Where is all that money the banks took? Hiding in Plain Sight

You’ll probably never get to this point in litigation but if you do, you’ll be glad you read this. Obviously there is a lot of talk about where all the money went. Right off the top the banks took some 20%+ off of the money that investors gave them to invest in mortgages. That is $2.6 trillion alone off of the $13 trillion in “mortgages” that were mostly defective or fabricated. Then add their profit from insurance and credit default swaps which might amount to on a nominal basis several times the original $13 trillion invested and we get an idea of how much money is being withheld from world economies including the United States.

The answer is that they are hiding it in plain sight and in conjunction with legitimate investments from many other investors and entities. They are putting it in the stock market, mostly, causing it to rise without reason, and to a lesser extent they are putting it into bonds. If someday someone traces the first dollar in from investors all the way through the convoluted fabricated system of what the banks called securitization and the rest of us know was a PONZI scheme, you’ll find it right in front of you listed in the Wall Street Journal.

And if you Google it, you’ll see that BofA’s security analysts agree that the Dow Jones Average and other equity indexes are not reflecting true economic activity. They didn’t get the memo to shut up and sit down. That is what happens when you are too big to fail — you are also too big to manage, too big to jail and too big to regulate. The complicity of regulators, auditing firms and others in this mess has yet to be determined but it seems likely that there will be suits and prosecutions against the auditing firms for taking management’s word for the data rather than testing it the way any first course in auditing 101 would teach future CPA’s. I do know, because I taught auditing classes when I was getting my MBA.

Where is the money that the bankers siphoned out of our economy? Hiding in plain sight in the equity markets. With societies in chaos and economies in tailspins around the world, somehow the equity indexes are reaching record highs and profits are being recorded that are clearly not conforming to economic activity that in some countries is at a virtual standstill or even declining.

Yet the equity markets supposedly are a measure of future earnings which magically appear, justifying the increase in stock prices. If I stole a few trillion dollars and I needed a place to hide it, I would invest it relentlessly in the equity markets and to a lesser degree into debt instruments.

The increase in the DJIA represents trillions in wealth increase — or it represents a deposit of ill-gotten wealth generated by the Wall Street banks and their co-venturers. With GDP so fragile around the world my conclusion is that economic activity around the world is not reflecting any support for the increase in expectations and increase in stock prices.

The banks cornered the market on money and had to decide where they were going to hide ill-gotten profits that most people don’t understand, know about or care about. The obvious answer was, when they were holding trillions of dollars, where the dollar was in possible jeopardy, was to put the money in equities on a slowly increasing relentless purchase of stocks and bonds.

Stocks are measured in numbers of shares rather than strictly dollar denominated accounts. This allows the holders of equities to sell in any marketplace converting the investment into any currency of their choice, potentially avoiding the negative impact of a sudden devaluation of the type that made George Soros so rich.

Undoubtedly this logic has not escaped other legitimate investors and investment managers. Thus the bull market effects produced by the underlying floor of bankers’ purchases of equities is hidden under an increase in legitimate buying. It is a perfect plan as long as receivers are not appointed over the mega banks and dollars are traced to their origin and destination.

If things seem upside down when you turn on the news, now you know why. It is still hard for people to wrap their head around this proposition. All anecdotal evidence which is now so extensive that it almost qualifies as a scientific survey, points to at least 2/3 of all mortgages being fatally defective as perfected liens, unreported compensation on loans (that the banks say were charged against investors) is present in nearly all loans of every kind where a claim of securitization is present, and bank profits and capital have continued to rise even though as intermediaries, they should be making less money because there is less economic activity in a recession or stagnant economy.

That money in the mega banks is our money — taxpayers, shareholders of insurance companies, shareholders of guarantors and co-obligors, investors who advanced the money the homeowners who put up their homes as collateral on non-existent or defective transactions in which the loan and property were intentionally inflated in value. The extra money in those deals were funneled into off shore accounts and transactions that were never taxed by agreement with the jurisdiction in which the the transactions were cited as taking place even though it all happened in the good old USA. I have seen the document where Bermuda accepted the jurisdiction over the transaction and agreed not to tax it.

Although this is my opinion for general information purposes, I feel comfortable sharing it with the public  because I have enough facts from current events and enough experience from my own past experience on Wall Street to be confident that the above rendition is true. Once again I remind readers that the legal consequence of these practices might vary from state to state and even between judges in the same district. Federal and State courts are likely to treat these presentations differently as well.

And just because you are right, doesn’t mean you can prove it or win. So it is imperative that you consult with an attorney who knows all the facts of your case, is familiar with securitization and is licensed in the jurisdiction in which your property or domicile is located.

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37 Responses

  1. The banks are using what they stole to invest in other nations and control them. They are also repurchasing their own securities frauds to fraudulently control us and make us believe they own us. It’s all a mind control scam.

  2. It is time the American people took back what has been stolen by this Bank Corp of investor thieves. First and foremost we need to lose the co-dependency meme…..this is now about restoring our own freedom and independence from them. This is about not needing anybody to help us and helping ourselves. By educating ourselves, that is the only way this can happen. We need to use that education to take back what they stole from every American which is, are freedom and independence from them.

  3. Local media reporting Illinois boosting help for Hardest Hit homeowners. Where was that fund when people really needed it? They are all full of it. Rather than tell the people the truth, their properties are paid for because the FED defaulted on their contracts and committed massive mortgage fraud on Wall Street with our unauthorized signatures and destroyed the value of everything we already paid for….they would rather put the American people through hell and terrorize the people with all of their unsustainable debt fraud.

    The truth needs to be told to the American people, these TBTF corporate crooks are outright stealing everything from all of US and no one is doing a thing to stop them. Not the State politicians, not U.S. law enforcement, not the U.S. military, no one. They are all standing down to this Corporate bankster takeover. The terrorism by these crooks is reaching epic proportions.

    We The People are bombarded with their trash on a daily basis, treated like we are irrelevant, just a technicality that needs to be eliminated. If you don’t bring home thousands of dollars a week, you are considered worthless. These greedy and despicable crooks have made the cost of living unaffordable in this country, and it is now about survival of the fittest. The politicians are slowly and strategically, wiping out the middle classes in very insidious ways and are trying to force acceptance of their control freak system as something we caused when they intended it.

    The banksters and the politicians used 9/11, the elimination of thousands of innocent Americans to put the wheels in motion and use that as an excuse to terrorize every American. The same is true with their manufactured financial crisis that is so criminaI, that you would have to be in an alcohol or drug induced haze to not see it.

    The scourge of humanity, the worst mankind has to offer, are directing this massive crime spree of the innocent and all of their comrades are here, on U.S. soil in positions of every level of power.

    They all hide behind symbols of something they are not and pretend to give a damn about you but they don’t because this diabolical plan by the banksters has compromised nearly everyone. Nearly everyone has an agenda, they really believe involves everyone cooperating with this evil plan when the truth is, these crooks have already robbed everyone and have already instituted this evil plan that has nothing at all to do with co-dependency and everything to do with total dependency on them.

    It is all about the fraudulent inducement and the acceptance of totalitarianism ….. either by agreement or force and it is totally evil and demands total devotion to evil and everyone should reject all of it and all of them. They want to convince us we are broke but the facts don’t lie, we were robbed by these bankster/politician crooks.

  4. It’s true, everything is convoluted. Watching the Senate “hearing” with Ex JPM exec Ina Drew trying to sell the public her story about synthetic derivatives trades gone bad….sniff, sniff…made me feel sorry for these people….they are really sick….. Doesn’t synthetic mean fake….?

    Why don’t they all just come out and say it….we are here to destroy this place…? They can’t hide their hatred for US anymore with all of their duality crap.

    The politicians, the bankers, their minions and cohorts despise the American people and it is really unprecedented….it defies most human comprehension there could be this much open evil that tries to be so deceptive in the world. I can see our foreign enemies wanting to conquer our Constitutional Republic but why are there so many traitors within….?

    It really can’t be just about the money…. That is why I see this as being much more diabolical. These people must belong to a cult that all believe they are superior in so many ways that they must control everyone. They desperately want our free will and our submission to this cult. The more I see and hear these people, trying to convince us that secrets, lies, deceit, fraud and all forms of evil are normal and the way we should all be, the more repulsive they and their agenda become. Socialism, Communism & their holy grail.. Totalitarianism are Satanism in disguise. They are all evil forms of Alchemy that are being used by the malefactor to transform mankind into followers of Satan. They really want everyone to burn in hell with them because they know they are toast. Don’t believe them….TBTF is one giant Chemical Bank and their agents are all evil Alchemists.

  5. Satan<< Socio-Economics History Blog….

  6. The only stripper is TBTF…they are robberbarons for their owners & their cronies. It is a totalitarian business model.

  7. Kudlow tonight said the banks like JPM are not private companies….they are funded by U.S. TAXPAYERS….they are public utilities now because of TBTF and that is not free market capitalism…..TBTF did not just happen Larry……We The People have always funded them…that is their biggest trade secret…shhh…right..? No…that’s why we are here….TBTF have always been robberbarons for their owners/investors. TBTF need to pay for their own fraud….!

  8. These crimes against us are serious…. high treason…fraud and deceptive practices all hid behind Corporate and Government logos. No one agreed to any of this. It was all done in secret. Look here….The Illinois Department of Financial and Professional Regulations is really a TBTF Agency in disguise..this is criminal on many levels….. http://www.idfpr.com/dpr/links.asp

  9. You are right Niedermeyer. They are creating a nation of renters with our assetts and stolen wealth by racketeering & committing Securities Fraud they are destroying the value of everything we paid & labored for….no one should be paying these crooks.

  10. These are not ponderings….this is the truth….the bank owners and the politicians are dealing in Securities Frauds on Wall Street. This is criminal and they robbed everybody.

  11. They are creating buybacks….they are repurchasing securities frauds by their own proxies they cause to fail by their own proxies. That is how they fraudulently claim ownership of property from money they never lend. It is Securities Fraud….they are Counterfeiting uncertificated Securities. That is how the bank owners plan to create a nation of renter slaves by repurchasing their own Securities Frauds. The Politicians are all invested in the big swindle of our property and legal rights.

    NO ONE should PAY FOR THEM TO PLAY…and create a nation of renter slaves with our property they never paid for and committed massive Securities Fraud, Insurance Fraud and many other Felonies with.

  12. I want to make something very, very clear, stripper: when I ponder out loud, I am not soliciting YOUR opinion. Spare me your idiotic explanations I have no use for.

  13. The bank owners direct these scams. If that were not the case…Jamie Dimon would have been canned long ago. These are insurance scams and the sophisticated investors insure themselves on their risks. They make all of their money pumping, dumping & insuring their created risk, by pumping up their risk and dumping their fraud then they buy it back for spit. It’s a real swindle in this case the hedge was backed by $700 billion dollars in mortgages and they destroyed the value of what they wanted to dump and used the bank owners to deposit the money to fund their own scams. There is no skin in the game for these sheisters but their initial investments that they insure for more than they are worth…the money lost represents insurance money & fraudclosures for the crooks. They are trying to create liquidity out of the failure they cause to happen. These are not losses for the top of the ponzi scheme.

  14. Music to my ears. JP Morgan’s legal expenses topping 16 billions since 2009. And yet… reconcile that with bankers’ income having never been so high as in 2012. Where are the investors in all that? And why don’t they stamp their foot?


    “We have intentionally chosen not to detail all of the many private or public actions settled or outstanding (which have driven almost $16 billion in litigation expenses since 2009) or, other than the multi-state settlement and foreclosure review settlement, the agreed to or unresolved costs of actions related to mortgage putback demands, including those of institutional investors, insurers, the GSEs, FHA, or the costs of foreclosure-related actions. Moreover, the impunity with which the firm is seeking to transfer billions of dollars of Washington Mutual (WaMu) related losses to the FDIC demonstrates their unwillingness to accept the responsibilities for their own management failures.”

  15. If the deals fail they should be extinguished….

  16. Sheila Baird on Fox Business talking about the TBTF banks ….she said banks need more unsecured debt to buy …

    She is not being honest….it is a business model of fraud and it is all unsecured debt.

    Banking expert Dick Bove on Fox Business said Banks are way over capitalized and massively over-leveraged. Bank Capital is not why banks fail…..He stopped short of saying massive over leveraging is why banks fail.

    Banks and Investment banking is what needs to be broken up. But they do what they want whether it is legal or not because the bank owners need fraudulent investments to sell and the Bank Owners, the Politicians and their criminal friends want to invest in the fraud Wall Street creates. They were gambling with mortgages long before Glass-Steagall was repealed. They are completely unregulated in what they do because they all like to invest in and gamble on Securities Fraud…

  17. Looks like Oswen’s been in the news for… ever and some time. Always cast in the role of the bad guy. Apparently, that’s all they know how to do…

    The homeowners says that he settled. I sure hope he took Ocwen to the cleaners! The bastards!


    Target 11 investigates mortgage company with ‘F’ rating


    A local man is facing a mortgage mess. He paid cold hard cash for his house, but the lending company is still foreclosing. So he called Target 11’s Robin Taylor for help.

    “I bought this house. Legally, it’s all registered in the prothonotary’s office. They money is there and I’m still getting foreclosed on,” said Noel Norris of Leechburg, Pa.

    I did some digging and discovered hundreds of similar complaints against Ocwen Loan Servicing. Last fall, the Better Business Bureau issued a warning about the company.

    Homeowners say they’ve made their mortgage payments, but the company is foreclosing anyway. It’s been a real nightmare for Norris.

    His mother owned the house he grew up in. She fell behind on her mortgage payments, so Noel decided to buy the home.

    Noel closed on the property Oct. 5, 2012. Ten days later, Ocwen Loan Servicing sent his money back along with a foreclosure notice.

    “You buy the house. You send them the money for the house and they send it back to you?” I asked.

    “The money was wire transferred to their account, guaranteed funds. It’s in there. My attorney did that. They turned around and sent me a check back,” said Norris.

    The payoff quote was $74,000, but Ocwen is charging interest and penalties as if the money was never paid.

    “It’s kind of like if I go out and buy a car and then the car dealership comes to take the car back off me and they keep my money. I really don’t see how that’s not considered theft,” said Norris.

    The Better Business Bureau has a problem with Ocwen as well. The company has an F rating, with more than 1,600 complaints.

    Most have to do with excessive fees and penalties.

    “They work in the sub-prime mortgage industry. They’re going to get complaints. Our concern, and your concern as a customer, is that they respond and take care of their customers,” said Warren King, president of the Western Pennsylvania Better Business Bureau.

    Ocwen is also being sued for allegedly violating consumer protection laws. I talked to a lawyer involved in one of those class action lawsuits on Skype.

    “Are they having problems where they’re making payments and their payments are not being credited?” I asked. “Yes, that’s a frequent complaint I’ve received,” said Eric Lechtizin, an attorney with Berter & Montague in Philadelphia.

    Lechtzin says his clients are offered mortgage modifications that he calls unfair and deceptive.

    “Virtually all of them have at least been threatened with foreclosure,” said Lechtzin.

    For Noel, it’s been frustrating, but a settlement has finally been reached, allowing him to stay in his home. He told me he couldn’t afford to fight Ocwen any longer.

    “The legal system’s not free. It might not be perfect, but it’s not free, for sure,” said Norris.

    I reached out to Ocwen for their side of the story. The director of communications sent this statement:

    “Ocwen is committed to preserving home ownership whenever possible. In this particular case, Ocwen worked directly with the customer to reach an agreeable resolution, which will allow them to remain in their home,” Susan Fitzpatrick, Ocwen Financial Corporation.

  18. Good reversal on appeal of a credit card debt bought by a JDB.


  19. Niedermeyer….that’s why the “short sales” have to be cash only and close in thirty days.

  20. Niedermeyer….these are not real assets they are buying….they are repurchasing Securities Frauds that failed with our stolen wealth….they are creating another systemic risk…another debt bubble that cannot be sustained. They all need to be shut down.

    Ina Drew of JPM said the London whale was hedged by $700 billion in mortgages.

  21. Get your tax free securities fraud munis…..and ride the securities fraud insolvent debt bubble…!

  22. This is how they do it…they repurchase their own Securities Frauds via Dutch Auctions….in this case Deutsche Bank Securities Inc served as their SECURITIES (FRAUD) DEALER MANAGER FOR THEIR TENDER OFFER on or about June 2011……..

  23. Neil ,

    I don’t know if the money is hidden in the stock market ,, if everything collapses the stocks are not convertible into anything but money and can be wiped off the books if it falls below a certain valuation… preferred shares or corporate debt is more like it… and all debt has been at ridiculously low payout relative to risk for many years now… I think they’re smarter than to buy stocks … maybe after the next serious (read 1932-1936 bottom prices) crash but not now… they’re buying real assets …. and those assets include enslaving you and me with debt .. they’re buying our lives and our lifes output cheaply. This is very much like the engineered currency crash in the 1890’s when the banks just didn’t allow cash out in the peoples hands and forced people to default ,, a farmer may have $20,000 worth of corn in his silo but if he couldn’t trade it for cash that $500 loan for seed he couldn’t repay meant losing a $100,000 farm operation…

  24. These crooked politicians are hiding the global investing and trading of our property behind telecommunications..go to this link and click on their global network map at the right of the page…..this is all unauthorized, unconstitutional and illegal because the FED and WALL STREET and the POLITICIANS destroyed the value of the SECURITIES…THESE ARE ALL SECURITIES FRAUDS THEY DUMPED….AND ARE REPURCHASING WITH OUR STOLEN WEALTH…

  25. BTW….Neutral Tandem – Illinois LLC changed its name to Inteliquent….

  26. Inteliquent common stock (our utilities and properties) is (fraudulently without our knowledge or consent) traded on NASDAQ EXCHANGE under the ticker symbol IQNT.

  27. Harris Law led me to Neutral Tandem – Illinois LLC….is connected to Intelliquent….a publicly traded company…..Neutral Tandem – Illinois LLC deal in public utilities ..and are the Illinois Communications Commission…and The Illinois Department of Financial and Professional Regulations…and it all ties of course to the Illinois General Assembly….

  28. Charles …. Bloomberg is reporting the other Paulson is not moving to Puerto Rico after all… it has become obvious the Politicians and the Banksters are all one giant corp of crooks and are all in on this war on us together and it is an unconstitutional and illegal war by these traitors. They have no basis in law or fact to do any of these things. Therefore they have all committed felony crimes against all of us to gain unjust enrichments and control us by robbing all of us…they are all despicable traitors…

  29. Connecting the dots just keeps getting more and more criminal and facetious ..

  30. Here is a hot one….I was wondering who Harris Law is and why they keep calling my house phone ….so I did a little investigative work and Harris Law seems to be connected to..The Ilinois State Property Control Act…..

    These crooks will stop and nothing to steal everything from us without due process…..our properties are not Securities of the States because the FEDERAL RESERVE BANK Defaulted on the Securities Contracts and destroyed the Securities and all the States hold are SECURITIES FRAUDS…

  31. stripes your on point today as the Fed is a big player here. I don’t pretend to to be an economist or some stock market expert, but there not to many places to hide all this money.

    Bernanke plays a big part in this ruse because he written on this subject pertaining to the Great Depression. I wrote the White House back in early 2009 and explained to President Obama, that because of Bernanke’s writings that the bank could be taking advantage of his re-capitalize the bank theory.

    Now we must review it always it had been planned for a collapse and waiting on Bernnke to get in office and suddenly what he been writing a out some 70yr past event just happens under his watch?

    Geithner and Paulson are now gone and John Paul on the big winner of the CDS is taking his $9 billion and moving it out the country. Just maybe the hearing on Dimon does change the tide!

  32. Thanks Neil. I have read everyone of your posts since 2008. I lost my case, and sheriff sale is set for May 3. The foreclosure mill has nerve enough when I disputed the debt and the Creditor (ASC) and asked for account details, to send me a letter saying that Americas Servicing Company relationship was set out in the above case….no accounting, no proof that ASC is a creditor, just an attestation from the lawyer that ASC has a right to collect the debt.

  33. The Secret War Powers Act enacted by Congress…

  34. No one put their property up as collateral to secure massive fraud being committed in their names with our unauthorized autographs …could we take autographs and gamble with them to the tune of $700 trillion dollars with no skin in the game …? No….we would be in prison long before we hit the $700 trillion dollar mark. Investment is not skin in the game if the Issuer of the unauthorized autograph Defaulted….No…these were not Securities…these were unauthorized autographs backed by Securities Frauds.

    These crooks are simply stealing our money….the FED collects trillions of dollars a month in mortgage money reported Bloomberg News….on money they borrow from U.S. TAXPAYERS & NEVER REPAY…..
    then they gamble on Wall Street with our unauthorized autographs without our knowledge or consent.


    These crooks are traitors who are out to steal everything from us and destroy us. They consider everyone of us their enemies….they declared war on us with the Secret War Powers Act on 9/11 to protect themselves from us and override the U.S. CONSTITUTION to steal everything from us under the guises of a fake war on terror and a fake financial crisis that is backed by a quadrillion dollars in criminal fraud by these crooks…that is why they were bailed out with no audits…

    The Secret War Powers Act of 1973….

  35. Please join the movement to eliminate illegality in mortgage servicing=sign &share http://www.thepetitionsite.com/712/603/677/fairness in mortgage-save a home!

  36. Time to indict everyone…the Congress, the Senate from the last decade ….the bank owners, the shareholders, the directors, Bernanke Geithner, Paulson ….every one of them.

  37. Bloomberg News airing the JP MORGAN LONDON WHALE HEARING…..wink..wink…

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