Bank Record Earnings Are from Theft From Investors and Homeowners

Sitting in my living room I notice the little trailer at the bottom of the screen. The earnings are from trading profits, they say — which is exactly what I told you they would say when they brought back the money in installments that they had already stolen from investors and are still in the process of stealing from hapless homeowners.

It still seems too crazy to be true and the Banks are banking on the idea that people will reject the notion that these trading profits are fictitious just like the mortgage bonds and loan documents. And the same as the Foreclosures that are also legally indefensible but proceeding anyway because it seems “obvious” that if you don’t pay your loan you are in default. And if some bank, say U.S. Bank as trustee relating to certificates XYZ – 2006b2 comes along and says you know you didn’t pay, you know you have defaulted, and since we are the new creditor you lose your home — that is what you signed up for.

It never occurs to the homeowner that in the shrouded corridors of Wall Street his loan is not in default. How could that be true when he stopped paying? It never occurs to the homeowner that the whole thing was a sham. It never occurs to him because he asks himself what difference does it make who owns the loan, I didn’t pay so I’m out. And so 96% of homeowners didn’t skip a beat as they left their keys on the counter after cleaning up so nobody would think they were slobs, just deadbeats.

I said in 2007 and I say it again, that virtually all loans, whether the alleged borrower was paying or not, we’re paid off from the very beginning. I say again there can be no default on a debt that isn’t due regardless of how it came to be “not due.” And I say again that Wall Street was stealing investors money from the beginning through the middle and at the end — and that the borrowers were a smoke screen for the theft. The Banks got paid on loans they never made. They got insurance on defaults that never occurred. They got credit default swap money on declarations from the banks that they were losing money on deals they never invested any money whatsoever.

They got paid 300 cents on the dollar, minimum. If you collect from the borrower too you get 400 cents on the dollar. The dollar is the dollar of investors not even 1 cent from the banks. Their return is infinite. It is a great deal for the banks. They took trillions of dollars. Now, each year they get to say they made trading profits in rising quantities each year exceeding all expectations — because nobody else did that well — consisting almost entirely of stolen money being laundered through fictitious trades. With a guarantee of rising profits, each higher than the one before, the price earnings ratio soars and the bank’s stock goes up like a moon launch.

Why do they need Foreclosures? To complete the illusion and put a cap on their potential liability to return money to the government on sales of bonds they never owned, to the insurers for the same reason, to the guarantors of loans that never existed, and to counterparties on credit default swaps. That is 500 cents on the dollar. Every foreclosure represents the end to that liability. Their only problem is how to get the cap on the mortgages that are not in default.

Just imagine when the truth gets out. Because this isn’t about the mortgages declared to be in default. It is about nearly all mortgages that were created 2001-2011. I don’t believe any money is due on any of them.

26 Responses

  1. Ray. it is people like you and the good judges of this country that are going to save our Constitution and not the dumb and evil judges like
    ALICE sCHLESINGER who rather steal money from the people of this country.Fight on. This asshole judge Schlesinger did it with a void ab initio judgment.

  2. US Bank and SN Servicing has submitted Forged documents in our federal bankruptcy case too and we will never stop perusing them in court for damages. We are also asking our Federal judge to prosecute their current attorney out of Jacksonville Florida who continued to defend this case knowing that forged document are before a federal court. All the offending parties at SN Servicing and their attorneys are committing a serious crime against our country. We have filed a formal complaint with the FBI and the US attorney general and many great Judges all across this nation are finally stopping them from this kind of fraud on American families. US Bank and SN servicing and their attorneys are also violating a serious consent order that was to protect the people from these crimes but they could care less. Please feel free to have your clients join a class action suit so that we can end their behavior with a multi billion dollar punitive damage suit. Join us, call Ray Shelton in Florida at 352 274 8467

  3. We all understand that there is no default, but the fact that people are still paying on loans that supposedly went into securitized trusts, when virtually NO loans have ever made it into ANY mortgage backed securitized trusts during the 2002-2009 years, is astonishing. Why else would there be a hurry to assign loans to mbs trusts virtually every time there is a perceived default, upon proceeding to foreclosure? (I say “virtually” because there may be mom & pop credit unions somewhere that didn’t securitize home loans.)

    Only AFTER loans are reported as “in default” are there ever any attempts to insert the loans into the mbs trusts. So who receives and keeps all the loan payments from the homeowners not in default or before reported default, since the trusts do not own the loans? The banks? The loan servicers? Trustees for empty mbs trust?

    I have seen tranches in trusts that the master servicer wrote in response to bond holder requests, were paid off, later being sold in offshore auctions. Why Later correspondence from the master servicer showed some of the formerly “paid off” tranches, not paid off! How can something that was paid off need to be paid off again?

  4. md, your lawyer is reading the judicial system tea leaves. He believes his practice and his ass is on the line. You have to go if he is to stay in business. That is the reason so many have gone the pro se route. An atty cannot represent his clients to the fullest extent of the law, because the judicial system (judges) is rigged against him and for the big corporate powers like banks who run servicing companies. This does not surprise me. A friend was told by her atty here in SC that he could not represent her in FC action, because his practice and livelihood would be on the line. There are very few good lawyers, and there are very few good lawyers who do foreclosure defense.

  5. The Confidential Memo at the Heart of the Global Financial Crisis
    Greg Palast’s Column

    When a little birdie dropped the End Game memo through my window, its content was so explosive, so sick and plain evil, I just couldn’t believe it.

    The Memo confirmed every conspiracy freak’s fantasy: that in the late 1990s, the top US Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet. When you see 26.3 percent unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears.

    The Treasury official playing the bankers’ secret End Game was Larry Summers. Today, Summers is Barack Obama’s leading choice for Chairman of the US Federal Reserve, the world’s central bank. If the confidential memo is authentic, then Summers shouldn’t be serving on the Fed, he should be serving hard time in some dungeon reserved for the criminally insane of the finance world.

    The memo is authentic.

    I had to fly to Geneva to get confirmation and wangle a meeting with the Secretary General of the World Trade Organisation, Pascal Lamy. Lamy, the Generalissimo of Globalisation, told me,

    “The WTO was not created as some dark cabal of multinationals secretly cooking plots against the people… We don’t have cigar-smoking, rich, crazy bankers negotiating.”

    Then I showed him the memo.

    It begins with Larry Summers’ flunky, Timothy Geithner, reminding his boss to call the Bank bigshots to order their lobbyist armies to march:

    “As we enter the end-game of the WTO financial services negotiations, I believe it would be a good idea for you to touch base with the CEOs…”

    To avoid Summers having to call his office to get the phone numbers (which, under US law, would have to appear on public logs), Geithner listed the private lines of what were then the five most powerful CEOs on the planet. And here they are:

    Goldman Sachs: John Corzine (212)902-8281

    Merrill Lynch: David Kamanski (212)449-6868

    Bank of America: David Coulter (415)622-2255

    Citibank: John Reed (212)559-2732

    Chase Manhattan: Walter Shipley (212)270-1380

    Lamy was right: They don’t smoke cigars. Go ahead and dial them. I did, and sure enough, got a cheery personal hello from Reed – cheery until I revealed I wasn’t Larry Summers. (Note: The other numbers were swiftly disconnected. And Corzine can’t be reached while he faces criminal charges.)

    It’s not the little cabal of confabs held by Summers and the banksters that’s so troubling. The horror is in the purpose of the “end game” itself.

    Let me explain:

    The year was 1997. US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks. That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks. It was like replacing bank vaults with roulette wheels.

    Second, the banks wanted the right to play a new high-risk game: “derivatives trading”. JP Morgan alone would soon carry $88 trillion of these pseudo-securities on its books as “assets”.

    Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to control derivatives.

    But what was the use of turning US banks into derivatives casinos if money would flee to nations with safer banking laws?

    The answer conceived by the Big Bank Five: eliminate controls on banks in every nation on the planet — in one single move. It was as brilliant as it was insanely dangerous.

    How could they pull off this mad caper? The bankers’ and Summers’ game was to use the Financial Services Agreement (or FSA), an abstruse and benign addendum to the international trade agreements policed by the World Trade Organisation.

    Until the bankers began their play, the WTO agreements dealt simply with trade in goods – that is, my cars for your bananas. The new rules devised by Summers and the banks would force all nations to accept trade in “bads” – toxic assets like financial derivatives.

    Until the bankers’ re-draft of the FSA, each nation controlled and chartered the banks within their own borders. The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives “products”.

    Read the rest here

  6. Johngault….He said he wanted to withdrawl and told me I could sign in the office today to release him or he would file with the court. I told him to file with the court. He was paid in full. I paid on time always. 18 months is a long time. I’ve lost faith in this whole process. I know there are many who have fought longer. I applaud them all. Thank you for your post. Its probably good information for someone.

  7. md, in my lay opinion, to withdraw, an attorney either needs your consent or he must file a mtn with the court which you may contest.
    He’ll probably get his way, tho, by saying something like he can’t argue theories for which there’s no legal basis. He may even say that if he did, he would face sanctions. 18 mos – that’s a long time. I assume you paid him.

  8. Today, at a meeting with my lawyer, he tells me after representing me for 18 months against a foreclosure with bank of america, that he is removing himself from my case. That we don’t see eye to eye but that I have a good case and there are issues with the assignments. I spent 18 months fighting bank of america prior to hiring him….. I’m forever changed by this and so is the United States of America.

  9. Forget Al Capone — Today’s Racketeers are on Wall Street
    August 29, 2013
    by Sam Pizzigati

    What crimes did Al Capone, the notorious 1920s crime boss, have his henchmen commit? Did Capone’s thugs go around robbing convenience stores? Did they burglarize homes? Or lurk in the shadows and mug innocent passersby?

    None of the above. Capone and his fellow kingpins of “organized crime” left high-risk, low-return illegality to the lowlife. Kingpins like Capone ran rackets instead. They sold “protection.” They loan-sharked. Most lucratively of all, they bootlegged outlawed alcohol.

    Rackets like these guaranteed returns both steady and steep. Capone at one point was clearing $100,000 a week.

    Racketeering, of course, is still going strong. But the getup of our contemporary racketeers has changed somewhat. Our most highly compensated racketeers today don’t wear fedoras. They fill power suits. Our top racketeers these days don’t run from the law. They run Wall Street.

    [Read the rest here, on MSM Bill Moyer. Yep, it’s hitting the streets slowly…]

  10. @Christine
    Thank you for sharing the DeadlyClear

  11. “Subject to the approval of the Master Servicer as described in this paragraph, the disposition of REO Property shall be carried out by the Servicer at such price, and upon such terms and conditions, as the Servicer deems to be in the best interests of the Trust Fund. Prior to acceptance by the Servicer of an offer to sell any REO Property, the Servicer shall notify the Master Servicer of such offer in writing which notification shall set forth all material terms of said offer (each, a “Notice of Sale”). The Master Servicer shall be deemed to have approved the sale of any REO Property unless the Master Servicer notifies the Servicer in writing, within two (2) Business Days after its receipt of the related Notice of Sale, that it disapproves of the related sale, in which case the Servicer shall not proceed with the sale. With respect to any REO Property, upon a REO Disposition, the Servicer shall be entitled to retain from REO Disposition Proceeds a disposition fee equal to $1,500.00.”

  12. from purchase and sale agreement:

    “The Servicer may permit an obligor to pay off a non-performing Mortgage Loan at less than its unpaid principal balance or charge off all or a portion of such non-performing Mortgage Loan if such discounted payoff or charge off is in accordance with Accepted Servicing Practices and the Servicer believes that such discounted payoff or charge off is in the best interest of the Trust Fund; provided that in the case of any proposed discounted payoff or proposed charge off, the Servicer shall notify the Master Servicer, by telecopy and telephone, of the proposed discounted payoff or charge off. The Master Servicer shall be deemed to have approved the discounted payoff or charge off of any Mortgage Loan unless the Master Servicer notifies the Servicer in writing, within five (5) Business Days after its receipt of the related notice, that it disapproves of the discounted payoff or charge off, in which case the Servicer shall not proceed with such discounted payoff or charge off. ”

    jg: who is the obligor referred to here? I don’t believe it’s the note maker (but it could be).

    From a purchase and sale agreement (trust)

  13. That’s how the game is played. Everyone is pulling on the blanket and making money. And homeowners keep losing it all. Why? People have to become smart!

    christine, on August 29, 2013 at 7:38 pm said:


    “Monster thanks to deadly clear for the invaluable info. (and thanks to christine for linking)”

    It’s been a serious pet peeve of mine for a long time. NG has been advocating fighting the banks. I’m all for it. NG has encouraged people to do it no matter what, pro se or otherwise. Again, I’m all for it.
    NG needs to make a living and I understand it. BUT some of the most important tools pro se need have been… well… not shared very well.

    Either we’re all in this together and we share knowledge or some people’s agenda get in the way. If I were a pro se and were told by NG to pay him for something anyone could do with the proper information, I’d be frickin’ pissed!

    NG’s trade is litigation, or so he says. Not investigation. Not record research. Li-ti-ga-tion. Going before a judge and pleading a case. By forcing pro se homeowners to pay for investigation they can do themselves and to waste money they don’t have, NG foreclosed on their financial ability to pay for litigation. You know… the pro who actually goes before the judge and stops homeowners from making glaring mistakes that will kill their case.

    Is NG a trial lawyer or a peddler? Giving half the information and none of the tools is morally wrong. Deadly Clear gave something precious.
    And NG fell one more notch down in my value ladder…

    johngault., on August 29, 2013 at 2:33 pm said:
    Monster thanks to deadly clear for the invaluable info. (and thanks to christine for linking)

    christine, on August 29, 2013 at 10:13 am said:


    Once in a great while, someone puts out some very, very important How-to information. here’s something I’ve been asking Garfield forever and back.

    Thanks Deadly Clear. About time!

  14. She’s baaaaaaaaack. And still lost in bitter-bitterland. It’s been 10 years, ML. Are you going to spend the last years you have stuck in the past or are you going to gather your energy and make something of it?

  15. and ignorance is bliss with a whats in it for me attitude, no worries if its illegal and others suffer because of their uneducated ignorance. the opposing attys and the one I fired had yale and Berkley education, you might think with that kind of start in life they could make a living doing honorable work- but then it depends what you call honorable, or what color you say the sky is. sad, its sad.


  17. Subject: File No. S7-35-11
    From: marilyn h Lane
    Affiliation: concerned individualSeptember 5, 2011
    The abominable banking system that is in place today, gives a bank great incentive to foreclose on an Ultra Vires contract, as the bank demands lawful money returned for the unlawful money lent.
    By what Authority are the Banks doing this? There is no authority for doing this. This is in complete prohibition to Art 1 Para 10 Cl1 of our US Constitution.
    All of our cases with slightly different facts all stem from the same Fraud.
    The Bank did not lend you LAWFUL MONEY but the Bank intentionally wrote
    a bad check and gave it to you –to circulate as money
    I certainly did not know this kind of fraud was going on when I signed my mortgage and note. Did you?
    The Mortgagor puts up a down payment, the Mortgagor pays a lot of fees and probably paid an attorney to represent them, all in order to get this bad check
    Would a Mortgagor have put in all that money, if one knew the truth of how the Banks ran their illegal business. I bet not.
    Did anyone notify you after that big day – the Banks check bounced – of course not. When the check that the Bank wrote came back to the Bank that wrote it, the bank didnt say we only have 5% , if that much and it was not stamped insufficient funds the bank stamped it paid
    So since the Bank did not have the money sitting in the banks account when they wrote the check, what the bank gave you is their credit.
    That is exactly what is prohibited by Art. 1 Para 10 Cl 1 of the US Constitution.
    What authority gives the Bank the right to make contracts with bad checks
    Nothing- Nada.
    Lawful money is needed to make a contract valid.
    Over and Over Mortgagors gave a Bank a mortgage on their castle , in return for a Bank giving you a credit entry on their books and charging you Interest on this credit. Also illegal.
    Did the Bank give you lawful money or is that what you got, credit?
    Banks are not allowed to lend their credit- Banks are in the business to lend
    lawful money There is not a Bank charter that allows a Bank to lend their credit.
    And as we continued to make monthly payments the Bank collected more money on their fraud.
    You try writing a check when you dont have funds sitting in your account to cover it.
    You can be sure that check is coming back markedinsufficient funds You are not allowed to do it and either is a Bank.
    This scam of Ultra Vire contracts caused injury to us, the true homeowners.
    In addition the banks are laundering bad checks.
    The Banks violate Truth in Lending Laws.
    The Banks are collecting Interest on money that doesnt exist. (Lending you 5% and collecting Interest on 95% of thin air)
    And once the Bank gets their Ultra Vire contract going, they start flipping them to MERS, Securitizations , Wall Street, Title Companies etc. there is no shortage of people all wanting to get their piece of the illegal profits.
    … if only John Gotti had added the word BANK to his name
    what a happy ending he would have had.

  18. they can say whatever they want since their is no verifiable anything.


  19. The methods are commodities and real estate ,,, Real Estate is hitting record prices in many cities and CASH sales are averaging higher per unit prices than ever… as Neil pointed out in another blog post metals are compact , expensive , warehousable for long periods at minimal carrying expense and are not subject to meaningful tariffs… the problem is that prices can fluctuate substantially,,, the banksters are attempting to control key metals and drive prices in their favor… it could backfire as manufacturing and the economy continue to sink.

    I think the wholesale purchase of real estate is plain stupid … the banksters don’t live in the real world … when they corner the rental market in a city and force Joe SixPack to pay $250 above free market prices for a 2/1 dump (when Joe is already struggling) Joe will definately not take care of the property ,, in fact he might be on the phone weekly with nit pickey repair requests or simply “drive it like you stole it” and at the end of the lease the investor gets to find out how much new carpet , tile , fresh paint fixing some water damage and resodding the yard cuts into his “profits”.

  20. They took my house and the payments were current. Banks are in the foreclosure business and always have been.

  21. ya the 401K- has anyone checked what it is worth- do you think they are lying about that.

  22. It is time for a news channel that deals with all these issues…Neil…

  23. NOT

  24. IF everyone realized their mortgages were paid in full. It would matter as much if the pensions, 401k, etc…. collapsed

Contribute to the discussion!

%d bloggers like this: