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

Organized crime is now mainstream and the godfathers are sitting in executive offices atop high billion dollar buildings giving out instructions to their paid servants to serve no other purpose than to give the appearance of a government that is governing. WHAT ARE YOU GOING TO DO ABOUT IT? Will you sit in your home or store afraid of the next visit from the bag man? Or will you take action and stop him any way we can? — Neil Garfield

3 Banks Warn of Big Penalties in Mortgage Inquiries


A quick perusal through LEXUS/NEXUS, the principal search engine in legal research will reveal that individual cases of such blatant fraud and damages to a consumer results in jail, revocation of charter, discipline, damages, fines and other sanctions. I can’t help thinking of the quote (I think it is from Stalin) that if you kill one man it is murder, but if you kill ten million you are a statesman.

There was a time when people like Bernie Ebbers of Worldcom and  Enron officers were given long prison sentences. Even in the Madoff case a receiver was appointed to get as much money back as possible and distribute it to legitimate victims with claims stemming from losses proximately resulting from outright fraud. But in the case of the theft of some 14 trillion dollars from homeowners, state and local governments, the defrauding of the U.S. taxpayer of another 9 trillion dollars, and the financial terrorist attack on the U.S. and world economy, lighting fires around the world of chaos, death and destruction, what do we have? NOTHING.

The fact that the U.S. government has a huge deficit directly stemming from non-existent losses claimed by the banks, state and local governments are drowning in debt, investors around the world lost significant amounts of their portfolio thus reducing the capacity to operate their pension funds, government or business, and that homeowners who had homes with no mortgages or with small loans that could easily be paid and now find themselves buried under a mountain of fictitious debt SHOULD result in obvious actions and results in court, legislatures and the executive branch for law enforcement.

The inescapable fact that our recession was caused by this fraud doesn’t seem to matter either. What matters is not the victims of the fraud but the health of the perpetrators. Gulliver would have no trouble describing this, but our media seems not to have read of his travels and seems not to get or be willing to express the outrageous position we are sustaining by our inaction. We have a government within a government. The real government is the circle of mega banks and big business that call the shots and the fake government is the one we think we elected.

Any single act isolated from the millions of similar transactions would land the perpetrator in jail and return of the money and property to the victims. But somehow the sheer size of this PONZI scheme that is  hundreds of times larger than the Madoff scheme, puts it in a class by itself. There is only one explanation for the lack of prosecution of these banks and their officials — the people in charge are the perpetrators not the enforcers. We live in an era that mimics the days of the mob when organized crime was principally whiskey, drugs, sex and murder.

Organized crime is now mainstream and the godfathers are sitting in executive offices atop high billion dollar buildings giving out instructions to their paid servants to serve no other purpose than to give the appearance of a government that is governing. WHAT ARE YOU GOING TO DO ABOUT IT? Will you sit in your home or store afraid of the next visit from the bag man? Or will you take action and stop him any way we can?

Joe Raedle/Getty Images NY TIMES

Several big banks warned investors on Friday that they could face sizable financial penalties as a result of state and federal investigations into abusive mortgage practices.

The disclosures by Bank of America, Wells Fargo and Citigroup came after a furor late last year over how foreclosures were being conducted.

Until now, the banks have emphasized that the foreclosure controversy was mostly a threat to their reputation, rather than a financial worry. But the disclosures, made in the banks’ annual financial filings with the Securities and Exchange Commission, suggest that a settlement with the government may affect both.

State attorneys general and federal regulators began examining the servicers’ practices last fall after reports that some foreclosures were being pursued despite lost or missing documents. In other cases, employees had signed off on thousands of pages of paperwork a month, after only a cursory look.

In some cases, banks mistakenly pursued homeowners who should not have been threatened with foreclosure, while other mortgage holders reported it to be nearly impossible to reach anyone at the banks to discuss their situation.

The review also includes more basic practices, including scrutiny of whether the original loans were made properly and whether modifications of existing home loans have been done fairly.

“The current environment of heightened regulatory scrutiny has the potential to subject the corporation to inquiries or investigations that could significantly adversely affect its reputation,” Bank of America said in the filing.

The state and federal inquiries “could result in material fines, penalties, equitable remedies (including requiring default servicing or other process changes), or other enforcement actions, and result in significant legal costs,” Bank of America said.

Wells Fargo said in its filing that it was “likely that one or more of the government agencies will initiate some type of enforcement action,” including possible “civil money penalties.”

Citigroup acknowledged that federal and state regulators were investigating its foreclosure processes, which could result in increased expenses, fines and other legal remedies like a program to reduce the principal amount owed on some loans. While Citigroup has determined that “the integrity of its current foreclosure process is sound and there are no systemic issues,” it warned that it could be adversely affected by industrywide regulatory or judicial action.

Since last fall, a task force of federal bank regulators has been reviewing the foreclosure practices and internal controls of the 14 largest mortgage servicers. The examination has already identified a range of sloppy practices at all the servicers, including inadequate staffing, lax oversight of outside law firms and other vendors hired to assist with the foreclosure process, and errors with documentation.

In testimony before a Senate banking committee last week, John Walsh, the acting comptroller of the currency, which oversees national banks, said his agency and other federal regulators had ordered the servicers to take corrective actions.

The banks have not yet received any formal proposals from either the attorneys general or the regulators. But a proposed settlement is expected to be ironed out in the coming weeks and then presented to the banks.

The banks are eager to put the foreclosure controversy behind them. Earlier this month, Bank of America’s chief executive, Brian T. Moynihan, said the bank was creating a special unit to hold billions of dollars in defaulted mortgages and other toxic debt.

Despite reports in recent days that a global settlement of the mortgage accusations was being floated by the Obama administration, for $20 billion or more, some bank officials and regulators expressed skepticism Friday that the eventual hit to the banks will be that high.

Indeed, many regulators in Washington are wary of too punitive a settlement for fear of hobbling their recovery just as they are turning around. Memories of the financial crisis in the fall of 2008 and the subsequent federal bailout are still vivid.

Still, even if any settlement with regulators and the attorneys general does not run into the tens of billions, the financial consequences of the housing boom and subsequent bust will haunt the banks for years. Private investors are seeking to force financial institutions to buy back tens of billions of dollars’ worth of mortgages in default, arguing the original loans were made improperly.

Over the last year, the biggest banks have set aside several billion dollars each to cover potential claims stemming both from the foreclosure mess and lawsuits by private investors holding soured mortgages.

On Friday, Elijah E. Cummings, a Maryland Democrat who is a member of the House Committee on Oversight and Government Reform, requested information from 11 mortgage servicers and foreclosure specialists as part of a separate Congressional investigation. He also requested special reviews of servicer abuse claims, as well as the actions of law firms specializing in foreclosures. A hearing is scheduled for March 8 in Baltimore.

Ben Protess contributed reporting.

16 Responses

  1. How can you control what is printed and not printed . . ..where it best serves you . . . Really want to know what happened —-really.

  2. I still here and still standing —-
    keep it up – Thanks


  3. Bon Scott,
    Ahhh yes. The Famous Gigantic Zionist Monster Squid. Sometimes seen in pictures with its tenticles wrapped around the White House or planet Earth.

  4. right on Bon..[target that is]

  5. ha…what happened to the rest of my post??????

  6. we must find the alt to bloodshed & violence .
    That only feeds or reinforces the same energy [low frequency vibrations] that creates this type entity/monster/problem.

  7. To Bon Scott : Your post has captured and verbalised precisely what is , and will happen. Wish it was`nt so but your post. says it all.

  8. “Indeed, many regulators in Washington are wary of too punitive a settlement for fear of hobbling their recovery just as they are turning around. Memories of the financial crisis in the fall of 2008 and the subsequent federal bailout are still vivid”

    Too Big To Fail…..jeesh have we learned nothing.

  9. It won’t be that bad. Industrial paradise will arrive soon! Hang in there!

    What we have is like the blob our government helped build. It is no longer a “thing” that can be controlled by individual, or even group, or even national controls (even internationally, because this monster has oozed global, and all populations will soon be fighting it). It’s uncontrollable, to powered by greed and preliminary designs of over 10 years ago. A life of it’s own.

    How? This thing is now embedded like a multi-level “virus”, above the people from corporate controlled politicians, lawyers and judges, etc, the governmental dome of doom. Check out the tissue samples:

    1. In the political infrastructure by legislative means is the bone zone and supporting leeches,

    and then a second layer tendrils out from that to the corporate massagers and gear greasers, where legislatively, the steering wheel and self “inspection” units sit established, where

    2. This secondary “replication” to these “controllers” outside of the lower governmental realm, (where the DNA was laid “legally”) are the bowels and intestines which connect to the mass populous on one end (suck, suck, vacuum), and out the colon of Wall Street on the other (the magic disappearing act). Done, repeat as necessary.

    Why so dangerous?

    3. Add to this the total number of human brains involved, and the various matrices into which they are assembled (hundreds of agencies, businesses, institutions, collectives), overlapping in various dimensions through, over, and across this whole “invisible” predatory “organism” has now become a thinking acting body of it’s won.

    So what next? No human can stop this monster, it will feed itself, already top heavily protected to where that greed gut is digesting, upon the lower prey, which is already exemplified in the cannibalism and betrayal of the American middle class, reduced now to bone picking our remains. From here, it will unleash it’s various parasites, like realtors, lawyers, cops, collection agencies, local government blind stooges, fines, nit picking, hair splitting, and penny stretching, and the rest, to do what?

    Start picking the poor, teenagers, homeless and middle classes and others who are close enough from the upper classes, with all the miserly techniques of the past. Can’t afford a lawyer? They got that covered in advance, they know the math. Release the government zombies soon, tax microscopes, cutbacks, zoning infractions, legal predation with tickets and dui quotas, and you can probably think of another 1000 pathetic low down designs to continue this soulless spiral to collapse, blood sucking all the way.

    To this upper level beast though, it’s a mad claw survival, though it has stolen and has more than it could use in 1000 lifetimes, it will claw through the human carnage, fueled by bank and finance corporate greed and self-justification, orgasming over their blood money, cash stashes and account statements, through the blood and gristle of the quagmire it creates, which it is sinking into like quicksand and tar. The deeper it descends, the more horrific will be it’s clawing and digging to save itself, from a strange self-destruction, as it’s only cure, already locked in it’s sordid DNA. The American Dream turned Hypocrite Nightmare, try to stop it! LOL.

    Or not.

  10. What the majority don’t see is the small eroding occurring, little by little. Because there is no big impact, just little by little. Law here, law there, small tax increase here, another small on there. It used to be – oh, it’s a buck, but now it’s – oh it’s only 20 bucks. Just like 15 years ago, oh to be a millionaire, now that ain’t enough, it’s jeepers I need 20 million.

    they keep saying we need to simplifly the tax code, yet every year a new thing adds complexity. Now you have to think with your heathcare and paying taxes. Jeepers, what is that all about. I think these people are crazy.

  11. The government continues to create ‘offices’ to police privately held agencies and business, YET the government continues to delay start-up of almost everyone of these new endeavors due to a lack of funds…might that be because the VERY business’ we need to police have more money and power than the government does…Hence and because these business’ (many of which work hand-in-glove; I include many government entities in this scenario) KNOW this, therefore the fear of sanctions, accountability, fines, criminal counts etc, etc, etc are just fodder for the corporate board rooms.

    WHAT has become of America??? WHAT is America??? Certainly not a country run by the people for the people…it is a country run by a Select Few for a select few…most everyone including the Select Few want to live here and want to enjoy the short time they are here on earth, BUT the Select Few continue to make rules that benefit only them and hence the Majority of Americans, hard working as they might be…even those who before the financial break-down assumed they were secure financially must now acknowledge that they are just an after-thought of the Select Few…without the Select Few dispensing money toward small business growth the Majority have nothing…no jobs, no possessions. NOTHING. But the Select Few continue on their quest for EVERYTHING, buying up the damaged dreams and scattered remains of the Majority at flea market prices and when the time suits the Select Few they auction off those same goods to themselves, their co-conspirators or to a section of the Majority that is attempting to become a member of the Select Few. The Majority will struggle to maintain their dignity and spend the remainder of their years trying to assimilate what they did to deserve such disrespect.

    Unfortunately I don’t know what the answer is to all of the above…I mean the Majority could get angry, REALLY angry that they have been and continue to be taken advantage of but in the end I believe it is absurd to think that anything different will happen…WHY???? Because the Majority still wants to believe in the ‘system’…the Majority still want to believe that the people they elect are working FOR them, but they aren’t…the Majority still want to believe that the Judicial System is working for them…that corruption and fraud would be found criminal…but it isn’t for the Select Few…

    In the end, the Majority is forced to wait and see what the Select Few has in store for them…

    I can say this and know it is so, because on top of all that has already transpired lays another ‘hit’ poised to eliminate any remaining dignity to the Majority…the EASY political money is swiftly returning as a result of the Supreme Court’s blessing of anything-goes corporate donors in the Citizens United decision…you know…the new corporate money ‘slight-of-hand’ legitimized by the Supreme Court, voted in to kill off public financing for presidential elections. Sadly, it appears that America is a severely corrupt country run by “the Select Few – monied puppeteers and their trained lobbyists”, not a country run by the people for the people.

  12. Somebody needs to go to jail, and very big settlements against the banks need to be made. Make the banks pay for our crushing national debt. They helped to create it in the first place. What happened to riding the guilty out of town on a rail with tar and feathers? We are too wimpy. Good point made by the Dolans on CNN show: we, the people, keep voting the same bums into office. Remember the definition of insanity: Doing the same things over and over and expecting a different result.

  13. Any suggestions on who to write or call or protest to about this?

    What can we collectively and effectively do to counter this, and then, those of us who read this and take action, pass the information along.


  15. and Banks are public companies and are they not part of the Stock Market Ponzi, who makes the real money:

  16. The great Ponzi:

    you decide:

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