“What policy makers are starting to realize is that the absence of prosecutions and regulatory action against these banks has produced a profound loss of confidence not only in the financial markets but in the leader of the financial markets (the United States) to control itself and its own participants in finance. It’s not just fair to enforce existing laws and regulations against the banks who so flagrantly violated them and nearly destroyed all the economies of the world, it’s the only practical thing to do.” — Neil F Garfield, livinglies.me
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Editor’s Comment: There is an old expression that says “At the end of the day, everybody knows everything.” The question of course is how long is the “day.” In this case the day for the bank appears to be about 10-12 years. The foibles of their masters, the conduct of their policies, and the arrogance of their behavior has led them into the position where the once unthinkable break-up of the bank oligopoly and their control, over our government is coming to a close.
The titans of Wall Street have thus far avoided criminal prosecution because of the misguided assumption — promulgated by Wall Street itself — that such prosecutions would destroy the economic systems all over the world (remember when Detroit arrogance reached its peak with “what’s good for GM is good for the country?”). But the Dallas Fed are joining the ranks of of once lone voices like Simon Johnson stating that Too Big to Fail is not a sustainable model and that it distorts the markets, the marketplace and our society.
It is virtually certain now that the mega banks are going to literally be cut down to size and that some form of Glass-Steagel will be revived. As that day nears, the images and facts pouring out onto the public and the danger to the American taxpayer facing deficits caused by the banks in part because they siphoned out the life-blood of liquidity from the American marketplace will overwhelm the last vestiges of resistance and the same lobbyists who were the king makers will be the kiss of death for re-election of any public official.
As they are cut down, the accounting and auditing will start and it will take years to complete. What will emerge is a pattern of theft, deceit, fraud, forgery, perjury and other crimes that are most easily seen in the residential foreclosures that now appear to be mostly illusions that have caused nightmare scenarios for millions of Americans and people in other countries. Those illusions though are still with us and they are still taken as real by many in all branches of government. The thought that the borrower should never have been foreclosed and that the amount demanded of them was wrong is not accepted yet. But it will be because of arithmetic.
Investment banks sold worthless bonds issued by empty creatures that existed only on paper without any assets, money or value of any kind. The banks then funded mortgages of increasingly obvious toxicity to people who might have been able to afford a normal mortgage or who couldn’t afford a mortgage at all but were assured by the banks that the deal was solid. Both investors and homeowners were taken to the cleaners. Neither of them has been addressed in any bailout or restitution.
It is the bailout or restitution to the investors and homeowners that is the key to rejuvenating our economy. Trust in the system and wealth in the middle class is the only historical reference point for a successful society. All the rest crumbled. As the banks are taken apart, the privilege of using “off-balance sheet” transactions will be revealed as a free pass to steal money from investors. The banks took the money from investors and used a large part of it to gamble. Then they covered their tracks with lies about the quality of loans whose nominal rates of interest were skyrocketing through previous laws against usury.
For those who worry about the deficit while at the same time remain loyal to their largest banking contributors, they are standing with one foot upon the other. They can’t move and eventually they will fall. The American public may not be filled with PhD economists, but they know theft when it is revealed and they know what should happen to the thief and the compatriots of the thief.
For the moment we are still rocketing along the path of assuming the home loans, student loans, credit cards, auto loans, furniture loans et al were valid loans wherein the lenders had a risk of loss and actually suffered a loss resulting from the non payment by the borrower. As the information spreads about what really happened with all consumer debt, housing included, the people will understand that their debts were paid off by the investment banks, the insurance, companies and the counterparties on hedge products like credit default swaps.
A creditor is entitled to be repaid the money loaned. But if they have been repaid, the fact that the borrower didn’t pay it does not create a fact pattern under which the current law allows the creditor to seek additional payment from the borrower when their receivable account is zero. Yet it is possible that the parties who paid off the debt might be entitled to contribution from the borrower — if they didn’t waive that right when they entered into the insurance or hedge contract with the investment banks. Even so, the mortgage lien would be eviscerated. And the debt open to discussion because the insurers and counterparties did in fact agree not to pursue any remedies against the borrowers. It’s all part of the cover-up so the transactions look like civil matters instead of criminal matters.
Thus far, we have allowed windfall after windfall to the banks who never had any risk of loss and who received federal bailouts, insurance, and proceeds of credit default swaps and multiple sales of the same loan — all without crediting the investors who advanced all the money that was used in the mortgage maelstrom.
The practical significance of this is simple: the money given to the banks went into a black hole and may never be seen again. The money given BACK to (restitution) investors will result in fixing at least partly the imbalance caused by the bank theft. It will also decrease the loss suffered by the lenders in the loans marked as home loans, auto loans, student loans etc. This in turn reduces the amount owed by the borrower. Their is no “reduction” of principal there is merely a “deduction” or “correction” to reflect payments received by the investors or their agents.
The practical significance of this is that money, wealth and income will be channeled back to the those who are in the middle class or who belong there but for the trickery of the banks and the economy starts to hum a little better than before.
It all starts with abandoning the Too Big To Fail hypothesis. What policy makers are starting to realize is that the absence of prosecutions and regulatory action against these banks has produced a profound loss of confidence not only in the financial markets but in the leader of the financial markets to control itself and its own participants in finance. It’s not just fair to enforce existing laws and regulations against the banks who so flagrantly violated them and nearly destroyed all the economies of the world, it’s the only practical thing to do.
Big Banks Have a Big Problem
http://economix.blogs.nytimes.com/2013/03/14/big-banks-have-a-big-problem/
We The Taxpayers Are On The Hook For Mortgages, Student Loans, Banks
http://lonelyconservative.com/2013/03/we-the-taxpayers-are-on-the-hook-for-mortgages-student-loans-banks/
Documentary Co-Produced by Broker Exposes Foreclosure Devastation, Housing System Flaws, in Low-Income Hispanic Neighborhood of Phoenix
http://rismedia.com/2013-03-13/documentary-co-produced-by-broker-exposes-foreclosure-devastation-housing-system-flaws-in-low-income-hispanic-neighborhood-of-phoenix/
Housing advocates accuse Wells Fargo of damaging communities through foreclosures
http://www.scpr.org/blogs/economy/2013/03/13/12908/housing-advocates-accuse-well-fargo-damaging-commu/
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud, Student Loans | Tagged: Bank of America, business, Chase, Citi, economics, finance, principal, principal correction, principal deduction, restitution, Simon Johnson, too big to fail, Wells |
stripes – a few corrections to some of your comments below. you said:
“this is why these crooks are recording fraudulent transfers after the foreclosures are filed and before the foreclosures are granted.”
*the lis pendens bars any subsequent interest in the property obtained prior to f-c sale. anyone who receives an interest in real property that was filed after LP but prior to the granting of a f/c judgment loses their interest and need not be served with a summons, lis pendens or copy of the complaint.
“title companies are trying to cover up the fact the legal lien was never recorded.”
1st and 2nd liens are recorded on most properties (unless someone paid with cash) – yet “perfecting” that lien may indeed present a challenge.
“the title companies are hiding.”
from what?
“the title companies can be the only trustees and they can’t be the trustees because they never carried out their fiduciary duties because they couldn’t …. because the banks defaulted.”
anyone can be listed as trustee, co-trustee, successor trustee, etc.
i’m having a hard time following along with the balance of your comment but, i’ll say this… it takes an awfully broad brush to paint “everyone” as a crook and “every deal” as a fraudulent one.
respectfully,
sGw
Could you do something about the “FONT” of your text. It is extremely difficult for aging eyes to read.
If you have an Owner’s Title Policy it covers your title as long as you are the title holder of record…this is why these crooks are recording fraudulent transfers after the foreclosures are filed and before the foreclosures are granted.
The title companies are trying to cover up the fact the legal lien was never recorded. Any recordings by the plaintiffs after the foreclosures are filed are fraudulent conveyances and reconveyances. The title companies are hiding….the title companies can be the only trustees and they can’t be the trustees because they never carried out their fiduciary duties because they couldn’t …. because the banks defaulted.
Foreclosure is a scam by the traitor’s from within.
@Christine: I bought my house in 2006 and when I tried to refinance there were two unfiled satisfactions. My title insurance company at that time in 2006 covered this problem and made it go away. Title insurance now is very wimpy and covers banks instead of homeowners. Take a look at your policy and read carefully.
I don’t think I spelt the last word in my below post right, but as long as you all know what he is.
@stopGOVTwaste
At the end of the day I was right from the beginning.
When Astoria Federal S & L’s new attorneys admitted that Astoria’s
previous and long gone attorneys MJRF ,auctioned off my two NYC condos
to straw buyers with two VOID JUDGMENTS ab initio –It’s indemnify Indemnify Indemnify.
We are stepping aside and the Title companies are stepping in.
In steps Thomas Malone of Fidelity National Title and David K Fiveson of a sham title company
He called Coronet. They did not want to Indemnify.
I wrote a simple letter to William P Foley CEO of Fidelity “what went wrong that your NEW
YORK attorney Thomas Malone finds himself fighting for a FORGED DEED?”
The answer for Foley from Fidelity said “IT IS PROPER.”
Now that Fidelity’s fraud has surfaced what else would you expect from that crooked sm—k ?
email me: stop_govt_waste@hotmail.com and i’d be happy to try and help. ;~)
StopGOVTwaste,
I am not clear on what you wrote about title insurance. Can you explain? As an example, there is an old, unsatisfied loan on my house showing active in MERS. It preexists by a few years my ever seeing my house and, when i started running into trouble and pulled the entire recorder’s file, I saw that no satisfaction of mortgage was ever recorded.
When I bought the house, i paid for title insurance and it wasn’t cheap. Am I covered for that preexisting thing?
The entire chain of criminals should be sued, banks, mortgage brokers, title companies, appraisers and their brokers, realtors and their brokers, lawyers, trusts, trustees, MERS and mortgage companies. They all knew one way or the other there was a scam going on in the purchase of houses.
back in 2010 the title industry (wisely) moved away from issuing coverage on “creditors” rights. http://www.scribd.com/doc/52302516/April-2010-Title-News-Solving-the-Creditors-Rights-Quagmire
marilyn, title insurance works completely opposite of conventional insurance. coverage on conventional insurance policies (home, auto, life) begins the date the policy is issued and extends into the future. title insurance provides coverage from the date of the policy BACKWARDS to the last policy that was written (most underwriters rely on prior policies in order to save time.) title insurance provides peace of mind that at time of closing there are no undisclosed parties of interest, liens or encumbrances that would jeopardize the priority of the 1st lien. such items include (but are not limited to)
*attorney’s charging lien
*child support certificate of delinquency
*code enforcement liens
*condo assoc. liens
*construction claim of liens
*federal estate tax liens
*federal tax liens
*corporate income tax liens
*hoa liens
*hospital liens
*judgments (city, county, state, federal)
*other monetary judgments
*medicaid liens
*unpaid/undisclosed mortgages
*municipal liens & assessments
*personal property tax warrants
*public defender liens
*restitution liens
*rico liens
*state estate tax liens
*state tax warrants
*UCC financing statements
*welfare liens
and of course no insurance underwriter in their right mind would offer coverage for anything if it is NOT recorded. that’s just the way the industry operates. i don’t like it any more than you but I believe you’re missing the crux of title insurance.
http://www.scribd.com/doc/130044819/Mortgage-Electronic-Registration-Services-Discharge-of-Mortgage
there’s 10’s of thousands of housing units selling annually and clerks are still accepting MERS mortgages for recording. until we start seeing some bankster @ss doing prison time for their epic heists, I would only expect to see more of the same.
I hope they include the Titles Companies that fought this day of reckoning
Freedom, Liberty and Independence cannot be restored if the people do not know what it means to be a Constitutional Republic. It certainly does not mean the acceptance or forced acceptance of massive debt crimes committed in our names, with our unauthorized signatures by the self proclaimed TBTF Corporate banking debt cartel of thieves who pose as American Institutions and Investors but are in reality, a cabal of criminals and imposters. They have hijacked our free republic by secrets, lies, deceptions and fraud crimes too numerous to mention and they owe us GAZILLIONS.
Yes, stripes, “independent investigation of truth” must be the new motto. Because we are living in a time of great deception…all systems are failing because all systems are corrupt.
“It is virtually certain now that the mega banks are going to literally be cut down to size and that some form of Glass-Steagel will be revived.”
Dodd-Frank is pretty watered down and still not being applied anyway since it is planned to come into play in 2014, if I recall. Whatever it is, “some form” will not cut it. We need to go back to what we know was working and stick to it. Except that… it has become almost impossible: too many fingers in the pot. Too many interests at play.
E.ToLLe is right: change has to be radical. Anything else is a lousy job of patching up the holes. Too many holes. Can’t be patched up any longer.
A day is a thousand years.
The criminality by this banking cartel is of unseen proportions. They have stolen $60.4 trillion dollars of our wealth since 2008 and 20 + million of our properties. They have nearly wiped out the middle class and millions of private businesses and livelihoods have been stolen.
To say the American people are FED UP is an understatement. There is no more faking this economy is getting better, everyone is fuming mad and everyone knows what these crooks have done to our great nation was the biggest crime spree in history.
Bloomberg news reporting… U.S. home “repossessions” fell 29%, the largest decline since the robbery began.
A quick look around at the lanscape is proof enough of this banking cartels financial weapons of mass destruction and acts of financial terrorism against us. Private businesses are shuttered or have been bulldozed all over the towns and cities, almost all that is left standing are the large mulitinationals that pay peanuts to the people like they are monkeys and offer no benefits. People have lost their livelihoods and are eating out of food pantries. The only thing keeping the peace are food stamps and crumbs to the peasants these crooks have created.
It is undeniable, this is the face of totalitarianism. All of the prophecies foretold are coming to pass and the true face of evil has been revealed. This evil is now in plain sight. The churches know it. The politicians know it. The people know it. This was not a drill. Everyone should be shuddering at how far these politicians have allowed this nation and its citizens to fall.
Alot of awful things have been revealed to some of us who have taken the time and energy to look for the real reasons we are here. It is undoubtedly the face of one evil that wears many disguises. This should never be allowed to happen again but, it will reemerge at another time, in another form, because that is what evil does. We should always be prepared and never let our guard down. Trust is now a thing of the past. Educate yourself and verify should be our new motto.
Why are these criminals still getting away with wrecking lives and stealing homes?Do something! Sign petition http://www.thepetitionsite.com/712/603/677/fairness in mortgage,if they broke the law they need to pay!