Sheila Bair Had a Plan to Make Banks Pay for Dishonest Dealing Causing the 2008 Crash

Sheila Bair (ex FDIC Chairwoman) has always understood. She was fired for understanding. It’s hard to understand that the TBTF banks were NOT speculating and never lost any money. Harder still to understand how they stole trillions of dollars from the US economy. And finally harder still to understand how “lenders” could cause a crash.

It’s really quite simple. Usually prices and values are within the same range. Fair market value has always been closely related to the ability of people to pay for housing — i.e., household income. Prices rise when demand becomes high OR, and this is the big one, when the big banks flood the market with money.

Like the 2008 crisis if you look at the Case Schiller Index, you will see that prices went through the roof by unprecedented increases while fair market value was flatlined. The crash was thoroughly predictable and was predicted on these pages and by many other economists and financial analysts.

For more than two decades, maybe three, the housing market has been floating on a sea of unsustainable debt because the investment banks became the “source” of funds in a marketplace where their principal objective was movement of money instead of management of risk. That is because investment banks do that while commercial banks and other lenders don’t — unless they are paid to act as though they are the lender in a transaction where they have no risk. Then they will advertise to people with low FICO scores and anyone else whose loan is likely to fail. They bet on the failure of the loan and the collapse of certificates issued as derivatives.

Let us help you plan for trial and draft your foreclosure defense strategy, discovery requests and defense narrative: 202-838-6345. Ask for a Consult.

I provide advice and consent to many people and lawyers so they can spot the key elements of a scam. If you have a deal you want skimmed for red flags order the Consult and fill out the REGISTRATION FORM. A few hundred dollars well spent is worth a lifetime of financial ruin.


Get a Consult and TERA (Title & Encumbrances Analysis and & Report) 202-838-6345. The TEAR replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps).



Hat tip Greg da Goose

From Huffington Post:

“Wells Fargo may not even be the worst big bank out there. Citigroup, another merger monstrosity, is so poorly pieced together that today, Wall Street investors don’t even believe the bank is worth its liquidation price. JPMorgan Chase has notched 52 fines and settlements since the crash. Goldman Sachs has 16, three of them this year.

In a revealing interview with New York Magazine earlier this month, former FDIC Chair Sheila Bair said she wished regulators had broken up a bank after the crisis, probably Citigroup. [Editor’s note: Obama initially gave that order but Tim Geithner refused]. Forcing at least one institution to pay the ultimate corporate price would have put pressure on other major firms to clean up their acts.

Both the Bush and Obama administrations rejected Bair’s plan. And so today, the American banking system ― rescued by taxpayers a decade ago to protect the economy ― has transformed into a very large, very profitable criminal syndicate.”

So I ask the question again: “Why are foreclosure defense lawyers not more aggressive about challenging legal presumptions upon which the banks and judges rely?”
Legal presumptions are ONLY supposed to be used in cases where (1) the source of the document or testimony is credible and has no interest in the outcome of the litigation and (2) it serves “judicial economy.”
The banks have been publicly humiliated for acting like thieves, liars, fabricators, and the source of sophisticated mechanical forgeries. Neither they nor their puppet “servicers” are entitled to a presumption of anything. If they want to proffer a fact, make them prove it. These people are so not credible that we regularly talk about robosigners, robowitnesses and other people who are hired to say or write something about which they have no knowledge or understanding. Where is the credibility in that?
And equally where is the judicial economy? In all cases where the presumptions are used and the homeowner contests the foreclosure it would take FAR LESS time for the so-called lender to prove its case with actual facts (not presumed facts) than to spend years changing servicers, changing recorded documents, changing Power of Attorney, etc.
Where is the prejudice?  If the Defense raises issues as to the standing and facts alleged in the complaint or initiation of foreclosure proceedings, then the obvious answer is to have the “lender” prove their case with real facts in the real world that do not rely upon jsut testimony from robowitnesses or documents that have been robosigned.

10 Responses

  1. I am going to sue the new BUYER of my unit for Quiet Title, possession of stolen property, aiding and abetting fraud and money laundering; and well as the REALTOR who sold my property and lied that he was acting under “Board of Directors” for a non existing “Trust”.

    I am going to include my Title Company for damages due to Wells Fargo bank fraud upon the Court

    It will be likely dismissed because Chicago Judges are too corrupt to follow laws and comply with any ethics, but at least buyers banks’ realtors will be aware of the consequences for selling and buying stolen properties, as well as create an alert among Title companies.

  2. Everyone knows about banks’ fraud and forgeries – except judges who get money from banks lawyers to obtain their seats; and relentlessly fix the most fraudulent cases in banks’ favors while terrorize crime victims from the bench with threats.

    It is not a secret that too many judges are doing their own business when approve criminal foreclosures since judges families too often related to banking and real estate and get the most benefits from it. .

    It is really disturbing that here are so little discussion about JUDICIAL support to banks fraud.

    When JUDGES will be held liable for aiding racket and money laundering – maybe here would be more law and order in the Courts.

    Judge Robert E. Senechalle, Jr. (IL, of course) who criminally concealed purportedly “original” documents from my case had a brother-in-law who was a top partner for Wells Fargo lawyers in Mayer Brown LLP. His entire family is heavily involved in real estate and financial business, so Judge Senechalle was serving his own clout while get paid by the public from whom he is stealing honest services since at least 2005.

    Pennsylvania recently published:

    “Many people had their assets intentionally dissipated and homes forced into default by delays and abusive judges that ignore the law.

    They further revealed that the state courts have been deliberately issuing constitutionally unsupported opinions, to seize personal assets.

    while the laws clearly provide the courts with tools to protect family assets during divorce litigations, judges have engineered “procedural rules” and “precedent,’ specifically to undermine federal foreclosure law. Since about 1980, these are suspect individuals who have had their judgeships funded by foreclosure mills and other law firms that profit off the fleecing of families.

    To even by the remote chance that you prevail in federal court, which does not happen unless you can afford an expensive lawyer, they will still most likely take your home. These criminals that have been operating in the Commonwealth’s Court system for decades have covered every angle- and the homes are often purchased by realtors that are either family members or friends of these judges and foreclosure mill law firms.

  3. Reblogged this on Deadly Clear.

  4. with all respect Charles… what are your personal credentials or authority with first hand knowledge to accuse Sheila Bair as being a fraud?

    thank you

  5. Charles — there are people like you out there like you that know!!!! Thank you.

    And, even more important, Charles – did Sheila know all?? Who knew all? How long can they go without it all being disclosed? How long.?

    All about profit making — at any cost — in any way – at every opportunity — at every expense – to the American public.

    It will get disclosed. But may take disaster to markets for that to come.

    What goes around – comes around. Can’t stop it. . Sometimes takes years and even decades. But, eventually, it happens.

  6. Sheila allowed Wells Fargo to cheat Washington Mutual Bank’s (WaMu) Ginnie Mae MBS pooled borrowers as they purposely left vague what exactly went down with the JPMorgan sale of the bank. the FDIC had an insurance obligation that was shifted to the homeowner for the debt WaMu created.

    Sheila did not have the insurance reserve to cover a $300 billion bank failure with the $35 billion the FDIC had on hand and would have had to dip into the Treasury to cover the losses. Borrower running around trying to get Wells to perform a HAMP, FHA HAMP or VA HAMP while the borrowers are under the impression that Wells purchased the loan in Jul 2006 when the servicing changed, however, this was not the case, but the rest of the world is thinking that JPMorgan the owner of anything of WaMu but that not the case with the already seized blank endorsed Note that Ginnie actually took physical possession of with Wells as the custodian of records.

    The best crime ever as everybody in the dark as to what exactly does Ginnie Mae do. Helpless veterans back from the four corners of the earth defending freedom while advising Obama in the White House is Warren Buffett the smartest investor alive yet he got no clue what Wells Fargo doing to the military veterans or the windfall Wells that IRRRL does for it bottom line without having to spend a dime to recruit 1 million new mortgage customers!

    Sheila a fraud as much as the banks!

  7. Sheila Bair Brave lady! hope more Brave executive comes out of the closet find safe place and people to talk about the deceiving that innocent client been going thru loosing home for no reason only by been bulied but the undrwriter and banks staff!

  8. Can’t always blame the attorneys. They really just don’t know because of the concealment of the “funding” — that is, there was none.

    Neil writes that the “investment banks became the “source” of funds in a marketplace where their principal objective was movement of money instead of management of risk”

    But, the investment banks did not fund the refinance “loans” claimed to be in the trusts. The investment banks were the security underwriters to the debt that was never accounted for as a loan. The only thing funded was any cash out. Until this is realized — just spinning wheels.

    “Origination” did not begin at last refinance.

    JaDonnia B. is correct –“the banks instead sneak in a ‘mortgage and consolidation’ recording rather than simple modification of same debt.” That’s because the debt was fraudulent from the onset. They cannot validly modify it. .

  9. I fear that by the time we successfully sue the banks into oblivion, they will have transferred all their “artificially created money” off-book and will claim pauper status… Since we can’t even get a true trail of funds relating to a single mortgage, I doubt we’ll be able to trace the disappearance of any other funds. This will leave us, the citizens and taxpayers holding the bag again, only this time the bag will be filled with puke!

  10. I agree with this question:Why don’t defense lawyers act more aggressively on behalf of their clients instead of asking them to succumb to the bank’s fraudulent assertions and unsubstantiated ‘evidence’ of legitimacy of ownership? Is it because it’s easier to have a client declare bankruptcy than fight on the merits of the case alone?

    There seems to always, always be some discrepancy in their docs, and yet attys prefer to go along with the banks and assume that the ‘borrower’ is wrong or at fault. Even when borrowers cry fraud from origination, attorneys say that judges don’t want to hear that[just like the banks didn’t want to hear that either]. They rather seek modification, when that too is not the right decision in the borrowers best interest. Are they also a part of the problem?

    Even when loans are fraudulently assumed, and out of frustration, the consumer then asks to modify at the very least, the banks instead sneak in a ‘mortgage and consolidation’ recording rather than simple modification of same debt. It is apparent that they wish to legitimize original fraud and thus have borrower now assume a new loan. That, too, is misleading, misrepresentation, and a different, deliberate form of fraud on the bank’s behalf. One way or another, they try to legitimize fraudulent mortgages without the consumer’s knowledge. Who do we have to rely upon for information except the banks, the experts, and then they too screw us. TBTF??? We need a real example set forth to them in order that they consider the lives of real people that they destroy…just for their own profit.

    Who will be brave enough to call them on their tricks???

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