THE QUESTION NOBODY IS ASKING

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EDITOR’S ANALYSIS: WHAT IS THE EFFECT OF TRADING, BUYBACKS, RECONSTITUTED “TRUSTS” ON THE CLAIMS OF “OWNERSHIP” OF THE LOANS?”

Up in the clouds of finance and trading desks they are creating accounting entries indicating transfers of mortgage backed bonds. AIG announced it is “buying back” $17 billion worth of the worthless stuff. Industry insiders estimate that more than 50% of all Special Purpose Vehicles (SPV) have been “reconstituted” into new vehicles and sold again. And then you have “trading” as investors purchase and sell MBS speculating on their eventual value, which I contend is zero.

Meanwhile on the ground, 7 million foreclosure sales have been conducted at auctions at the behest of people and parties who claim they have the right to foreclose. The only way that could be true is if they are the lender or creditor or they have acquired the receivable without conditions or other provisions. But we all know that the trading activity, bailouts, insurance, credit default swaps, and other third party transactions either paid the obligation, or transferred it. In the case of AIG, who insured MBS values, and the contracts written for credit default swaps, they specifically waived the right to subrogation, so they obviously didn’t buy the MBS or the SPV, they simply paid the liability.

Yet in courts and non-judicial proceedings, “foreclosures” have been conducted as though they are real, even though the highest probability is that the claimant is not in the least related to the loan or the purchase of the loan, and the party for whom they claim the position as “agent” has long since been dissolved or has transferred its claims to interests in the loans.

Then, to top matters off, somebody, not necessarily the party that started or ordered the foreclosure, makes a “credit bid” at the foreclosure auction. This means that instead of paying cash for the house they use a piece of paper that says they are the creditor, when everyone knows that at the very least they are not and never were in the position of a creditor because they neither loaned any money nor purchased any receivables with actual money. They were appointed by unnamed authorities to start the foreclosures and “bid” on the property like mobsters order hits through intermediaries so they can’t be charged with murder.

The fact remains that the shell game on the ground, in the court system is merely a reflection of the shell game in the clouds where they are pretending that the MBS actually are backed by loans even though the borrower never agreed to the terms that the investor received when they advanced the money. It is also true that the investor never agreed to the terms of the loans that were funded or the manner in which they were executed, and that transfer of the loans, in any form, were never made.

So why are we pretending that we know who owns the loan and that the documents proffered are accurate representations of the funded loans? Why are we pretending that the credit bid is valid and why are we pretending that the claims of foul predatory lending, along with investors’ claims of predatory proprietary trading by investment houses are “irrelevant.” The answer can only be that when somebody is paid not to see something they don’t see it. When their job depends upon them being ignorant of the facts, then they know nothing. And that is why we have this huge market of predatory loans and predatory foreclosures by people who are knowingly committing fraud on the homeowners and investors — from the ground up to the sky.

For example: There were several “Maiden Lane” entities named for a small street dating back 200 years right off Wall Street. These were created during the bailouts and other chicanery to create the impression that the mega banks were in stable condition. These Maiden Lane Entities were said to own the mortgage-backed securities, which is to say, they were now in the position of the “lender” on loans that were funded to homeowners.

How they came to own those loans is a mystery because there is no document in any public record that effectuates the transfer but it has been widely announced, thus giving actual notice to anyone who is involved with those loans that any particular loan can and probable was the subject of some sort of transfer. None of these entities ever show in foreclosure proceedings, nor do you ever see AIG, the U.S. Treasury, or the investment houses, some of whom were stuck with MBS that had not quite made it to sale.

Now here is the kicker — The price, although not publicly disclosed yet, is 100 cents on the dollar — on securities of no value or if you want to twist things around, on securities of at best dubious value. Why would they do that, what assets are they buying, and what is the effect on foreclosures of loans held in those “portfolios”? DEFINE THE ASSET!!

LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

NY Times

A.I.G. Offers to Buy Back Securities for $15.7 Billion

By MICHAEL J. DE LA MERCED

9:12 a.m. | Updated with New York Fed statement

The American International Group offered on Thursday to pay $15.7 billion to buy back mortgage securities held in an investment fund set up as part of its huge government bailout.

The move is intended to further simplify what remains of the rescue package granted to A.I.G., the insurance company, before it begins selling off the government’s 92.1 percent stake in an offering that will probably be held in May.

Under the offer, outlined in a letter A.I.G. sent on Thursday, it would buy back securities held in an investment fund financed primarily by a loan from the Federal Reserve Bank of New York.

That vehicle, known as Maiden Lane II, originally held about $30 billion worth of securities, though its portfolio value now stands at $15.9 billion. Through principal and interest payments from the securities’ underlying mortgages, the balance of the New York Fed’s loan to the fund has fallen to $13.2 billion from $19.5 billion.

It was set up to buy securities that A.I.G. had acquired through a subsidiary that lends stocks owned by the insurer to other investors for purposes like short-selling. While stock-lending businesses normally invest in safe instruments like Treasury securities, A.I.G.’s unit invested in higher-yielding mortgage-backed securities — which soured as the housing market collapsed, costing A.I.G. money.

To pay for the transaction, A.I.G. will draw upon cash held in its insurance subsidiaries, which would then hold the securities and profit from the coupons they pay out. The company said it believed that the securities would actually generate more income than the low-yield investments those subsidiaries hold, said a person with direct knowledge of the matter who spoke on condition of anonymity because he was not authorized to speak publicly on the matter.

A.I.G. is offering to buy the securities at an average of 50 cents on the dollar, this person added.

A.I.G. consulted credit ratings agencies to ensure that taking on the securities would not substantially affect its debt ratings, the letter said. In the letter, A.I.G.’s chief executive, Robert H. Benmosche, said the New York Federal Reserve would reap a $1.5 billion profit on the loan it made to Maiden Lane II.

Jeffrey Smith, a spokesman for the New York Fed, declined to comment.

Update: The Federal Reserve Bank of New York said in a statement:

The Federal Reserve has received a formal offer from AIG to purchase the assets in Maiden Lane II, LLC (MLII). The Fed has been aware of AIG’s interest in those assets for some time. Any decision on a possible disposition of these assets will be made in a way that maximizes the proceeds to the taxpayer and that is consistent with the goal of fostering financial stability.

19 Responses

  1. The AIG Bailout worked once so why not twice? Consumer pay for the bailout.

  2. Everytime they refinance they sell credit enhancement and insurance policies.

    About paying 100 cents on the dollar of an asset worth nothing? My professor in school drilled us:

    Stupid people sign stupid contracts all the time.

  3. The ‘Assets’ are the insurance payments.

  4. We are witnessing the end of something and the beginning of something else and it will be up to us, the People, to determine what ends and what begins.

    Those sitting in power want and end to our democratic way of life and the fullfilment of their long running scheme to take complete control of, not only this nation, but most of the worlds nations.

    Just think on that statement but I will stick with our great nation for now.

    What we want is what was won by blood and sacrifice when this nation took its independence from England so long ago. Life, Liberty and the Pusuit of Hapiness, without interferrence from and intrusive federal government who has no powers except for those cedded to it by the People and our Constitution.

    What must end here and now is the corrruption of our federalist system, by any means neccessary, and the restoration of our constitutional rights of government of the People, by the People and, for the People.

    If history has anything to tell us, we are lossing this fight and what will end and what will begin is a foregone conclusion.

    We must not let it be so. What must end is the tyranny, greed, self serving and illegal form of government that now controls those 10 square miles of Washington D.C.

    And what must begin, anew, is a form of government that exists for those who put them in office, us, the People of this once great nation

    I have only written of the obvious and what must be done. I do not know how it will be done or even if it can be accomplished but what I do know for sure is that the people of the nation are catching on to the ways of Washington D.C.

    Do they really think that we can’t see how they are attempting to manipulate the system so that the end results are all in their favor. Whether you openly change the laws so that the Banks can take our property without legal title or you create these illegal schemes in order to have the people surrender title to their property unknowingly makes no difference, you are still committing fraud on the American People for the benefit of the pretender-lenders.

    God help us all if they manage to pull all of this off because at that point we are done as a free nation.

    Keep up the good fight and may every American remain in his castle free from tyranny.

  5. We can only conclude that this is a big shell game, smoke and mirrors, and that although the banks created this mess by trying to give everyone a loan and turning those loans into bonds, we are just supposed to go along for the ride. It is pretty amazing.

    – Steve Vondran, Arizona and California Foreclosure Defense and Bankruptcy Lawyer.

  6. “Daniel Mudd, the former CEO of Fannie Mae got a Wells notice from the SEC on Friday. I have been waiting years for this to happen. There is a good reason this action is so late in coming. This case could open the door for culpability of the Federal Government in the collapse of the US mortgage agencies.”

    http://www.zerohedge.com/article/oops-where-does-go

  7. Toward the end of Rick Perry’s state of the state address:

    “In this and other areas of overreach, we must be united in sending one clear and simple message to Washington: “Enough.”

    The differences between Texas values and Washington’s self-serving games have never been more stark than they are right now. The federal government’s efforts to accumulate more power, by bribing us with our own tax dollars are simply unacceptable.

    We must continue to call attention to the essential truth of the 10th Amendment and commit these 28 words to memory: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

    Our founders knew that a federal government powerful enough to run our lives would be powerful enough to rob us of our liberties. In this chamber, where so many great Texas leaders have served, we affirm the principle of state sovereignty, and proclaim without reservation that Texans can run Texas better than bureaucrats in Washington DC.

    Where Washington encroaches upon the rights of states, this state will push back with resolve and the full force of the law. In that regard, we are blessed to have a leader with the wisdom and courage of Attorney General Greg Abbott, who is using every resource at his disposal and working with Texas lawmakers to protect the best interests of our state.

    Some will say we’re just spoiling for a fight, and I’ll admit that Texans rarely walk away from a tussle, but we’ll also never walk away from our freedom. Our state was built on that that freedom and its unlimited opportunity.”

    Other state’s state of the state addresses are linked at the bottom of the article.

    Go states! It’s time the people take back what’s their! Legal definition of the word ‘state’ in Blacks’ Law 5th edition, is ‘The people’.

    latimesblogs.latimes.com/washington/2011/02/governor-rick-perry-texas-state-of-the-state.html

    Light and Love,
    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, whole blood, in jure divino, in jure proprio

  8. Head’s up…that word modification is here again.

    http://www.huffingtonpost.com/2011/03/11/gop-sights-homeowners-elizabeth-warren_n_834612.html

    If the 50 state attorney generals force modifications as part of the settlement, then that absolves the banker from proving they have a ‘right to modify’.

    But it gives them a non-judicial avenue to get a clear title to the property.

    “State and federal officials are considering a large-scale settlement with the largest banks that could include penalties totaling up to $30 billion and requirements to modify distressed mortgages, people involved in the discussions said.”

    “A settlement agreement and requirements to modify troubled mortgages could help calm the roiling housing market, officials said.”

    I am pleased with earlier comments that state:

    “So do state attorneys general, many of them Republicans, who serve as their states’ top law enforcement officials and view improper foreclosure practices as violations of state law.?”

    Catch-22 part of the settlement, in my opinion, as I know nothing.

    If the bank forecloses without a right to do so, they violate state law, but if they modify the loan, they can file paperwork to secure their interest in the home and if they foreclose after that, they aren’t violating state law.

    The homeowner will have to exercise due diligence in how they want to manage the situation after a settlement says they can modify the mortgages of those paying them, now, even if they don;t have the note.

    I was not one who paid a pretender and hit hard times; could not pay and said show me the note.

    I was one paying and abandoned by who I was paying “in trust”; and approached by a pretender who attached to two of three credit reports and said pay me or I’ll take your home. All I asked for was an assignment and proof that they would uphold the same agreement as the one who abandoned me and give me my title back when I finished payment. Yet, I was robbed. The law stepped in late, but as long as they stepped in, I’m good.

    No one expected anyone to investigate, and to be honest I expected this to be investigated and charged on a Federal level, and that didn’t happen. Country wide, there’s millions of thefts, and not a single Federal agency stepped up and Con-gress did not demand anything.

    The state which used to be separate from the Federal is taking care of it’s own.

    Rick Perry did a great state of the state speech, in Texas, Utah is taking control of their finances and deciding currency issues for gold and silver standard, I’m so proud of them too, Wisconsin is removing the collective bargaining agreement and I don’t know what to make of that. I always thought that the unions ended up with the most money paid by the employer into the union for certain priviliges the employee could get from the union, and employees paid fees to be in the union to get the privileges. It seems to me with my ‘lack of understanding’ that unions got a lot of money, but employees got paid well and had good benefits, but if the ‘middle man’ was removed, couldn’t more money trickle down to the employee and they get more salary, and couldn’t the business save money if they gave the privileges to the employee instead of suffering strikes and losing business and revenue? I don’t know what to make of it, but I believe there was some abuse and waste in that system that the employees didn’t know and were willing to deal with for the feeling of ‘safety’ of the job.

    I work for a non-union company and I believe in my heart as bad as this seems, there is something good that we don’t know from this. I believe something unseen, a shadow in the union, was removed by the action of the state of Wisconsin and the future will tell. But on the good side, all the employees are still employed, whereas before some would have lost their job with the union in place. (Hmm..thoughts to ponder)

  9. Now this is interesting. We’re all familiar with In re
    Vargas, where the CA bk court ruled Mers can’t get
    relief from stay because it’s nobody. After arguing its case for 3 if not 4 years that MERS should be able to foreclose because it was the nominee for Deutsche Bank N.A. as alleged trustee of XYZ trust, they announced that the note was actually held by a company called RBS Financial Products, Inc. and was not in that trust at all.
    This should rest my case that MERS alleged records in it computer software system, entries which are made entirely on a volunteer basis by its members, are errant and wholey unreliable.
    Even if you got MERS’ alleged computer software system records in discovery, there is and can be no
    evidence these computer records are accurate.

  10. trespass unwanted

    Always positive. Truth & Light
    Love weakens. We win, they loose !

  11. once again, a few foreclosure lawyers bite the dust, a couple mortgage bankers are jailed, the feds look the other way because there are juicier jobs waiting with the enemy. So why go after fraud, if it is not me losing my home?

    why worry if some hispanic, or african american, o white or indian,family loses their
    home, if after all we are all dead beats according to their definition.

    They believe that to protect capitalism is a must, and if that requires for the feds, our state regulators and AG’S to bend over and have all of us take it for the sake of their future elections, jobz prospects and accounts in tge Cayman islands, then we Americans need to accept that we were born in a spineless society ruled by thieves, and felons.

    Shall we pray for the all maighty to bless America?

    will he listen to us?

  12. I believe the address in Manhattan for Goldman Sachs is 180 Maiden Lane.

  13. […] THE QUESTION NOBODY IS ASKING […]

  14. In March 2008, Maiden Lane LLC was created by Uncle Sam. While they were in bed with JP Morgan Chase to buy up all the garbage from Bear Stearns and save our ecomomy, JP agreed to buy only the “Performing” assets of Bear at $2 share. Later JP under pressure from shareholders paid $10 share.. JP paid $1.2 billion for Bear and Uncle Sam $30 billion the balance of toxic debt. Enter Maiden Lane LLC. The government now held all of the toxic non-perfoming assets of Bear in Maiden Lane, while JP aquired Bear’s other performing assets. EMC Mortgage Corporation for one. Funny thing, go to Maiden Lane LLC and you not only find garbage from Bear, but garbage from JP Morgan Chase’s toxic portfolio’s too! Compliments U.S Taxpayers. Dimon, you’re one smart S.O.B.!!

  15. US Bank is the Trustee for Maiden Lane II…it will be business as usual in court.
    The Government is the one concurrently Foreclosing on homeowners during HAMP consideration. They take the credit bid in whatever name they forclosed in THEN the property gets deeded to Fannie Mae…these deeds have TAX EXEMPT stamped on them in Ohio. I have seen them with my own eyes.
    The Government is completley Corrupt and complicit in this FRAUD. And THEY are screwing our counties out of Tax$$$…

  16. I know nothing and if I think I know something, I know nothing. I do not give legal advice because I don’t know legal things.

    I said last year, GAME OVER!

    What we are seeing is the shutting down of the game.
    We may not like how they shut it down, but it’s shutting down. The real, live, alive, life, people who are the energy behind everything created are winning and have won.

    We just need to let them shut down the game and all the pieces go back into the box.

    100 cents on the dollar is great if that’s how they are going to satisfy me for how my home and equity was stolen from me.

    I’ve seen settlements where someone loses $3000 and they get a $30 check after someone divides it up among the claimants.

    This is GREAT News…and anyone who doesn’t see it as that, it’s okay, I’m okay with someone dissenting to my joy. (Notice I claim the feelings as mine).

    GAME OVER! Greed is one of the 7 deadly sins and no sin can prevail over Light and Love.

    My home sits empty, the roof is 11 years old now, it’s showing signs of needing repair and I’m not there to fix it. My home had my life energy in it and my home was happy, my trees were happy, my butterfly bush in the front yard was happy and my lawn was happy.

    Now that I’m not there and my life force is not there, everything about my property is sad, and unhappy.

    The former neighbors notice.

    A fiction stole the life out of more than the real people behind the fiction realize. Artificial intelligence will never take the place of active consciousness.

    I’m excited. I see the unraveling. Anyone want a clue how good or bad the ride can be, watch the Disney movie Wall-E.

    It’s truth surrounded by distortion, via animation, but if you know/knew the real underlying deception, you can see that the captain in trying to take control of the vessel and the auto-pilot doesn’t want to give back control; since it’s had it for so long, and the people who had no clue there was another world out there and didn’t interact with each other because they were so self absorbed in their own world, and were born into their situation and never knew there was a ‘before’ – to that situation; had got jostled around and tossed around and some likely injured, but in the end, the people won and were rewarded with something they’d never known existed and never saw before in their entire life!

    Why did all this happen? Because “Life” returned to the planet Earth, and the people could go home, that’s why. NO more fictions running the game, a real live, corporeal captain could take over the ship and steer them home.

    I LOVE EVERYONE!
    These are great times, these are turbulent times. Stay in the language of love, fear is a low density vibration and will make things much worse. Avoid things that make you fear, if it gets a hold of you, Love is the key. I know. I’ve used it in the darkest places, and I don’t want to talk about those places, but Love is freaking powerful and I never knew until I made a conscious decision to do it, and I would be stunned but I’m the one who walked the mile in my own shoes. It would be a miracle, but everyone can do it and if everyone can do it, can it be called miraculous.

    Of course, everyone can make their own decisions, and there is the God man and LORD God man both walking this planet, so the Genesis 1 man has the capacity to Love, and if you ever need it, use it. The LORD God man doesn’t understand it, so they don’t know how to use it, but Love weakens.

    Forgive them, they do not know what they do, but they have lost, and I’m soooo happy.

    Light and Love,
    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, whole blood, in jure divino, in jure proprio

  17. This is an out and out scam on the American citizen and will continue until we make them stop.

    And put them under the jail.

    Hope you don’t mind if I quote this at my place.

    S

  18. How much more crooked can our government be? This is sick and wrong and so full of fraud. Our government is as corrupt as they come. Do we have any chance for justice. I’m starting to HATE and that my friend is a horrible place to be. Hate drives the bad in people. We all have our limits. When are any of these corrupt pigs going to be slaughtered? They are deplorable and no one cares. What in the F is really going on. Does our government really want everyone homeless? Do they want all independant small businesses to fail? Why is that? Why would our government continue to slaughter and rape and no one cares except a few honest people who are so aggravated? This is sick and this is wrong and no one ever goes to jail. What’s the point of being an honest person with moral?? We don’t have a shot in hell with that approach…and where does that leave us? So angry and bitter and hateful. That leads to nothing good. That’s all I know for sure right now. This is sick and wrong and jail time needs to be in order. Debi

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