LAW FIRMS RE-ASSESS RELATIONSHIP WITH SECURITIZING BANKS

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

I am receiving confidential reports that lawyers who work for firms representing securitizing banks consider themselves working for “the dark side.” From the junior lawyers on up attorneys are reconsidering their representation of would-be foreclosers or even defending them against quiet title and borrowers’ damage actions. They are concerned about their reputation, possible court sanctions, possible disciplinary actions from the Bar Association that gave them their license to practice and even criminal charges.

From what I have heard it would be no exaggeration to say that virtually none of the current lawyers representing these banks trusts their client to tell them the truth. More than a few of the law firms are angry at being used as pawns — or as one person said it “pimps for fiction” — which reveals a growing sentiment that is similar to developments amongst lawyers about representing organized crime figures in either civil or criminal actions.

Junior lawyers, briefed by other lawyers in the firms they work for, were walking into court believing that they were on the “right” side and that these defenses the borrowers were raising were just an annoyance. To say they lack that confidence now is an understatement. Many of them are actively looking or considering employment on the other side — for the borrowers — or in fields completely distinct and separate from the mortgage mess.

It’s a tough decision for either a junior lawyer or senior partner to make. The money they have been making collectively is in the billions of dollars, perhaps over $10 billion. Salaries and bonuses in such firms were climbing. It is hard to walk away from that kind of money. But faced with losing their licenses, having themselves named in an order of sanctions, and facing civil and even criminal penalties, they are between a rock and a hard place. Quitting these firms or discharging the client, has untold consequences for the firm and the client. With commercial activity at a very low point, it isn’t like they can switch into something just as profitable. If they walk, the financial consequences on them could be dire.

14 Responses

  1. Man!!! I hope these fat cats saved their money, ’cause all hell is about to break loose on them, I believe the reason they’re saying that is only because just as they knew what they were getting into, now they know what’s coming their way!! and of course our intelligence isn’t very much to them, well well well…………guess what Mr. Fraudtorneys!!??? you time is here, the place is now….

  2. […] This post was mentioned on Twitter by kim thomas. kim thomas said: LAW FIRMS RE-ASSESS RELATIONSHIP WITH SECURITIZING BANKS: http://t.co/W0TMkAW […]

  3. Wait. Lawyers with consciences?
    I like it.

    They’ve gotten used to the high life…trouble is…it’s inflated on not based on reality. Same for realtors, mortgage brokers, and so on. What goes up must come down?

    Well, all they have to do is educate themselves and switch to representing homeowners and investors…that would put a stop to it all.

  4. Make more dirty money or do the right and honest thing. I guess for some that is a very difficult decision to make. How do they sleep at night when they now know of the misery they have contributed to? God help the morally bankrupt.

  5. If you lie down with dogs, you will get up with fleas….

  6. @Charlie… DITTO!

  7. I can attest that the original attorney for the national defense firm on my case withdrew. He knw where it was going.

  8. It is difficult to prosecute a lawyer who serves at the state bar within ethic committee even thought s/he presented his/her client knowing the criminal and fraudelous intentions behind it after the deposition. What shall I do? Should I call DOJ???

  9. I find it extremely incredible that the people who are supposed to know the law(lawyers/attorneys) didn’t know what they were getting into, to me it’s another attempt to put them on a little “safety zone” that they too are “victims” (TOTAL BULL CRAP), most if not all of those attorneys making those claims were producing false documents like hot cakes for their clients, those attorneys must really think that the American people are really really really stupid!!!, but then what else is new????!!!!!!

  10. Rhode Island Attorney George E.Babcock with using Ibanez case from Massuchusetts today on special MERS Calendar in Superior Court in Rhode Island stops foreclosure dead in its tracks..: http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.babcocklawoffices.com%2F&h=911e4

  11. Barclays’ boss says banks should no longer be sorry for crisis (24 hours after his ‘£9m’ bonus is revealed)

    By Tim Shipman and Lucy Farndon
    Last updated at 4:21 PM on 11th January 2011

    Defiant: Barclays CEO Bob Diamond leaves a Treasury Select Committee meeting today, where he was grilled about bankers’ bonuses.

    The head of Barclays today argued that the ‘period of remorse and apology for banks needs to be over’ – just a day after it emerged he is likely to receive a payout of £9million this year.

    Bob Diamond, who claimed yesterday that the size of his bonus is evidence of ‘financial restraint’, told MPs that banks ‘needed to be able to take risks’ and that the ‘blame game should be put behind us’.

    The millionaire banker, added that banks should be ‘allowed to fail’ but that it was not acceptable to take bail-outs from the taxpayer.

    Speaking to the cross-party Treasury Select Committee during its hearing into competition and choice in British banking, he said: ‘There was a period of remorse and apology for banks – that period needs to be over. We need banks to be able to take risk, working with the private sector in the UK.’

    Read more: http://www.dailymail.co.uk/news/article-1346081/Barclays-boss-Bob-Diamond-says-banks-longer-sorry-crisis.html#ixzz1AlN0tAws

  12. ”When there are too many policemen, there can be no liberty.

    When there are too many soldiers, there can be no peace.

    When there are too many lawyers, there can be no justice.”

    Lin Yutang (1895-1976), Chinese-American writer, translator, and editor.

  13. Well, I, for one, am happy that attorneys are aware that their bank clients (and servicers clients) are Darth Vader. It sure took a long time for the wool to come off the eyes. Let’s hope there are going to be more judges who recognize the fraud. It seems to me that when the restitution of illegal foreclosures begins, there will be judges who will be very sorry for their previous decisions. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  14. Wishful thinking……Yea right…..plenty of attorneys to chose from…..their losing more money on their home then their making at work…..

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