EDITOR’S COMMENT: LOUISE STORY, in her article in the New York Times continues to dig deeper into the games played by Wall Street firms. You’ll remember that the executives of the major Wall Street firms were spouting off the message that the risks and consequences were unknown to them. They didn’t know anything was wrong. Maybe they were stupid or distracted. And maybe they were just plain lying. The risks to these fine gentlemen and their companies are now enormous. If the veil of non-disclosure (opaque, in Wall Street jargon) continues to be eroded, they move closer and closer to root changes in Wall Street and both criminal and civil liability. It also leads inevitably to the conclusion that the loans and the bonds were bogus.

Yes it is true that money exchanged hands — but not in any of the ways that most people imagine and not in any way that was disclosed as required by TILA, state law, Securities Laws and other applicable statutes, rules and regulations. They continue to pursue foreclosure principally for the purpose of distracting everyone from the truth — that the transactions were wrong in every conceivable way and they knew it.

If there was nothing wrong with these innovative financial products why were they “off-balance sheet.” If there isn’t any problem with them now, then why can’t they produce an accounting, like any other situation, and say “this person borrowed money and didn’t pay it back. We will lose money if they don’t — here is the proof.” If everything was proper and appropriate, then why are we seeing revealed new entities and new layers of deception as Ms. Story and other reporters dig deeper and deeper?

The answer is simple: they were hiding the truth in circular transactions that were partially off balance sheet and partially on. I wonder how many borrowers would be charged with fraud for doing that? Now, thanks to Louise Story, we have some new names to research — Pyxis, Steers, Parcs, and unnamed “customer trades. They all amount to the same thing.

The bonds and the loans claimed to be attached to the bonds were being bought and sold in and out of the investment banking firm that created them. If they produce the real accounting the depth and scope of their fraud will become obvious to everyone, including the Judges that say we won’t give a borrower a free house. What these Judges are doing is ignoring the reality that they are giving a free house and a free ride to companies with no interest in the transaction. And they are directly contributing to a title mess that will take decades to untangle.

August 9, 2010

Merrill’s Risk Disclosure Dodges Are Unearthed


It was named after a faint constellation in the southern sky: Pyxis, the Mariner’s Compass. But it helped to steer the mighty Merrill Lynch toward disaster.

Barely visible to any but a few inside Merrill, Pyxis was created at the height of the mortgage mania as a sink for subprime securities. Intended for one purpose and operated off the books, this entity and others like it at Merrill helped the bank obscure the outsize risks it was taking.

The Pyxis story is about who knew what and when on Wall Street — and who did not. Publicly, banks vastly underestimated their exposure to the dangerous mortgage investments they were creating. Privately, trading executives often knew far more about the perils than they let on.

Only after the housing bubble began to deflate did Merrill and other banks begin to clearly divulge the many billions of dollars of troubled securities that were linked to them, often through opaque vehicles like Pyxis.

In the third quarter of 2007, for instance, Merrill reported that its potential exposure to certain subprime investments was $15.2 billion. Three months later, it said that exposure was actually $46 billion.

At the time, Merrill said it had initially excluded the difference because it thought it had protected itself with various hedges.

But many of those hedges later failed, and Merrill, the brokerage giant that brought Wall Street to Main Street, soon collapsed into the arms of Bank of America.

“It’s like the parable of the blind man and the elephant: you had some people feeling the trunk and some the legs, and there was nobody putting it all together,” Gary Witt, a former managing director at Moody’s Investors Service who now teaches at Temple University, said of the situation at Merrill and other banks.

Wall Street has come a long way since the dark days of 2008, when the near collapse of American finance heralded the end of flush times for many people. But even now, two years on, regulators are still trying to piece together how so much went so wrong on Wall Street.

The Securities and Exchange Commission is investigating whether banks adequately disclosed their financial risks during the boom and subsequent bust. The question has taken on new urgency now that Citigroup has agreed to pay $75 million to settle S.E.C. claims that it misled investors about its exposure to collateralized debt obligations, or C.D.O.’s.

As Merrill did with vehicles like Pyxis, Citigroup shifted much of the risks associated with its C.D.O.’s off its books, only to have those risks boomerang. Jessica Oppenheim, a spokeswoman for Bank of America, declined to comment.

Such financial tactics, and the S.E.C.’s inquiry into banks’ disclosures, raise thorny questions for policy makers. The investigation throws an uncomfortable spotlight on the vast network of hedge funds and “special purpose vehicles” that financial companies still use to finance their operations and the investments they create.

The recent overhaul of financial regulation did little to address this shadow banking system. Nor does it address whether banking executives should be required to disclose more about the risks their banks take.

Most Wall Street firms disclosed little about their mortgage holdings before the crisis, in part because many executives thought the investments were safe. But in some cases, executives failed to grasp the potential dangers partly because the risks were obscured, even to them, via off-balance-sheet programs.

Executives’ decisions about what to disclose may have been clouded by hopes that the market would recover, analysts said.

“There was probably some misplaced optimism that it would work out,” said John McDonald, a banking analyst with Sanford C. Bernstein & Company. “But in a time of high uncertainty, maybe the disclosure burden should be pushed towards greater disclosure.”

The Pyxis episode begins in 2006, when the overheated and overleveraged housing market was beginning its painful decline.

During the bubble years, many Wall Street banks built a lucrative business packaging home mortgages into bonds and other investments. But few players were bigger than Merrill Lynch, which became a leader in creating C.D.O.’s

Initially, Merrill often relied on credit insurance from the American International Group to make certain parts of its C.D.O.’s attractive to investors. But when A.I.G. stopped writing those policies in early 2006 because of concerns over the housing market, Merrill ended up holding on to more of those pieces itself.

So that summer, Merrill Lynch created a group of three traders to reduce its exposure to the fast-sinking mortgage market. According to three former employees with direct knowledge of this group, the traders first tried sell the vestigial C.D.O. investments. If that did not work, they tried to find a foreign bank to finance their own purchase of the C.D.O.’s. If that failed, they turned to Pyxis or similar programs, called Steers and Parcs, as well as to custom trades.

These programs generally issued short-term I.O.U.’s to investors and then used that money to buy various assets, including the leftover C.D.O. pieces.

But there was a catch. In forming Pyxis and the other programs, Merrill guaranteed the notes they issued by agreeing to take back any securities put in the programs that turned out to be of poor quality. In other words, these vehicles were essentially buying pieces of C.D.O.’s from Merrill using the proceeds of notes guaranteed by Merrill and leaving Merrill on the hook for any losses.

To further complicate the matter, Merrill traders sometimes used the cash inside new C.D.O.’s to buy the Pyxis notes, meaning that the C.D.O.’s were investing in Pyxis, even as Pyxis was investing in C.D.O.’s.

“It was circular, yes, but it was all ultimately tied to Merrill,” said a former Merrill employee, who asked to remain anonymous so as not to jeopardize ongoing business with Merrill.

To provide the guarantee that made all of this work, Merrill entered into a derivatives contract known as a total return swap, obliging it to cover any losses at Pyxis. Citigroup used similar arrangements that the S.E.C. now says should have been disclosed to shareholders in the summer of 2007.

One difficulty for the S.E.C. and other investigators is determining exactly when banks should have disclosed more about their mortgage holdings. Banks are required to disclose only what they expect their exposure to be. If they believe they are fully hedged, they can even report that they have no exposure at all. Being wrong is no crime.

Moreover, banks can lump all sorts of trades together in their financial statements and are not required to disclose the full face value of many derivatives, including the type of guarantees that Merrill used.

“Should they have told us all of their subprime mortgage exposure?” said Jeffery Harte, an analyst with Sandler O’Neill. “Nobody knew that was going to be such a huge problem. The next step is they would be giving us their entire trading book.”

Still, Mr. Harte and other analysts said they were surprised in 2007 by Merrill’s escalating exposure and its initial decision not to disclose the full extent of its mortgage holdings. Greater disclosure about Merrill’s mortgage holdings and programs like Pyxis might have raised red flags to senior executives and shareholders, who could have demanded that Merrill stop producing the risky securities that later brought the firm down.

Former Merrill employees said it would have been virtually impossible for Merrill to continue to carry out so many C.D.O. deals in 2006 without the likes of Pyxis. Those lucrative deals helped fatten profits in the short term — and hence the annual bonuses paid to its employees. In 2006, even as the seeds of its undoing were being planted, Merrill Lynch paid out more than $5 billion in bonuses.

It was not until the autumn of 2007 that Pyxis and its brethren set off alarm bells outside Merrill. C.D.O. specialists at Moody’s pieced together the role of Pyxis and warned Moody’s analysts who rated Merrill’s debt. Merrill soon preannounced a quarterly loss, and Moody’s downgraded the firm’s credit rating. By late 2007, Merrill had added pages of detailed disclosures to its earnings releases.

It was too late. The risks inside Merrill, virtually invisible a year earlier, had already mortally wounded one of Wall Street’s proudest names.

62 Responses

  1. Exactlly right Cheryl!

    “until someone walks in your shoes they cannot judge you.”

  2. PJ

    meant “do NOT have the lobby power” – hate when you find typos after you submit comment!!!

  3. PJ

    Yes, this blog has been very important. Just do have the lobby power to influence Congress that the people need help with all this foreclosure fraud. I could tell a whole lot, along with others, if we got the opportunity to speak before Congress. Maybe it would help – maybe not – we will never know. Hoping we will have some avenue with Consumer Protection Agency – if Elizabeth Warren is nominated and confirmed.

    Wall Street has shifted it’s campaign support to Republican politicians. This scares me.- we do not want to support what Wall Street supports. Then again, this administration and Democrats have done nothing. Media keeps publicizing that the people’s number one concern is the budget deficit. While the deficit is important – I do not think that this is the number one issue on the people’s mind.

    Who ever have said that we have democracy in this country?

  4. Gwen –

    I think anyone that is trying to help our world situation with anything they can do is great. It is better than sitting home in a chair and doing nothing. You have been throught alot in your lifetime and until someone walks in your shoes they cannot judge you. You keep up the good work and “GO GIRL”.

  5. Once again madam… thank you for driving the point home!


  6. PJ, I am sick and tired of you bashing us “liberals” and “limosine liberals” as you like to call us. I know many so called Liberals and we all work very very hard for the middle and lower classes although many of us are middle and lower class ourselves. You have not got a clue about where we come from–most of us grew up in the 50’s and 60’s and worked in civil rights and worked against nixon, Ford, Reagan, Bush 1 and even Clinton. Most of us are sick and tired of you bashing us without a clue as to our beliefs which are rooted in education on the constitution. Don’t presume to talk about us if you do not know anything about us. I have listened however to “patriots” and “oathkeepers” and other “libertarian” types–I find them incredibly ignorant as to the laws of this country and the protections in this country as set forth in our constitution. I am tired of them trying to insinutae religion into our government. And I am tired of you acting as if we are trying to impose some top down view. The Democrats, including the liberal wing, are committed to helping this country but within the constitution. We are not going to bash the constitution so some idiots can run around and kill immigrants in Arizona and bend the constitution. We are not going to set aside the 14th Amendment to the Constitution. We are not going to deny equal protection of the law to all. We will protect the right of Nazis and all you people saying things against our government because that is what the ACLU does–protect the rights of people under the First Amendment–EVERYONE, sO WHEN YOU GET SOME EDUCATION ABOUT US LIBERALS, I SUGGEST THEN AND ONLY THEN CAN YOU TALK. Until then I and my liberal friends will continue to protect your rights even though you don’t have any idea as to what we are doing

  7. But Anonymous people are organizing… and that upset’s the “do as I say, not as I do crowd” . In fact using the “liberal playbook” against that crowd can be quite successful.

    It is disingenuous to take the liberty to high jack this blog with personal political view’s… trying to get people off track, which IMHO seems to be happening more and more as inroads are being made to correct this economic crisis.

    Professionally I interact with people of all strip’s, economic circumstances and political affiliations… and
    just tell it like it is… 99.9% are fed up with the “liberal guilt machine” and are finally seeing them for what they are and what they are doing to this county and it’s people. All in the name of “helping the Middle Class” you know!

    I don’t cotton to anyone telling me or anyone else they can not win this battle… if that were the case none of us would be posting here to help other’s and I am quite sure Neil and his associates would perfer to spend his free time on other endevors.

    Keep it real , keep it simple and moving forward… this issue is complicated enough already for many as it is!

  8. PJ

    If we do not organize – we will continue to be silenced. Maybe you will win individually – if you are lucky – but, unless sentiment and policy is changed – many will continue to be harmed.

    If you have gone through a difficult time, you understand a silent commitment to help others – I hope. While some here may have greater claims for fraud than others – and many need personal assistance, there are just far too many that will just continue to be victims.

    I hope that we are above the selfishness of corrupt bottom feeders – who only care about themselves. Maybe, I am falsely presuming that most here care about others – but happen to know that many here – do care.

  9. Gee… some think only they are qualified to be “community organizers”… go figure! Just a confirmation on how up set the “Limousine Liberals”… it is all about their “presumption” of what you have done, who you are and what you will do… you know do as I say not as I do…

    Thank you Mame… for claifing my point!

    “Those limousine liberals you bash aer the ones making sure we have good folks like OBAMA and other liberals elected with their money.”

  10. Hi Gwenn,

    Not to get into political hoopla – BUT – It is a bit-ironic to even mention the Constitution and support for liberals & Obama???

    Honestly, that entire comment is from another planet… As for selling out – there were over 22-requests to pull in Fannie & Freddie – who stopped it every time… Chris Dodd & Barney Frank… There is plenty of blame to go around but to include Libertarians with those who will screw us, I’m sorry – wow – that is way out there… and NO I am not a libertarian… nor is the above implying I even supported Bush but the facts are facts – CONGRESS was warned “repeatedly” and a certain select few BLOCKED it every time. Greenspan raised the bar and told CONGRESS if they do NOT reform Fannie & Freddie, they are literally gambling with the future of this country which will have global ripples… I’m not a Greenspan fan ether but the man was POINT BLANK in their face stating clearly the consequences – I believe that was back 2003 or so… twist it anyway you want – but those are facts and Barney-boy flipped out and went on a goofy-ass rant about trying to scare the American people – etc… Oddly, Barney’s boy-friend was one of the heads of Fannie or Freddie – while Barney was on the congressional oversight committee – but every time someone raised the issue of “conflict of interest” they cried “discrimination…” and look at us now…

    As for CLUELESS and the current Mortgage bs – Do a little “schooling” and look up Penny Pritzker and Superior Bank of Chicago. It rolled over back in 2001 BANKRUPT. What did they specialize in – Subprime Loans… They folded with over a Billion dollars in deposits – insured & uninsured and guess who was screwed out of those funds – the little guy… Who looked out for those “middle-class” & little guys – sure as hell was NOT Obama & friends…

    Pritzker was the chair of Superior’s Board for 4-5 years and is part of the ultra-rich in Chicago-land… It is Superior Bank that sits dead-center of the Subprime specialty shop… It was exposed by a whistle-blower Anderson – on the bank frauds committed with backroom deals & Merrill Lynch and it is said that Pritzker & Merrill Lynch are credited with creating the subprime – securitization dream machine – all designed the SCREW the little-guy & middle class out of their homes. They were simply allow those folks to “think” they owned those homes while paying exorbitant fees & rates… They looked out for the middle class & little guy – sure they did… but WHO is this Penny Pritzker… well,

    Pritzker was Obama’s Presidential Campaign Finance Chair – hmm? They all ran with the same crowd and let’s not forget about Obama’s special banking buddy Rezko the slum-lord of Chicago… but hey that’s politics…

    Personally – I sincerely HOPE they allow the tax cuts to expire. It will be the funniest twist to this entire façade in DC. If those tax-cuts are what contributed to this mess – why the hell didn’t those boneheads eliminate them on DAY ONE? Obama said he was going to… but – but…

    I hope they do it… Then they will see what happens. Something that these idiots haven’t figure out yet is that the Federal & State Governments do NOT EARN their wages… They don’t sell anything (except favors) and they don’t build anything… That means – the NON-Gov workers must support their spending habits. Its comical – they haven’t a freaking clue what the hell it means to actually EARN money. It should be a required prerequisite for ALL Congress-people to have OWNED a business and actually had to PAY bills by the PROFITS created by their business. Most of the idiots have never even WORKED for a living – including Obama. What a joke…? And I MEAN BOTH sides of the isle – throw the entire damn bunch out – cut off all retirement funds & benefits – sell the 120 747 jets – 2-terms and out the door… make the bastards work & live under the same laws they created… then will see change… one last thought would – deport all progressives to Cuba – then can help reboot Castro quasi-socialism…

    Okay – I’ll get off my soap-box…

    oh and I vote we WATERBOARD all Lender CEOs & Foreclosure Mill Attorneys… that will slow their butts down for tossing families back to the streets…

  11. 6 million people watched

  12. All,

    my contact info is

    please contact me so we can discuss.

  13. Alina

    I am not a lawyer here but I have a law degree from another country. Count on me as well. I am a great researcher.

    Brian Davies – Thanks !!!!

  14. Im sorry the tea partiers don’t have ANYONE scared. They are a joke. They are also clueless–its all about THEM. Those limosine liberals you bash aer the ones making sure we have good folks like OBAMA and other liberals elected with their money.

    I’m sorry, I find the tea parties like that nut case in Nevada and others running, who I have read their blogs etc, all to be clueless. GO BACK TO SCHOOL and read about the constitution and our laws and stop bashing those who really are for the middle class–I finally got the health care I need. My daughter has help with herstudent loans. I have read most of the new laws and they are helpful for the middle class–it is the republicans and the libertarians who are going to screw you guys over and you don’t get it–it infuriates me as to how little you understand about the law and how it works and I have worked for the little guy for 30 years

  15. from Securities Law 360:

    New Century Shareholders Settle Claims For $125M

    A group of shareholders of failed subprime lender New Century Financial Corp. has reached a $125 million class action settlement over misstatements and omissions with the company’s officers and directors, auditor KPMG LLP and underwriters J.P. Morgan Securities Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc.

  16. alina–good idea count me in

  17. I would like to create a coalition of attorneys (does not matter if you are practicing or not- your knowledge is invaluable) and paralegals to share case law, research, strategies, etc. The goal of the coalition would be to help homeowners who are unable to find competent attorneys in their areas.

    I urge everyone who is an attorney or a paralegal to share your time and knowledge on a pro bono basis. Without this, many homeowners will be unable to defend themselves against the onslaught by the banks.

    Neil has done an excellent job here and has a great site. However, we are still not united. Until we become united, the banks will have the upper hand. A fist is much stronger than an open hand.

  18. Just a thought… but it was and is exactly the ” Limousine Liberals” that have destroyed this country… DC & WS are laden with them.

    Ahhh… and how on both sides they “work for the Middle Class”… please… its a new generation, a new time and a new battle… regardless of what anyones opinion on the Tea Party is… this movements has the Limousine Liberal’s very scared… as they bet on the Middle Class not seeing themselves as “Community Organizers”. That’d all for their crowd!

    Just some thoughts … register independent… put your money in a local community bank or credit union… buy local from your butcher, baker and candle stick maker.. recycle, reuse and batter… demand quality charter school’s in your community… demand investment of your tax dollars in your local infrastucture/transporation system before any speculative “development” is allowed…

    Am sure some can add more to this list… please do.

    This can battle can be won… have the people at the forefront of this given up… obviously not… and thank goodness for them.

  19. Yes, law is a play–I grew up having my parents give me lessons by a Broadway actress as to how to “present myself”, how to speak extemporaneously, how to “speak”. When I started practicing and going to seminars for trial lawyers, they also taught these same things–it was why I was effective in my opinion in a courtroom and juries loved me. I think I lost two jury trials in 25 years. Prsentation, whether on paper or in person is very important–in these cases the “presentation of the argument” to the judges has to be such that we get away from “something for free” aand “justice” to they “violate the rules”. My own argument in my case has been this: I had a friend who is a contractor. His wife did the mechainics lien on the house on which he was not paid. She did it wrong. He went to court over it when the owner sued for an imperfect lien on his house. The landowner was wrong but he lost because he did not do it right. Same thing here. THEY ARE NOT DOING IT RIGHT UNDER THE RULES–THE RULES ARE FOR EVERYONE. It is called the “RULE of law” and not for nothing. We are a land of “RULES of law” and justice supposedly flows from when the “RULES” are followed. The rules are not being followed and that is why justice is not prevailing. You therefore have to emphasize in discovery how the RULES are being broken in the breach of the chain of title. In my own pleading, the quiet title is first showing each and every breach. Count II are the FRAUD claims based upon the breaches in the CHAIN OF TITLE, Count III are the breach of contract/lender liability rules flowing from the BREACH OF THE CHAIN OF TITLE and Count IV is the injunctive relief needed because the CHAIN OF TITLE has been broken and now they are seeking to foreclose. The theory has to be translated to how the RULES are broken–you have to figure out which rules are broken–not necessarily why (the latter is where I see everyone getting bogged down). I agree it is unjust enrichment but why or wherefore is not the issue in a lawsuit–the HOW in the breach of title is what is getting to get you ultimately some justice– Understand HOW the rules are broken and point that out repeatedly and I think “justice” or whatever that is–will flow. Good luck

  20. Gwen,

    For many yeras, I did civil rights cases in Atlanta so I can relate to everything you have written. I also do volunteer work with Amnesty International.

    I have a pre-law major with emphasis on international law. One of my college professors told us that the most important thing for an attorney is to be a good actor. He said that it is not necessarily the merits of your case, but rather how well you present the case in court. That is why acting classes are important.

    I listened to that professor and minored in Theatre, I then took a Sabbatical, met my husband, got married and did not go to law school. I have, however, worked as a civil litigation trial paralegal for the past 20 years.

    Most persons not in the legal field expect justice when they go to court. However, what they fail to realize is that there is a reason why Justice stands blindfolded in front of courthouses. That reason is because there really is no true justice for many.

    You are absolutely correct when you say these cases are complex. That is the reason I have repeatedly said that these cases belong in a complex business litigation court not in a “foreclosure” court.

  21. Frankielee–yes I continue to work, but I got tired–you have no idea how tired. I work now to elect officials who I think have a modicum of ability to change the system. However, I don’t believe the answer is less gov like the tea partiers, the oath keepers, the patriots or republicans. Gov is far from perfect but you need regulation because that is the only way to “get” the big guys–that and appointing judges who will come down on them. The likelihood of revolution in this country is ridiculous. I also don’t believe in the “one world order” garbage or that the UN is coming or any of that stuff. What I do believe in is that we can make a difference one person at a time. Trust me you have no idea what I have been subjected to and my family and I need a break–this case is a bit of my “come back”–but I am 62. This is a period of time much like the 60’s. But when we attack good men like OBAMA I am frustrated. You win by moving inches and throwing the bums out by election–that is what this country is about. The courts can only do so much–you have to pass laws that help people who are in the system work against these people. Work for change but realize there are limits of what the court can do unless there are new laws that can be applied against these people and lawyers willing to do it–are you raising your children to become the new generation of lawyers fighting this? My generation of lawyers were the ones against the death penalty and who fought the civil rights battles. Now we need a new generation of lawyers willing to fight the rich corps and where are those people–unfortunately we raised a generation for the most part who profited from tehse corps–hopefully there are enough out there who will fight this new encroachment on the lives of the middle class–unfortunately I don’t see enough young lawyers willing to do that

  22. For those of us who grew up in the 60’s, went to law school in the 70’s and thought we had made it with the passage of the civil rights act, the 80’s were a shocker to realize there is very little “justice”–Its fighting under the rules and the rules don’t favor the little guy. As for the rules of court, they are very very difficult to understand and apply. I have spent over 400 hr since the first of the year working on these theories and trying to apply them in decent pleadings and discovery in my own case and I have 30 years of experience–I just decided to withdraw all my pending discovery and start over–I have never done that. THIS IS VERY COMPLICATED and that is in the big guys’ favor. THAT IS THE PROBLEM–figuring out how to ask the right question is what we are told in law school is the single most important thing in any lawsuit you bring–we are still working on that I think–I am closer with my new amended pleadings, but its very difficult. So all you pro se folks out there–take heart, we will figure it out and we will help you, but the real reason you are pro se is that most lawyers don’t get it and do’t or can’t have the time to put into this to “get it”. The system does not reward lawyers for this type of work–the only real work rewarded as a lawyer is either defense work where you are paid the big bucks or plaintiff personal injury–which is truly over rewarded –im personally against that system and believe tort reform is needed. The only reason it would not be is if those tort lawyers got religion and used their big bucks to help the little guy. So, let’s trudge on and see if we can figure this out to make it stupid simple so the judges who are over worked or who don’t get it–get it!

  23. FDIC and SEC Securities Foreclosure Mess Fails in a Foreclosure – What Really Happened !
    My approach to the current crisis is as follows:
    “You owe the money”. Like the Judges say, “You took out the loan and signed on the bottom line…therefore?”

    But the lenders made a few significant tactical errors related to structured finance. Their bankrupt insulate fortress they designed and FAS 140 under GAAP has them on the outside looking in. Herein are grounds for counsel to argue forfeiture of the security.

    In a private label registration, I will support where the lender cannot foreclose!”

    Begin with the recent collapse in lending and drain on market liquidity, property values also collapsed. The events hold a negative effect on bank’s assets and likewise the capital value of all member banks and FSB’s.

    This is the current condition that further reduces banking liquidity.

    If you return to 1989 and the passage of FIERREA, you will recall how legislation made it unlawful for a bank to hold junk bonds as bank assets. It was a decision coupled with the government electing to close (versus to sell off) the largest market maker of junk bonds at the time.

    Drexil Burnham and Lambert fell in a shakeup that caused a direct collapse of the junk bond market in just over a 6-month period. It was cause for a loss in asset value of over 70% after assets were sold by the FDIC, RTC, banks and S&Ls at a deep government induced discount.

    The sector subsequently recovered their previous value as other market makers entered the junk bond arena seeking to provide liquidity to buyers and sellers.

    So, was the government’s role unnecessary whereby the government induced a significant loss to capital value in an otherwise strong market sector? Some still feel the mess was easily averted with properly intended planning?

    My feeling is the Savings and Loans had no business funding joint ventures and speculative business opportunities.

    None the less by late, by 2007 we arrive once again at the cross roads of another economic collapse. Here we see again the reemergence of a familiar set of banking legislative rules. It’s what I consider a déjà vu if you will back to 1989.

    We are faced now with the Government blaming the Street and in Lehman Bros. case the Street looking at the Government for causing the problem ahead of a scheduled recovery.

    It’s all economic nonsense with one dire component; Americans are being forced out of their homes.

    It’s maybe the FDIC and lax oversight causing the unbelievable reemergence of banking and institutional investment activity in partnership. Their tri-party collective venture and efforts emerge in direct opposition to the spirit and intent of FIERREA legislation.

    FIERREA was provided by the US legislature to expressly deny member banks the capacity to used insured deposits to invest in junk classes of bonds disguised as securities.

    Remember, regardless of the source, the funds are still deposited in account for a member bank. It just so happens the insured “depositor “is the member bank that orchestrated the origination of capital; cash and cash equivalents. Upon declaring a collapse we have a devaluation of Bank equity and once again an economic crisis becomes a reality.

    Just like only a decade prior, overvalued bonds replaced by “Trust Certificates” that are held as equity collapse in value.

    These certificates provided astronomical liquidity while their presence were disguised yet none the less weighed down institutional balances sheets. These CDO’s were now being devalued as worthless equity shares held in a trust.

    The trust and SPE structured finance arrangement merited derecognition or off balance sheet capitalization to avoid FIERREA legislative prohibition.

    The old junk bond debt was exchanged for carrying a new kind of debt but off balance sheet as an asset.

    Let’s look at it this way: First, the value of a junk bond is replaced by a CDO investment. Homeowners, it is still a debt instrument moved off the bank’s balance sheet.

    Here we have an investment instrument offered through another entity as shares or a certificate. The stock certificate is offered through a Trust fund by contribution of bank assets into a never ending escrow account known as an SPE.

    Our local Federally Insured Bank operates under a secretive and clandestine capitalization program of “Loans sold for Cash” and “Cash used to acquire Securities”.

    Whether its cash or loans used to capitalize the new SPE or further capitalize an existing SPE, its still capitalization made possible by a member bank.

    It’s a program that implements traditional capitalization and a “treasury account” with a creative and not so ingenuous method of concurrent funding.

    It’s done by placing the proceeds from the sale of loans into an SPE as an escrow account. The SPE is where the financial assets are exchanged for cash and capital assets whereby both cannot exist on a balance sheet. The notes are extinguished or should be as tendered and stamped “paid” in full.

    This happens concurrently in order to transfer the financial assets into stock certificates which are again, tendered for whole loan assets. For income tax purposes the capital account is provided by the investment banker under the name of a nominee such as MERS.

    The giant escrow account or “SPE” is the capital account used as a check book for shares and cash deposited with a Federal Savings Bank. Boo hoo to any one investment deposited in excess of $100,000 as called for under the FDIC insurance program.

    Not really!

    Here is a contentious call to audit for which the government would have to explain itself as in a bail out for excess cash no longer bank funds borrowed over the counter but just your regular depositor insured funds.

    All of this reengineering assumes the Bank selling your loan is really substituting whole loan assets for shares concurrently sold to investors for cash.

    The collapse of this creative financing structure occurs with the government electing to forgo a bail out of Lehman this time around. Like Drexel the government decides to close versus to sell off the second largest market maker of junk bonds, Lehman Bros. I merely opine they were second largest as Bank of America is spared closure for obvious reasons. Lehman who was visible (and where BAC was not) is deemed the direct cause for the collapse of the CDO marketplace collapse over a short period of time estimated to be less than 12 months.

    The CDO market lost as much as 90% value after once again while this time around the government cannot forcibly control a liquidation of shares owned by its member banks as sponsors as well as its member banks sitting tall as investors with the rest of the world community.

    To liquidate this mess at a deep discount would mean the FDIC cannibalizing itself eating up a record number of smaller banks and thrifts who bought and were caught holding these toxic securities. The Treasury Departments call to mark to market valuations was the end of many a Federal Savings Bank as this recapitalization effort was the alternative to deep government induced discounts.

    Was this all necessary and induced the resulting loss of capital value in an otherwise strong housing market sector? Could this easily have been averted with properly intended planning?

    The only sure thing here is for a recovery to reclaim the initial capitalizations which are borrower homes. Yet the liquidation effort continues for which ABSOLUTLY NO Bridge exists back to the shares issued against borrower homes.

    These are the homes that transferred secretively into a recycled escrow account or what they mean to say….a MER’s “SPE” securities capital account.

    By M.Soliman

    M.Soliman is an expert witness who has appeared, testified or been deposed in numerous SEC, DOJ and consumer foreclosure cases. Most recently he has testified for matters before the California Appellate Court.

    Soliman is a 20 year banking veteran and past Director and CFO for a leading mortgage banking firm. His experience includes having personally traded closed whole loan assets totaling over one billion to capital markets investors.

    Soliman has also served as an analyst in New York and spent over five years working in house for law firms for securities and tax attorneys. He personally authored and contributed to various private placement memorandums offering REIT and MBO, MBS registrations.

  24. Tresspass – that one sounds kind cool…

    I was invited to participate in something several years ago at the UN…

    Personally, I don’t trust them for 5-seconds…

    Something to keep in mind about them knuckleheads – while Saddam was blaming the US for his problems the UN was helped the bastard scam 20-40 BILLION DOLLARS through various scams. He had bribed France through through their banks – Putin – Germany – China – and ALL WHILE his people were dieing for lack of common medical treatment. The UN did nothing with he gassed the Kurds…

    Several years the UN sent their goons to South America where they were raping the young women and forcing them to perform lude acts on camera to sponse PORN WEBSITES… Kofi Annan and cronies are scum…

    If you want find real corruption and human abuse the UN is KING OF KINGS… They have sat on their asses and watched over 35-MILLION Africans slaughtered. The is the mother of corruption…

    I’ll check out the link though to see what’s up…

    as for their * (1) Everyone has the right to own property alone as well as in association with others.
    * (2) No one shall be arbitrarily deprived of his property.

    I would NEVER believe that bs from them… They are the wizards of depriving and mass murder… It is a very strange place… it’s like a reunion from the movie Animal House or something… its filled with malcontents – rejects and inept losers… they are a strange bunch…

    Hell between 1999 & 2003 Iran slaughter over 60-thousand people – most between the ages 18-35… didn’t hear a peep from the UN…

    That-said – if everyone stopped spending for a full week – that would be funny – it’d put a hurting on their wallets that’s for-sure… might even put a few skid-marks in their drawers if enough folks participated… the ole Bilderbergs would have a fit….

    You can believe that what we’re seeing is all about investment portfolios & retirement funds… They intend to keep their cake – with icing & eat it too – and as long as we are willing to give it up – they are willing to take… I got something real special for them to take – only weighs a few grams and it aint gold… Conspiracy dudes will say this all about breaking the US to crush the dollar so they can create the global currency – maybe – maybe not – but not without a fight…

  25. Universal Declaration of Human Rights
    On December 10, 1948 the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights

    Article 17
    * (1) Everyone has the right to own property alone as well as in association with others.
    * (2) No one shall be arbitrarily deprived of his property.

    Where do we fit if we seek to ‘correct’ what’s wrong?

    There is a movement to collectively halt spending money, going to work, buying food, clothes, medicine, supplies, gas, anything at the same time to effect a period of no commerce for a week.
    To do that you’d have to have a week supply of everything you need and then spend no money nor work for a week.
    It would take a huge number to effect change.
    It is about harnessing energy, the energy of emotion.
    We don’t know because we look at t.v. and the news.
    That’s not where the real information is.
    Anyway, in time we will all realize what we need to.
    I’m patient.

    That “Universal Declaration of Human Rights” is a quick read, pure and simple, and covers every right everyone should have, period.

    If we aren’t careful, it won’t matter how many homes they take, the next part of the scheme is stronger than this, and the scheme after that is even stronger.

    Light and Love,
    Trespass Unwanted, sui juris in propria persona
    (Now I don’t have to say All Rights Reserved! You know who I AM.)

  26. Thanks all, I appreciate your honesty. Really I do.

  27. Great article! There are several things we must avoid in order to become financially stable and not retire broke. An interesting article on this subject is:

    Worse Financial Decisions You Can Make To Guarantee Bankruptcy During Retirement!

  28. Hi Gwen,

    Thank you for FIGHTING THE REAL FIGHT – THE GOOD FIGHT… honestly – sincerely – THANK YOU… Those are incredibly difficult battles to fight…

    It isn’t my intention to grand-stand or sound like a loud-mouth at the bar… Not at all…

    Focusing on the fight – I know our case has solid frauds and enough to get the FBI involved. We need an attorney and I believe our case is strong enough to reach directly to the big-dogs and through to the Trust. I believe we can pierce the infamous corporate shield.

    I am presently speaking with big law-firm Duane-Morris. I’ve pitched a few ideas to hopefully create a lawsuit that just might rattle some cages. I don’t like class actions but I believe our case has enough FRAUD – real legitimate FRAUDS involved that it might be a perfect candidate for using to help a lot more folks than just us.

    My problem is that I just don’t grasp the legal system at all. I can read laws but applying them within a courtroom setting my brains go to mush… It took me a long time just to realize that judges aren’t really interested in JUSTICE – sound strange but I was shocked… This is about how has the biggest subscription to Lexis-Nexis and can put on the best dog & pony show for the judge… My hope is this law firm is big enough to put on a presentation from origination through to securitization – fill in all the gaps and PROVE THE MULTIPLE FRAUDS – thus EXPOSE the lack of standing for most of the foreclosures being brought.

    My hope is we can use our case to sort-a “force-feed” the judges to realize these freaking lenders have really been working against the judges – investors – & regular folks… Once that seed is planted – THEN maybe folks will start seeing the tides change…

    Many have said I’m being niave but thus far I’ve met with them in DC and they’ve kept some of my docs… and are pitching it with their Califonia base… That’s one reason I was hoping to get the COMBO – Title & Securitization Search with Commentary from Neil – to have something like that to hand a law firm that size – we just might be able to drive a freaking BUS load of cases into the courtroom and POUNCE on those lenders… I think that would really help show how ugly this stuff is and once those big-dog law firms connect the dots – THEN the changes will ripple through to benefit others…

    Thanks again for replying – and THANK YOU FOR FIGHTING THE GOOD FIGHT… sorry to hear abut you honey… bummer…

  29. Gwen, I appreciate what sounds like many a struggle against a broken system. Kudos to you for fighting the good fight.

    But you said, “So please don’t tell me about justice. I’ve seen justice and how hard it is to get in the courtroom.”

    First off, I’m not sure who you were directing that post to, as I don’t remember the thread referring to justice anywhere in particular. Having said that, I would ask the question….after all of the batterings you’ve described, why wouldn’t you want to affect a change that would systematically disallow each and every one of those bitch slaps you’ve received?

    Why would you choose to try and, piece by piece, inch by inch, work within a system that is so broken, as to be only operable for those that have, against those that have not?

    You described so many stout-hearted attacks that you’ve advanced, only to end in bloodshed, so to speak. Isn’t it time to send those bastards fleeing in fear? Isn’t it passed time to deem a system capable of the heinous abuses of not only our system, but of the people it is supposed to serve, running screaming all the while watching their backs?

    I think it’s way passed that time. Just my opinion.

  30. Speak a good talk – but Karen Pooley is right – Act.

  31. Hi trespass unwanted,

    I think the easiest and shortest answer to your reply is – go download Patrick Henry’s speech given March 23, 1775… It’s a short read about 2-3 pgs… Then download our Declaration of Independence and read the first page or so…

    This isn’t about emotion – it’s about doing what’s RIGHT. I don’t care about the damn house or the money. Yes this has cost us everything we own but what PISSES ME OFF is that it was PLANNED – it was DELIBERATE and I don’t care WHO that person is – someone is making this right – or someone is getting one life-changing ass whipping and that includes their spouses – kids – and anyone else. They will regret the day they were born. If this were a screw up – we’d get through it – just hunker down and put metal to the peddle that’s life. I know all about that – started over after hurricane Isabel wiped out everything and we had to start over without any freaking help from the insurance companies…

    I simply despise liars & thieves and the only thing worse are those that defend them. That puts these arrogant lying thieving lenders on a list with Osama Bin Laden – Zwarquari (dead) – and other arrogant malicious manipulators. The lenders & foreclosure mills – including their families are eligible targets in my book. They are ENEMIES of the PEOPLE – therefore ENEMIES of this Country and should be treated as such. If they want to get religious – great – I’ll arrange the meeting – no guilty conscience here…

    We didn’t start this war – THEY DID. They can do the right thing or suffer the consequences for it…

    First Blood – that was drawn already… That’s what this is about… They’ve somehow decided that “their” Investment portfolios are more important than us. Hear what I’m saying – these lying bastards have unilaterally decided that the average blue-collar folks somehow OWE them our lives – our money – our homes – our children’s colleges & future – whatever is ours has seemingly been declared theirs and whatever is theirs THEY KEEP for themselves… All I can say about that is – someone needs to change their bong-water more often – because THIS CAT don’t do slave-trade bs… There comes a time when right principle MUST prevail – regardless the cost – IT MUST PREVAIL… That’s what our Founders decided after years of grappling with the decision. They knew the consequences and the paid the price. Our generation will do the same – its only a matter of time. This is WAY beyond too big to fail bs they want us to believe. They simply want to make sure their retirement funds are safe but DO SO AT OUR EXPENSE… WOE-dog – step on this dog’s tail – then kicks me too – notta – I’ll bite and so will most red-blood Americans… That’s what this is about and don’t believe otherwise… I have no problem whatsoever dropping their ass on the concrete and leaving them in their OWN blood TRUST-POOL. Don’t be dragging my ass down into their pit… I don’t swim in cesspools… and if they want swim there all day – that’s fine – no problem – but don’t be grabbing my ass the acting as if it’s my fault or the fault of others… I’ll jump in any foxhole and fight until death do us part – but I turn around and that bastard set me up – I’ll shoot that sob right there… that’ what this is about – they screwed BIG TIME and they are now attempting to hang this on folks have don’t even KNOW what was done to them yet… THEY WILL because I am that kind-a guy… LOCK & LOAD – that’s not emotion that STANDING UP FOR RIGHT PRINCIPLES. As the saying goes – I’d rather DIE for something and live for nothing…

    I am not a violent person – but I refuse to walk away from arrogant abusers. They broke the law – they screwed up – they need to fix it. Currently they seem to be having a disconnect as to why THEY should feel guilty about tossing folks into the streets. They think us bottom-feeders are too dumb to deserve Due Process – that laws were written BY THEM for “us” to support them. Their investment portfolios are being threatened therefore we must sacrifice OUR HOMES and work longer hours to make up for their extra Beamer – Austin Martin – Aspin lodge… I’m not mad – I’m not PISSED – I simply want to let them see the effects of Desert Eagle 44 that has customized pre-loaded Hydro-Shocks that explode on contact and make a hell-of-a freaking mess. I can take down a 8-9 inch tree with that puppy – a headshot is real messy.

    Trespass – I appreciate your heart – I really do… All I can say is – I did everything conscievably possible to work this out rightly for all sides. In return they attempted to stomp us into the dirt – even when went as far as to plead with them because we could not even afford my wife’s medications. Bro – I extended my hand – now it will be with a 44-mag – and the one thing I do well – I don’t miss – bust two wild cats at 75 yds on the run with that gun… Droped them both…

    Don’t worry – I’ve not loaded my guns – I’ll walk this out as far as I can… Honestly, I’m not too worried about “me” blowing them away – that’s easy enough to do. I believe once folks figure out what was done – then learn it was done so calculatingly – this puppy is going to come unraveled and EXPLODE all over the country. This is WAY TOO BIG for our dumbass gov to think they can keep it hidden. I will help anyone walk through the valley of death & back – but don’t steal from me – don’t use me – abuse me and leave me for dead because I will hunt them down and they won’t like me… and that goes for my neighbors too – take advantage my friends & neighbors and they best kill me…

    enough said –

    Keep the Powder Dry… I like your effort dude..

  32. To all of those fighting the “good fight”. Its nice to know that americans still “care”–that we still have some “fight” in us–but it takes a great deal of fortitude to face these “too big to fail” defendants. I did it for 30 years and got very very beat up–the catholic church even refused to bury my husband a few years ago when he died because of the suits I filed–I had to go across the state line to Kansas to get a catholic church to bury him. It was horrible. I’ve seen black men literally made to crawl under cars at GM, and women made to “put out” for the entertainment of men on the line, I saw truck drivers made to drive too many hours and when they blew the whistle, they got fired. I saw blacks treated at the Corps of Engineer and Dept of Labor and VA as if they wre still on southern plantations, and women who were forced in the 90’s to quit work because they were pregnant–I saw women firefighters in our city spied jpon as they showered, and their male cohorts pee in their drinks just for a hoot–and what did law suits get them– a lot of heartache and threats but when we won or settled for the most part, there was a certain “awe” moment–they were few and too far between because there were judges who laughed at these women–I once had a federal judge call my black client a dumb slow nigger in the courtroom–this in the 80’s. Another fed judge told a jury in an age case that all plaintiffs in the discrimination case were out for a fast buck–it took two trials, two appeals to the 8th cir, one appeal to the U.S. Supreme court and 9 years to win that case and then the judge cut my fees in half! I got $200,000 for 8yrs of work which was about 50 cents an hour. But the defendants–they were paid almost $2m to defend and they just laughed. So please don’t tell me about “justice”. I’ve seen so called justice and how hard it is to get in the court rooms.

  33. May sound really off here – as my focus as always been on proving the fraud – and there is much of it. But, been around and involved for a long time – even borrowed a theme song from Elton John – “The Bridge” – sure he does not mind if you all borrow it too. Keeps me going –

  34. I gotta go with David on this one. Not anything relating to violence, but to the part about letting them fail. Why not? What do we have to lose? Civility? What is currently civil about a system that allows the fruadsters to stay in power, to still reap huge rewards? While millions who did NOTHING wrong get thrown out on the curb?

    Would our government lose control? The bigger question is, would those who actually control our present form of government lose control? That would be an oh-so-welcomed event, IMHO. As a matter of fact, I long for that situation.

    Would we be forced to restructure our society into one that re-establishes equalities, equalities in pay scales, rewards folks who actually produce tangibles, things of value, instead of rewarding Ponzi-makers who take but never give one thing to society?

    I firmly believe that a nation, if it knows the truth behind the fraud that has been committed upon every single person in this nation, not to mention the rest of the world, a nation of people who would stand by and watch as millions upon millions of folks are tossed from their homes, knowing all the while that the system was fraudulently gamed for the benefit of a very few CEO’s and CFO’s and COO’s, fund managers, who, BTW, are still enjoying the fruits of those schemes, has already lost all that it can lose. It’s lost it’s dignity. It’s lost it’s conscience. It’s lost touch with the very soul of this nation, the soul that made it so great in it’s beginning charters.

    Without any of the above, or if we choose to lose them, not to stand up for these covenants, we’ve lost so much more than any banking system crash could ever wreak. I would rather lose this country outright and have to start all over again than to live in an environment that treated people like so much fodder, like Jews of a half century ago, or of blacks under Apartheid or the plantation south.

    Some things are worth fighting for. Some things are worth letting loose the unthinkable. This is one of those times.

  35. This is orchestrated to control your emotions.
    It’s bigger than foreclosing on a home. It’s always bigger.

    Violence will bring in martial law…that’s the plan..don’t fall for it.
    Remember Tienanmen Square…peaceful protest.
    Do not ‘draw first blood’, not against your own people, even in their ignorance.

    We believe our wealth and status and livelihood belongs in that property. So they took it and now what emotion do you have?

    Please, we are better than that. We stopped looking at each other, some of us rose higher than others and felt more important, some of us watched others fall, fail, or never rise, and considered them lazy.

    We are all connected. We forgot. We must remember, that it’s not the banks who decide when we are at home.

    We must remember that even as these lenders do their job, there is no way the U.S. would allow it unless it was part of a plan.

    We must understand, this is one small piece of a bigger puzzle.

    In our country we are losing our homes, in other countries their job losses are greater, others are struggling to get their hands on food.

    It’s all orchestrated, and your emotions are tied to it.

    As long as you hate someone, it doesn’t matter, but HATE, HATE, HATE, someone, something, anything, you have done what is needed.

    They don’t want your homes, they want your emotional energy.

    We don’t understand what is being ‘harnessed’ from us, like little batteries in the cosmos.

    Don’t kill what can still HATE.

    What you leave for your children is a world where they learn to HATE what happened to their parents. We are the greatest teachers to our children.

    The news media will not see successes and will turn a blind eye to the plight. Stop looking to them for solutions, stop looking to their government for solutions.

    I know it’s hard to believe that you thought you were protected, and you thought someone outside your family cares about you.

    That is furthest from the truth.

    This happens because there is more that don’t care than do care, in certain structures of society.

    We put our worth in the wrong places. Turn inside and see what we have. I can’t go on vacations like I used to, but to go, meant someone else had to work for my enjoyment while I played. We never think about the other guy who’s slaving for a living while we ‘enjoy’ life. Well some of us are getting a chance to walk in their shoes. It’s humbling but you are loved.

    This is not doom and gloom, and 2012 stuff, but there is a reason the squeeze is being done greater and closer and faster and fiercer and we see the negative side more than the positive.

    Earth is rising, the universe is rising and it needs all of us to rise with it. The puppeteers are using us to try to slow down the progression. It’s property, it’s stolen, it’s wrong, but send love and pity the fools that are engaging in this emotional warfare that is hidden behind the financial warfare.

    When we ‘love’ our way out of this, we will defeat their purpose, and we can live whereever we want. Some people like living in the woods, some like living on lakes, some like living up high, some like living down low…but allow this progression to take place, do your part to learn what you can to slow it down or reverse it, but operate in Love. If they are collecting that energy, let it be Love they collect and have no way of dealing with it and want to discard it but can’t and they can’t use it for their purposes. We don’t stop spending their money! So at least send them something they can’t use.

    Keeping the powder dry and a u-haul, they can use.
    It will create more fear and hate.

    Don’t give it to them…Love and a viable solution is the key.

    You have everything you need. We just lost our physical homes, but we are spirits, we are always home. You are here. Stop anywhere and let someone ask you, where are you? You will say, right here, or over here, or here. YOU are home.

    Someone made you believe you weren’t. They can’t take that.
    Remember….remember..who we are.
    For every thought, say, I don’t like what happened, but I send them love for what they do.

    It may get tougher to generate more negative energy.
    Stay focused. Neil’s site is coming up with solutions.
    I lost my home, but I feel freer without it than I did with it. I hated my HOA, and I don’t like having a contract that is unconscionable.
    That law firm did some terrible things to me, and filed some bad papers, and that judge was so arrogant and ignorant (legal term) that she thought she was hurting me when she wrote her writ.
    I didn’t lose myself in the fight, and she lost some of herself with her perceived power to dispossess a persona, not a corporation, and the little children that have a relative injury from her stroke of a pen. She’s alive, her signature created pain. The corporation she served is a strawman, it doesn’t eat, sleep, drink, or think. She was used and doesn’t realize it but her actions she is accountable for, the energy she created from her theft; she is the source.
    I pity her. I forgive her. I have nothing but love for her lost soul, but that won’t cleanse what she has to go through for what was done.

    NO need to take negative actions. That is going to be taken care of for you. Find the new you, and help someone else in need.
    I found a place, and just moved in and was offering to share my space with someone less fortunate.

    Someone overheard me and said, ‘you are better than me’, I can hardly find room for my family to come visit.

    We have forgotten how to life each other up, and so we fall like individual dominoes. If the dominoes are place appropriately, they may topple but they will all lean on each other, and all will lean but none will fall.

    That’s the real power of the people.

    Don’t hurt anyone, don’t even think of it. No bad deed goes undone, and those that orchestrate believe they can live through the bad to make what they did worth it.

    Oh but are they in for a surprise. The energy created can’t be measured by them, and is being used by someone.

    Light and Love,
    Trespass Unwanted, sui juris in propria persona

  36. David,

    “Keep the Powder Dry” … I LOVE IT.

  37. This Government, Wall Street and it gang of banksters fleeced the US Taxpayer and the honest home owner of their Life, Liberty and the pursuit of happiness. But still the fleecing continues. Somewhere this must be unconstitutional.

    Dam these dirty bastards to burn in hell.

  38. Hi Gwen,

    I don’t mean to sound like a nut – and I appreciate the replies… If you practice in MD, we are looking for an attorney… As a generalization, I agree with your position.

    IMHO – this is way-beyond some Too Big to Fail nonsense… It isn’t necessary to nullify 50-million mortgages but it sure as hell is immoral to tell all those who were not so lucky getting a favorable ruling to suck-it-up and move on with their lives… Since when did law rely on luck and NOT FACTS? All that does is open the door for a repeat… If we create riots the size of LA not so long ago..? Will that qualify for too big to fail? I’m just pointing out – what goes around – comes around. If the courts continue ignoring the laws protecting those damn lenders, then the PEOPLE will deal with lenders directly.

    Are you suggesting these folks should just accept the fact that they were screwed by a Federally back Institution – then screwed by their Gov – then they get the wonderful privilege of paying extra fees – legal fees – and ultra-high interest rates for the rest of their lives – ALL because they were defrauded or “dumb enough” to be duped into signing a damn loan specifically designed to fail AND so they would not & could not figure it out.

    If we nullified 50-million mortgages what would be worst thing to happen? Lenders go bankrupt – investors go bankrupt and lots of folks have no mortgage payments…OR are you implying then that those manipulated into ready-made foreclosure-loans are somehow obligated to LOSE everything they own because those investors and lenders are MORE WORTHY or MORE IMPORTANT?

    Why should we care if their retirement funds go broke? Their arrogant illegal acts cost my wife & I a few million bucks – where’s my derivative check? This thing cost us our retirement – so can I tap into the foreclosure mill retirement fund and get my share…? We can’t even afford my wife’s diabetes medication and were forced to let our health insurance go – can I send that to foreclosure mill or lender. It was only about 1100 bucks per month for the policy but without it the prescriptions and medications cost several thousand – who picks up that tab…? How does too big to fail even fit within a society claiming to function by laws – created equal? How does that somehow obligate all those folks in foreclosure to give up all their hard earned money & dreams? Are the CEOs of Countrywide & BofA somehow special therefore deserved those millions & millions of dollars they illegally manipulated and stole from us?

    Sounds like slavery to me..? I didn’t lie – cheat – or exaggerate – but the lender sure as hell did. I didn’t commit fraud – defraud the Fed Gov – conspire to defraud the state & local gov – but our lender sure as did. I didn’t submit a fraudulent U&O – or aid & abed the builder embezzling 100k from our account but our lender did… The fact that our lender committed mortgage fraud, predatory lending, breach of contract, securities fraud, and whatever else is stacked in with it – but that lender did… so, should I eat this million dollar loan because THEY were so intoxicated with greed that they didn’t care about breaking the law or anything else – they simply wanted their next fix…

    If we allow such blatant prejudice to go unaccounted, then these lenders & foreclosure mills deserve every atrocity these folks will throw at them. If we are supposed to be a nation of laws – is their some exception or clause I missed – (not applicable for Too big to Fail)…? Having a car accident resulting in a tragedy is one thing… Making a mistake and misapplying funds is a mistake. Deliberately selling mortgage loans to MILLIONS of Americans – KNOWING those families CANNOT repay the loan – calculating the RISK and when that loan will default – profiling those folks to better understand their reaction to the PAYMENT SHOCK – then doing it all so they would not & could not figure out what was done – THAT IS TREASONOUS, Anti-American, and inhumane in my book. Those people should be executed – plain & simple. These weren’t millionaires losing their second homes – sell the condo – let the Porsche go – sell the vacation home… This was strategically calculated manipulation.

    I fail to see why the bottom-feeder-folks – somehow OWE the upper-scale Investor Groups & Lenders some perverted obligation to protect their precious investments. It sounds like quasi-slavery to me…

    All I am saying – they cannot have it both ways – and I REFUSE to be their PUNK-SLAVE. We did NOT break the LAW – THEY DID. THEY will pay the consequences or suffer the consequences – one or another – the choice is theirs and I think that is being pretty nice considering they were just going to screw us into the dirt and stomp us under until we could do nothing… while the drive away in their yachts & Porsches… Pay the ticket or pay the reaper…

    Keep the Powder Dry



  40. Ian

    When you refinance – you will get a new loan number – it is a whole new loan. But, that number should not change – that is the recorded number in the County records for your note.

    Servicers often change loan numbers – all you to need to notified of is that you loan is now being serviced by someone else – they do not have to tell you that loan has been sold. That is problem – you do not know this.

    The PSA and “Mortgage Schedule” – if your loan made it there and stayed there – will reference your original loan number – And, if mortgage is discharged by another refinance – or by payment in full – it is that loan number (original) that must be discharged/canceled.

    When a loan is sold, however, the loan is written of by the selling bank, – that original loan number – is gone. So, in most cases – when one is informed servicing rights have changed – it usually means your loan is “sold” – because you most often get a new loan number.

    But, once you get that new loan number – the records have to be changed in County – because your County record only now refers to an “Old” loan number – that is gone. And, otherwise – that original note and loan number – is never properly discharged.

    Same applies to foreclosures. Important point is that a change of loan number usually means a sale of the loan – and write-off by the selling bank. We may have agreed that our loan could be sold – but we did not agreed to multiple loan numbers for our note – who knows what is being discharged, canceled or foreclosed upon.

    Also, know of cases where the old loan number still exists – but under someone else’s name. How does this happen??

    Just a red flag to me.

  41. DAVID–IT STINKS TO HIGH HELL–BUT NOTHING WILL HAPPEN–Why? because it truly is too big to fail–There will be small victories. They will change laws. But this is truly too big to fail–What are you going to do–nullify 50 million mers transactions? I don’t think so. So we will win some victories, And as long as you don’t vote for libertarians, tear parties and republicans who will take out the last vestiges of oversignt, there may be a prayer–but the government has to go FORWARD, not backward and unfortunately the little guy does get screwed–trust me I represented enough of them in 30 years. You can call them to task one by one–but the cat does not change its stripes–you just want to make sure the cage is smaller. That’s what we aer trying to do.

  42. Hi Gwen,

    I’m all for working “within” the so-called system… but if you think its working or will change from your vote – you might look a little deeper… IT CAN – but that will take time – WE do NOT have time, at least, not that much time. This is a freight-train coming down the mountain fully loaded at 5-times the speed their TRACKS were designed to handle – emphasis on TRACKS because one does not DRIVE a train. It merely follows the tracks. The problem we have is ALL OF US (the bottom-feeders average & middle income folks) are at the station exactly where those TRACKS END. The train is out of control fully loaded and there is not enough track to stop. As time goes nearer – more folks will figure it out. When they run to the exits they’ll suddenly realize the doors were locked & chained – guess whom those running to the exits are, YOU & ME and all those trying to PICK THE LOCKS. We are the ones trying to figure out the right argument (key) to help the judge make the RIGHT decision. As time passes with very little successes – the floor & building begin to shake….maybe I’m exaggerating a bit – but the question is NOT what happens to those people – that’s really not what I’m asking…

    The question is what happens to those bastards that LOCKED & CHAINED THE EXIT DOORS… those bastards are the lenders & foreclosure mills and once all those folks figure out what was done – PISSED is not a thought even for a nanosecond – that will become explode into FULL RAGE and RIGHTFULLY-SO… These lenders KNEW exactly what these borrowers would do – how they would react – and because they have the borrowers’ personal information – THEY ALSO KNOW exactly what they are capable of doing, which is exactly why the loans were demographically targeted. They PROFILED folks down to the reaction of the PAYMENT shock… This is NOT an accident – it is manipulation and the cover up is this disguise of “Too Big to Fail” bs that they’ve convinced the Gov to make the Gov an accomplice. It’s called Guilt Manipulation – now because the Gov is in on their scheme – they will continue. THAT IMHO is why LAW will most-likely not be effective or if so, only for short spurts and very sporadically.

    This is NOT about a few bad apples – ENRON – Madoff – etc… If so, we would have seen convictions and prosecutions. This is 1000 times the magnitude of ALL those things. Why do you think the simple common-law & UCC laws are ignored? If the mortgage loan was not properly assigned then the investment is NOT REAL. The Transferor cannot transfer what it did NOT have. Bypassing the recordation process is NOT merely avoiding fees & taxes – it means the INVESTMENT was a FRAUD. At that point the mortgage is a drop in a HUGE POOL. The issue is NOT the individual mortgages. The Fed has already given out enough funds to wipe-out EVERY foreclosure dating back to late 2004 or longer. So, how can the problem still be related to FORECLOSURE?

    Voting can only put another ass in the seat. Politicians no matter how well intended can only attempt to create NEW rules. By the time that passes – this will have already boiled over into the streets.

    How many CEOs from Countrywide – BofA – Citi- Lehmann – etc have been arrested…? How many prosecutions of bankers, brokers, Wall Street liars – have been prosecuted…? Who are those being arrested – on average what was their salary NOT including the alleged scam they were involved in… Think about it – this is NOT about LAW or the courts – this is manipulation… We hear about a builder/broker scam – a mortgage rescue scam – but it sure seems odd that the CEOs – board members and others within these HUGE freaking institutions have not been busted?

    ONE MORE THOUGHT – keep in mind we are talking about TRILLIONS & TRILLONS of dollars – and its all TAX FREE? Per the REMIC Provision if they violate the PSA they lose the tax exemption – I KNOW OUR LOAN VIOLATES THE PSA for CWALT – but it is all TAX FREE – IRS 806(f) REMIC Provision and one would think – damn, as tight as things are if the laws were broken and the IRS has the right to tax the bastards why not tax them – 100s of BILLIONS of DOLLARs…?

    I hope I am wrong… but something stinks…

  43. ANONYMOUS-in one of your May posts you began to discuss the importance of mortgage loan #s, I went over it looking for info but I need help. When one refinances, does the loan # change? How about if the refinance is with the same “lender”? When the numbers do change, what does that indicate? And in a county recording system, is the “instrument number” a function of the county computer system, or the loan number? Please help me out on this one! Thanks.

  44. 1. Stop paying those mortgages.
    2. Put your money in credit unions or small local banks.
    3. Do not pay retail, whenever possible buy used instead.

    Without us “bottom feeders,” what have they got? They’ve got nothing! There is so much concern over “consumer confidence” because they all know that without us they have no system. We are only slaves if we allow it. Do not be part of their system.

  45. David, I am not a gun person, find the patriots and oath keepers nut cases and firmly believe the way to change the system is to vote the a holes out of office and change the system from within. Opting out of the system does not change things nor does rioting in the streets. Nothing makes me madder than people who don’t vote because they think it doesn’t matter–it does–look at the election in 2000 and how bush won. So get out there and change the system from within–we have the wherewithal to do it. Fight them in the courts and the system may change but at least we can look ourselves in the face. I won’t give up and I won’t become a nut case with a gun holed up somewhere–Understanding how the system works is the first step towards beating the system. Using the system like they do against us is also the way to beat them at their own game. I wish you well but don’t give up on this country yet

  46. Hi Gwen,

    Daggon-if the courts don’t do it than I’m back to my beginning (long) comment…

    “…That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness…But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security….” – Declaration of Indepedence

    “…I know not what course others may take; but as for me, give me liberty or give me death!..” – Patrick Henry

    hmm, I wonder how long the above comments will be legal on public formats…? tic-tic-tic-tic-tic… 🙂

    Keep the Powder Dry…

  47. OK all you bleary eyed folks who still believe in our so called justice system–heres a heads up. Sanctions (Rule 11 in fed ct and similar rules in State court) were never or rarely if ever used against defendants. They wre used against plaintiffs lawyers and for years mostly women plaintiffs lawyers for expanding the scope of litigation. Rule 11 came about in 83 when Reagan started appointing fed judges. It was used until 92 when it was amended because numerous circuits did studies which showed they were being used against plaintiff’s lawyers nad not defense firms at all. Trust me I know I was sanctioned. Usually the good lawyers got sanctioned and forced out of the practice because they were too good–it was also used against employment lawyers for the most part or med malpractice lawyers–it was a tool to crack down on litigators.
    Fast forward to the tobacco litigation. There was a 1500 page tobacco decision about two years which slam dunked the lawyers involved in hiding etc the tobacco frauds on everyone. Pages upoln pages against them–did the bar associations go up against these lawyers? How about the judges–the answer is a resounding no. The judges who enter sanctions are republicans for the most part–democratic appointees don’t believe in the sanction rule–it is used against plaintiffs and not defendants and all the studies have shown that. So don’t expect the courts to do anything. You see it a bit more now in Bankruptcy court but even when they are caught with their pants down–you won’t see these judges doing anything. It does not happen–that’s what the studies have shown and that’s why our vaunted legal system sucks. Its all about the rich and the powerful–and I know–practiced for 30 years and was sanctioned as a civil rights lawyer. Paid almost $200,000 because judges “believed” I had done somethign wrong–no evidence, no witnesses, nothing solid whatsoever, just a “supposition”. I’ve got a book coming out on my own experiences. It will curl your hair. But don’t expect anyone to go after these people unless it is a democrat who has clout-

  48. To OP:

    take a look – has a lot about BOFA.

  49. HELP

    Start by asking for trustee’s “Remittance/Collection” account ledger. This is required by the PSA. All remittances by the servicer to the trustee must be in a ledger. Even if you only made one payment – it has to be there. And, servicer must have advanced all default payments to the trustee – that must also be there. And, advanced all property taxes and any forced placed insurance – that must be there. Look up in PSA to see exactly what these ledgers are called. If you are dealing with US Bank – there has to be a PSA and ledger.

    David –

    Courts hate to go against law firms – about time they did.

  50. OP & HELP

    That is what I was talking about before… Can someone help answer… thanks…

    If the damn law firms make a FALSE statement in court, why can’t they be liable and sanctioned. They are assisting in a fraud and worse – they KNOW their client has committed a CRIME and are attempting to cover it up…

    Fraud by Client
    [3] Under Rule 1.2(d), a lawyer is prohibited from counseling or assisting a client in conduct that the lawyer knows is criminal or fraudulent.

    They are DEBT COLLECTORS, correct?

    [b] § 807. False or misleading representations [/b]
    A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

  51. Dave K- say your post about BofA. I have been told by BofA employees my loan was sold and the investor was CIG HFI 1st Lien Mortgage. In court BofA denies this exists and the BofA employees told this by mistake (all 12 of them) They say CIG is Corporate Investment Group an internal deparment of BofA and HFI stands for Held For Investment. I noticed today on google that two people have sued BofA and named CIG HFI 1st Lien Mortgage as a defendant too. Interesting. BofA is like a maze and i am stuck in it forever.

  52. Discovery- I get shot down at every turn. How do you ask for the “off books balance sheet?” what do I call it? I have asked for the general ledger for the loan from BigBankUSA and at the Motion to Compel hearings they tell the judge the only accounting for the loan is the loan history for my loan number and they provided that. They are sneaky. there has to be a ledger showing how they took a loan that is 24 months past due and wrote it down, charged it off or what have you. HELP

  53. IRS Industry Directive on Total Return Swaps Used to Avoid Dividend Withholding Tax On
    January 14, 2010, the Large and Mid-Size Business Division of the Internal Revenue Service issued an industry directive (the “Directive”) to provide revenue agents conducting audits with guidance for developing cases involving the use of total return swaps (“TRSs”) to avoid tax on dividends on U.S. securities paid to foreign persons.1 The Directive is the latest development in the IRS’s ongoing efforts to enforce more aggressively the U.S. dividend withholding tax as it affects foreign persons, including offshore hedge funds. After a brief review of those efforts, this memorandum highlights key aspects of the Directive and comments on its implications.
    Recent IRS Efforts to Enforce the Dividend Withholding Tax The Internal Revenue Code imposes a tax on certain types of U.S. source income, including dividends, paid to foreign persons.2 The tax is referred to as a “withholding tax” because it is typically withheld from the dividend payment by a payor (the “withholding agent”).3 Pursuant to a Treasury regulation promulgated nearly 20 years ago, payments to a foreign person on a notional principal contract are treated as foreign source income.4 Thus, it has been generally accepted that there is no withholding tax imposed on TRS payments, including dividend equivalent payments with respect to U.S. securities.
    1 See Internal Revenue Service, Industry Directive on Total Return Swaps
    (“TRSs”) Used to Avoid Dividend Withholding Tax, LMSB- 4-1209-044 (January 14, 2010). 2 See I.R.C. §§ 871 and 881. 3 See I.R.C. §§ 1441 and 1442. 4 Treas. Reg. § 1.863-7(b)(1) .
    In 2007, the

  54. You know – the subprime mortgage story is just ENRON – but on a much larger scale.

    In ENRON, parties were prosecuted. We have not seen one prosecution. Although we have seen a few “deals” with the SEC.

  55. Question –

    It seems obvious the attorneys working for the lenders KNOW their client has falsified documents not only against the borrowers but States, Fed Gov, and the investors.

    Since this seems to be TRUE – why can’t we SUE them as well – file petitions to have them disbarred – and whatever else.

    —– Fraud by Client —–
    [3] Under Rule 1.2(d), a lawyer is prohibited from counseling or assisting a client in conduct that the lawyer knows is criminal or fraudulent. Paragraph (a)(2) states a specific application of the principle set forth in Rule 1.2(d) and addresses the situation where a client’s crime or fraud takes the form of a lie or misrepresentation. Sometimes a lawyer can avoid assisting a client’s crime or fraud by withdrawing from the representation. It also may be necessary for the lawyer to give notice of the fact of withdrawal and to disaffirm an opinion, document, affirmation or the like. In extreme cases, however, substantive law may require a lawyer to disclose information relating to the representation to avoid being deemed to have assisted the client’s crime or fraud. If the lawyer can avoid assisting a client’s crime or fraud only by disclosing this information, then under paragraph (b) the lawyer is required to do so, even though the disclosure otherwise would be prohibited by Rule 1.6.

    Rule 3.3 Candor Toward the Tribunal
    (a) A lawyer shall not knowingly:
    (1) make a false statement of fact or law to a tribunal or fail to correct a false statement of material fact or law previously made to the tribunal by the lawyer;

    (2) fail to disclose to the tribunal legal authority in the controlling jurisdiction known to the lawyer to be directly adverse to the position of the client and not disclosed by opposing counsel; or

    (3) offer evidence that the lawyer knows to be false. If a lawyer, the lawyer’s client, or a witness called by the lawyer, has offered material evidence and the lawyer comes to know of its falsity, the lawyer shall take reasonable remedial measures, including, if necessary, disclosure to the tribunal. A lawyer may refuse to offer evidence, other than the testimony of a defendant in a criminal matter, that the lawyer reasonably believes is false.

    (b) A lawyer who represents a client in an adjudicative proceeding and who knows that a person intends to engage, is engaging or has engaged in criminal or fraudulent conduct related to the proceeding shall take reasonable remedial measures, including, if necessary, disclosure to the tribunal.

    (c) The duties stated in paragraphs (a) and (b) continue to the conclusion of the proceeding, and apply even if compliance requires disclosure of information otherwise protected by Rule 1.6.

    (d) In an ex parte proceeding, a lawyer shall inform the tribunal of all material facts known to the lawyer that will enable the tribunal to make an informed decision, whether or not the facts are adverse.

    Rule 3.4 Fairness to Opposing Party and Counsel
    A lawyer shall not:
    (a) unlawfully obstruct another party’s access to evidence or unlawfully alter, destroy or conceal a document or other material having potential evidentiary value. A lawyer shall not counsel or assist another person to do any such act;
    (b) falsify evidence, counsel or assist a witness to testify falsely, or offer an inducement to a witness that is prohibited by law;

    —– § 807. False or misleading representations —-

    A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

    (6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to–

    (A) lose any claim or defense to payment of the debt; or

    (8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

    (9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

    (10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.
    —–end snip ——–

    So, they send Goliath with a big stick – start filing Grievances against these law firms – against the judges – and against everyone that AIDES and ABETS the bastards…

    It is illegal to commit FRAUD and equally illegal to ASSIST someone else doing it – INCLUDING LAWYERS. Why can’t we hold them accountable for committing FRAUD UPON THE COURTS for LYING and covering up their clients illegal actions.

    Just more thoughts.

  56. And now, for something completely different …

    If you will look at recent cases, what Louise Story has written about fits clearly into the scenario with Bank of America. This is why you’re seeing B of A in court, failing time after time to prove its agency relationship. If Merrill had to buy back or “clear” its own house of toxic assets and B of A bought into this garbage … well it’s no wonder we have so much missing paperwork. Re-examine In Re Box and you will see one judge that is concerned with the lack of agency relationships being established to prove nexus.

    TIP: Draw a time line for your loan. Look at the documents recorded in the court house, starting with your Mortgage or Deed of Trust. Lay the documents out on the table and look and see who the players are. Take 3 X 5 index cards and write the name of the player in each of the docs and spread them out around each document so you can get a clearer picture of who is playing.

    Once you see who is playing, you can then begin to see what documents are missing. Of course, you’d have to know that agency assignments are established by contracts, such as “Power of Attorney” agreements, signed by the Grantor; servicing agreements (with all rights and privileges being spelled out); allonges with proper endorsements and stamps (all of which can be verified) properly affixed to the documents they purport to convey.

    If you want to see examples of “missing links” go to the recent Opinion issued by Hon. Eileen Hollowell in Tucson in the Bankruptcy Court (In Re Tarantolo). You will see how she takes the securitization package and analyzes the simple agency relationships (or lack thereof) in this case.
    DoucheBank (as I like to call them) attempted to do what we all fear (appearing to introduce documents at the very end to substantiate their proof of ownership, suspect of course) and their motion for relief of stay was denied.

    It is so bad that we’re seeing the truth come down in a bankruptcy court, the last saving grace, before state and federal judges could be bothered to address these issues before the borrower has to take the road of last resort.

  57. OK FOLKS , I thank people like this reporter for unconvering this stuff, but the bottom line is disocvery is not about acting like a reporter–discovery is about getting info on YOUR claim. If you are quieting title, then discovery should be about examining the title and what makes it broken. If the title is broken make the defendants bear their burden on the note and collecting it–they have to show they own it and how much–you don’t show that–and the question should be is it their duty to raise it as a compulsory counterclaim. if you are raising broken statutes–stick to the discovery that shows breached statutes. what judges don’t like based upon my experience is trying to get on claims that are not being tried or punishing the def for EVERYTHING wrong they ever did–not yoru job–stick to YOUR case which means figuring out what you need to win YOUR case and getting that info. leavit it to the investigative reporters to “get” the big guys. Don’t get lost in the trees–remember the forest and seeing the big picture–which is proving your case and only your case


    These TRS i guess changes things a little bit.

  59. Strange – I have raised the issue that these twisted mortgage loans – must also mean that the Investments attached are equally twisted (worthless) because everything points back to an EMPTY POOL.

    They essentially created a community of big fancy show houses – with big pretty Pools – so they could continue selling LOTS to perspective buyers. They had real nice glossy color brochures – gated communities – special shopping – golf courses – the works… It was wonderful – heaven – serenity – but it was all just a Hollywood movie-set. The big houses & communities were only a sheet of plywood and 2×4 thick. It was a façade – mirage – FAKE –


    The investors saw the pretty brochures and RELIED upon the reputations stamped all over their brochures… big-names were behind these investments, including Uncle Sam so, heck buy, buy, buy…

    Meanwhile – homeowners did the SAME DAMN THING – Countrywide – BofA – CitiMortgage – Wells Fargo – Chase – etc – …look mom-dad instead of renting we were able to buy and our mortgage payment is LESS than we were paying RENT! This is wonderful honey and look mom-dad – these smart and very polite professional banker people even appraised our homes at $$$$ and we only paid $$$$ and only two years ago these homes were selling $$ – and-and-and…

    So, Investors are happy, happy, happy, – us little-folk were happy, happy, happy, but (sniff-sniff) damn, what’s that smell – man, did someone drop a lump-fish – what the hell stinks so bad… oh those brochures were made of RECYCLED paper – what kind of paper was that…? Toil..what-let- TOILET PAPER…!!! So, here’s the ugly reality – this is NOW SURVIVAL, yes, SURVIVAL – because for us little-folk – the bottom-feeders it goes like this…

    The Investors are by now well-aware that they were burned & burned badly. In fact, the unions and other retirement funds sucked down these investments like a drunken binge drinker falling off their annual wagon… BUY BUY BUY

    Well – NOW they have a problem – because if they join up with the bottom-feeders allowing us little-folk to connect the dots where Neil has persistently pointed – THEY HAVE NO INVESTMENTS. I don’t know how this works but I’ll take gander at it…

    Little people (us) connect the dots proving the Lenders have no authority to foreclose on their illegal (my word) bogus LOANS. Lender’s say – fine – the Lender’s file bankruptcy (bk) and let the Feds deal with it. Hmm, but that ALSO means the TRUSTS then file bk – fold up and go under… Guess what happens then – all those retirement funds wither & die. Hence the TERM TOO BIG to FAIL. Those retirement funds that our TEACHERS – FIRE FIGHTERS – POLICE – and most other large union and non-union alike – POURED ALL or MOST of their finances into believing the SAME DAMN PEOPLE as us little people believed…

    So it goes like this – the investors will continue pretending to be BLIND – carefully crafting lawsuits to NOT let the info TRICKLE down to us bottom feeders. If the borrowers are too successful, THEY could bk the entire scheme – last one standing is a bankrupt PUNK. That’s the game. It isn’t about LYING THIEVES being forced to disgorge their ILLEGAL GAINS then brought before a firing squad like should happen – no they can’t do that because they are TOO BIG TO FAIL.

    Consequently, us bottom-feeders have been SOLD & DRAFTED INTO THEIR SLAVE TRADE. Yep, WE ARE THEIR TRADING STAMPS – GAME CARDS – PAWNS – you name it whatever you want – WE ARE THEIR SLAVES. WE ARE THEIR SLAVES BY LAW – BY FINANCIAL MANIPULATION – BY IGNORANCE – BY GREED – BY whatever someone wants to call it – but WE ARE NOW SLAVES…

    WELCOME to the USSA – YOU & I (bottom-feeders) have NO CONSTITUTIONAL RIGHTS – PERIOD! NO RIGHTS for DUE PROCESS – NO RIGHTS for ILLEGAL SEARCH & SEIZURE – NO RIGHTS but the RIGHT to be their slave. They will permit an illusion of freedom and certain rights, if it is deemed necessary to keep the slaves from getting to restless. That is what THEY have done! Those that still “think” they own their property are only permitted to do so while they tweak control of the underling bottom-feeder slave trade first. The so-called Middle-Class SLAVE TRADE is already well on their way to reality next…

    I believe our Founder’s saw the same thing and decided ENOUGH was ENOUGH. Their corporate enemy was the king at the time. Ours as self-proclaimed itself king – but simply has not announced it yet – too many slaves are still a little sensitive about it… they don’t mind patronizing us though…

    PEOPLE our nation faced this SAME ENEMY over two hundred years ago.

    It started out with this little speech… Snips from Patrick Henry March 23, 1775 – I know it’s a little long but read the comments and see for yourself if we are not facing the same anti-American sentiment…

    “…I have but one lamp by which my feet are guided, and that is the lamp of experience. I know of no way of judging of the future but by the past. And judging by the past, I wish to know what there has been in the conduct of the British ministry for the last ten years to justify those hopes with which gentlemen have been pleased to solace themselves and the House. Is it that insidious smile with which our petition has been lately received? Trust it not, sir; it will prove a snare to your feet. Suffer not yourselves to be betrayed with a kiss…”

    “…Have we shown ourselves so unwilling to be reconciled that force must be called in to win back our love? Let us not deceive ourselves, sir. These are the implements of war and subjugation; the last arguments to which kings resort. I ask gentlemen, sir, what means this martial array, if its purpose be not to force us to submission?..”

    “…And what have we to oppose to them? Shall we try argument? Sir, we have been trying that for the last ten years. Have we anything new to offer upon the subject? Nothing. We have held the subject up in every light of which it is capable; but it has been all in vain. Shall we resort to entreaty and humble supplication? What terms shall we find which have not been already exhausted? Let us not, I beseech you, sir, deceive ourselves. Sir, we have done everything that could be done to avert the storm which is now coming on. We have petitioned; we have remonstrated; we have supplicated; we have prostrated ourselves before the throne, and have implored its interposition to arrest the tyrannical hands of the ministry and Parliament. Our petitions have been slighted; our remonstrances have produced additional violence and insult; our supplications have been disregarded; and we have been spurned, with contempt, from the foot of the throne! In vain, after these things, may we indulge the fond hope of peace and reconciliation. There is no longer any room for hope. If we wish to be free — if we mean to preserve inviolate those inestimable privileges for which we have been so long contending — if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained — we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of hosts is all that is left us!..”
    “…It is in vain, sir, to extenuate the matter. Gentlemen may cry, Peace, Peace — but there is no peace. The war is actually begun! The next gale that sweeps from the north will bring to our ears the clash of resounding arms! Our brethren are already in the field! Why stand we here idle? What is it that gentlemen wish? What would they have? Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!..”
    —-end snip—-

    Then finally they agreed it came to this bigger statement eloquently penned by Thomas Jefferson our Declaration of Independence….and btw – Jefferson once said about Henry’s speech above that it was the most moving & passionate speech he had ever heard…

    “….That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness. Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security….”
    —-end snip—-

    Make no mistake – these lying bastards are now stomping upon our Constitutional Rights and growing bolder & bolder with every passing day. If the courts fail to recognize by ignorance or indifference, they have FAILED – either way they have FAILED.

    The question facing the PEOPLE is this – will you wait until these self-imposed “kings” further pass legislation that deliberately extinguishes YOUR CONSTITUTIONAL RIGHTS – NOT YOUR GOVERNMENT GIVEN RIGHTS – YOUR GOD GIVEN RIGHTS – as Recognized under our CONSTITUTION OR do we….

    “…I know not what course others may take; but as for me, give me liberty or give me death!..”

    Keep the Powder Dry!

    ……..Sorry for the length…

  60. Instructions to Report OUTSIDE the Judicial System

    Entitle this Report: “Complaint and Request for SPECIAL INVESTIGATIONS”

    Make this a Narrative chronological story line, including court complaint(s), Exhibits, evidence and proof; include questions, oldest to newest, cite laws, cases, statutes, regulations, procedures, etc, including the “body” of your court case complaint(s).

    Add a cover sheet much like the one the courts use, only delete the court name, omit the terms Plaintiff and Defendants, and use the real party(s) names; omit the part about the motions and purpose of the filing (to the right of the plaintiff/defendant list on front sheet of court complaint. Include your names, address, phone and fax #s, email address(es), etc.
    Submit this Report to:

    Law Enforcement/ Criminal Investigative, Judicial and Financial Agencies:
    1. Local Law Enforcement agencies: Police Dept. and County Sheriff Dept. – Major Fraud Units
    2. County District Attorney- Major Fraud Unit
    3. State District Attorney and State Attorney General – Major Fraud Unit
    4. Federal Bureau of Investigations (Done)
    5. Washington DC Justice Dept.- Major Fraud Unit
    6. Comptroller of Currency (since the bank that is coming against us is a National Bank)-
    Major Fraud Unit
    7. Any other agency believed to have any authority to investigate- Major Fraud Unit (ie: Judicial Counsel, Bar Association, etc)

    *****Assignments/Homework/Research to be done:

    1. File a Lis Pendens and a Notice to Preserve Interest (to “jam” or “cloud” the title), even a Notice of Fraudulent Foreclosure (name of Notice unknown…research it)
    2. Do what can be done at the County Recorder’s office to prove to the county recorder (preferably a supervisor) that the parties on the Note and the DOT are NOT the same as the ones filing the foreclosure docs (especially if MERS is involved) and use the “Power of Sale Clause” from the DOT to prove that ONLY the Trustee OF RECORD can file any docs into the public record(not an agent for, and assignee…ONLY the Trustee of Record. This should eliminate the majority of false and fraudulent filings at the county level! This will “Quiet the Title”, not grant “Quiet Title” which has to be done through the court/court action (as far as I presently know).
    3. Research all cases in same County or the State your case is in that went from your Original Lender and ended up with the bank that is new Trustee (pre-auction sale), or the new owner (if the property has been sold at auction); the loan servicers, the foreclosure mills, the courts the decisions were made in, the judges, the law firms, mortgage brokers, real estate agents, etc. Find common denominators and cases that are similar to yours.

    Include in Report your Original or Amended Court complaints: (don’t be concerned about jurisdiction, these are Federal violations, so you can jump to Federal Court level if you so desire):
    ***Remember these issues:
    1. “We” (the homeowners) GAVE the Original Lender/bank an “instrument of value”, the note/promissory note with our signature(s) which they deposited, loaned out, and profited from, and most likely even sold.
    2. If they say you owe them according to the “obligation of record” (according to law as to what is Recorded in the Public Record in the County), offer to pay them what they say you owe them, so long as they can “prove” it is they that you owe, and if they also agree to pay you interest, penalties, and fees from their profits from whatyou lent them, let alone the profits or some of the profits themselves! That is only fair! And if they disagree, ask if they would like an audit done to prove your “obligation” to pay them. Chances are, they will shy away from that option!
    3. Recoupment and Rescission (Rescission of original agreement/contract (since we are the Grantor/Lender in actuality; Recoupment of profits)…I didn’t understand this part of the conversation, but maybe you, Neil, can.

    Remember: Two (2) loans took place:

    4. Primary loan- Promissory Note, we are the Grantor/Lender (but they don’t “report” this loan)
    5. Secondary loan/transaction, which is the “loan”, “mortgage”, or “obligation” they received by the promissory note we signed, which they then put “on deposit” in an account, from which they generated the money by way of “fractional banking system”, and they supposedly “lent” to us a portion of what we authorized them to create (NOTE: this is the ONLY transaction or loan on record with the County Recorder in the public record, so it appears that they are the Grantor/Lender and the homeowner is the Grantee/Borrower, when in fact the opposite is true!) In essence, we GAVE them a “negotiable instrument of value”, which is our signature on the promissory note, they deposited it, and then lent back us a portion of it… and then will charge/demand payment from us for decades with interest for doing so! And if we “default”, they win!)

    Please comment on this. Thank you!


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