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Banks Offer Paltry $5 Billion In Exchange For Full Expungement Of Robogate Charges And Complete Release Of Any Future Claims

Tyler Durden's picture


And there were those who thought that the $20 billion demanded by state and federal officials of banks caught in various acts of robosigning fornication was a joke. According to the WSJ, "The nation's biggest banks are willing to pay as much as $5 billion to settle claims by federal and state officials of improper mortgage-servicing practices." Needless to say this is a sham of a farce of a "settlement", and amounts to one quarter in trading perfection for the likes of the afore discussed JPM, BofA or Goldman. Recall that Goldman pays well over three times this amount in bonuses each year. On the other hand, this is merely a counteroffer to the $20 billion preliminary bid. Which means that the final number to put the entire robosigning affair behind us will be about $10 billion give or take. And banks can go back to doing what they do best: post 0 trading losses per quarter, and other such infinite sigma events.

From the WSJ:

Bank representatives met Tuesday with state and federal officials in the latest round of negotiations. On Friday, banks received revised term sheets from government negotiators. One sheet revised proposed changes in mortgage-servicing practices. The second term sheet governs how penalties would be allocated; among other things, it details how they would have to reduce loan balances for certain borrowers.

The banks intend to propose that as much as $5 billion be used to compensate any borrowers previously wronged in the foreclosure process and provide transition assistance for borrowers who are ousted from their homes, according to people familiar with the matter. One idea is that foreclosed borrowers could receive several months of free rent once they find new housing, one of these people said.

Not only that, but the $5 billion token amount is supposed to be a broad release, in essence granting banks immunity from any and all future related lawsuits:

They must also reach an agreement on the claims state officials and federal regulators will surrender as part of any settlement. Banks are less likely to sign off on any deal that doesn't provide a broad release of claims from state attorneys general in the most populous states.

In April, bank regulators sent 14 institutions orders that required the banks to improve foreclosure practices but didn't include fines. Banks have 60 days to set up plans that would clean up their mortgage-servicing processes. They also have to hire an independent third-party consultant that will examine all foreclosure cases in 2009 and 2010 for any errors.

This development is naturally precisely what the Attorney Generals, who have been in on this from the beginning are looking for. They will next be able to extract a few more billion in pocket change from the banks which at last check had about $1.3 trillion in excess reserves, declare themselves fighter for the common man, and proclaim victory against the banker scourge. And from that point on, banks will merely use the Buffett defense: "if questioned about this matter in the future, [they] will simply refer the questioner back to this release."

And so they win again.


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Tue, 05/10/2011 - 21:02 | 1261166 israhole
israhole's picture

As long as we stand for it, we'll be subverted by rats.

Tue, 05/10/2011 - 21:36 | 1261245 XenoFrog
XenoFrog's picture

In a fair world, people would be able to rob banks, then offer to return 1% of the money in exchange for the dropping of all charges without admitting the robber did anything wrong.

Tue, 05/10/2011 - 21:54 | 1261326 MissCellany
MissCellany's picture

Hell, yes...and that way, at least some of the money would end up in PEOPLE's hands...

Tue, 05/10/2011 - 22:00 | 1261343 Cdad
Cdad's picture

I hope the state AGs do settle.  It will hasten the revolution.

Tue, 05/10/2011 - 22:18 | 1261409 Careless Whisper
Careless Whisper's picture

Where is nine inch Spitzer when we need him? He fined Pauly Walnuts and tha boys $1.4 Billion in 2002 for some stupid IPO pumping. He would have these bankstas begging, begging, to pay $100 Billion to be left alone.

Tue, 05/10/2011 - 22:32 | 1261472 downwiththebanks
downwiththebanks's picture

Why do you think they got him?

Tue, 05/10/2011 - 23:16 | 1261649 rocker
rocker's picture

+10   Why yes, they took him out while Wallstreet gives us the CNBC whores for Jamie Dimon drewing over him on air.

Who gets to do him first, Michelle, Melisa or Karen.  What a Pig Show.  At least Bloomberg has class. 

Tue, 05/10/2011 - 23:17 | 1261658 rocker
rocker's picture

Thinking about this a bit more. So who gets to do Lord Blackass, (Blankfein).  Big Ben or Tiny Tim.  Interesting. Hmmmm. 

Tue, 05/10/2011 - 23:07 | 1261617 Problem Is
Problem Is's picture

4 inch Spitzer was thoroughly neutered...

The Eunuch Spitzer can now be seen pontificating on TeeVee...

Wed, 05/11/2011 - 00:34 | 1261825 sun tzu
sun tzu's picture

Revolution? Funny. I bet 99% of the population don't even know what the banks did. They'll be happy that the banks had to fork over $5 billion and the state AG's will run for re-election with this "victory" under their belts.

Wed, 05/11/2011 - 07:24 | 1262177 Ace Ventura
Ace Ventura's picture

I wouldn't say only 1% are aware, probably more like 4 or 5%. As for the rest of what you said, unfortunately I find myself in whole-hearted agreement.

If there is a positive note, a revolution can be started once 15-20% critical mass is achieved. Naturally, trying to achieve that mass in the current amerikan societal landscape of iGadget idiot-box cheetos junkies is something of a 'challenge'.

(Oh, who am I kidding! We're freakin' doomed!)

Tue, 05/10/2011 - 22:25 | 1261410 G-R-U-N-T
G-R-U-N-T's picture

How come government and banks get to practice looting lawlessness while we get our ass kicked?

Perhaps battered wife's syndrome is in fashion these days and American's just likes to have the living shit kicked out of them over and over and over and over again and again and again and again...

Tue, 05/10/2011 - 23:19 | 1261663 rocker
rocker's picture

 They run the nation.  President has nothing to do about any of this stuff.

Tue, 05/10/2011 - 23:20 | 1261667 rocker
rocker's picture

Did I say run the nation.     My Bad.......   They ruin the nation.  One household at a time.

Tue, 05/10/2011 - 22:59 | 1261584 bigelkhorn
bigelkhorn's picture

Yes! And bank tards have our best interest at hand. We are so screwed people. Not proud to be an american some days. The market is bat shit crazy. 

That guy from FFT is oz is good, I been following him for a while and he called the market crash in 2008. 


I belong to his membership site, its awesome and has live videos and everything to follow along. 

Makes it easy to take money from the market even if you are a newbie!. 


His new monthly trading club is opening tomorrow, and over at :-

Wed, 05/11/2011 - 01:05 | 1261870 Ben Fleeced
Ben Fleeced's picture

If you are going to punk a junk, claim it you f'n breeding females dependent upon your mothers teet for sustenance.

@Bigelkhorn=((not so much+(hellx2)+NO))/grammar

free kick in the throat award belongs to...


Tue, 05/10/2011 - 21:07 | 1261168 Don Quixotic
Don Quixotic's picture

"Banks are less likely to sign off on any deal that doesn't provide a broad release of claims from state attorneys general in the most populous states."

OK, so let them refuse to sign and let's take this thing to court. Why are we not ok with that?



Tue, 05/10/2011 - 21:09 | 1261175 Rynak
Rynak's picture

Whom do you mean with "we"?

Tue, 05/10/2011 - 23:27 | 1261679 rocker
rocker's picture

Exactly,  Jail First.  Compensation after.  Just like Bernie Madoff.  Bernie needs a angel doing God's work.

 Please...................................................Somebody............But his ass in Jail with Bernie.

Tue, 05/10/2011 - 21:08 | 1261170 Gubbmint Cheese
Gubbmint Cheese's picture

They are going to push people too much.. And then there will be absolutely no going back... Why they don't see that danger is beyond me..

Tue, 05/10/2011 - 21:12 | 1261185 docj
docj's picture

Ask the elite Parisians from 1796. This current crop is no smarter or more sophisticated (or are imbued with less hubris) than they, so of course they don't 'see it coming'.

Then again, they didn't have French Idol and McPierre's back then to keep the rabble occupied.

Tue, 05/10/2011 - 21:22 | 1261219 Meatier Shower
Meatier Shower's picture

Yeah, but they had plenty of cake.

Wed, 05/11/2011 - 01:11 | 1261879 Ben Fleeced
Ben Fleeced's picture

"Why they don't see that danger is beyond me.."

Uhnle33 u r knot Uhmerican u needz sum englicks sxills.

What danger plagues your house m'lord?

Tue, 05/10/2011 - 21:06 | 1261173 trainrobbery
trainrobbery's picture

Too big to fail!

Too big to fine????  What?  

Tue, 05/10/2011 - 21:08 | 1261179 Rynak
Rynak's picture

"Fine" now simply stands for "price to ignore laws".

Tue, 05/10/2011 - 21:50 | 1261312 Amish Hacker
Amish Hacker's picture

Right. Kind of like membership dues in the Masters of the Universe Club.

Tue, 05/10/2011 - 23:59 | 1261776 Rynak
Rynak's picture

Tax-deductable via monetization too. Pay first, get it back afterwards at the next bailout.

Tue, 05/10/2011 - 21:06 | 1261174 docj
docj's picture

Yep, it's a joke alright. And the joke is on us sheeple.


Tue, 05/10/2011 - 21:09 | 1261176 whiskycreek
whiskycreek's picture

over 28 million views and counting...go viral



Tue, 05/10/2011 - 21:23 | 1261223 Meatier Shower
Meatier Shower's picture

This version is far superior.

Tue, 05/10/2011 - 21:55 | 1261322 whiskycreek
whiskycreek's picture

10k views vs. 28 million....ya stay there

Tue, 05/10/2011 - 22:33 | 1261465 Careless Whisper
Careless Whisper's picture

the financial collapse won't be pretty


Wed, 05/11/2011 - 10:01 | 1262675 Meatier Shower
Meatier Shower's picture

So you judge the quality of a video only by the number of views it has?

You must think that Fred is high quality also.

Fucking sheep.

Wed, 05/11/2011 - 04:31 | 1262040 WakeyWakey
Wed, 05/11/2011 - 04:43 | 1262041 WakeyWakey
WakeyWakey's picture

and the above video is from 2007 before the financial crisis and includes the line 'Wall street crime will never send you to the slammer'.

This shit has gotta be stopped.

Wed, 05/11/2011 - 06:05 | 1262107 overmedicatedun...
overmedicatedundersexed's picture

Big criminals never pay it's the law of the jungle- our bankers wrote it and bought it in the courts and congress..don't like it too bad.

Tue, 05/10/2011 - 21:07 | 1261177 KingdomKum
KingdomKum's picture

It's time to rise up and protest this gross injustice


Tue, 05/10/2011 - 21:39 | 1261267 Vic Vinegar
Vic Vinegar's picture

Go for it dude.  Protest it!

Tue, 05/10/2011 - 22:36 | 1261482 downwiththebanks
downwiththebanks's picture

If you do, prepare to get attacked viciously on these pages by those who favor austerity for everyone but the banker-gangsters who have brought the economic system to its knees.

Wed, 05/11/2011 - 01:19 | 1261895 Ben Fleeced
Ben Fleeced's picture

Comprehension much?

Wed, 05/11/2011 - 04:21 | 1262034 downwiththebanks
downwiththebanks's picture

I comprehend that whenever people take to the streets to protest their legitimate grievances, and it's covered on ZeroHedge, the Keyboard Cowboys come out in force.

Wed, 05/11/2011 - 07:53 | 1262236 chubbar
chubbar's picture

What "downwithbanks" is alluding too here are the
threads concerning the Wisconsin Public workers
Several posters took the position that it was
entirely possible that a 160K salary for a bus
driver, a job whose barrier to entry is about 30
minutes of practice in an empty parking lot,paid
for by 40K/yr taxpayers MIGHT be something
considered excessive. It was also concluded that
this salary doesn't exist in the private sector
thus lending credibility to the idea that SOME
of the public sector workers are overpaid as a
result of union power and threats. An
idea that caused apoplectic fits by "downwithbank
It was also pointed out that Public Sector workers
are paid by taxpayers, NOT out of the personal funds
of Bankers. Thus lending credibility to the idea
that ZH posters can be against both bankers AND
the concept of overpaid gov't workers. THAT is
what is sticking in the craw of "downwithbanks"
and is responsible for his inability to get past
the Wisconsin Public Union meme. He finds it
inconsistent to question the high salary of a taxpaid
bus driver as well as the billion dollar bonus of
a taxpaid banker. go figure.

Tue, 05/10/2011 - 21:07 | 1261178 Mec-sick-o
Mec-sick-o's picture

Attorneys and Banksters lying together.


Tue, 05/10/2011 - 21:08 | 1261181 Arkadaba
Arkadaba's picture

Let's chill out. Hate everything that is happening in the world today but one of my favs: Note that I don't recommend going awal as a trading strategy but, wtf:

Tue, 05/10/2011 - 21:10 | 1261187 Smartie37
Smartie37's picture

How many dollars CENTS per fraudulent title is that ?!?

Tue, 05/10/2011 - 21:14 | 1261191 Ecoman11
Ecoman11's picture

Nobody will care. Carry on.

Tue, 05/10/2011 - 21:17 | 1261197 max2205
max2205's picture

It really too bad states are that desperate for cash that they'd settle for this amount. Banks know it too. This is worse than TARP!

Tue, 05/10/2011 - 21:14 | 1261198 gbresnahan
gbresnahan's picture

I think $500 billion is more like it.  We're long overdue to send the banks a crystal clear message that the game is over.

Tue, 05/10/2011 - 21:15 | 1261199 buzzsaw99
buzzsaw99's picture

Why don't they just threaten to crash the market again? Extort me bitchez!

Tue, 05/10/2011 - 21:19 | 1261202 max2205
max2205's picture

It really too bad states are that desperate for cash that they'd settle for this amount. Banks know it too. This is worse than TARP!

Tue, 05/10/2011 - 22:39 | 1261490 downwiththebanks
downwiththebanks's picture

The states could get solvent again by, you know, TAXING these motherfuckers to the sky.

Tue, 05/10/2011 - 21:19 | 1261203 Ecoman11
Ecoman11's picture

They need to be beaten in the streets like Mussolini. That will send a message.

Tue, 05/10/2011 - 21:23 | 1261216 Rynak
Rynak's picture

Actually, if all you want to do, is send a clear message that cannot be ignored by massmedia worldwide.... then this would require NO effort: Simply don't vote. What could go wrong anyways, with there being just two major parties who are all the same? But nooooooo, can't let that happen with the party-zealots.

Tue, 05/10/2011 - 22:36 | 1261476 brodix
brodix's picture

Vote for the local elections, but leave the national ones blank.

 I'm thinking writing in for Jim Webb. He seems to have both a spine and a brain, which seems to be a rare combination.

Tue, 05/10/2011 - 22:38 | 1261499 downwiththebanks
downwiththebanks's picture

Phat chance seeing that happen as long as Ron "JOHN BIRCH" Paul is running.

GOP all the way, right?

Tue, 05/10/2011 - 21:20 | 1261206 gbresnahan
gbresnahan's picture

I think $500 billion is more like it.  We're long overdue to send the banks a crystal clear message that the game is over.

Tue, 05/10/2011 - 21:24 | 1261227 Rynak
Rynak's picture

Wake up.... the banks have no own financial balance sheet - its just a sub of the fed balance sheet. By now, a better way to think of the megabanks, is not as seperate entities, but instead as departments of the fed. Welcome to the USSR.

Tue, 05/10/2011 - 22:40 | 1261508 downwiththebanks
downwiththebanks's picture

Except that private capital runs everything here in Babylon, including the government.  

That's what makes Capitalism the shitty, crooked system it is.

It's like one gigantic pay-to-play con.

Tue, 05/10/2011 - 21:36 | 1261246 palmereldritch
palmereldritch's picture

One cent on the dollar is the new standard of arrogance.

Tue, 05/10/2011 - 21:18 | 1261209 GottaBKiddn
GottaBKiddn's picture


Maybe they could write some default risk paper to sell to suckers to raise a little extra "get outa' jail" cash, and turn this into a real money maker. Call Fabrizio. Get Madoff on the line. This could be big.



Tue, 05/10/2011 - 21:22 | 1261211 wirtschaftswunder
wirtschaftswunder's picture

Irish Bombshell: Government Raids PRIVATE Pensions To Pay For Spending

Read more:

Tue, 05/10/2011 - 22:18 | 1261411 Hacksaw
Hacksaw's picture

Coming soon to a pension plan, 401K, or SS account near you.

Tue, 05/10/2011 - 21:23 | 1261222 gkm
gkm's picture

If this were in the SEC jurisdiction, the deal would already be done - for $5 mill.  That's a lot of porn even for those guys.

Tue, 05/10/2011 - 21:26 | 1261229 lynnybee
lynnybee's picture

it's all scams & lies.   Liars, scammers, fraudsters, banksters, thieves, Wall St., City of London , U>S> Government, politicians ........... It's called an absolute disgrace.    We American Citizens are supposed to be good & upstanding members of the community ....... since when don't the rules apply to big business ? big government ?  . . . . . it's called REVOLUTION, people !   Time to stop playing by the rules that THEY have set up for US !  

Tue, 05/10/2011 - 21:46 | 1261296 Ima anal sphincter
Ima anal sphincter's picture


Tue, 05/10/2011 - 21:51 | 1261313 pods
pods's picture

I feel your pain lynny.  Just do your best to drop out of the system.  No credit use at all.  

No worries.  It will implode simply from its own weight.  

You know where to keep your wealth.  Keep it close.  :)

Just be vigilant about hanging the next group of bastards that propose any fractional reserve anything when the dust settles.


Tue, 05/10/2011 - 22:44 | 1261515 downwiththebanks
downwiththebanks's picture

That's nice in theory, but when people take to the streets ZeroHedge comes alive with vitriolic attacks, not support.

Tue, 05/10/2011 - 22:53 | 1261558 Hacksaw
Hacksaw's picture

Watching these always makes me feel better, take your pick.

and if that doesn't do it for you take a look at this. It's long but worth the time if you haven't seen it yet.

Tue, 05/10/2011 - 21:30 | 1261233 eBuddha
eBuddha's picture

I can't stand the big banks - but i'm at a loss for what they did wrong in this particular case - the foreclosure process is a rather lengthy process that IMHO gives the (non-performing) homeowner a huge advantage (or, opportunity to game the system).

So what if a person didn't review every page and then actually sign a document?  If the homeowner hasn't been making payments, they should lose the house.  If an error has been made by the bank along the way, there are many opportunities over the course of usually a year to bring the error to the attention of the bank.  Who was harmed and in what way by this?

The $5 billion may be lunch money for these big banks, but i see it as a mis-carriage of justice for the govt to be forcing this issue.  How about all the people that fraudulantly filled out mortgage apps?  How about the regulators that were supposed to be monitoring all this?  For the govt to constantly be going after the big banks (who, again, i agree, suck) and collecting cash from them now, it just doesn't resolve anything for me.

How about Barney Frank stand up in front of the American people and say, 'oh yeah, we missed this that and the other thing b/c we've always had our heads up our asses and OK we're not going to go after the banks just to distract everyone from wondering if we may have been culpable and we're going to fix the game so this doesn't repeat'

Then we can cheer.

But, frankly, ZH is starting to turn into a mob itself.  Too much group think and one-way thinking.  I agree the banks suck.  But I try not to let that affect how i read every news story - they were only 1 of 3 parties to an ugly mess.

Tue, 05/10/2011 - 21:36 | 1261248 Rynak
Rynak's picture

Uh hum.... you may want to read up on what all the fraud actually included. It is much more disgusting than you would expect. All kinds of data and documents were faked, including signatures.... en masse!

Tue, 05/10/2011 - 21:46 | 1261285 Stormdancer
Stormdancer's picture

Anyone who is "at a loss" as to what the banks did wrong at this point is either willfully ignorant or purposely propagandizing.  And culpable.

Tue, 05/10/2011 - 22:29 | 1261456 Hacksaw
Hacksaw's picture

Or a shill

Tue, 05/10/2011 - 21:50 | 1261300 eBuddha
eBuddha's picture

i guess what i'm saying is that if i owned a house and was being foreclosed upon wrongly, i would have at least a year to clear it up before anything was finalized.

if i wasn't getting anywhere w/ the bank, i'd call the local news station.

i just don't see how it's possible (although, i suppose it may have happened - but could it have happened en masse) for people to have lost their house when they were not supposed to have.

as a seperate issue, the banks may not have been following every single rule, but i'm still just trying to figure out exactly who was harmed and how.  i guess i'll have to go get a bit more educated on this topic before i say anymore.  but personally, i haven't known anyone that was foreclosed upon that didn't deserve it and in all those cases, it took at least a year and in one case down the block from me - the jerks would go 6 months w/o making a payment then pay a few bucks then nothing, repeat.  After 2 years it finally caught up with them.

Tue, 05/10/2011 - 22:37 | 1261481 GreenSideUp
GreenSideUp's picture

Interesting that you want the laws to be followed regarding the "deadbeats" that didn't make good on their mortgage payments but you're willing to forgive the banks for not following the law.

It's far more than "not following every single rule".  The chain of title was broken, clouded and bastardized.  Transfers were not properly recorded.  Documents were forged.

By law, only the holder of the note has legal standing to foreclose.

Yes, you need to read up.  The banksters committed massive fraud.     



Tue, 05/10/2011 - 23:16 | 1261652 eBuddha
eBuddha's picture

(a) while i'd like the law to be followed regarding the deadbeats - i've never seen a single case where someone who lied on a mortgage app was prosecuted or even harrassed by the law man

(b) i'm not suggesting that any crime be ignored, and i'm not doubting the banks didn't get all the paperwork right, but what i'm puzzled by is that even in the steps you mention regarding title, etc --- there are at least 2 parties to the transaction and if it's my house then i follow up to make sure everything has been recorded properly (e.g. when i bot the house i'm living in now, my lawyer made a mistake and got the PIN # wrong and b/c i was looking in my county's online database to make sure everything was recorded properly - i discovered the mistake).  So my point is simply:  i am amazed that if there was a 'crime' committed, it would have had to been done with the homeowner having their head completely in the sand.  If people are too stupid to understand the process, they should not be allowed to buy a house (i've said the same thing about people having babies, but then again, i place a high value on personal responsibility).

so, if there is to be any outrage in this particular situation, i'd think it would not be at the people who are being hunted down and offering some payment - but rather (a) the regulators who were asleep and (b) the borrower who was either lying or stupid.

just so there is no misunderstanding: i'm no lover the Wall St or the banks - but i just see an enormous herd mentality about jumping on the banks when they've already been 'outed' but nobody has any outrage over the millions of people who lied or didn't know what they were doing.  where is the outrage in that?

and similar to what will surely hapen in the silver market:  it was the dumb home buyers paying too much that sent prices soaring and now are lower than where we started -- it will be the dumb money pushing the price of silver too high that eventually causes its collapse (it may take many, many years just like with housing).

i'm just trying to be an alternate voice in the ZH sea of group think.  the responses around here have turned into the yahoo message board for silver with everyone just trying to encourage higher and higher prices ASAP.

Tue, 05/10/2011 - 23:40 | 1261717 eatthebanksters
eatthebanksters's picture

I know who you work for the JPM PR agency, because you can't be that stupid.  Either way your portion of the gene pool needs to go away...

Wed, 05/11/2011 - 02:28 | 1261963 FreeNewEnergy
FreeNewEnergy's picture

Troll radar is up.

Wed, 05/11/2011 - 02:31 | 1261966 Derpin USA
Derpin USA's picture

Read up. The only person prosecuted in the US in regards to mortgage fraud was a guy who took out a "liar loan."

Wed, 05/11/2011 - 04:29 | 1262036 theprofromdover
theprofromdover's picture


You have tried to view this from the perspective of an honest citizen, with respect for government and institutions.

Nothing wrong with that as an approach in principle, but the idea is that -when you come across conflicting evidence, you are expected to change your position.

But now try to look at it again, and this time from a perspective that considers government and banks as organised crime families -cosa nostra if you will.

I suspect you will find that the banks behaviour fits this profile much better.

Remember, the days when an officer of a corporation or government cared a hoot about the company, its reputation, viability, shareholders or workers, are LONG GONE. (There is an argument that believes these days only ever existed in a PR man's dream)


Step One -and if this can't pass the smell-test, then everything else must be worse '-Where is the profit to be made on selling on someone's mortgage (multiple times), unless you expect it to fail?'

Tue, 05/10/2011 - 22:43 | 1261525 brodix
brodix's picture

Big picture, it goes to the heart of the whole debt based money system and how, if they can just create debt, then they create money. If they insist on driving their own bus off the cliff, may as well let them keep driving up that mountain. There is only one way down and the crooked politicians are not going to save them. In fact, most of the politicians will quickly change sides when the monetary system breaks down. What will the banks pay them off with?

Wed, 05/11/2011 - 06:21 | 1262117 slewie the pi-rat
slewie the pi-rat's picture

infinite sigma, BiCHeZ

bus off cliff

apachelipz now

Tue, 05/10/2011 - 23:06 | 1261611 McPoopypants
McPoopypants's picture

read litterally like anything from Matt Taibbi about the foreclosure crisis.

Tue, 05/10/2011 - 23:34 | 1261706 eatthebanksters
eatthebanksters's picture

Mr. eBuddha, when you lose your job and then spend your retirment fund to save your house hoping your loan mod will be approved based upon representations by the TBTF banks, then tell me that the banks are not criminal enterprises.  The economy has imploded, there has been a loss of between $6.5 trillion to $9 trillion in home equity, CRE is down $3+ trillion...anyone who was a real estate investor (even a conservative one like me) got hammered.  Millions are out of work and more are losing jobs and why:  Because the fucking TBTF Banks and mortgage comapnies made loans they should not have made, and, they did it with other peoples money.  Do you think Jamie Dimon or Loydd Blankfein would use their money to make subprime no doc loans?  No fucking way...pull your head out of your ass and go learn something.  I suggest you read 'The Big Short' by Michael Lewis and you watch the movie 'Inside Job' which is now free on the internet.

Wed, 05/11/2011 - 00:12 | 1261801 slewie the pi-rat
slewie the pi-rat's picture

try googling "mers", ebuddha.

Tue, 05/10/2011 - 21:41 | 1261277 Stormdancer
Stormdancer's picture

How about we just insist that the law apply equally to everyone?  People like you who want to retroactively excuse would have to find something else to do.  'At a loss...'  damn skippy you are. 

If the watchdogs had not been captured and broken laws prosecuted we'd never have arrived at this juncture.

Tue, 05/10/2011 - 22:46 | 1261522 downwiththebanks
downwiththebanks's picture

The 'law' is bought and paid for here in Babylon - pretty much since the slaveholders wrote it up.

Tue, 05/10/2011 - 21:50 | 1261297 pods
pods's picture

Well eBudda, the problem is that the banks severed their interest in the properties when they placed the notes in the REMICs in blank.  They did this precisely because they were fractionally reserve issuing MBSs (or hiding shoddy valuations), and did not want traceable notes.  They also invented MERS to get around the fees for registration.  Probably also to make the whole mess so convoluted as to force the laws to be changed ex post facto when the whole thing imploded.

If a homeowner is at fault for not paying a mortgage, let the proper owner of the note come forth to foreclose.  

But, they cannot because the interest in the properties were severed due to the banks greed. I say let THEM eat them all.  They will lose the house, and will be on the hook for the putback.

Don't fall for the simple "If you dont pay, you lose" BS. That is what is being put forth by the parties who are naked whilst the tide runs out.  And it is the banks.  If the rule of law is followed, they are DEAD.  All of them.  

But they buy off everyone to allow them to say sorry for breaking contract law and still being made whole.

Sorry, let them implode.  Or hang from a lightpole.  No matter to me either way.


Wed, 05/11/2011 - 11:13 | 1263168 MachoMan
MachoMan's picture

I can't envision a scenario where an institution loses the house AND eats a putback...  At the very least, the institution should recover the proceeds of the sale (obviously at a huge loss).  However, if they cannot prove standing and there has been an interim lienholder of record, then they may be hosed.  The trick is how they proceed (note to banks: lying to the court does not work). 

[I still can't understand why the seconds and thirds of the world haven't foreclosed on these properties and forced TBTF hands to prove standing].

Tue, 05/10/2011 - 22:29 | 1261451 Id fight Gandhi
Id fight Gandhi's picture

There's a lot more than just skimming docs here and having it signed by a non legal part timer. They couldn't even find the notes, the proof that they made th mortgage or who they sold it to.

Tue, 05/10/2011 - 22:46 | 1261539 lizzy36
lizzy36's picture

You make some good points.

However, you forgot that the banks in many cases seem to have "lost" the mortgage note in the rush to securitize the mortgages. Thus they did not have the legal right to foreclose on the houses they were foreclosing on. In many cases, when banks realized this, they fraudulently recreated the mortgage note.

This is called property law. It is the basis of private property rights in the United States.


Wed, 05/11/2011 - 06:42 | 1262127 Popo
Popo's picture

What part of robosigning is not fraud?

What part of MERS *doesn't* break the law (AND THE CHAIN OF TITLE???)

What part of securitization coupled with a systemic misrepresentation of value is not fraud?

What part of evicting someone when you do not possess the deed isn't outright illegal?

If you can't see "what banks did wrong", you're completely and utterly brainless.  There is *clear cut* illegality on multiple levels.  The illegality is systemic,  highly profitable,  and well understood all the way to the top.   The big banks are nothing short of "fraud factories".  The entire business model is based on a circumvention of the legal system via bribes and political connections -- which is the entire point of this post.  The banks are essentially circumventing the legal system with a $5B payoff.

Why should that be allowed?  





Tue, 05/10/2011 - 21:32 | 1261241 SheepDog-One
SheepDog-One's picture

$5 billion WTF thats not even half an average day of Bernanke monetization. Ive got 1 word to sum it all up - FUBAR!

Tue, 05/10/2011 - 21:43 | 1261265 Rynak
Rynak's picture

Exactly.... sooner or later, even those tiny fines of the banks, will be transfered to the population anyways via monetization of which parts will go to the banks.

To put it simple: NOONE who is connected to a printing press, can get fined for anything! Any fines will in this scenario in the long run printed away, and thus be transfered to those dollar holders, who do not have friends at the fed. Or to zoom out really far: Whenever you fine a friend of the fed, you are actually fining the population and the rest of the world. Yes!

Tue, 05/10/2011 - 21:32 | 1261242 catch edge ghost
catch edge ghost's picture

Heroic States' AG Accept (N) billion, States provide affordable housing for (N+1) million new immigrants.

Got Wedge?

Tue, 05/10/2011 - 21:38 | 1261258 lynnybee
lynnybee's picture

P>S>  I forgot the word,  " LOOTING "  !   & the fact that 9/11 was an inside job !    I heard that RUMSFELD never even called his wife that day to tell her that he was O.K. !    something is very fishy with that .

Tue, 05/10/2011 - 21:45 | 1261282 ebworthen
ebworthen's picture


I will accept nothing less than jail time and public hangings.


Tue, 05/10/2011 - 21:44 | 1261287 Goldenhands57
Goldenhands57's picture

Good deal! I'll sign on..just make those $67K worth of Puts Strike at $5 on Citi that Hank Paulson screwed us out of valid now. NOT!!! I'd gladly pay that much just to see how this should play out for the likes of Countrywide execs and like all of them going to prison. You wanna read from the inside on how totally hosed this mess is? Take a gander at Bank Implode-O-Meter. In 2007 the bloggers there from inside Bear, Lehman, and a dozen others were telling it with clear conscience. These were working stiffs literally destroyed but the big greed at the top walked with more than a free pass. Realize too..many otherwise prudent regional or home town Banks now have to take on the burden..they are being put at the stake still. Go check it out..

 And so you'll know.. I paid Mortgages. I am free and clear, yet my homes value is not an ATM for me and never was. I agreed to pay..and did. It was tuff..sometimes really difficult. These new folks didn't have a chance in hell of understanding the garbage written in the paperwork at the Close. The boys at the top knew..they knew what was going down and planned it to happen!!       

Tue, 05/10/2011 - 21:48 | 1261292 Rick64
Rick64's picture

How about prosecutions and the banks pay all court costs plus fines according to the amount of fraud they committed, and put William Black in charge of the investigation.  Thats the kind of change I could believe in!

Tue, 05/10/2011 - 21:51 | 1261318 b_thunder
b_thunder's picture

1. The policy of the past 3 years has been "extend and pretend", so forcing the banks to pay any sort on meaningful (aka "painful") amount in fines would be basically undo everythign that the 2 most corrupt governments in history has been working on.

2. Whatever amount the Banks will be forced to pay, will be promptly reimbursed to them by the Fed.  The fine itself, however, will be jsut as promptly spent (wasted) by the government.  In the end the banks won't feel a thing, Timmy G. will get some pocket change to spend, Obummer and the state AGs will collect millions of campaign contributions, and we, the people will be left with even more devalued currency.

3. There's no amount of fine big enough to deter the Chief Banksters from doing exactly the same thing again.  They are not partners, they're not personally liable.  Only jail time would be a deterrent and appropriate punishment.


Tue, 05/10/2011 - 21:55 | 1261323 djsmps
djsmps's picture

With Obama in charge, I'm surprised all charges just weren't dismissed.

Tue, 05/10/2011 - 21:57 | 1261341 Yield2Greatness
Yield2Greatness's picture

Amazing that we have diluted the $ so much that 5Billion can now be the cost of doing business.

Tue, 05/10/2011 - 22:07 | 1261364 ShankyS
ShankyS's picture

This is fucking BULLSHIT!

Bottom line is crime pays (really damn well).

Tue, 05/10/2011 - 22:50 | 1261559 brodix
brodix's picture

They have yet to repeal the law of gravity.

Tue, 05/10/2011 - 23:33 | 1261698 Kassandra
Kassandra's picture

That's in the works.

Tue, 05/10/2011 - 22:55 | 1261564 jomama
jomama's picture

an equally heinous crime are all the apathetic or complicit sheeple accomplices...

Tue, 05/10/2011 - 23:09 | 1261630 Phillips Capital
Phillips Capital's picture

Bank trading rooms have better statistics than madoff! -10 nanosecond latency, like you said. They have doc from Back the the Future as their head quant. 

Tue, 05/10/2011 - 23:19 | 1261662 eatthebanksters
eatthebanksters's picture

If this miscarriage of justice occurs, then some people need to die...seriously!

Tue, 05/10/2011 - 23:20 | 1261666 mochoajr
mochoajr's picture

Do we at least get a reach around?

Tue, 05/10/2011 - 23:29 | 1261684 trav7777
trav7777's picture

...and the States will get the money and what?  Put it into the hands of cronies and for "needed" projects and to spend money on lazy indigents who wouldn't work if you put a job in front of them (to keep the democrat vote)

Wed, 05/11/2011 - 01:17 | 1261893 Ben Fleeced
Ben Fleeced's picture

(to keep the vote)

Fixed it.

Unjunk x 8

Tue, 05/10/2011 - 23:35 | 1261710 Village Idiot
Village Idiot's picture

1. Shut your pie hole trav.

2. Banker scalps. Its the new coonskin cap.

Sent from my shitty blackberry.

Tue, 05/10/2011 - 23:38 | 1261713 Village Idiot
Village Idiot's picture

1. Shut your pie hole trav.

2. Banker scalps. Its the new coonskin cap.

Sent from my shitty blackberry.

Tue, 05/10/2011 - 23:53 | 1261758 unununium
unununium's picture

Goddamn motherfucking sons of bitch ass wiping dick sucking cornholing shit eating banks printed MORE THAN $5 BILLION





Wed, 05/11/2011 - 00:56 | 1261853 Jovil
Jovil's picture

The guys at the top deserve jail sentences rather than bonuses.

Where do you see yourself in the Pyramid of Capitalist sytem.

Wed, 05/11/2011 - 01:16 | 1261890 Ben Fleeced
Ben Fleeced's picture

Bonfire of the Vanities-bitches!


Wed, 05/11/2011 - 01:31 | 1261907 Ben Fleeced
Ben Fleeced's picture

"Bank representatives met Tuesday with state and federal officials in the latest round of negotiations. On Friday, banks received revised term sheets from government negotiators. One sheet revised proposed changes in mortgage-servicing practices".

One might begin to think that the hypothetic route leading out of the dizric might begin, in someones opinion, to be compromised should a statement like this be a) true and b) ecome an occurence.

Wed, 05/11/2011 - 02:42 | 1261945 cranky-old-geezer
cranky-old-geezer's picture

This article and all the whinny comments illustrate how people cluless about law can be (so easily) fucked over by banks. 

It's not a settlement. It's a plea-bargain.  It relates only to federal and state criminal charges.  It has nothing to do with one's ability to sue on the civil side.

You all think you're "prepared" cause you have physical gold / silver, food, guns etc, while you're being fucked over cause you're clueless about law. 

You think you're tough guys with your AR15s and crap, but you'd piss your pants if you had to defend yourself in a real court trial. 

You yearn for the cartridge box cause you're clueless about the jury box.

Wed, 05/11/2011 - 02:46 | 1261973 Village Idiot
Village Idiot's picture

Let me guess, an attorney by trade. Who are you to tell people how they may express their anger or how missplaced it may be? Nobody.

Sent from my shitty blackberry.

Wed, 05/11/2011 - 06:53 | 1262143 tarsubil
tarsubil's picture

What are the four freedoms guaranteed by the first amendment? 99% of lawyers do not know the answer to that question. Please GFYAD.

Wed, 05/11/2011 - 02:53 | 1261980 AldoHux_IV
AldoHux_IV's picture

Whatever happened to pound-me-in-the-ass prison? It's not supposed to be the other way around for us citizens... oh wait I forgot we live in an oligarchy ruled by crony capitalists.

Wed, 05/11/2011 - 02:56 | 1261982 silberblick
silberblick's picture

If you haven't seen it yet, here's a hilarious animation about Americans and how they are being hosed by their government:

Wed, 05/11/2011 - 04:19 | 1262029 Dan The Man
Dan The Man's picture


I'm ignorant of nearly all laws, but could someone tell me if robogate victims can exclude themselves from the class action and sue the banksters temselves?

...en masse?

Wed, 05/11/2011 - 06:08 | 1262108 Urban Redneck
Urban Redneck's picture

There are 50 AGs (51 if you count Lloyd & Jaime's personal house nigger - Eric H). 

Each AG represents a sovereign authority with its own prisons. 

Each AG that doesn't sign an agreement with the banks is a potential noose around the necks of the bankers at a future date.

You have a choice- write, lobby, educate, pester, or otherwise motivate your state AG not to accept any agreement with the Banks, and then come back ZH and continue posting against the machine of State; or just continue posting on ZH and bow to the State's and bankers' desire that you accept the futility of resistance and your own inconsequence and insignificance.  The choice and the responsibility is yours, not theirs. 

Wed, 05/11/2011 - 06:43 | 1262136 Fíréan
Fíréan's picture

Urban Redneck, would assist with a collective response, as per your first suggestion to motivate the state AG, in State where you are located ?

Wed, 05/11/2011 - 09:55 | 1262683 Urban Redneck
Urban Redneck's picture

I am currently drafting an unrelated §8.01-195.4 notice (of intent to sue) to AG Cuccinelli of Virginia.  I don't think he likes me, or my positions on the constitutional limits of State power (except when applied at the federal level). I am perhaps not the best person to scribe such an appeal, and I don't think that any one individual person actually serves the endeavor well.  While the number of appeals to an AG can be exponentially increased by copying and pasting, the level of effort and thought required for a response is exponentially decreased when the appeals carry identical words and arguments. 


There are myriad shortcomings to any AG settlement (some of which include);

the notion that the AG primarily responsible for negotiations may have conflicts of interest which do not serve the interests of other states well,

the minuscule amount of the proposed settlement,

the amount of the proposed settlement in relation to economic consequences to citizens of the crime,

the amount of the proposed settlement in relation to lost property tax revenues to the state,

the fact that the amount of settlement is less than the amount of support that Government already provides the banks- and hence does not actually cost the banks any of their own money,

the notion that settlement may grant the banks immunity for related but as yet undiscovered actions,

the notion that settlement may grant the employees and agents of the banks immunity for related but as yet undiscovered actions,

the notion that settlement may grant the subsidiaries and related entities of the banks immunity for related but as yet undiscovered actions,

the notion that settlement may grant the banks criminal immunity in exchange for monetary settlement,

the notion that settlement by all 50 AG's effectively grants permanent indemnification to the banks against claims by the states.

When the circumstances within a specific state are taken into account the potential appeals increase exponentially, for example with cuts to a given school district, or reduction in specific services provided by a state.


An AG's response to an appeal or complaint is likely to consist of a slightly modified form letter assembled by an underling, regardless, when the number and diversity of appeals reaches a certain mass- it is generally brought the attention of the actual decision maker.  The broader the diversity of appeals, the better the chance that the right chord will be struck with one of those tasked with responding on behalf of an AG, and the issue properly placed before someone who has decision making authority over any settlement.


Good luck,


the insurgency has to get it right once, while the entrenched establishment must get win every round to maintain the status quo- to paraphrase numerous current and former members of the establishment 

Wed, 05/11/2011 - 06:46 | 1262138 tarsubil
tarsubil's picture

Slightly off topic but not by much. My father-in-law bought a house at the peak of the market and is now seriously struggling to pay mortgage. Wasn't it here that I saw that you could demand to see who actually owns the mortgage from the bank, and if they cannot show a clear chain of custody, they be in trouble? Does anyone have a link or info on how to screw the bank for once? Thanks!

Thu, 05/12/2011 - 12:11 | 1268124 tarsubil
tarsubil's picture

Thank you very much!

Wed, 05/11/2011 - 11:26 | 1263238 MachoMan
MachoMan's picture

As a defendant, there have been numerous success stories at invalidating foreclosures or stopping the foreclosure process in its tracks.  As a plaintiff, I'm not so sure and the legal work is incredibly convoluted...  at best.

As a defendant, merely stopping the foreclosure process is like buying time before your execution...  you could possibly continue to live rent free in the meantime, but that's not to say that whatever problems there may be with standing would not be cured in time...  However, if a foreclosure has already occurred and the foreclosing party committed fraud upon the court to foreclose, then you're in business...  effectively, you hold the fact that you can invalidate the transaction over their heads...  the nuisance value alone should be worth 5 figures...

The problem with your approach is you're trying to screw over parties (or their successors) who you (or your father-in-law) promised to pay...  The best way to view these things is from an objective perspective, presumably what the judge would believe...  and I can promise you that failure to pay the note is not going to garner any sympathy...  Even if you are successful on the mortgage, you'll still have the note to contend with...  and I'm still at a loss for material, compensable damages... 

Wed, 05/11/2011 - 07:01 | 1262152 johngaltfla
johngaltfla's picture

Crime pays. The banksters have long demonstrated that fact.

Wed, 05/11/2011 - 08:40 | 1262360 moneymutt
moneymutt's picture

yeah and the banks are really really mad Eliz Warren got involved in the talks with AGs...they keep getting Repub Senators to ask her "role"...who cares who is involved in negotiation, the merits of the final settlement should be evaluated but it seems they are upset because she is the only one not willing to sell out to Wall Street...they have their buddy Geithner, they have the entire OCC on their side...but one person in DC asks for a bit more from them, and they start a witch hunt. They can't candle anyone trying to enfore laws on them as much as the little people. US incarcerates at a greater rate than any other nation, even tyrannical ones, but banks in US can't even be made to pay a fine, let alone see bars...laws are for little people.

Wed, 05/11/2011 - 17:13 | 1265126 Chappaquiddick
Chappaquiddick's picture

How the fuck can you stand it???  How the fuck can you live in a country so utterly corrupted and crooked.  These fucking preened Peacocks that flaunt this behaviour in your face on the TV every damned day - take the fuckers out!

What the fuck happened to "We the people??"  You little plebs don't count and its getting to the point where you are simply in the way - death squads USA - fucking primetime TV - you watch!!!

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