on a
Fannie Mae-backed mortgage loan for the property located at 3121 Peronne Avenue,
Norfolk, Virginia.
2. OVM Financial (also known as Old Virginia Mortgage / AnnieMac) was a mortgage lending business located in Virginia Beach, Virginia, engaged in the business of originating and underwriting residential mortgage loans, including those backed by the Federal National Mortgage Association ("Fannie Mae"). OVM Financial qualified as a "financial institution" within the meaning of 18 U.S.C. § 20(10).
3. Fannie Mae was a federally chartered corporation that purchased and guaranteed mortgages,
operating as a government-sponsored enterprise under the oversight of the Federal Housing

Finance Agency ("FHFA").
4. First Savings Bank was a state-chartered, FDIC-insured financial institution (Certificate
#29961), headquartered in Jeffersonville, Indiana, which acquired mortgage loans through assignment or acquisition. First Savings Bank qualified as a "financial institution" within the meaning of 18 U.S.C. § 20(1).
5. On or about August 17, 2020, JAMES, as sole borrower, purchased the three (3) bedroom,
(1) bathroom property located at 3121 Peronne Avenue, Norfolk, Virginia 23509 (the
"Peronne Property"), for approximately $137,000, financed with a mortgage loan of approximately $109,600 (Loan #4430025978) backed by Fannie Mae.
6. The loan was originated by OVM Financial under a signed Second Home Rider, which required JAMES, as the sole borrower to occupy and use the property as her secondary residence, and prohibited its use as a timesharing or other shared ownership arrangement or agreement that requires her either to rent the property or give any other person any control over the occupancy or use of the property.
7. Despite these representations, the Peronne Property was not occupied or used by JAMES as a secondary residence and was instead used as a rental investment property, renting the property to a family of (3).
8. This misrepresentation allowed JAMES to obtain favorable loan terms not available for investment properties, including a note rate of 3.000% (avoiding a 0.815% higher
comparable investment property rate of 3.815%, resulting in approximately $17,837 in rate savings over the life of the loan), a seller credit of approximately $3,288 (exceeding the seller credit for investment properties by approximately $1,096), for total ill-gotten gains of approximately $18,933 over the life of the loan.
9. JAMES' Universal Property application for homeowners' insurance indicated "owner-

occupied non-seasonal use," further misrepresenting the intended use of the property.
10. JAMES filed Schedule E tax forms), under penalties of perjury, treating the Perrone Property as rental real estate, reporting fair rental days, zero personal use days, thousand(s)
of dollars in rents received, and claiming deductions for expenses relating to the property, further contradicting the second home classification.
11. The loan was acquired by or assigned to First Savings Bank by March 2021, exposing it to risks associated with the misrepresented loan.
12. The acts described herein occurred within the Eastern District of Virginia.
COUNT ONE
(Bank Fraud - 18 U.S.C. § 1344)
13. The allegations in paragraphs 1 through 12 are re-alleged and incorporated herein.
14. From on or about August 7, 2020, through at least January 2024, in the Eastern District of Virginia and elsewhere, the Defendant, LETITIA A. JAMES, did knowingly execute and attempt to execute a scheme and artifice to defraud OVM Financial and First Savings Bank,
financial institutions, and to obtain moneys, funds, and credits owned by and under the custody and control of OVM Financial and First Savings Bank by means of false and fraudulent pretenses, representations, and promises.
15. The scheme involved falsely representing the Peronne Property as a secondary residence to obtain favorable mortgage terms, while using it as an investment property with no intended
or actual personal occupancy or use by her.
(In violation of Title 18, United States Code, Section 1344).
COUNT TWO
(False Statements to a Financial Institution - 18 U.S.C. § 1014)
16. The allegations in paragraphs 1 through 12 are re-alleged and incorporated herein.

17. From on or about July 28, 2020, through at least August 31, 2020, in the Eastern District of Virginia and elsewhere, the Defendant, LETITIA A. JAMES, did knowingly make and cause to be made false statements and reports for the purpose of influencing the action of OVM Financial, a Fannie Mae-backed lender, upon an application for a loan, in that JAMES represented and affirmed in uniform residential loan applications and related documents that
the Peronne Property would be used as a secondary residence, when in truth and fact, as JAMES then knew, the property was intended and used as an investment property with no intended or actual personal occupancy or use by her.
(In violation of Title 18, United States Code, Section 1014).
FORFEITURE NOTICE
Pursuant to Federal Rule of Criminal Procedure 32.2(a) and Title 18, U.S.C. §
982(a)(2)(A), upon conviction of the offenses in Counts One and Two, the Defendant, Letitia
A. James, shall forfeit to the United States any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result of such violations, including but not limited to a money judgment in the amount of $18,933.
If any of the property described above, as a result of any act or omission of the Defendant: (a) cannot be located upon the exercise of due diligence; (b) has been transferred or sold to, or deposited with, a third party; (c) has been placed beyond the jurisdiction of the court; (d) has been substantially diminished in value; or (e) has been commingled with other property which cannot be divided without difficulty, the United States shall be entitled to a forfeiture of substitute property pursuant to Title 21, U.S.C. § 853(b), as incorporated by Title
18 U.S.C. § 982(b)(1).
(In accordance with Title 18 U.S.C. § 981(a)(1)(C) and 982(a)(1); Title 28, U.S.C. § 2461(c); and Title 21 U.S.C. § 853(p).)

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Chris Barton @chrisbarton01.bsky.social · 3h

@dropkickmurphys.com & @billybragg.bsky.social School Days Over open.spotify.com/track/5yryjH...

School Days Over (feat. Billy Bragg)

open.spotify.com

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Leah Litman @leahlitman.bsky.social · 6h

More judges speak to the press (the NYT) about what a disaster the Supreme Court (specifically the shadow docket) has been - “incredibly demoralizing & troubling”; a “judicial crisis”; a “slap in the face to district courts.” www.nytimes.com/2025/10/11/u...

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graham steele @grahamsteele.bsky.social · 12h

It’s the bottom of the 30th inning and Jack Morris enters the game to face Jay Buhner…

graham steele @grahamsteele.bsky.social · 14h

It feels like this game is never going to end.

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Carl Quintanilla @carlquintanilla.bsky.social · 1d

“Stabilizing Argentina is ‘America First’.”

🇦🇷 🇺🇸

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Emily Flitter @emilyflitter.bsky.social · 19h

Meanwhile, south of the border: www.bloomberg.com/news/article...

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Zach Everson @zacheverson.com · 19h

Brutal day for Trump meme coins and tokens.

USD1 stsblecoin, which is backed 1:1 with US treasuries is, well, stable.

A coin gecko showing the prices of USD1, Trump, Melanke, WFLI.

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graham steele @grahamsteele.bsky.social · 1d

Crypto was pitched as a private alternative to publicly created money and the traditional banking system.

That was always a fantasy.

Crypto needs to be integrated with banks and the government to survive, even as it tries to evade meaningful regulations and consumer protections.

More Perfect Union @moreperfectunion.bsky.social · 1d

Morgan Stanley will now allow crypto investments in any type of account, including retirement accounts.

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graham steele @grahamsteele.bsky.social · 1d

bsky.app/profile/razz...

Razzball @razzball.bsky.social · 1d

graham steele @grahamsteele.bsky.social · 1d

The government is shut down, so government workers, contractors, and beneficiaries aren't being paid. Yet the Treasury Department is using $20 billion in unappropriated funds to aid the right-wing government of Argentina in their upcoming elections.

An undemocratic abuse of financial statecraft.

The Washington Post @washingtonpost.com · 1d

The Trump administration confirmed that the U.S. bailed out Argentina.

Treasury Secretary Scott Bessent said he had directly bought Argentine pesos in global currency markets in a bid to relieve pressure on the nation’s embattled President Javier Milei, a supporter of President Trump.

The U.S. just bailed out Argentina, Treasury Secretary confirms

The US Treasury has finalized a $20 billion financial rescue of Argentina, including a currency swap arrangement with the country's central bank.

www.washingtonpost.com

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graham steele @grahamsteele.bsky.social · 1d

Brutal.

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Carl Quintanilla @carlquintanilla.bsky.social · 2d

EVERCORE, on Argentina bailout:

There are concerns “Bessent could try to push the Fed to open up a swap line directly with the Argentine central bank at the Fed’s credit risk. .. Bessent is likely hoping that an initial down payment on domestic farm support will give him enough political cover ..”

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James G @orth.ca · 2d

Vladdy: "DAAAAAA YANKEES LOSE!"

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Razzball @razzball.bsky.social · Sep 10

Every team's announcer should have this energy "The Yankees? They're not a good team"

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Razzball @razzball.bsky.social · 6d

DAAAA YANKEES LOSE

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graham steele @grahamsteele.bsky.social · 5d

KBJ observed in the universal injunction case that the government’s arguments amounted to a “catch-me-if-you-can” legal regime.

It’s a useful frame for understanding the administration’s general approach to legal compliance.

Justice Ketanji Brown Jackson interjected: "Your argument seems to turn our justice system into a catch-me-if-you-can kind of regime … where everybody has to have a lawyer and file a lawsuit in order for the government to stop violating people's rights.”

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graham steele @grahamsteele.bsky.social · 7d

I had print reproductions of these two in my office at Treasury.

While a bit dated and gendered, they’re real treasures of New Deal art history.

Seymour Fogel’s “Security of the People”

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graham steele @grahamsteele.bsky.social · 7d

Time to think about the next phase of climate finance now that these voluntary industry commitments have failed.

Bloomberg News @bloomberg.com · 7d

The world’s biggest climate alliance for banks has ceased operations, just four years after securing net zero pledges from many lenders

Bank Climate Group Formally Winds Down After Wall Street Exodus

The world’s biggest climate alliance for banks said on Friday it has ceased operations, bringing to a formal end a project that drew net zero pledges from many of the world’s biggest lenders just four years ago.

bloom.bg

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graham steele @grahamsteele.bsky.social · 8d

I’m confused. So are we now in favor of the government pressuring tech companies to remove apps from the App Store?

Alejandra Caraballo @esqueer.net · 8d

This was done at the direction of Pam Bondi. The US government is now dictating what apps you can have on your phone.

The underlying threat here is if Apple didn't comply, they'd slap billions in tariffs on Apple products.

Alt text: Screenshot of a Fox News Digital article reporting that Apple removed the ICEBlock tracking app from its App Store after the Department of Justice raised safety concerns. The article states DOJ officials, under Attorney General Pam Bondi, asked Apple to take down the app, claiming it endangered law enforcement officers and shielded illegal immigrants. Bondi confirmed the removal in a statement, saying ICEBlock put ICE agents at risk and emphasized DOJ’s commitment to protecting federal officers.

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graham steele @grahamsteele.bsky.social · 8d

Conveniently, the CFPB, which is apparently paying for it, is funded through remittance from the Fed not congressional appropriations.

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graham steele @grahamsteele.bsky.social · 8d

How does this standard apply to Justices Alito and Thomas and their spouses?

Kyle Cheney @kyledcheney.bsky.social · 8d

JUST IN: DOJ suggests Judge Simon recuse from the Oregon National Guard case because he's married to @RepBonamici, who has vocally opposed the deployment. storage.courtlistener.com/recap/gov.us...

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graham steele @grahamsteele.bsky.social · 8d

Great @theamarareport.bsky.social piece on the dynamics of Fed independence in Congress, the courts, and financial markets.

The Fed needs to adapt to the changing environment, in both its approach to core responsibilities and responses to legal and political risk.

www.bloomberg.com/news/article...

Steele, the Stanford lawyer who also spent many years as a Democratic staff member in the Senate, says the Fed could have pushed back against Trump by using its own bully pulpit or taking a clearer stand in the Cook case.

In the past, the Fed has gotten itself into trouble “when it has not been willing to adapt to broader changes in circumstances,” including in the political environment, he says. “That probably should prompt them to think about the world that they’re really operating in now.”

graham steele @grahamsteele.bsky.social · 11d

The US could develop its own cheap, fast public payment rails. Instead, it’s threatening trade-related measures against Brazil for innovating.

Using financial statecraft to help incumbents continue squeezing out rents at consumers’ expense.

David Dayen @ddayen.bsky.social · 11d

Tired: Trump is punishing Brazil because they sentenced his pal Bolsonaro for attempting a coup
Wired: Trump is punishing Brazil because their useful central bank payment system is squeezing out PayPal
www.nytimes.com/2025/09/29/w...

Brazil Has a New Digital Spending Habit. Now It’s a Trump Target.

www.nytimes.com

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Bob Burgess @bobburgess.bsky.social · 11d

“We find some of his arguments questionable, others incomplete and almost none persuasive.”

www.bloomberg.com/news/article...

‘Questionable, Incomplete’: Wall Street Rejects Miran’s Fed Call

Federal Reserve Governor Stephen Miran may still hope to persuade his central bank colleagues that there’s a case for dramatic reductions in interest rates.

www.bloomberg.com

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