ANOTHER PAGE FROM BANKERS PLAYBOOK: THE SHADOW KNOWS

ONE ON ONE WITH NEIL GARFIELD ONE ON ONE WITH NEIL GARFIELD

COMBO ANALYSIS TITLE AND SECURITIZATION

QUOTE FROM THOMAS JEFFERSON…

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

SHADOW BANKING WHERE THE BIG AND LONG LASTING DECISIONS ARE MADE

Presidential Pardon Equivalent at the Local Level

Here is a rule of thumb that is 100% reliable — whenever the people are going to get screwed it is happening in the shadows. In finance we even have an institutional name for it — SHADOW BANKING. That is where most of the transactions occur that the largest impact on world commerce and world finance. They call it SHADOW BANKING  because it is unregulated and unknown to the general public. It is home to the great recession and the great mortgage meltdown. This is where the economy was trashed but the banks made money on transactions that never happened and nobody cares because it is the appearance of normalcy that we are after not the reality.

So for those of you who want to play detective and be able to predict with accuracy how we are going to get screwed in the future, look for the shadows — the places where the media coverage is slight and where the details are apparently boring. Lawyers know it as Administrative Law. Administrative actions are where the rubber hits the road and nobody looks there. Guess who is paying close attention to administrative actions? The banks, because it is in the rules and regulations, appointments and actions of the administrative agencies that will decide whether the banks can contain any disaster.

LAW 101: Our system of government is set up in an interactive and counterbalancing manner that provides at least the opportunity for adverse interests to be heard. It STARTS with the Constitution. The Constitution is the enabling document that allows the congress and state and local government to make laws. The Constitution is the enabling document that allows the Federal government to enforce those laws.

The second step are the laws themselves. The Congress, State legislatures, County and City governments may pass laws, statutes, ordinances, as long as they don’t violate the principles and restrictions of the Constitution. Those laws, statutes and ordinances enable the creation of agencies (Sheriff, zoning, education, police etc.) and enable those agencies to pass rules and regulations. This where the specifics of the Constitutional principles and restrictions are carried out. The rules and regulations are valid only if they don’t violate the enabling law, statute or ordinance that created them, and only if they don’t violate — in words or in practice — the principles an restrictions of the Constitution.

The third step are rules and regulations of the executive branch of government that will enforce those laws. Those rules and regulations are made in hotel convention rooms where board members hold “public hearings” and in which they accept the arguments of all sides and all people who have something to say. It is here, where the devil is in the details. It is here that the grand principles and restrictions of the Constitution are carried out through implementation of the laws, statutes and ordinances that were validly passed. And it is here that the Banks carry the ultimate sway because they know what you don’t — that showing up, money in hand, is 80% of success in the battle and where the laws, statutes and ordinances can be effectively nullified by creating a maze of rules and regulations that favor special interests.

Not surprisingly, having lost the bulk of the fight at the congressional level the banks are concentrating their efforts first at the State legislative level, second at the executive enforcement level and third in the tiny meetings of unknown Boards with unknown members meeting in hotel rooms that will determine whether the laws will ever go into effect. Off topic example: the Board of Chiropractic in Florida won the right to prohibit Chiropractors from administering injections of vitamins. They can insert a needle into a vein and withdraw blood, they can inject insulin but they can’t inject vitamins. Only MD’s and DO’s can do that. The statute didn’t say anything like that but the Board decided that anyway and the presumption is that the Board is right unless you can prove that they acted improperly.

So don’t be surprised if you find Banks screwing you for even more money (hidden fees) accessing your own account money in your own account even though there are now Federal laws and federal agencies that prohibit such activities. And it is here that the small community banker is failing. Their trade associations are usually controlled directly or indirectly by larger banks whose interests align with the mega banks. And so instead of leveling the playing field they give the large banks greater opportunity to raise barriers to growth of the community bank or credit union.

And don’t be surprised if at the local level, despite all laws and Constitutional restrictions to the contrary, that the foreclosure process allows a non-creditor to submit a credit bid but only if they are a member of the “club.” Don’t be surprised if at the local level they pass surprisingly obtuse recording rules that enable a non-titled owner of a document to record a title instrument naming himself as the owner even if the law says otherwise. Be careful here, warriors, this battle is not done. If you don’t show up and shine a light on what is happening at state and local levels you will have succeeded these last three years in proving you are right but ending up losing anyway.

Show up, bring the press and if they won’t come take your own videos. Nobody likes that when they know they are doing something wrong. Keep track of the schedule of local agencies and don’t be fooled by agenda items that don’t look like they are important. It’s up to you now. There are more of you than there are of them. If you show up in numbers, the game is over for them, and we can take back our society from the death grips of big banks and big business.

35 Responses

  1. Deb wynn

    Understand as cannot elaborate.

  2. Anon I Agee
    media are also the problem ( my conflict of nterest was referring to other things thst I cannot succintly elaborate on )

  3. Deb wynn,

    Conflict of interest is only in how the media presents it. Homeowners, and particularly foreclosure defendants – are victims – period.

    Again, time for the truth.

  4. Ian

    Not completely — lenders are not the same as originators (although they would like you to believe that). That is not the way warehouse line of credit worked. BS would provide warehouse line of credit to originator. Once BS purchased, the warehouse line of credit would be credited. The problem you are are referring to — is insurance — and I believe this is a new focus of AG investigation.

    Insurance would pay off a so called “bad loan.” But, if this occurred — and was a refinance — the actual payoff check to prior mortgage loan — would then go missing. And, that is a very serious problem. Homeowner put in default — before they even defaulted.

    The investors in MBS — never had any “legal title” — and they were paid principal back. Take a look at MBS investor lawsuits— no lawsuit subtracts “foreclosure proceeds” from damages requested. Because — they never had a right to foreclosure proceeds. The damages is the interest rate they could have earned IF they really knew what they were investing in. But, please — who really thought they could earn high rate above market rate??? These MBS investors did not read the prospectus. Such focus on fraud against investors — which has never stood up in court due to due diligence. This due diligence is not the same for victims (borrowers) who have been victims of violations of the law and predatory lending. If there are speculator borrowers who benefited — they are in the minority. For the most part it is innocent homeowners who were told their home was worth much more than it really was — and that they would be able to refinance out of usury rate at any time. Well — government blocked both sale of home — and refinance ability. Government, by addressing the crisis — left no outlet for homeowner victims.

    So tired of beating around the bush — nothing but outright fraud. And investors — have been saved. Not willing to save distressed debt buyers – who were likely real “investors” from the beginning..

    You are right — the trust should be credited for repurchases — but no one knows what happened with loans that were repurchased – if there was a repurchase at all. Insurance kicked in — and they did not have to disclose. Problem is — the homeowner was labeled a deadbeat before they even defaulted. Ian — telling you — this is what happened. Once labeled a subprime — you were doomed. And, this is even if you never defaulted.

    Insurance. Many forms and much fraud. People were targeted. This was not a consequence attributed to bad decision making. It was in the works — and homeowners never knew what hit them..

  5. What ‘conflict of interest’? The Servicers or the Public Service?

  6. Anon and Ian please keep
    it going. The conflict of interest towards borrowers and investors is astonishing. How to proove ?

  7. Did you know that Federal Court opinions like US Supreme Court opinions are revised before they are published?

    What the hell is up with that? Who revises them and why are they revised?

    It’s bad enough that the federal law of the subject matter is left out but now this is getting waaaaaay too ridiculous.

  8. So nobody else thinks that Judges’ dependencies on MBS (through their pensions and investments) might affect the level of ‘Quality of Service’ they provide to us homeowners seeking to vindicate our rights against predatory lenders in Court?

  9. Reading E. Tolle’s comment, I am reminded of the classic George Carlin line, something to the effect of: “You know why they call it ‘the American dream?’ Because you have to be asleep to believe it.'”

  10. Ian. Glad you read it and I didn’t waste my money though it helps to know thy enemy

  11. Deb Wynn- “Too Big To Fail” is a completely self-serving book from the banks’ point of view. I read it a year or so ago. As I recall, the book is about 550 pages, a thick hardcover, and subprimepredatory lending was mentioned 6 times, the longest mention being a short paragraph. This book tells nothing about what happened, nothing about how it happened, and nothing about it still happening. Read it and raise your blood pressure. I will post the author/publisher tomorrow.

  12. ANONYMOUS- clarification- Bear Stearns demanded that lenders who sold BS bad loans repurchase them.Bear Stearns received this money and kept it. On the other hand, the investors in the MBS demanded that BS reimburse THEM (the investors) and BS basically told them to get lost. By rights, BS should have passed the repurchased loan proceeds on to the investors, who got nothing for the defaulted loans. I am certain that BS never let on which loans had defaulted, been repurchased (or not) and reported to the appropriate regulatory agencies or IRS. As to whether this triggered CDS/CDO payments to investment banks I don’t know. But I’ll find out.

  13. I’m not being sarcastic there is a book too big to fail sorry don’t know author. ( saw it on my attorneys desk ).

  14. TBTF. I must get the book

  15. Ian

    Very interesting about BS — and not paying the trusts because they have already been paid by TARP bailout (swap protection).

  16. Judge-halts-bank-of-americas-recontrust-foreclosure-sales-statewide Nevada Non-judicial

    http://4closurefraud.org/2011/01/25/kaboom-nevada-judge-halts-bank-of-americas-recontrust-foreclosure-sales-statewide/

  17. ian,
    That’s kinda what I’ve been saying. The Banks are collecting and keeping all the money from payments, foreclosures, fees etc.., not paying into the Trusts and then telling the investors (Public Pension Funds) that it’s the “homeowner’s fault” because they’re not making their payments. This pisses Judges and Sheriffs off because their pensions are losing money and salaries being cut, which makes them all the more less concerned with people’s rights and enforcing the law which they have sworn to uphold when they’re hearing a homeowners case against a lender/servicer or evicting a homeowner.

    Does nobody see this obvious problem?

  18. 90% of commercial transactions are conducted by the use of a trust. Trusts are private, tax exempt (depending on the type of trust), discreet and capable of operating outside the law. The UCC, FASB or any other statutory regulation has no authority over private express trusts. A trust and it’s indenture provisions stand as its own law depending on the grantor’s intent and is enforceable only in a court of equity, not a court of law. How else can a bank get away with blatant violations of statutory and commercial law time and time again without a single conviction? How else can a bank tell a state attorney general to piss up a rope when documents are subpoenaed? Answer: They are operating under an entirely different rule book. And those rules are trust law. Trusts are not just for asset protection and avoiding probate as the legal industry would like you to believe. They can be as flexible and vast as the imagination. But how can this be you ask? A private law form that operates outside of statutes, codes, acts and debtor/creditor commercial laws? How else can David Stern remain a free man while standing on the bow of one of his giant yachts off the coast of florida in a speedo giving the US the middle finger if he weren’t operating by a “special” set of rules? He’s probably tanning somewhere in the cayman islands while his money is protected in an (you guessed it) private offshore trust account.

  19. WHERE IN THE CONSTITUTION DOES IT GRANT POWER OR DELEGATE AUTHORITY FOR CONGRESS OR THE ADMINISTRATION TO CREATE ANY FEDERAL AGENCIES WITH UNELECTED OFFICIALS TO BE APPOINTED BY THEM AND NOT THE PEOPLE?

    THIS LINK > http://en.wikipedia.org/wiki/List_of_United_States_federal_agencies SHOWS THAT THERE ARE AROUND A THOUSAND (1,000) OF FEDERAL “BUREAUS” “COMMISSIONS” “DEPARTMENTS” “AGENCIES” “BOARDS” “COMMITTEES” “ADMINISTRATIONS” “COUNCILS” “OFFICES” “SERVICES” THAT HAVE BEEN CREATED.

    THIS DOES NOT INCLUDE COURTS, BECAUSE THE CONSTITUTION GRANTS CONGRESS THE POWER TO CREATE ADDITIONAL COURTS, AS WELL AS IT PROVIDES AUTHORITY FOR THE ESTABLISHMENT OF THE ARMY, NAVY AND POSTAL SERVICE.

    BUT THIS IS RIDICULOUS, AROUND A THOUSAND DIFFERENT UNELECTED FEDERAL BRANCHES WHEN THE US CONSTITUTION ONLY PROVIDES AUTHORITY FOR 3. WE SHOULD BE ABLE TO DEPEND ON THE LAWS AS THEY ARE WRITTEN AND COURTS SHOULD ENFORCE THEM JUST THE SAME, AS THEY ARE BOUND TO BY THE CONSTITUTION.

    IS IT ANY WONDER WHY OUR COUNTRY IS BROKE? THIS IS WHAT HAPPENS WHEN YOU TRY TO TURN A REPUBLIC INTO A HYBRID SELF-CONTRADICTORY “REPRESENTATIVE DEMOCRACY” AKA COMMUNISM. TRUE DEMOCRACY HAS NO REPRESENTATIVES, IT REPRESENTS ITSELF.

  20. I’m always confused by the statement that some banking(thieves)institutions are “too big to fail”, so let me see if I get this straight; If they are too big to fail that must mean they are MULTIBILLIONARE institutions, which translates into a very self sufficient and sustainable institution right?, so if they are “TBTF” how come they are not “big enough” to get their asses out of trouble? but rather they turn around and ask us the “dead beats” to help them get their bearings back on gear? baffling!!!. . It appears to me that the only time they look at us “in the eye” is when THEY need help “not to fail, because they’re TBTF”! . Have you ever ask the TBTF thieves for help when you are in financial trouble or trying to start a business? the answer is short and concise; NO!!! and have you ever received all that junk mail offering you the moon and the sky when you don’t need it? when you are thriving and doing great?, it seems to me that then only time the “thieves” want to help you is when you don’t need it!!! should you fall down and need help to get up, don’t ask them, because it is my conclusion that to them we simply are: “TOO LITTLE AND TOO UNIMPORTANT TO SUCCEED”, and yet as little and unimportant as we the “dead beats” are, who got their TBTF asses out of trouble? whose money did they take, again?, and more baffling, where did all that money go? who benefited off of it? will we the taxpayers ever see that money again? seriously doubt it…..because to them we are too little and unimportant to ask them to account for all that money and to pay it back……………but be ready to rescue them once more because they are “TBTF”…..

  21. WHERE IN THE CONSTITUTION DOES IT GRANT POWER OR DELEGATE AUTHORITY

  22. Re: JPMorganChase in the news: 2 hrs ago. JPM took over Bear Stearns as it collapsed. Now internal emails from BS at the time prove that when bond investors demanded that BS repurchase loans which were defaulting rapidly or had already defaulted, BS would refuse to do so. Then BS would turn around and demand that the loan originators reimburse them for the loans which went bad, and collect the payments in full. Then, they would pocket the refunded monies, instead of passing them along to the MBS investors. So here,as Neil has maintained all along, BS was paid at least twice. Things are coming to a head.

  23. E.Tolle, you may want to try the FBI again. The whole issue of “robosigners” is front and center. If you can let them know the evidence you have and the cimminal violations that the evidence proves…you may get their attention. I dont think they can work with you on your case but you can get them to open an investigation into the criminal violations. I called them last Friday; today they called and scheduled a meeting with me for the end of this week. I told the agent I had certified copies of the evidence and cited the violations I know the evidence shows. So give it another shot, call them again.

  24. So if a bank is FDIC insured how safe do you feel if the bank goes into receivership

  25. Having said that …. Never say die .., gid can only do for us through us. We are many so onward … I like the idea of twitter if people take their money to community banks talk with your feet… Stop paying your mortgage give them more work than they can handle. Just a thought pay your salary into a community bank where the shareholders are the people

  26. @Dqvid,

    I contacted my local FBI office and told them I had solid proof of widespread fraud conducted by a major lender, and would be happy to meet with them and hand over the proof.

    The field agent said she would give the info to their financial crimes expert, and that he would give me a call if interested.

    That was 6 months ago.

    Our nation has been captured, lock, stock, and barrel. And nothing M. Solimen attempts to explain can change that simple fact. Wall Street might as well fly the brass bull flag on top of the capitol and the white house for that matter.

    I’m not even going to bother with the address to the nation tonight. I know it’ll be filled with more lies and deceit, more offers of even more bread and circuses to come. More talk of green shoots, all the while there’s nothing but destruction in the real economy, not the one Bernanke is propping up.

    While the left hand is distracting us with such rhetoric, the right hand is foreclosing on the American Dream. It’s all bullshit! And they, our three branches, know it and don’t really care. They got theirs. Representation? Yeah, right!

  27. @expert witness; We can’t wait for another lesson. How about something on the FDIC. Would like to see the letter to the FDIC about Loss Risk Share Program. You were very informative. Thanks.
    Burmese8@yahoo.com

  28. Cyber loan. When Soliman gets up here my heart sinks because he knows but expert witness you arnt going to bring the banking system down and neither are we little fish unless we are willing to fight for decades together and not in a single minded fashion. the banks have trillions and I don’t own s…. All I have is my health and that’s on borrowed time with this s..,, I’m going through I Pay my hard earned money and take my chance that’s all I can do Neil you said it long time ago” the system is broken with no way to fix it” and what the banks have done has global impact. it’s so darn complicated we simply don’t know what to do and the men in black are all over it … So may I leave this thought with you. They are not untouchable, god sees all.

  29. Mary- a number of items regarding your case were addressed at length in the Mass.Ibanez decision, and more in the amicus curiae brief in the same case. Remind the judge that Mass. has been recording land records for over 400 years,since the pilgrims landed, and they sort of take it seriously, which is why the case was so important.

  30. Hearing took place today on Plaintiff to insert trust name in caption and pleading, judge granted Plaintiff.

    Motion to dismiss for lack of capacity and standing was dismiss was denied.

    This Plaintiff got to insert name of trust as Plaintiff after 18 months of vagueness, no answers to interrogatories, no discovery.

    Mortgage was assigned by a robo signer.

    Note they had if original shows a stamp signature of Steve Nagy of VP of records management for New Century Mortgage Corp. (under bankruptcy protection)

    Plaintiff trust claims loan was sold to them prior to their bankruptcy and cease and desist, Plaintiff stated it was in Pooling and Servicing agreement, they filed with court, which is just intent and information, I have not seen actual documents, but will go back to court and review what is on file.

    Assignment was not made until allegedly june 4, 2009, with a retro active date of February 21, 2009 and recorded in August 25, 2009. Trust Pooling and servicing agreement March 1, 2007. Tried to make point about the dates and your honor said they have the original note. I rebutted stating the assignment date june 4, 2009 was after lis pendens filed May 26, 2009. Still judge granted them insertion of trust name to suit and on assignment and denied my motions for lack of standing and lack of capacity for failure to plead.

    Another point I made is that the loan had been in default on such date (2/21/09) and the strict rules of the remic do not allow defaulted loans into the pool. Went over the judges head.

    But did grant me leave to amend my answers.

    Any input on way to go would be helpful.

    Was complimented though that I have more knowledge than some attorneys. Alot of good that did.

    I will not give up.

  31. expertwitness/maher soliman- looking forward to the week’s lessons, although you might follow up with a disclaimer such as “I know you believe you understand what you think I said, but I’m not sure that what you read is what I actually meant”. What you are essentially saying is that the whole process is fraught with half-truths, misnomers,verbal inaccuracies and terminological inexactitudes. Compounded by idiosyncratic yet polysyllabic gobbledygook, with a fair dose of aristotelian syllogisms thrown in for good measure. So, …..can you go over that again for us humble mortals who still have a hard time reconciling ATM withdrawals with actual account balances? thanks.

  32. One correction. Sheriff’s are not a creature of statute. The might get recognized by statute but they are a common law office.

  33. TODAY’ ‘S ATTORNEYS SPECIAL

    CYBER LOAN: A mortgage loan originated under a MERS take out and transferred concurrently at funding. Upon entering a few general ledger credits and debits the loan is left abandoned. Your loan was a wire and carried on a Bank warehouse line – – – that suddenly disappears.Upon the Cyber Loan clearing its commercial lines of debt used to wire out the proceeds – it now will rest FREE & CLEAR

    Tomorrow’s lesson
    DERECOGNITION
    Off balance sheet financing
    No not selling the loan twice…

    Wednesday
    DIVESTITURE
    Don’t show me the note
    (GOT IT – Don’t show me the note)

    Thursday
    CAPITATION
    It’s the reverse order for “variable charges set against a “lost note’ / It’s not the act of losing one’s head.

    Friday:
    GOOD WILL
    Looks Look – they created money from thin air …Ah no!

    Saturday –
    Fixed Vs. VARIABLE Charge
    Euro experts say NO CAN DO — NOPE

    EXPERT.WITNESS
    expert.witness@live.com

    “…..it’s an accounting oversight. That’s all. If you nail it . . . . You go to the head of the class.

    File a complaint in

    __ State Court
    __ District Court
    __ BK Adversary
    __ Adjudication – – – –
    __ Maritime

    M.SOLIMAN
    expert.witness@live.com

  34. BANKS WERE TAKEN OVER MORE THAN TWO PLUS YEARS AGO. THE ONLY BANKERS LEFT ARE WORKING FOR THE FDIC.

    HAS ANYONE EVER WORKED IN A REGULATED THRIFT UNDER THE FDIC RECEIVERS… REGULATORS…ANYONE ….HMMMM

    I HAVE AND IT SUCKS. BANKERS ARE LONG GONE DUDE. ITS MEN IN BLACK – DON’T SMILE , WON’T TALK AND DON’T WANT TO BE SEEN BY YOU OR ANYONE ELSE. YOU COUNT THE DAYS TO ETERNITY….

    WHAT BANKERS ARE WE TALKING ABOUT . . NOW!

    WOOOOOO! ARE ATTORNEYS STILL LITIGATING AGAINST …..WHAAAAAA….ARE YOU ….SUING …NAMING BANKS AS LENDERS ….COMLAINTS …..STILL?

    BACK TO BANKSTER HOUR/ OH OH …..

    ….
    GOOD LUCK BOB – GO SUE A LENDER …I MEAN BANK….AND HAVE AT IT..CALL THE JUDGE SLOW – 4TH GRADE – THEY DON’T GET I …DON’T THINK SOOO ….

    THE BEST!!!

  35. What happened to law enforcement? Is it true that they are more interested in defending their pensions than the law? I looked at the FBI website and they cover mortgage fraud, but from a perspective that is a few years outdated.
    We now have some company from Texas telling our tenants that they have to pay rent to them. Anyone could find out that the property is in process and make up a website and form letters.
    This system is being held up while the banks work to get the laws to favor them and in the meantime, a whole new breed of crooks are coming out of the woodwork.
    We are telling everyone we know about this. Thank You, Neil

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