Jump to content
G0ldfinger

FRAUDCLOSURE Meltdown Alert

Recommended Posts

This here is a good one too (posted at JSMineset).

 

http://hammer.ucla.edu/programs/detail/program_id/222

The Great American Bank Robbery

 

William K. Black, the former litigation director of the Federal Home Loan Bank Board who investigated the Savings and Loan disaster of the 1980s, discusses the latest scandal in which a single bank, IndyMac, lost more money than was lost during the entire Savings and Loan crisis. He will examine the political failure behind this economic disaster, in which not only massive fraud has taken place, but a vast transfer of wealth from the poor and middle class continues as the federal government bails out the seemingly reckless, if not the criminal. Black teaches economics and law at the University of Missouri, Kansas City and is the author of The Best Way to Rob a Bank Is to Own One.

From: http://www.youtube.com/watch?v=O3JTPzW3xmg

Watch especially from 13:50 on (about trust).

Share this post


Link to post
Share on other sites

Chris_ct, I will possibly merge this thread with the recent Gonzalo article one and then rename to "Fraudclosure + subtitle(s)". Is that OK with you? This topic is so big it would be nice to have one big thread.

 

Possible titles:

 

FRAUDCLOSURE MELTDOWN ALERT

...

 

EDIT: Done. Any other title suggestions are welcome.

Share this post


Link to post
Share on other sites
"I don't think I am overstating the case. This is not only residential it is commercial. I say with a high degree of confidence that nobody in this country knows who owns any real estate - residential or commercial. The only RE we can be sure of is somebody who paid off their property before the 80's. Any property bought sold or refinanced since the early 80s - nobody knows who owns that property.".

He says that the problem's size is $45.5 Trillion!

Share this post


Link to post
Share on other sites

I just realised that I get most of my entertainment in life from watching out for bizzare news items on the US economy and banks just like this one.....OMG, That is SICK. It is a freakin addiction of fraudporn and this forum is enabling me!

 

I need a doctor.....I need Doritoes! Somebody stop me.... argh! The pull of the video is just to strong to resist.... it's like the Simpsons, but real..or is that surreal?

 

Americans have become like pets that you watch and wonder about from afar. Maybe, more like zoo animals that you visit via the internet.

 

 

Share this post


Link to post
Share on other sites
Chris_ct, I will possibly merge this thread with the recent Gonzalo article one and then rename to "Fraudclosure + subtitle(s)". Is that OK with you? This topic is so big it would be nice to have one big thread.

Fine :) u r the boss.

Share this post


Link to post
Share on other sites
He says that the problem's size is $45.5 Trillion!

 

At times in 2008 it felt like we were staring into the abyss. If the magnitude of this latest crisis is correct it is surely the end of western capital markets unless they are propped up? That means western banks will be immortally zombified.

 

If the magnitude is true, how will this crisis play out? Banking failures? more money printing and yet further reasons to own gold?

Share this post


Link to post
Share on other sites

Echoes, recommendations and reverberations.

 

Fullermoney: Monday 18th October 2010

Commentary by Eoin Treacy

The Subprime Debacle: Act 2 - Thanks to a number of subscribers for this excellent article by John Mauldin which explains the issues relating to 'chain of title' associated with some US mortgages

 

Clicking on the John Mauldin link I read in his article

David Kotok sent me this email on the mortgage foreclosure crisis just as I was getting ready to write much the same thing. It is about the best thing I have read on the topic.

 

Going to the extract from the David Kotok letter to his readers:

 

Dear Readers, this text came to me in an email from sources that are in the

financial services business and with whom I have a personal relationship. The original

text was laced with expletives and I would not use it in the form I received it. Therefore

the text below has had some substantial editing in order to remove that language. The

intentions of the writer are undisturbed. The writer shall remain anonymous. This text

echoes some of the news items we have seen and heard today; however, it can serve as a

plain language description of the present foreclosure-suspension mess. There is a lot here.

It takes about ten minutes to read it.

 

Going deeper I'm back reading Gonzalo Lira.

 

Moving out of the inner scoping level, John Mauldin at least offers to respect intellectual property.

 

(I am not sure who wrote this, but if you want your 15 minutes of fame, I will be

glad to credit you next week. – John)

 

Interesting that the audit trail of the various derivative works lost attribution to the original author at the point of "sources in the financial services business".

Share this post


Link to post
Share on other sites
The original

text was laced with expletives and I would not use it in the form I received it. Therefore

the text below has had some substantial editing in order to remove that language.

:lol:

Share this post


Link to post
Share on other sites
Jim Sinclair’s Commentary

 

And so begins the pressure that will eventually lead to litigation, forcing the manufacturers of the securitized mortgage debt OTC derivatives to buy the fraudulent paper back.

This is the death throw of a pile of garbage that now totals 2 trillion dollars in size.

 

Throw away your gold because of algorithms? You have to be mad.

 

Pimco, New York Fed Said to Seek BofA Repurchase of Mortgages

2010-10-19 17:49:57.995 GMT

By Jody Shenn

 

Pacific Investment Management Co., BlackRock Inc. and the Federal Reserve Bank of New York are seeking to force Bank of America Corp. to repurchase soured mortgages packaged into $47 billion of bonds by its Countrywide Financial Corp. unit, people familiar with the matter said.

http://www.bloomberg.com/news/2010-10-19/p...-mortgages.html

Share this post


Link to post
Share on other sites

BTW, I agree that in court mortgagees in default would not get granted a free house. Somehow the paper trail would be utilized to let some bank/pension fund/you name it have the property. However, the fact alone that there seem to be huge legal problems could freeze up markets even further as explained in the video in http://www.greenenergyinvestors.com/index....st&p=188579

 

As William K. Black states there, who wants to have some water if 1 in 100 bottles is poisoned...?

Share this post


Link to post
Share on other sites
BTW I notice JP seems to have dropped his money supply definition of inflation these days and explicitly defines it in price terms.

I suppose consistently referring to M3 has got a bit difficult for him.

And for others too !

 

Mish was consistent through-out, saying printing money doesn't matter "if it gets buried in the ground" (ie bank balance sheets)

Share this post


Link to post
Share on other sites
Jim Sinclair’s Commentary

 

When the public sees litigation starting against the Banksters that stuffed pension funds with fraudulent securitized mortgage debt OTC derivatives, more will start to act.

 

Pension fund managers have a fiduciary legal obligation, so they must litigate to prevent being litigated themselves.

 

Do not let the MOPE that this is not really a serious problem interfere with your better judgement.

 

Regulator for Fannie Set to Get Litigious

By NICK TIMIRAOS

* OCTOBER 21, 2010

 

The federal regulator overseeing Fannie Mae and Freddie Mac hired a law firm specializing in litigation as the agency considers how to move forward with efforts to recoup billions of dollars on soured mortgage-backed securities purchased from banks and Wall Street firms.

...

http://online.wsj.com/article/SB1000142405...1414300418.html

Share this post


Link to post
Share on other sites

http://www.bloomberg.com/news/2010-10-25/b...-practices.html

Bernanke Says Regulators `Intensively' Reviewing Foreclosures

...

“We are looking intensively at the firms’ policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures,” Bernanke said today at a housing conference in Arlington, Virginia.

...

“We take violations of proper procedures seriously,” Bernanke said at the conference on mortgages and housing finance, hosted by the Fed and Federal Deposit Insurance Corp.

Share this post


Link to post
Share on other sites

Bombs away!

 

Oct 22, 2010 00:00 ET

Market Alert: Clear CapitalTM Reports Sudden and Dramatic Drop in U.S. Home Prices

 

First Index Report for October Shows a Two-Month 5.9% Price Decline Representing a Magnitude and Speed of Decline Not Seen Since March 2009; Similar Declines Expected to Appear in Other Industry Indices in Coming Months

 

TRUCKEE, CA--(Marketwire - October 22, 2010) - Clear Capital (www.clearcapital.com) is issuing this alert on a dramatic change observed in U.S. home prices.

 

"Clear Capital's latest data through October 22 shows even more pronounced price declines than our most recent HDI market report released two weeks ago," said Dr. Alex Villacorta, senior statistician, Clear Capital. "At the national level, home prices are clearly experiencing a dramatic drop from the tax credit-induced highs, effectively wiping out all of the gains obtained during the flurry of activity just preceding the tax credit expiration."

 

This special Clear Capital Home Data Index (HDI) alert shows that national home prices have declined 5.9% in just two months and are now at the same level as in mid April 2010, two weeks prior to the expiration of the recent federal homebuyer tax credit. This significant drop in prices, in advance of the typical winter housing market slowdowns, paints an ominous picture that will likely show up in other home data indices in the coming months.

http://www.marketwire.com/press-release/Ma...ces-1339566.htm

 

Share this post


Link to post
Share on other sites

It will take a few months for this to show up in the Case-Shiller index

 

New thread on US real estate started in GPC section

Share this post


Link to post
Share on other sites

http://usawatchdog.com/mortgage-crisis-the...dollar-problem/

The Six Trillion Dollar Problem

 

By Greg Hunter’s USAWatchdog.com

 

... It has been widely reported that there are a little more than 60 million home mortgages in the Mortgage Electronic Registry System (MERS). If every one of the 60 million mortgages are worth $100,000, that would mean a total of at least $6 trillion in home mortgages that are electronically filed.

...

It has been widely reported that “foreclosure mills” were creating massive amounts of counterfeit Promissory Notes so banks could legally foreclose on homeowners.

 

... A counterfeit, or copy, of a Promissory Note is not a financial instrument, just like a counterfeit or copy of a $100 bill is not a financial instrument!

 

Can you see how big this problem really is for the banks? This is $6 trillion in real estate that fat cat bankers cannot legally prove they own. Likewise, that means trillions of mortgage-backed securities HAVE NO BACKING. I think this is the biggest financial fraud in history.

...

One of my regular readers thinks Congress can simply pass a law and make all the crimes retroactively legal. To that I said, “So Congress is going to change hundreds of years of real estate document law in each and every state? Along with IRS tax laws broken, trust laws broken, security laws broken and on top of that, make crimes retroactively not crimes anymore? That’s a lot even for Congress. I think the path of least resistance is more likely printing money to paper over the problem. ...

 

Two very big things are going to happen because of this enormous financial fraud. The banks are, once again, going to play the “Financial Armageddon” card and scream for a bailout to save the world. You see, owners of all those mortgage-backed (or un-backed) securities will force the big banks to buy them all back. The big banks do not have that much money and, thus, many experts are predicting another monster bank bailout is on the way. How is that going to be paid for?—with money printed out of thin air, that’s how.

...

This $6 trillion problem may or may not sink the banks, but the next bank bailout will surely submerge the dollar. That will trigger very big inflation. Keep in mind, this is not an event, this is a process that will take a long time to work through.

Share this post


Link to post
Share on other sites

Loan paper with NO collateral. There has to be a lot of it out there.

 

http://noir.bloomberg.com/apps/news?pid=20...t_NCc&pos=7

Wells Fargo Foreclosure on Bankrupt Homeowner Halted (Update2)

By Tiffany Kary

 

Oct. 28 (Bloomberg) -- Tandala Mims was allowed to keep her two-family brick home in Bronx, New York, after Wells Fargo Bank NA’s bid for foreclosure was rejected by a bankruptcy judge who said the bank’s paperwork was “questionable.”

U.S. Bankruptcy Judge Martin Glenn in Manhattan ruled yesterday that Wells Fargo can’t bypass the automatic shield against legal claims triggered by Mims’s filing for personal bankruptcy in July. Wells Fargo couldn’t document how it acquired the rights to Mims’s mortgage, which originated with another lender, the judge said.

Share this post


Link to post
Share on other sites
Loan paper with NO collateral. There has to be a lot of it out there.

Can you hear $6 Trillion MBSs deflating?

 

Dude. :blink:

Share this post


Link to post
Share on other sites
Can you hear $6 Trillion MBSs deflating?

 

Dude. :blink:

 

Half of it is probably already on the backs of the US taxpayer through freddie,fannie, and all the unconventional asset purchases from the federal reserve. The other half will no doubt end up on the backs of the US taxpayer one way or another, through new guarantees, bailouts, purchases.. When you're already in the hole, what's another $6 trillion on the stinking pile? :blink:

 

 

Share this post


Link to post
Share on other sites

Ohio's attorney general getting p1$$ed off.

 

http://www.ohioattorneygeneral.gov/Briefin...Insult-to-the-J

Cordray: Refiling Affidavits is an Insult to the Justice System

10/28/2010

 

(COLUMBUS, Ohio) — In response to Wells Fargo's statement acknowledging that it "made mistakes" and that affidavits in 55,000 foreclosures filed by the bank did not "adhere" to the law, Ohio Attorney General Richard Cordray offers the following statement:

 

"The big mortgage servicers and financial firms continue to demonstrate their belief that they do not need to play by the same rules as everyone else who uses our court system. The suggestion by Wells Fargo and its colleagues at several other national firms that they can cure fraudulent testimony by simply refiling new affidavits and continuing to proceed toward foreclosures shows they do not recognize the seriousness of the problem they have created. There is no simple 'do-over' for false testimony that will be likely to avoid sanctions and penalties imposed by the courts. Their brazen efforts to minimize their financial exposure by sweeping these problems under the rug are an insult to the justice system in this country. These disclosures by Wells Fargo will now become the focus for a new prong of our on-going investigation."

...

Share this post


Link to post
Share on other sites

Tandala Mims was allowed to keep her two-family brick home in Bronx, New York, after Wells Fargo Bank NA’s bid for foreclosure was rejected by a bankruptcy judge who said the bank’s paperwork was “questionable.”

 

These types of legal decisions are higly questionable, and leave me worried about how US law is being twisted away from common sense.

 

Are "common people" going to be allowed to steal their mortgage loans from banks, and be forgiven masses of debt they borrowed just for the sake of technicalities?

 

I can understand allowing her to stay for a time, until the debt is PROVEN somehow, but allowing a borrower forgiveness in such a case simply shows how sometimes: "The Law's a Ass!"

Share this post


Link to post
Share on other sites

:unsure:

 

http://www.nytimes.com/2010/11/07/business...mp;ref=business

Taking on a Second Mortgage to Pay the Foreclosure Lawyer

By DAVID STREITFELD

Published: November 6, 2010

 

For some Florida residents, the price of getting out of foreclosure will include taking on a second mortgage — payable this time to their lawyers. ... is controversial among defense lawyers, some of whom call it “creepy” and “crass.”

That's what you get when everything is debt based: a big fat mess.

Share this post


Link to post
Share on other sites

There are some serious implications here, if Art Cashin (UBS) is right...

 

He says he was very concerned that the mortgage mess might be huge, and that the halting of foreclosures by the big servicers had indicated a huge problem. He was re-assured when the servicers said they would resume foreclosures, but the lawyer said "they only said it, they're not doing it" .. meaning they might be just *saying* they are resuming foreclosures to stem the moral hazard of people just deciding to stop paying. Frightening stuff...

 

(zoom to 5m10s)...

link:

http://kingworldnews.com/kingworldnews/Bro...Art_Cashin.html

 

mp3:

http://kingworldnews.com/kingworldnews/Bro...3A13%3A2010.mp3

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×