$16 TRILLION: The Fed’s Dirty Big Secret


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First my compliments to those who anticipated what I am writing about. They asked the same question of themselves that I did — where is all that money and what kind of transactions created that size of bailout? The answer, as I am sure many of you realize already is that the Federal Reserve accepted paper — funny money — from the banks in exchange for US dollars without strings or guarantees or even warranties.

Thus, the story goes, the Federal Reserve is the actual holder and owner of most of the mortgages in America. Maybe, maybe not. What the Federal Reserve really accepted was strictly derivative securities and exotic hedge products that were the equivalent of owning the derivatives (bogus mortgage bonds). SO the Federal Reserve has moved into the place of Banks who owned those securities, except that they didn’t own them for the most part. Once the Banks realized the Fed window was that far open they figured they could slip in almost anything, and they did.

The Mortgage Bonds were supposedly “backed” by obligations of millions of homeowners and a lien on their property. But we all know how that is turning out — the liens were unperfected and the obligations seem to have multiplied once the Fed became a buyer. So did the FED move into the position of investors? Apparently not, since the investors are screaming that they lost trillions. So the money for the bailout did not go to investors who had purchased those bonds and those investors apparently never signed anything selling the bonds to the Federal Reserve.

OK wait a minute. The FED was accepting mortgage bonds that were being printed as fast as possible while the window stayed open while the investors were left stiffed — hung out to dry. The Banks screwed the investors, then screwed the FED for even more money than the investors. Now they are screwing the  homeowners claiming they are still owed money on a loss they never had, because they used investor money to fund the loans. The homeowners being taxpayers and citizens of this fine country are thus paying for the screwing.

I was down in the pits once upon a time on Wall Street and the language gets pretty salty. But this really puts a new meaning on the words “Go Screw Yourself!”

In summary, the Banks were at all times mere conduits but have pretended to be investors, pretended to be insurers, and pretended to be lenders. And now they are pretending to be landowners evicting hapless homeowners who have no conception how evil and convoluted the system became. They were none of those things and that fact is so hard to imagine as true that most people still can’t wrap their brains around it. That left the investors with no mortgage bonds that ever had any value — bonds that were sold by the investment banks without owning them (which the Federal reserve gladly accepted) and THAT leaves the Federal Reserve holding a hologram of an empty paper bag.

But wait there’s more! This is like an infomercial. Since you the public bought these crazy worthless bonds twice (once by letting your pension funds buy them and once by letting your Federal reserve buy them) you get to give us a whole new round of worthless paper which we stick back to you when the time comes for you to sell your homes. We’ll call them mortgages even though the lender was nowhere in sight and the real deal was the issuance of the bogus mortgage bonds in the first place. We’ll foreclose on property saying we are the holder of the note and that should get us rounding home plate unless a Judge is really wide awake. THEN after we have taken all the property we’ll sell it back to you and force you into financing that you can’t pay for and the property isn’t worth, just so we can start the whole process all over again. THERE! Don’t you feel better now?

That’s right. In the final analysis the money all went to the Banks. The Federal reserve has nothing but embarrassment. And the reason why the economy is starving for commerce is that the Banks are holding us all hostage claiming that if we do anything to them they will destroy everything. Here is the bulletin: Everything is already destroyed. Bring it on.

75 Responses

  1. I visited many websites however the audio feature for audio songs present at this website is truly excellent.

  2. FBI (Michael Doyle) on U.S. agenda against 99.9%: “Steal oil and maintain U.S. dollar as the world’s reserve currency”

  3. Gaddafication of Banksters is a better cure: http://www.youtube.com/watch?v=EEmt5Uo_MFM&feature=related

  4. U.S. DEA backs Wachovia Drug Running by letting them operate:

  5. Bailouts Treason cure is UPSIDE-DOWN EXECUTIONS: http://www.youtube.com/watch?v=MoT_5Txwp5w

  6. NOP… The big NON-SECRET is hundreds of trillions:

  7. otm – that was a lot of work you did. thanks

  8. there you go Carie……..m soliman……….

    you have got to get off your double speak and using “their” terms and speak terms or convert it for just the layman………..jesus christ already, or LEAVE.

  9. Has anyone here beside me noticed that aurora loan services is now
    sending out stuff as aurora bank, fsb, which heretofore was a parent company of als? I heard that ALS filed bk, but haven’t been able to find any info. Anyone?

  10. wth? MERS, inc., merscorp, or probably like that formed a new Delaware
    corp on September 22, 2011 called “Merscorp Holdings, Inc.”. What?
    They need a new place to ditch all the funds they’ve gotten for their
    crafting and continued participation in the biggest scam on earth?

    There’s a doc going around which purports to be a name change of
    MERS, Inc in 2003 with an effective date of 1/1/99 to MERScorp, but I suspect its authenticity. fwiw. I’m only a little knowledgeable, so someone who knows a lot more about that stuff needs to look into all of it.
    Course, if it were legit, it would certainly be’ problematic’ for them.
    The MERS, Inc. that we’ve all come to know and love is the 3rd iteration of MERS, I’m told. The orig one was from l995. Here’s a stock def of a holding company:

    A holding company is a company or firm that owns other companies’ outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the US, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.


  11. The clean out the park deal isn’t going to end well. Bloomberg’s gotta be the knucklehead behind that plan. There are too many folks that see this as a power struggle between those that have and those that have been screwed….It has the makings of Tiananmen Square.

    The wide sentiment is decidedly against Bloomberg and crew when it comes to the right of assembly and speech, and yes, it’s private property….but TPTB are obviously exercising their absolute power here. This is going to be interesting to say the least.Power to the people.

  12. So the mayor is evicting occupywallstreet from the park tomorrow?

  13. Oh! How nice of you!

  14. Carie, why do you think I suggested you carry the banner? I was going to watch your back. 🙁

  15. E.Tolle—don’t they whack people who come forward with incriminating evidence?

  16. Thank you, MSoliman…I appreciate your insight—although hard for layperson (me), to follow your technical language most of the time…but I’m trying….and by the way, I know for a FACT that ANON is NOT this Dan person you speak of…definitely not.

  17. Mezzanine financing is structured either as debt (typically an unsecured and subordinated note) or preferred stock. Of course our friends use it as equity.

    The registration or contribution of additional paid in capital is no less a subordinated as are all Trust preferred equity instruments.

    The TruPref securities represent attachable claims on assets which is senior only to that of the common shares. What is Anomalous talking about –
    Mezzanine capital is by far more expensive financing , damn near prohibitive than secured debt or senior debt. But its still cheap equity .

    The higher cost of capital associated with mezzanine financing is due to it being an unsecured, junior obligation on a company’s balances sheet that drops into the investors Paid in Capital .

  18. Carrie ;

    “What can we do to expose the fraud that ANONYMOUS so eloquently writes about?

    Ask him for an anonymous resume
    Ask him for the key to filing anonymous tax returns
    Ask him to run for office on an anonymous campaign platform
    Ask Dan to steal Soliman’s work and do it under anonymous.

    That way Carrie can attack him.

    Why wont this site learn it doesn’t need t manipulate the public?


  19. Take me now Lord – Take me now!

    Hey Gomer – I think he is starting to get it!

    Assets move off balance sheet – there is no bankster.

    1. ABA wires coming out of the NY Fed instead of the lender sourcing the loan.
    2. BofA and Wells Fargo replaces the Banking over the counter borrowing requirements under President Chaney and White house press secretary George Bush.
    3. FDIC is brought under the Fed by Chaney Administration.

    Foreclosure madness is why the Iraqi reporter threw his shoes at Bush while yelling Why … Why you do dat ! Why ?

    Feds motivation is to take a warehouse line and instantly convert it to a five year Bond. European community love five year bonds where the origination wire is coming from the fed. That is the alternative to the GSE hidden by MERS Corp. What kills the scheme is when demand in the market subsides. A robust market is a strong housing demand. A synthetic Robust condition relies on the old Quality Home Loans motto made famous by its Chairman ….
    “A mooch is a mooch is always a mooch …offer them whatever it takes to get them to sign damn it – Just get them to sign .

    Explain this one grasshopper as you try to snatch the pebbles from my hands….

    A loyal LL contributor engages my services as expert for declaration in opposition to a creditors motion for relief of stay.

    After a review I share with him what’s up with his file. He is not able to decipher what I am telling him which is okay . He has the class to move on without this Ripp off non-sense.

    I think of this client often and what will become of his case. But maybe you can all help out here.

    Of everything he writes and of all the advice he receives – no one including himself seem to see the substantive argument for predatory acts by a regulated lender The case conclusively draws attention to flawed acceptance, in-affordability by perpetrating an unconscionable act; a clear and indubitable example of a willful construct of fraud that falls inside of a bonefide inducement


    Borrower receives a mortgage loan from Citigroup. Citi takes for ever to give the borrower a Freddie Mac mortgage loan. This is common where the Citi underwriter approves the loan immediately while a GSE underwriter must sign off prior to funding.

    Borrower receives something along the lines of a 62% loan to value mortgage . He is told he can afford under the GSE guidelines. GSE guidelines are what these indentures have allegedly underwritten to for qualifying purposes.

    So after not three months , nor occurrences of three consecutive CSI programming, and not not three weeks time —- but after three days the lender is back offering a second mortgage.

    The HELOC was for $250,000 or something around the 100 CLTV amount .

    What is up here as Fannie and Freddie DO NOT ALLOW SUBORDINATE FINANCING FOR THE FIRST 12 MONTHS.

    John Mitchell was not above the law and the US attorney general went to prison . What is Bernanke doing here and how is he getting away with this? Remember the movie “Too Big to Fail”

    Bernanke tells the Koreans , as the scandal is breaking – – -Take the houses.

    What did he mean?


  20. So carie, to be specific on another possible avenue, make a simple (if that’s possible considering the subject matter) posterboard and go to see one of your reps who is on a committee with pull. Explain how vital your stuff is. The rest is history. Carie brings down the entire sec industry. I’d do it buy I’m too busy occupying and marching my buns off.

    Chant with me….

    The banks got bailed out
    The people got tossed out
    repeat verse

  21. Carie, the only way that I can see exposing this travesty would be to implore Adam Levitin or Yves Smith to do it somehow. A write in campaign begging them? They’re the only two that come to mind that have the expertise and the name recognition to pull it off as far as getting it across to Congress, IMO. Not to disregard Anonymous, since I believe she nixed the idea of her outing this stuff.

    Nomi Prins has the skillset, but I’d imagine she’s pissed off too may conservatives to be allowed to speak without being literally shackled in leg irons by the GOP. Bill Black, Randy Wray, or Michael Hudson would all be perfect for the job if, once again, Congress would go for it. My belief is that they’ve been too honest about the goings on to be allowed back in DC for a speech. Of course Neil G. is pedigreed, no doubt. Would he/could he do it somehow?

    There are so many political traps to getting anyone heard by legislators. It’s not like there’s such a thing as representation of the people in DC anymore. Not since corporations became us.

    Then what would Congress do with it? Only by being threatened with removing their hard earned (whored) graft would anything get done. Get the money out, right?

  22. Beyond marching—what can we do to expose the fraud that ANONYMOUS so eloquently writes about? And how to make it understandable to the average person? And to get it in the mass media? To pull back the curtain—and show the whole truth—that is what needs to be done—or we will NEVER go forward…

  23. How much more of this bullshit are you willing to stand for? Is it time for a change yet? How’s about a paradigm shift to a world that doesn’t place such incredibly high values on greed and dishonesty? And bullshit artists like Donovan….this is from yesterday:

    “Because we provided responsible families opportunities to stay in their homes, more than 5.1 million modification arrangements have been started in the last two-and-a-half years,” Secretary of Housing and Urban Development Shaun Donovan told the Mortgage Bankers Association on Tuesday. “That’s more than double the number of families who’ve lost their homes during that time.”

    Let’s take a look at this paragraph. First off, what exactly is a responsible family? The NBC Nightly news this evening showed a man and wife crying because they had to ask their son for help paying their bills. These were your typical middle age, middle class (once) “responsible” looking people. What, one might ask, besides double-speak, is the “opportunity” he’s referring to?

    What I would charge is that what Donovan and crew have done is simply allow the banks to go through and cherry pick the highest earners (out of the many millions of unemployed) with the most equity to REFINANCE, not modify their loans. What else do you call a process whereby the borrower has to qualify, and the term is reset to 30 or more years? That’s called a LOAN! Not a modification. And it conveniently erases any trace of the criminality with the original loans. How convenient for the banks!

    Second, I guess Donovan’s hoping no one will call him on that little deal where he claims 5.1 million modifications have been STARTED, NOT completed. Try explaining to a possible new employer in a job interview why there’s really no reason to go into whether or not you simply started college, or actually finished and got a degree. It’s not really that important is it? Only the difference with starting and getting a meaningful modification would mean the difference of having a roof over your heard going into winter, or staring at the stars from your mattress on the curb at -20*. Starting out to use a condom instead of actually following through with it will get you called mommy and daddy real quick! Or, “We’ll be heading into a little turbulence up ahead, fasten your seatbelts. I sure wish I had finished pilot training.”

    Third, are they really proud of the fact that according to the stats they’re bragging on here, 2,550,000 homes have been foreclosed in 2 ½ years? And going by the US Census Bureau’s statistics, there are 2.60 people per household, which means that 6,630,000 people have been tossed to the street on their watch in just the last 2 ½ years. Now there’s a presidential accomplishment to be proud of!

    Obama and Donovan are a blight on humanity. It’s time to disregard their word that they’re going to do anything whatsoever worthwhile in the foreclosure realm. It’s not only time to kick these bums out, it’s time to dismantle a system that is so defective, so shambled as to serve millions of homes up on platters to bankers, the very same people who caused the entire problem to begin with. Would you please get out and march on a bank in your town, NOW? It’s the right thing to do.

  24. @Enraged—Believe me—I’ve already been very specific. As in my documented emails to the “default escalations specialist” at IndyMac wherein I said:
    “Why would I send you anymore “trial plan” payments if you can’t even show me a ledger with conveyance of my payments to a “loan” in some “trust”? Or even proof that this “trust” even exists? And why are my loan numbers completely different—on my original docs and now the “servicer” docs—two completely different numbers? And why does the spokesman for Deutsche Bank say they have absolutely no beneficial interest in any of the loans?”

    Answer from them: No answers.

  25. @enraged – I hear you. Obama talks out of both sides of his face, unfortunately. But anyone still litigating, you might remind your judge of your right to due process and that includes evidence of whether or not your
    bankster is a hidc or just a holder. You might not have to tip your hand as to whether or not you would assert affirmative defenses (you can find these with any search), but that is strategy which is best carried out by a competent attorney, which is a drag if you don’t have one, in which case make the argument the best you can. That’s what I’d do. I’m just saying it’s my lay opinion that determining whether or not a bankster is a hdic may provide legitimate grounds for discovery, altho one still has to be prepared to fight the highly-overused, lying, corrupt bs declarations, but there’s case law on that, too.

  26. Thanks cubed2k,

    You did post the first video,


  27. @carie,,,,,,,,,,,,,,,

    “They really made it complicated, didn’t they? All part of the master plan…scumbags…”

    YOU GOT IT…………..the more complicated, the more vias,,,,,,,,,,,,,,the better……………


    vi·a (v, v)
    1. By way of: went to Pittsburgh via Philadelphia.
    2. By means of: sent the letter via airmail.

    vias……………..this law, that code, this law, that reason, this case law…………all vias,,,,,,,,,,,,,,,but no truth,,,,,,,,,,,,,who owes who……….paper trails get all complicated so nobody knows who owes who,,,,,,,,,,,,but,,,,,,,,,,,,the bottom line is you haven’t paid……….but who is the holder in due course???????

    but vias complicates it…………..

  28. cubed2k,

    Thank you very much, but the most important one is the video that last over 10 minuntes. It shows at least 8 Recontrust employees signining the name of Courtney Bullard. Please watch it as well, I researched over 2000 recorded documents in 3 couties in Texas.

    Thank again cubed2k


  29. @otm

    got 3 of them posted for you.


  30. cubed2k and enraged

    I am very close to send to the joint the robo signers at Recontrust.
    Need your help posting here a video from youtube so more people will know. I just don’t know how to do it.
    Please go to youtube and type recontrust robo signers, there are 5 videos. If you know how, please post here the very first one I made.
    It would be nice if you can post my video along with the video posted today.
    Thank you.

  31. @ Carie,

    I think you are getting the hang of it: “Where did the money I paid to the servicer go?”, “How much of the principal has been paid so far?”, “When my mortgage payment was misapplied by my servicer’s negligent handling, why was I charged fees and where did they go? Why should I have to pay fees for my servicer’s negligence or sloppiness?”, “Why was I charged that $14.00 fee that doesn’t appear anywhere on the list of fees the servicer disclosed on the back of my statements? What was that “corporate” fee for?”, “Why was $400.00 of my payment placed into a “suspense” account and never applied toward my mortgage?”, etc.

    Then, you can become a little more specific: “When my mortgage was assigned from Wells to BofA, why wasn’t it recorded in my county?”, “Show me the payment from BofA to Wells for that assignment”, “Where is the satisfaction of mortgage?”, etc. And Carie, you never, ever ask a question for which you don’t already have the answer. That’s how the system works.

    In court, where we are all headed, we need to be very, very specific. So much so that the banks end up looking like they are trying to fog the issues and to sweep them under the rug. Up until now, it seems to be the only way to win and have banks dismiss their cases. By the way, I see that happening more and more: as soon as the homeowner becomes specific, the bank dismisses without prejudice to “regroup”. And in many states, once banks have dismissed twice, they either settle or they go all the way. Otherwise, that’s it for them and they can’t refile. So, the idea is to force them to “regroup” a few times until they give up or they get thrown out once and for all.

  32. @enraged,,,,,,,,,,,,

    no one man, Obama, can do it………………..he gets in office and finds out things aren’t what they seem………………..OMG…………………

    yes in deed, we need OWLS big time as E. Tolle states…………..now on KGO today in San Francisco they talk about move your money…………..fucking idiots, it has been happening for a few years now……………….

    I have told my neighbors to move out from banks and into local credit unions and do they do it…………..no…………….

    you better listen to and watch the videos I posted below,,,,,,,,,,,,,,and for real, for real the one on Ben Bernacki——————

    I mean really listen and watch those videos I posted……………….

  33. hey, as I posted below on the Ben Stiller video’s,,,,,,,,,,,

    since Chase bank is opening branches in Grocery stores,,,,,,,,,,,,,,,,go pay your bills with them in quarters……………….see if they will accept them?

    You don’t have to wait till the end of month to pay a bill, you can pay it anytime a little at a time, pay it with some quarters,,,,,,,,,,,,,and see what happens…………….

  34. @ Johngault,

    I voted for Obama. I’be regretted it eversince: you can’t govern by consensus in an economic crisis and, more importantly, you can’t promise “change” while surrounding yourself with the old guard…
    We got change for the same thing. Well, we got short-changed for that same thing we had…

    In any event, once of the things Obama said and which irked me to no end was that (and I summarize but it is the jest of it) he wouldn’t help those who “speculated” in real estate, the people who invested and bought real estate for commercial purpose. The problem is that, in his views or in the views of his advisers, those “speculators” made the largest part of the people being foreclosed on. I have yet to hear actual numbers coming out of Obama in terms of families thrown out on the streets, kids rendered homeless, etc. v. speculators having been foreclosed on. I would be interested to see them.

    That is one of my pet peeves.

    The other one is his handling of the “immigration reform”. In the last 30 years, no government has deported more illegals than his. And that, after having promised an amnesty and a subsequent (very much needed) immigration reform to those who had been here for a certain number of years and whose children were American born.

    Never in the past 30 years have so many American born kids been forced to lose one parent to deportation. The result? Thousands of kids now living in a one-parent home. How’s that for amnesty and reform?

    What I have seen up until now is much half-assed measures and absolutely no improvement anywhere.

    I don’t imagine it will be any different for what prosecution of bank CEO, dismantelement of MERS, or even taking any kind of a strong stand on anything is concerned. We’ve wasted 4 years… And for that, I am really, really pissed.

  35. media is not clueless…………..give me a break

  36. @anonymous

    you said

    “And, this is what protesters are protesting. Media clueless.”

    Give me a break. They are not clueless. They know exactly what they are trying to steer public opinion. And what is behind that…………….it is the banks and wall st and paid sponsers in our government……………and don’t forget it. As Bob Brinker says,,,,,,,,,,,,,,,,we have the best government that money can buy.

  37. @enraged

    I watch this you tube video you post and I repost it here…………….

    I wish to scream, there is blood shooting out of my eyes…………….fuck you Larry Kudlow…………………



    “Of course, if senior tranches are GONE — by swap protection bailout — there is never anything left for junior mezzanine tranches because the WHOLE structure has been dismantled — GONE – nothing left to pass-through to junior tranches.”

    If the investor report shows almost all of the lower tranches empty, no data, and there is a notation “trigger event” “senior credit support depletion date has occurred” is that what happened? What happens after even more loans default in the senior tranches (still showing loans just a whole lot less)?

    Does the whole tranche disappear “by swap protection bailout” or just some of the mortgages. Does “swap protection bailout” shut down a trust altogether? Do just the delinquent and defaulted mortgages swap out or even some paid on time but now deemed toxic – ALT A for instance or AAA now CCC for instance?

    Too many questions.

  39. Tell me Obama did not say what is said he said below (‘no one has been hurt, etc.’) Hey, Mr. Prez, ever heard of the holder in due course
    principles? See, it’s like this: There is a difference between a holder in due course and a mere ‘holder’ of a note. Anyone who got his paws
    (allegedly) on a note after the note was dishonored – in default – is not a holder in due course. Taking a note with notice of its dishonor is a bar to holder in due course status. A mere holder is subject to the borrower’s affirmative defenses to the note, (fraud, note already paid off, etc.) which are Not nothing, Mr. Prez, and the deprivation of those defenses is a deprivation of this thing we still call, at least some of us, due process. No one may be separated from his property without due process. Well, that’s still the law on the books, anyway, and up until the last few years, the right to due process was zealously upheld in this country.
    One has a a right to affirmative defenses when applicable. They are applicable when one or more of the defenses exists and the dork claiming rights of enforcement of our notes is a mere holder.
    So is the holder a hidc or a mere holder? We have an inalienable right to this information. It is a hell of a lot more important and relevant than “did you pay?”
    Like I said, tell me he didn’t really say that and confirm the same ignorance demonstrated by many ethereal perchers in black robes.

  40. Thank you, thank you, ANONYMOUS for your very insightful posts today!!!

    They really made it complicated, didn’t they? All part of the master plan…scumbags…

    As always, you are right on—and exactly why we need to do whatever it takes to get money out of politics: http://www.getmoneyout.com is a start!!!

  41. @enraged, as usual the bankster has cited no authority for its
    proposition the homeowner has no standing to argue about the bs
    MERS’ assignment (least as far as I know). Since banksters and MERS were exposed in Koontz v Everhome (BK – IND) for their self-serving, self-dealing, self-assignments in mers’ name, I’ve wondered what their next move would be. Rat-b’s. I’m going to follow that case – sure glad you posted it.
    Major grrrrrr……..MERS HAS TO GO.
    And fwiw, I can’t formulate the argument that they’re full of shyt this minute, but I will.

  42. http://www.huffingtonpost.com/2011/10/12/florida-attorney-general-pam-bondi-investigation_n_996541.html

    Florida AG Pam Bondi Pressured By Targets Of Investigations To Soften Approach, Critics Say


    Among some of those who have recently worked in the state attorney general’s office, such complaints seemed only to confirm the ways of the institution as they knew it — one vulnerable to the influence of politically-connected outsiders.

    “They don’t want to be aggressive toward corporations,” said a former assistant state attorney general who asked not to be named because of concerns about his current job. “If they were as aggressive as they could be, or wanted to be, they would double the size of the economic crimes division,” he added, noting that the division is funded by recoveries from its cases.

    The office seems to be guided by an attitude of “don’t push too much,” this former employee said.

    Spark, the former assistant attorney general who penned the critical memo, worked in the Tampa bureau. He said the office suffered from what he termed “litigation-phobia,” describing several cases in which top-ranking officials pushed for what he viewed as premature resolutions, before a full investigation could take place.

  43. @Enraged—I understand what you are saying—but fake assignments, fake substitution of trustees, and fake whatever else doesn’t even matter—what matters is there is no ledger or balance sheet showing that our monthly payments to a servicer is and has been going to an actual “mortgage”…which was actually “funded”. Isn’t all the fake paperwork just “hearsay”— or whatever you call it, if that essential PROOF, etc., cannot be presented? Or the fact that the trust was always empty? Isn’t anyone asking for this discovery in court?
    I suppose they will figure out a way to make that up, too…fraud begets more fraud begets more fraud. Disgusting.

  44. Thanks ANONYMOUS

    Just read your post. You answered some things I really was wondering about.

  45. Obama admin backing up the settlement and pressuring the ags…”.moral hazard” and “victimless crime” (robo signing and fraud paper never hurt a homeowner paying on time and never hurt a homeonwer who isn’t paying either)…
    How about prove that the true creditor who purchased a secured interest in the real property (identify him) hasn’t been paid in full? What is so hard for anyone to get about that? Probably easy to do. Can anyone enforce the discovery of that? Paid in full is paid in full. No more due. No more foreclosures. Send back the money and the houses that went to theives. Where does the law say we have to pay thieves who get rich and thieve some more?

  46. joann,

    Subordination — as in securitization — refers to “junior” tranches subordinated by senior tranches. That is, junior tranches do not receive any pass-through of current cash flow payments until senior tranches have been paid in full. Of course, if senior tranches are GONE — by swap protection bailout — there is never anything left for junior mezzanine tranches because the WHOLE structure has been dismantled — GONE – nothing left to pass-through to junior tranches.
    Nevertheless, these lower tranche holders (including residual tranche holder) also preserved their right by separate default swaps — the right to “SWAP-OUT” collection rights — for pennies on the dollar.

    As loans become “non-performing” — they are removed from trust by “subordination” of all rights to bottom tranche holders — who also hold derivative swaps. All that functions for these bottom “feeders” are the swap derivative (collection right swap -out) — since cash flow is gone. Further, if no bottom tranche holders remain — the “residual” is “held” (not owned) by the “servicer” — who continues to service for residual derivative holders — who are not the same as trust security investors – and have their own derivative “support” holders. Servicer never divulges identity.

    Bottom line — all non-performing loans are removed from trust — but WITH transfer of the “original” security — as derivatives are not securities. The security, in effect, is not transferred — but, rather, dies. Collection rights are “swapped-out.” And, CDO investors — unless they also owned a derivative — lose “synthetic” “derived” cash-flow pass-through.

    A CDO is a security if directly derived from the original asset. But, most subprime CDOs and squared CDOs are “synthetic” securities — artificial securities — not directly derived from the underlying asset (in subprime — all that was there is collection rights — not mortgage- thus, all synthetic) — but, rather derived from the securities that were derived from certificates that were derived from underlying asset. These are not “contracts” but, rather, synthetic securities —for which security investors (artificial or not) were never the creditor. These “artificial” security investors were only entitled — like any other security investor — to current cash pass-through — they had no right to collection rights swapped out from trust (unless they also owned the swap derivative). CDOs — A derivative? Yes — but not a swap-out derivative.

    Once current cash pass-through gone — so is the security investment. CDO investors knew the “derived” risk — and took it. Most have been returned their investment — by one way or another – and then some – except they lost their current interest income rate investment.

    The only way to prove not owned by any trust — is by production of the cash ledgers maintained by servicers and trustees. If servicer did not advance payments to trustees on behalf of “default” loan borrower, trust and trustee is entitled to nothing. Ledgers are the key. Unilaterally, servicers cease advancing payments before 180 days. At that time — swap out of “collection rights” occurs. No security transferred — the security is dead.

    Government decided to let victims fall — no concern for fraud upon courts. No concern for fraud in “mortgage” origination, no concern for unidentified current “creditors”, no concern that homeowners have been denied right to directly confront their current creditor, no concern to divulge derivative swap holders, no concern that victims may not be heard in court, no concern that deregulation has prevented constitutional right to be heard.

    And, the fraudsters know they have government backing. Congress granted that right by The Gramm–Leach–Bliley Act (GLB), also known as the Financial Services Modernization Act of 1999, which was signed into law by President Bill Clinton and it repealed part of the Glass–Steagall Act of 1933. The Glass–Steagall Act prohibited any one institution from acting as any combination of an INVESTMENT bank, a COMMERCIAL bank, and an INSURANCE company. Congress said — “we do not care” — we repeal.

    Insurance, insurance, insurance — many avenues of fraud. And, why was this done??? Because Congress gave away US industrial manufacturing and needed to support the economy by SPENDING (and who went out to eat at restaurant franchise tonight??). Financial services provided that avenue. Fed. Res. further promoted by keeping interest rates low to provide a fertile ground for home equity extortion fraud — to keep consumption going — as that is all the US had left. Who influenced Congress to make these decisions??? CEO lobbyists — American HOMEOWNERS were their ticket to wealth.

    And, this is what protesters are protesting. Media clueless.

  47. There is something so unnaturally inhuman in those guys, one has to wonder why we should keep them alive…

  48. I don’t condone vandalism but I sure as hell understand why people wouldn’t leave their house to a bank in a condition good enough to be sold as is. One way or the other, the banks will have to pay until they agree that it is in everyone’s advantage to write down principals and keep owners in their homes.


  49. I have predicted that it would get nastier before it got better. Here is a prime example of what banks are now arguing in court. For Carie, Tony and all those people who seem to think that banks will go away on their own and that going on the attack is a mistake and an “admission” of some wrong doing on our part, I will reiterate what I said: banks will not back off. Anyone behind in his mortgage payment will end up in court one day or another. Gathering the evidence is one thing. Knowing which one to use and how is another.



    re your previous posts today thanks.


    What is is “Subordination % “?

    Looking at something – upper tranches have high percentage and lower tranches low to 0%

    Also is a CDO a derivative? Same thing?

    When a mortgage in an upper tranche gets “derived” does it leave the trust – no more listed as “owned” by the trust?

    Any way to find it somewhere using the cusip for example? In this example cusip still links to the trust.

    Can you prove it is no longer owned by the trust somehow?

    What does “senior credit support depletion date has occurred” mean?

  51. @john – also note the inclusion of “material” to modify fact in there. and look up your own state’s rule if you’re not in FL. that should mimic most jurisdictions, but some vary slightly and those variations can make a big difference.

  52. Check out the interview on talkshoe.com with Roger Tanner, he explains all about the federal reserve, etc. I also have all the documents to back up the interview. FBI report, case documents which I downloaded to my facebook page.

    Here is the link for the interview – http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=27398&cmd=tc

    Here is the link to my facebook page with all of the documents, just click the doc button on the right side – https://www.facebook.com/groups/130592910356000/

  53. Ann said:

    “Courts cannot grant summary judgment when there are issues of fact not responded to by the moving party….”

    That sounds so simplistic and logical, and yet, it HAS been overlooked and it’s personally helpful to me, so thanks.

  54. Tale of woe or joke of the day, take your pick:

    One of the MA SC Justices in the Eaton case (see Marie McDonnell’s website) asked Eaton’s attorney, and I quote:

    “How is foreclosure enforcement of a note?”


  55. http://www.2dca.org/opinions/Opinion_Pages/Opinion_Page_2011/October/October%2012,%202011/2D10-3685.pdf

    October 12th, 2011 | Author: Matthew D. Weidner, Esq.
    Not a foreclosure case, but the standard is the same!

    Courts cannot grant summary judgment when there are issues of fact not responded to by the moving party….

    When the nonmoving party has alleged affirmative defenses, the moving party must conclusively refute the factual bases for the defenses or establish that they are legally insufficient. Morroni v. Household Fin. Corp. III, 903 So. 2d 311, 312 (Fla. 2d DCA 2005). “The burden of proving the existence of genuine issues of material fact does not shift to the opposing party until the moving party has met its burden of proof.”
    Deutsch v. Global Fin. Servs., LLC, 976 So. 2d 680, 682 (Fla. 2d DCA 2008). As we have mentioned, GRE wholly failed to address the affirmative defenses in the affidavit filed in support of summary judgment. Without question, therefore, GRE did not carry
    its burden by factually refuting the defenses.

    2nd DCA

  56. Thanks, E.! Never could have done it without LivingLies and all the great info here!

  57. @ zurenarrh, Way to go zurenarrh…that’s fantastic! Really nice to hear these folks getting caught with their pants down. Now….in a sane world, they’d have to explain themselves as if their lives depended on it. Wrong explanation and it’s the pokie….

  58. Turns out the judge in my case IS wide awake! He ordered the Defendants to show cause why they are just now (more than two years after the case began) entering an endorsed Note into the record after swearing in two affidavits that an unendorsed Note was a “true and correct copy!” These affidavits were attached to the Defendants’ motion for summary judgment. Never give up! Make your pretender lender answer to the judge! I’m not out of the woods yet, but I did NOT expect this from the judge. When I read his order, I could not stop cackling with glee. There are no good options for the Defendants–either they were lying for two full years or they are lying now. WHICH IS IT? By the way, I am pro se.

  59. It seems that as the banks foreclose, they forward the title to fraudy mae and fraudy mac, which are under the federal housng finance agency, which is an agency independent of the federal government, but instructed in its 2008 enabling act to take its marching orders from the frauderal reserve bank. Question, when fannie and freddy borrow from the FED, do those title stand as collateral? Or maybe the titles will be vectored off to investors who received the 16 trillion, which could be amplified in fractional reserve banking, by 10x in the USA or 33x in europe. Maybe the FED might declare itself bankrupt, but the FHFA would sell titles to cronies who received the 16 trillion. Its a bit murky, but its clear that america’s mortgages are being stolen wholesale.

  60. All you folks who know to your core that you’ve been fucked by the banks with our government’s tacit approval, then fucked all over again by the very same banks only this time with our government paying for it through these various QE’s and such, who are still sitting on forums complaining about your lot in life….expect another good reaming, which believe me you will get very soon IF YOU DON”T LEAVE THE COMFORT OF YOUR HOME/OFFICE AND PROTEST THE VERY THINGS YOU WRITE ABOUT HERE!

    There’s simply no excuse for not taking a loud stance against these abuses. There are elderly and infirmed rolling along side me in wheel chairs with oxygen for Christs’ sake! Get a grip and get off your asses. Tell your government and these suits at the banks that you’re coming after them. Turn up the heat. Bring them to a boil! Or be content where you are. If you think you can wait for a more convenient time you are sorely mistaken. NOW IS THE TIME!

  61. Forget about modification. You can’t modify something you do not own. If the government owns the debt, the government can forgive the debt. As soon as the mortgage debt is forgiven, the economy will bounce back like there was no tomorrow. Jail the banksters.

  62. […] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND Livinglies’s Weblog […]


    As always, thank you for your comments. These are educational. We need you as an expert witness. In addtion, you need to hold classes
    to educate the masses…

  64. sorry Neil but the fed is not embarrassed nor is it ‘our’ fed…

    the fed simply has complete carte blanche to spend printed cash

    (our cash) whenever they want and they used that to buy the waste

    from their brothers with your money…that simple

  65. First, derivatives are not securities and not bonds — they are contracts that are derived from the mezzanine (credit enhancement) lower tranches in “pooled” structuring – and protection on top pass-through tranches.

    Second, the upper tranche “security investors” were already paid “investment” back by credit default swap protection.

    Third, the percentage value of lower tranches investment was significantly lower than the total “pool” investment. In subprime (and Freddie/Fannie also purchased subprime securities), these bottom tranches were sold first with the banks (security underwriters) retaining the upper “security” tranches. Since these bottom tranches did not have direct swap protection — but rather provided swap enhancement — it is these lower tranche holders (including residual tranche) that guarantee purchase of default loans by removal of the defaults from the trusts.

    Fourth, since the distressed debt buyers could not perform obligation due to mass default and, therefore could not purchase defaults by derivative contract obligation — government also had to bail-out the contract facilitators — including AIG (who in turn sold their contracts elsewhere).

    Fifth, government intention when they purchased derivatives and remnant securities was to take off banks books (they were also derivative contract holders– who liked purchased “loans” from originator to being with) because securities and derivatives on banks books had become worthless due to collapsed value of the “assets” that supported the securities and derivatives. Governments goal was to repackage these worthless securities and derivatives into one big Trust — and sell off to new distressed debt buyers — which is what has been done.

    Sixth, security investor law suits are primarily about lost income investment — that is they cannot find “alternative” investments that pay the same usury rates.

    Problem with all of this — is that securities never transferred “collection rights” to loans (and that is what subprime was — fabricated collection rights). Securities can only be current cash pass-through — that is all securities can do. But, derivatives can transfer collection rights. Because derivatives are NOT securities but rather a “contract” that can sell/assign collection rights. So, as stated above, the “bank” that purchased loans from originators — were also likely derivative contract owner — assuring that the bank would make money on falsified securities – AND — retain the false collection rights by derivative contract (until they dispose of collection rights elsewhere by sale of contract –or direct sale).

    Foreclosure attorneys try to attach derivatives (ownership not disclosed due to deregulation) — to the securities trust — this is false since derivatives are not part of the trust –and not a security — they are DERIVED.

    Finally, just try to figure out who owns collection rights today given the above — it is impossible. But, IT IS NOT the party standing before you — or in court — claiming the right to foreclose.
    Security investors — get over it — you are not going to make 14% interest for a very long time.
    Derivative contract “investors” — you are being allowed to hugely profit by fraudulent foreclosures. Government is protecting your “investment” — but can only do this if courts accept the fraud of a faceless creditor stealing your home — and making a huge profit on it – especially if sold by the bank. Servicers also cover for you. But, there can be no future “secondary market” if fraud now is not brought to surface. And, economy cannot grow without a healthy housing market.

    Government and Congress — admit and fix your mistakes — you allowed.all to happen — by deregulation.

    Subprime refinance homeowners — you were put in false default before you ever even actually defaulted. “Mortgage” contract was not a valid contract — all securities and derivatives — a “sham” to start with. The only party still not being helped is the victim and “targeted” homeowners.

  66. Well I am not surprised by this…the banks are corrupt through and through…now for criminal charges. After all, other people of white collar crimes are in jail..why not the bankers??!!

    My question is the PMI government insurance that FHA backed mortgages must carry. I am sure the banks are putting in claims for the foreclosed homes..after all, they will receive the amount of the actually mortgage not what the home is currently worth. Therefore, if they collect, then that means the “debt” to the bank is paid, so the Feds now own the homes..right?? If this is the case, then the Feds can allow a modification of the mortgage to the homeowners. I know the Feds don’t want to be in the real estate business, but perhaps engage a local bank to take on this responsibility….just thinking…

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