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It was pure serendipity. There are three areas of expertise required to understand the current developments in the lending marketplace:

1. Investment banking and the sale of securities
2. Accounting and auditing
3. Trial Law

That has been my life since 1964 when I was just graduating high school. As I moved through careers, I was creating the perfect resume to understand the events that gave rise to the current infrastructure we call securitization. I have found that by recounting the short story of my life in that context, people better understand how and why we are in the third decade of the largest economic crime in human history and why nobody in power wants to do anything about it.

My movement from being an entrepreneur and musician in college, to securities licensing and certification in securities analysis on Wall Street, to institutional sales, mergers, and acquisitions on Wall Street, to training and teaching accounting and auditing, and finally to my law license and academic awards was all basically the trip of someone finding his way through a chaotic world. And as you will see in my show tonight, when I first encountered the new reality in 2004, I instantly recognized that the banks were at it again. They were pressuring the marketplace into a bubble that would burst, and they would make money during the pressure and when the market would burst. They were always betting against the market they created.

And my run-ins with banks, starting around 1980 was equally serendipitous dependent wholly upon clients coming to me seeking to obtain results.

More importantly, people get motivated to do something about it at the grassroots level — in courtrooms. They’re succeeding because behind every lie there is a truth that can be avoided and denied but which nonetheless remains.

In tonight’s show, I will reveal my personal involvement and learning experience in the following steps that resulted in launching the “derivative” scheme that is now erroneously regarded as securitization of loans, despite the essential deficit of having no sale of the underlying obligation, legal debt, note or mortgage. In the words of Reynaldo Reyes, Executive VP at Deutsche, ” it is all very counterintuitive.”

Reyes admitted that Deutsche made no decisions, had no information, and gave no instructions to anyone concerning any homeowner transaction. Shortly after that, Deutsche would issue an instruction to all law firms and “servicers” that were not to mention Deutsch in their foreclosure claims. And then a few months later new arrangements allowed the use of the Deutsche name again. But there was no change in any right, title, interest, or authority of Deutsche to have any communication or knowledge about any homeowner transaction.

So tonight I answer the essential question of how and why the current infrastructure came into being. to do that I will take you back to the paper crisis of the 1960s and my role in that, the ascent of the sue of “street name,” the creation of a fake regulatory entity for handling certificates, the onset of junk bonds, the Goldman Sachs laddering scheme that I used for real estate transactions in the 1980s and how that scheme gave rise to the current structures that are used to eliminate and then create the illusion of a loan account receivable.

Spoiler Alert: For Wall Street, it was NEVER about revenue or profit from loan accounts. It was always about the sales of securities. And on Wall Street the Holy Grail of investment banking was achieved when someone figured out how to separate securitization from the asset that was publicized as being securitized.

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Filed under: foreclosure |