The Bank Of America Non-Settlement "Settlement"

Tyler Durden's picture

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Cognitive Dissonance's picture

Uh, just how is that a settlement.

It is not a 'settlement'.

It's a payoff.

Zero Govt's picture

pay-off indeed but seems (for once) some fleeced investors have got a bankster over a barrel with this holy Swiss cheese of a 'settlement' 

Triggernometry's picture

CD;

Seems more like a bribe to me, in which case the operative word becomes RICO.

-Trigg

holdbuysell's picture

So, if still exposed to the risk of more lawsuits, what, again, is the purpose of this settlement?

What's behind the curtain?

Josh Randall's picture

BlackRock is the new Squid (Goldman is soooo 2008) - you know they are going to keep sucking blood until BAC is hollow

NotApplicable's picture

Don't forget PIMCO. They're gettin' paid too.

Boxed Merlot's picture

and Thrivent Financial for Lutherans...

bill1102inf's picture

 

China Has Declared War On The United States

 

That's not a misprint folks.

Last year, the U.S. Navy bought 59,000 microchips for use in everything from missiles to transponders and all of them turned out to be counterfeits from China.

Wired reports the chips weren't only low-quality fakes, they had been made with a "back-door" and could have been remotely shut down at any time.

Got it folks?  Let me simplify that for you.

The Chinese sold to The American Navy microchips that contained "back doors" that allowed them to shut down their functionality remotely.  That is, they attacked our military through back-door, surreptitious means.

That's a declaration of war folks.

When do we stop sucking off the Chinese and tell them to pound sand on their alleged "full faith and credit" US Treasuries?  Will it be before or after they formally attack America and her military?

If the latter how can you argue that this event did not already occur? -- KARL DENINGER

 

Urban Redneck's picture

Soft warfare is a bitch, but Americans should rest assured because they have Timmy & Eric to protect them... 

Cognitive Dissonance's picture

That is, they attacked our military through back-door, surreptitious means.

So you fully identify with the US military that is paid and used in your name, but not under your control. Keep coming dude. A week here on ZH isn't long enough for you to break through that fog bank you're in.

Cognitive Dissonance's picture

It's only wrong when they do it.

Get with it oddjob, nationalism is the new fiat opiate.

Careless Whisper's picture

but microsoft swore they didn't put a backdoor in windows 7 for the nsaaa. they wouldn't lie.

http://www.computerworld.com/s/article/9141182/Microsoft_denies_it_built...

 

Thisson's picture

Am I the only one who found it disturbing that the Chinese had troops in Seattle and/or Texas:

According to the FT, the plane was built at the Boeing factory in Seattle, then fitted out with VIP features by other companies in Texas.  The construction was under 24-hour Chinese surveillance throughout, with Chinese troops posted at the hangar, and the paper says that Beijing has now launched an investigation into how the work was handled.

DaveyJones's picture

even worse, the chips are made from flouride

rufusbird's picture

Chinese say "oops! So sorry! Back door already built into chip design we stole from Microsoft!"

 

The Fonz's picture

It's also going up... bleh. So what don't we know?

Miss Expectations's picture

The Way of the Lehman.  Who wants BAC gone? 

Caviar Emptor's picture

Children, children....this is all good! We here at BAC are very very sympathetic to the US economy. Not that it matters to our bottom line or salaries and expense accounts. We have bailout funds and expected future bailout funds that will keep us running into the next decade

wombats's picture

Bernank and Geithner will just print more and giveout more handouts in a TARP-like fashion if necessary to keep the TBTF BAC from slipping too far.

Bastiat's picture

That's more like cutting off a chunk of flesh to throw at the pursuing wolves.

TruthInSunshine's picture

If the putbacks succeeded, there's a great argument to be made that the sellers of the MBS didn't own, legally speaking, what they claimed?

Now, if that's true, and I'd argue that it is, or that a strong claim can be made that it is, forget the investors of these MBS for a moment:  Show me the note is alive and better than ever from the perspective of any mortgagor (borrower) having MERS in their chain of title.

This is the shot heard across the banking/lending world. The loading of the cartridge occurred with court after court essentially stating that MERS is a legal non-entity and that it has no ability to assign anything in terms of producing a legally binding result.

NO. THERE’S NO LIFE AT MERS

On April 7, 2010, in the Superior Court of New Jersey, MERS Treasurer and Secretary William C. Hultman gave an oral sworn video/telephone deposition in the case of Bank Of New York v. Ukpe.:

Q Do the assistant secretaries — first off, are
you a salaried employee of MERS?
A No.

Q Are you a salaried employee of MERS Corp,
Inc.?
A Yes.

Q Are any of the employees of MERS, Inc.
salaried employees?
A I don’t understand your question.

Q Does anyone get a paycheck, if they are an
employee of MERS, Inc., do they get a paycheck from
Mercer, Inc.?
A There is no MERS, Inc.

Q I thought, sir, there’s a company that was
formed January 1, 1999, Mortgage Electronic Registration
Systems, Inc. Does it have paid employees?
A No, it does not.

Q Does it have employees?
A No.

Q Does MERS have any employees?
A Did they ever have any? I couldn’t hear you.

Q Does MERS have any employees currently?
A No.

Q In the last five years has MERS had any
employees?
A No.

<SNIP>

Q How many assistant secretaries have you
appointed pursuant to the April 9, 1998 resolution; how
many assistant secretaries of MERS have you appointed?
A I don’t know that number.

Q Approximately?
A I wouldn’t even begin to be able to tell you
right now.

Q Is it in the thousands?
A Yes.

Q Have you been doing this all around the
country in every state in the country?
A Yes.

Q And all these officers I understand are unpaid
officers of MERS?
A Yes.

Q And there’s no live person who is an employee
of MERS that they report to, is that correct, who is an employee?
A There are no employees of MERS.

Thisson's picture

If the putbacks succeeded, there's a great argument to be made that the sellers of the MBS didn't own, legally speaking, what they claimed?

No.  The putbacks are a separate issue from ownership/chain of title.  The agreements essentially require that defective loans be either replaced with nondefective collateral or refunded.

Ultimately, all of the transfers done in the name of MERS will have to be done over again in the correct manner and properly recorded, unless there is some sort of legislative/executive action to ratify the MERS holdings (I'm not sure this is even a lawful possibility, but laws seem to be "optional" these days).  Meanwhile, the adverse possession clock may be running on some of these properties.

TruthInSunshine's picture

The loans are "defective" as you worded it precisely because they didn't do what they purported to, to wit, convey a title interest that was legally effective and reliable in the underlying asset.

What other basis could there be for the legal action requiring (just the beginning), what is essentially a return for a refund action?

ejhickey's picture

so it looks like the price of countrywide was a little higher than what BOA paid in 2008

SwingForce's picture

Cocksucker Bernanke just paid for the extra fine, raising the Debit Card swipe fee. How blatant does this racketeering need to be before somebody cuts of Ben's fingers???

CoolBeans's picture

Hmmm...while many other folks are struggling to get their mortgage co. to give them a modification - I know of a big bank scenario where the mortgage co. is practically begging the homeowner to fill out new paperwork.  Big house.  It seems as though they are anxious for a new contract to be signed to help cover the prior contract - which is full of fraud....including signatures that are not the borrower's and even a mortgage co signature on one doc that is litterally a x's.  Seriously - signature line on verification of income, etc. reads, "XXXXXXX" as the authorized signor.  Crazy stuff - Hey, if I was being paid an hourly wage by a mortgage co - Hell if I'd sign my actual name to a doc I knew was full of false data. 

 Anyway, maybe smaller property owners aren't seeing this kind of activity because the bank/investors don't want any more of these properties on their books -- Curious if anyone else has seen similar anxious attempts to cover old loan docs w/new from a company that is under "review" (yeah, sure) by Feds.  The homeowner in this case is not signing anything new and is just "sitting" right now - per advice given (unsure what that was other than "don't sign anything new").  Will be curious to see what the mortgage co. does next...

How I wish these bankers would simply implode....