Banks To Get Away Scott-Free Again? Mass Fraudclosure Settlement To Be Announced Today Without Financial Penalties

Tyler Durden's picture

As we noted earlier, JPM recorded $650 million in costs to "foreclosure-related matters" read legal costs associated with Robosigning (and if JPM is over half a billion, BofA legal invoices are certainly in 9 digit territory by now). Obviously, this is a situation that has to be resolved as USSA kleptocracy can not be forced to pay for prior (and ongoing) transgressions. Which is why we were not surprised to learn that "Bank regulators plan to announce settlements later on Wednesday with the largest lenders over allegations of shoddy foreclosure practices, but the pacts will not include financial penalties." All those who had been hoping for an equitable judicial treatment for criminal bank actions are urged to bottle their righteous indignation and stow it away (at this rate of inflation indignation will be worth 50% more in a mere 3 months). "The Office of the Comptroller of the Currency, the Federal Reserve and the Office of Thrift Supervision have spent the past few days completing the settlements with some of the largest U.S. banks, including Bank of America Corp, Wells Fargo & Co, JPMorgan Chase and Citigroup Inc. The pacts would resolve only part of a large probe involving a group of 50 state attorneys general and about a dozen federal agencies." But don't worry banks, won't actually have to part with even one dollar: "JPMorgan Chase & Co Chief Executive Officer Jamie Dimon said on an earnings  conference call that the regulators would release consent orders that would make the banks address weaknesses in foreclosure affidavits. Fines will probably come later, he said." Probably. Although don't hold your breath.

From Reuters:

Federal regulators and state attorneys general have been investigating bank mortgage practices, including the use of "robo-signers" to sign hundreds of unread foreclosure documents a day, that came to light last year.

Some lenders, including Bank of America, temporarily suspended foreclosures late last year while they scrubbed their servicing practices, but government agencies have been pushing for broader reforms.

At first, all the government agencies involved in the probes said they wanted to announce deals with servicers at the same time so there would be a clean conclusion to the process.

That unity began to fracture as the attorneys general, along with some parts of the Obama administration, pushed for servicing changes and fines of about $20 billion, beyond what the bank regulators wanted.

The partial settlement with the bank regulators will probably leave open the question of the banks' legal costs stemming from the weaknesses in their foreclosure practices.

The uncertainty could also mean that some foreclosures will remain stalled, keeping the recovery of the broader housing market in limbo.

On Wednesday, Dimon said a comprehensive foreclosure settlement would be good for everybody, including the housing market.

He also said some of the foreclosure settlements with the government could increase the costs of mortgages to consumers.

Actually no: if fraudclosures clear out the market, if banks released millions in shadow housing inventory, and if there was even a trace of legal precedent in the US, costs of mortgages to consumers would plunge, and a clearing price level without constant Fed supervision would be established, returning such long-missing concepts as unadulterated supply and demand in the housing market. Until then we can expect to hear much more such M.A.D. posturing from the like of King James.

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pods's picture

Yep, bout time we BTFD.

Burn The F#cker Down!


Heavy's picture

Agreed BTFD, they have given us no other choice though, so we should be careful about what we allow to come after we BTFD.

Bill the Cat's picture

Ack!  Revolution!  Tfppth!

Triggernometry's picture


Sharpen pitchfork


(Fuck guns, this shit is getting personal)

caconhma's picture


You are utterly naive or just outright stupid. These major banks own this country, the Obama administration, the Congress, the judicial system, the mainstream media, to name few. So, they do whatever they want without giving a shit about your and your opinion.


America has a terminal disease. It is called "a runaway mouth diarrhea". Please closed your stinking mouth and stop spreading germs.


Any more questions?

chunga's picture

I'm thread jumping here...sorry.

I sent TD the docs. Criminal arrests are right around the corner. I'll get some damn pictures when it happens. It won't stem from the ball washer AGs either.

Rough waters ahead.

Diana v. Wamu

Was appealed to Supreme Court a month ago. Appeal dismissed. Filed Motion to Reconsider, Motion for Relief Denied based on Law of the Case. Take your medicine banksters....(simple 8 page read)

Moll Brief

42 pages...plenty of "color" but best for a lawyer. Still a fun read.

tonyw's picture

Agreed, ZH has posted the Of the 1%, by the 1%, for the 1% articles recently and it should now be obvious to everybody who's not completel stupid that it's not democans vs republicrats or left/right or black/white but the top 0.1% of kleptocrats taking by any means possible.

I think i posted here a while ago that after the cheating, stealing and lying of the last three years then banksters would win again, if they break the law then obviously the law needs changing and will be changed retrospectively if needed.

TheFourthStooge-ing's picture

As an addendum to BTFD, I'd like to suggest TTHELBITA.

(Torch the Hamptons, every last bit, in the ass!)


Thomas's picture

Where are the serial killers when you need 'em?

bigdumbnugly's picture

... Fines will probably come later, he said." Probably. Although don't hold your breath.


and the people will probably make their mortgage payments later.  Probably.  But don't hold your breath.

NOTW777's picture

fines?  i think he meant to say campaign contributions

jplotinus's picture

This slowly unfolding process appears to be designed to force people to resume mortgage payments.  That, after all, is what the people, aka sheeple, have latched onto as their one effective response to crony capitalism and rampant corporatism.

The settlement that is to be announced will apparently not result in a lifting of the ongoing foreclosure moratoriums in areas where such moratoriums are in effect.

Foreclosure moratoriums might be the line the sheeple have drawn that cannot be crossed.


We'll see

Tater Salad's picture

Umm, you mean Dodd, Frank, Pelosi and Obama? 

Busy murdering America I suppose.

redpill's picture

Bernard von Nothaus will be rotting in jail for making honest money while these assholes flaunt their fraud to the world.  Shit just ain't right.

Old Poor Richard's picture


Not only will TBTJ banksters not pay settlements, they (and their fucking wives!) will get Fed $$$ to bailout their losses on non-profitable fraudclosures. 

The USD has no credibility because of debt???  How about the entire USG has no credibility because it's a fucking banana republic pwned by the 21st century mob.


traderjoe's picture

Government of the corporations, by the corporations, for the corporations.

l1xx3r's picture

No kidding... If we ignore them long enough, will they go away? Really, they are only 0.01% of the populaion.

ItsEvolutionBaby's picture

Listen to this. 

Equip torches and bludgeoning instruments.



BrobamaReds's picture

I love my bank's razor rate CD, ayit.

Careless Whisper's picture

Who could've guessed that Marilyn Manson had it right all along?

White trash get down on your knees

Time for cake and sodomy

vote_libertarian_party's picture

That still doesn't clear up the question of 'who owns the house'? x 1,000,000...or is up to 5,000,000 by now.


How many activists blogs will more aggressively call for people to squat in their homes and stop paying their mortgages?

downwiththebanks's picture

Precisely.  As much as the banker-gangsters would like it to be so, this issue does not find its resolution in the courts.

This is about people, organized, defending themselves against the financial parasites and their accomplices in government.

Careless Whisper's picture

@ vote_

The person whose name is on the deed owns the house. The question is who owns the Note? and does the Note have a valid Mortgage attached to it?

flattrader's picture

Be there or be square

New York City, Fri Apr 15th 2011

Our demands:

Stop Foreclosures: The last two years saw record foreclosures with one out of seven houses in the U.S. behind in their mortgage payments. A total of 3.8 million foreclosure filings and actual bank repossessions topped 2.8 million in 2010, a 2% increase over 2009 and a 23% increase over 2008. This record is likely to be broken in 2011. The housing market is so bad that now there are reports of banks walking away from houses in foreclosure, leaving problems in communities.

Pay Fair Share of Taxes: Big banks are not paying taxes, while reaping tax payer bailouts. Bank of America did not pay any federal income taxes in 2010. The largest bank in America didn't pay federal income taxes in 2009 either. If Bank of America paid their fair share of taxes, planned cuts of $1.7 billion in early childhood education (Head Start & Title 1) would not be needed. Bank of America avoids paying taxes by using subsidiaries in offshore tax havens. To eliminate their taxes, they reinvest proceeds overseas, instead of bringing the dollars home, thereby undermining the U.S. economy and avoiding federal taxes. Big Finance, like Bank of America, contributes to record deficits that are resulting in massive cuts to basic services in federal and state governments.

Break Up the Big Corporate Banks: If banks are “too big to fail” then they are too big. They dominate the economy and the political system. Ten huge banks now control 60% of the economy. They ensure concentration of capital and concentration of political power. Because of the federal government’s protection of the big banks, small and moderate sized banks cannot compete. Failure to break up big corporate banks ensures their dominance of the economy and the government. As Senator Dick Durbin said about the banks controlling the senate, in a moment of honest frustration, “they own the place.” It is time for the people to take back ownership of government and politics.

It is urgent that Americans organize, and stand up to the concentrated political/economic power and greed of the financial elite. Join us on April 15 to be part of a people-powered movement that reigns in the power of concentrated corporatism and builds the power of all Americans. Get involved now as we take the steps needed to build a movement that cannot be stopped.

Join us in New York City on April 15, 2011 at 11:00 in Union Square Park.

flattrader's picture

I cetainly prefer the venue of the 06/14 protest.

Take it right to the black heart of Wall Street.

chumbawamba's picture

I'm more partial to a .30-06 protest.

I am Chumbawamba.

writingsonthewall's picture

I concur, this is people vs the banks now.


Gladiators - READY!

Banks - READY!


Let the battle commence - there's nothing like a bit of feudalistic behaviour to get the masses organised.


Remember, you are not alone US mortgage (non) payers - occupy, putrify and rectify.

Imminent Crucible's picture

"It's the people vs. the banks now"

Um, no.  It's the people vs. the banks/government/military-industrial complex. It's perfectly clear that the banks and the other multinationals OWN Congress and the White House.  President Nobel Peace Prize is carrying on the Bush Wars and has added wars in Pakistan, Libya and apparently Ivory Coast.

So what we really have is a disorganized band of ragtag rabble attempting to lead an anesthetized and apathetic middle class into battle--against a well-organized plutocracy of central bankers, corporate looters and their Congressional lackeys.  They control the laws, the money, the military, the financial system and tax systems--oh yeah, and the judicial system.

Meanwhile, we control....what?  I'm thinking, I'm thinking. Right now, about all we control is whether we choose to work and where we choose to live.  Not sure how long those choices will remain open.

flattrader's picture

>>>So what we really have is a disorganized band of ragtag rabble attempting to lead an anesthetized and apathetic middle class into battle--against a well-organized plutocracy of central bankers, corporate looters and their Congressional lackeys.<<<

Somebody's gotta start somewhere.

The Tea Partyis bought and paid for though they are wholly unaware who the "men behind the curtain are."

And they had tens, I tell you tens of participants at their last D.C. budget protest event at the end of March supporting these fucktards--

The Tea Party swept into the 112th Congress with promises of cutting government spending. But according to a report out today, at least five lawmakers with Tea Party connections have been longtime recipients of federal agricultural subsidies.


While the majority of American farmers receive no government money at all, at least 23 current members of congress or their families have received government money for their farms -- combining for more than $12 million since 1995 according to a new report from the Environmental Working Group.


The biggest recipient was Rep. Stephen Fincher, a Republican from Frog Jump, Tenn.


While the self-described Tea Party patriot lists his occupation as "farmer" and "gospel singer" in the Congressional Directory, he doesn't mention that his family has received more than $3 million in farm subsidies from 1995 to 2009, according to the Environmental Working Group.


When asked whether he would be willing to see all his subsidies go away, Fincher would not directly say he would no longer take any more subsidies.


"We need a good, better, we need a better farm program and we need to streamline it," he said. "We need to look at many many options. And that's a long way off."


Rep. Vicky Hartzler, R-Mo., who also was swept into office with the Tea Party movement, received $774,489 in farm subsidies over the same period, according to the EWG's numbers.


According to the EWG report, Rep. Marlin Stutzman, R-Ind., received almost $180,000 between 1997 and 2009.

Live_Free's picture

This is true and as such this may be our last chance.


Even if it is disorganized and futile, I'd rather fight back then allow some sneaky snake in the grass monied fork tongued banksters to slowly constrain and sufficate the last remaining freedoms I think I have.  

chunga's picture

I'm telling you what...if this bullshit continues this is where we're headed

gordengeko's picture

Keep paying your mortgages people nothing to see here.  You are getting sleeeeppppeee...

TruthInSunshine's picture

All of this statutory 'papering over' means squat in what will be the legal challenges, mainly in jurisidctions of state courts, as all real property issues, including those of validity of title and assignment of title, are 'in rem' issues preserved to state laws, and I've yet to see any cogent federal law issue raised which trumps state law providence, including any weak claims of interstate commerce (unless, of course, one was speaking of mobile homes, with fixed axles, which are subject to UCC-1 filings of security interest and can move across state lines; i.e. interstate).

iinthesky's picture

+1 this is exactly what theyre trying to cover up.. Distraction from the real issues but those out there fighting won't be phased at all. I'm waiting for some forensic audits to be placed into the record showing how they monetize and securitize and the entire so-called loan balance is paid before you even come to the closing table in some or much more likely, 95% of the cases.

MachoMan's picture

There isn't and won't be a federal trump card...  This is but one issue...  and, frankly, I'm unsure as to why the AGs would come out and arrange a puny settlement?  The people want blood (figuratively), not some piddly ass promise to refrain from assfucking the populace going forward.  Individual cases will proceed and will have an incredibly high success rate...

Also, doesn't the settlement expressly reserve any issues of fraud?  ["should it be found"]  Although finding it requires looking...  (not at tranny porn).

JailBank's picture

I just puked a little. I can't be more disapointed in how my government works right now.

SheepDog-One's picture

Get away with it for now, fines come later. Oh sure.

Rainman's picture

.....the Wimpy solution...happily paying on Tuesday for a hamburger today.

12ToothAssassin's picture

"...pushed for servicing changes and fines of about $20 billion, beyond what the bank regulators wanted"


You can cash in breaking the law and as long as you dont go to jail and the fines are lower than your take, its all gravy!

no2foreclosures's picture

My "predictions" on the endrun for Fraudclosure published on October 10, 2010:

Pants McPants's picture

Why would anyone pay his or her mortgage in a 'market' like this?

Boggles my mind.

Seasmoke's picture

Brainwashed or scared of their own shadow

gordengeko's picture

Land of the free home of the brave, sing it proud next time you are at that sporting event with your children.

downwiththebanks's picture

Even though they don't think they do, people still trust/fear some institutions enough to obey.  Further, when credit scores are used to whip people into shape for bucking conventional wisdom they have further incentive for falling in line.

Agent P's picture

There should be no free rides.  That goes for banks and borrowers.

I borrowed (from a local bank) to buy my house.  I owe that money to the bank.  I am paying it back.  No different than borrowing a 10 spot from a borrow money, you pay it back. 

Silva Plata's picture

That's a nice idea. But what if the person who you borrowed that ten dollars from sold the debt to someone else, and what if the new holder of your $10 debt sold it to a different person? Then what would you do if the first person you borrowed the money from said you didn't pay him and forged some documents so he could foreclose on your $10 house? And what if you got sick of the headache and so you tried to sell your $10 house but it was now only worth $5? Then what if the first person got away with stealing your $10 house even though they sold the debt to someone else?