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Biggest US Pension Funds Get Into Fraudclosure Fray, Demand Banks "Immediately Examine Foreclosure Practices"
More bad news for the BofA/Wells syndicate. After on Friday two of the biggest mortgage lenders in the world were hit with bad news out of the Massachusetts supreme court, today it is seven of the nation's major pension funds, between them representing nearly half a trillion in capital, which are demanding that "the boards of directors of Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo immediately undertake independent examinations of the banks’ mortgage and foreclosure practices." The coalition of pension funds called for the banks’ Audit Committees to launch independent examinations of their loan modification, foreclosure, and securitization policies and procedures. “This will help to prevent future compliance failures and restore the confidence of shareholders, regulators, legislators and mortgage markets participants,” the coalition advised in its letter. The coalition members’ insistence on immediate action reflects the urgency of their concerns over mishandled mortgages. But Jim Cramer on Friday said there was no urgency, and no reason to be concerned, and that this is nothing but a buying opportunity for the lemmings which jut got one step closer to the cliff.
Full release from New York City Comtroller John Liu
h/t Eric
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Is Jim buybuybuy Cramer still pumpin BAC and C?
Big spike up tomorrow on financials! Bang Dae-Ho till dry.
Big spike in financials? There absolutely should be. That letter was completely unthreatening. Preventing "future" problems? Just, wow. These pension funds sure don't sound like they've been robbed of billions. The primary issue with faulty MBS is that there are supposed to be angry aggrieved parties which are massive, powerful and legally adept. If this is all the rage these aggrieved parties can muster then this whole MBS fraud thing is a nothingburger...
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Gold, bitchez!
Don't worry the Bernank's got it under control.
yup he and the FED can react to anything within 15 minutes...
I loved that comment from 60 minutes and will never forget it. lol
15 minutes is now "an extended period"
http://club.ino.com/uploads/Image/Lindsay/Jim%20Cramer.jpg
now i know the TRUE meaning of a house of cards
Look, the real final solution agenda by the powers that be is to have a one world fascist government, with a one world currency and a single world central bank. To accomplish this, they need to collapse the current financial system so they can 'offer' the new one to the sheeple. The only reason we have had this fake 2009/2010 stock market pump is to allow all the insider players to offload their positions before the big world wide systematic crash happens.
There are so many aspects that could collapse at anytime causing a domino affect. All the various ponzi schemes are boiling over and are out of control and only being held together by the ignorant 'confidence' of the participating docile masses who don't even know, or care to know, about how these financial ponzi scemes operate even though it affects every part of their lives.
Come on...you've been eating too many Doritos with that Tequila.
Anytime I see people talking about this mess, I have one question that never seems to be answered. Practically speaking, what is the difference between the prospective single world government and the present condition of the united states and its federal reserve system? [hint, it's why "this time is different" when the collapse occurs].
pension fund managers are stupid corrupt pussies. they demand? that's laughable.
...or is this a not-so-thinly veiled threat just before the putbacks start in earnest?
they had two years of total democrat fedgub to do that and didn't. Pension fund managers are stupid and take bribes to buy garbage. Nothing will happen.
A quick reminder on foreclosure fraud:
The banks are going to make money (Ben insured)
Lawyers will make more money
Defaulted owners will be kicked to the curb and run to section 8
No one of any note will be punished
Get back to me if anything different happens.
Exactly! Again, seems to ever only be a big deal at ZH only to be swept under the rug every time.
Too many leaking holes. There is not enough duct tape in the world to patch them.
Stuff like this only becomes a big deal when the election cycle requires it to be so.
In the meantime the juggler seems well capable of keeping the balls in the air.
That said, a minor downdraft may be on the cards simply to maintain some credulity.
At some point this will all make a difference. Until then, I will just sit on the sidelines, hoarding my gold and silver, add on the dumps and take some off the table on the pumps. Ya know, I watch gold move lower and it could move a lot lower here, then I read the news, this site, and review what is going on in govt. the planet, the wars, the costs of all this pimping of of the system by the head pimp, and I am very comfortable owning gold.
No shorts....yet.
Looks and smells like a CYA letter. It's a "see I tried but those damn banks screwed me just like you" letter when the lynch mob comes looking for all the pension fund Manglers.
I would have thought this letter would have gone out a couple of years ago. Apparently they are a little slow in the pension world.
Interesting...but do you really take weekends off to send out a CYA letter?
I truly think the pension funds are scared. Let's quote the letter:
“The banks’ boards cannot continue to pretend the foreclosure mess is the result of technical
glitches and paperwork errors,” Comptroller Liu said. “There is a fundamental problem in their
procedures that endangers not just homeowners, but shareholders, and local economies.
I agree they should be terrified and what prompted this very public letter is the ruling in Mass.
Pension funds looking for public assurances they can show their bagholders. Let us see if the other states catch up to to the Mass ruling then watch the shit really hit the fan.
The pension funds are well aware that there is not enough money comimg in to pay promised pensions and are preparing for the storm.
Either cut pensions and be dragged to courts, or drag the banks to court early. If you gona get screwed, it might as well be a "Ménage à trois"
[The pension funds are well aware that there is not enough money comimg in to pay promised pensions and are preparing for the storm.
Either cut pensions and be dragged to courts, or drag the banks to court early.]---Oracle of Kypseli
I agree. Thanks, Oracle.
More CYA in a long string of CYAs to come.
Yep, yep, yep, a lot of CYA in that letter. $5.7 billion invested. CHUMP CHANGE! Losers. Here's where the pension funds start to lay the blame on the banks for this puny little amount, but I have a feeling that this was all planned out in advance because they know the big one is coming.
A little concerned about congress taking a week off after this shooting in AZ. Shouldn't they be MORE eager to do the "people's business" in light of this terrible event than going into hiding for a week. I have a bad feeling that all of those congress-critters will be getting together to devise something worse than what we've already got that's supposed to pass for government.
I'm just skeptical, but when you just up and cancel a whole week's agenda, including a big showdown on Obamacare, I just don't know what they're thinking. Don't they think the American people might want to see them standing up and getting down to business?
Like after 9/11, as much as I disliked GWB, he did at least give the people some hope when he grabbed that bullhorn down at Ground Zero. When are our elected officials going to begin to understand that we want leaders that act like leaders, not scared little schoolgirls?
This is very funny.
An audit is going to restore confidence in a bankrupt system? How do they figure?
Review of processes is going to return trillions of dollars of already lost/stolen money?
PR stunts like these might motivate some public attention, but honestly, after so many years of hearing about how public-sector employees were overpaid and underworked, I doubt most of the folks who never had a pension and saw their 401Ks tanked are going to sympathize.
Things are getting good.
just like banksters to call for a whitewash....those terrorists are no more interested in a truthful accounting than they are in true religion....and why would an independent commission be needed when we have the sec and her bitchestry mary schapiro?
Tick, tick, tick.
The damn derivatives bomb may be about to go off.
So the pensions are asking the banks own Audit Committee to do an "independent" invstigation? How do you indpendently audit yourself? Looks like a whitewash, or as the letter says an attempt to "restore confidence to shareholders".
I did like the conclusion:
"It may be too late to protect the company from the worst consequences of past compliance failures." Ya think?
Compliance failures, that's a good one!
Give a hoot, don't take our loot! LMAO!!
Are these pension funds saying that if Bank of America, Citi etc undertake an examination of their mortgage & foreclosure practises their confidence as mortgage market participants will be restored?
Looks like you can fool all of the people all of the time.
+1 This is it exactly. You'll have to give us something to hang our hat on before we go back to buying your junk bonds and taking your perks. We want the hookers and cocaine but we need some cover.
This is just a proper and polite action. Prove to us that everything is clean, yourself, or we go to court.
The directors, individually, are now on the hot spot publicly. To avoid liability for an intentional coverup, they will have to appoint independent lawyers and auditors. Those people will then also be on the liability hook and they are not too big to fail (remember Arthur Andersen?). It is entirely possible that the directors will be confronted with independent truths to counter the whitewash ("It's not fraud -- it's just sloppy paperwork at the worst. The fact that the robosigner died 10 years earlier? Well, that's what we mean -- sloppy."). And then what? Will the directors identify and purge the perps and their top management enablers? Will they cleanse the banks of the viral rot? Or will they continue to support a culture of predation? Sadly, if the recent past is any indication, they will kill the goose and pick the carcass clean. No more golden eggs. Time to shrug.
This is all too coincidental for any good conspiracy theorist. The Agenda of the pension funds? Probably a smoke and mirrors diversion to cover up some serious fraud of their own. Cuomo might have set this up so that when the pension kitty turns out to be as empty as the GLD/Comex vaults, the unions will have a scapegoat.
Let's have another stress test - that ought to clear up the matter.
They're asking the banks to investigate themselves? HA HA HA, oh yeah am sure they will look real hard!
What's next asking Kitco to investigate whether am a shill for JP Morgan?
look at this, the 2 enemies of the private sector ......the pension criminals are suing the mortgage criminals
the kick the can down the road pension ponzi scam must be coming to a collapse, so the best defense, is to go on the offensive first
Wikileaks release in 5..4..3..2..
Perhaps someone looked up the meaning of "fiduciary"...perhaps all of these "trustees" just want to make sure that no one can say "Just wtf do you do to earn that fat salary and benefits?"
Oh wait, they are part of our super smart elites - never mind...
So when will the pension funds run into liquidity problems and be unable to meet payouts?
but ... but .. didn't they do it ... already? ... yeah ... I'm prity shore they already did dis ... like, back in ocktoba .. or somfing like ... ya sayin thay all gots ta do it all agayn?
i'm like ... so con-fuzed ...
I smell a bank back door pension bailout coming down the turnpike
Don't these pension fund executives understand the fundamental failures of mortgage securitization? Don't they know that the big banks can't "fix" anything now. It is too late.
All RMBS and CMBS involving transfers via MERS are null and void. This is probably 99% of the total. The banks are rabbits in headlights now.
Gold is at a critical support point. Very few if any other analysis methods would show this. The PRS177, which is a channel line extension, tells us something that very few can see, much less understand, much less act upon.
We have got a nice 11% profit on a mechanical trading system [SHORT] on GDX from BreakPoint Trades, however this PRS channel line has caused me to close out that trade. That is good enough.
The "Cable" British Pound / USD currency pair has 2 reasons to want to push higher. The 78 Fibo and the PRS 177. This would also push US equities higher, although the multi-year correlations may be now at risk of no longer working.
Also, Expiry week is done. The Monday after expiry often finds some good size fireworks to correct the antics of Expiry week. Sunday futures will be interesting. We banked some serious coin last Sunday playing the futures, which seemed to move in perfect 5 and 3 wave patterns, almost like shooting fish in a barrel. Not that I will complain, any win is a win gratefully accepted.
Bond Interest Rates are at a 61Fibo, also looking a near perfect bull flag. Choose your own poison on how to play this. Perhaps TBT or even JNK? However, one concern is that there is so much media coverage about muni bonds being risk, and States being allowed to declare bankruptcy--defaulting on pension obligations and bonds. I have to take this amount of media coverage (it is large) as a contrary indicator--when they pimp it out that much, there must be some opposite plan coming out....like a TARP for borrowing for State Governments.
This feeds back into my tin foil hatter theory of Fed Gov as the economic hit man, enslaving everyone, including State Governments with debt. What a great plan to consolidate power at the Federal Level. Time will tell.
http://oahutrading.blogspot.com/
Gold is at a critical support point. Very few if any other analysis methods would show this. The PRS177, which is a channel line extension, tells us something that very few can see, much less understand, much less act upon.
We have got a nice 11% profit on a mechanical trading system [SHORT] on GDX from BreakPoint Trades, however this PRS channel line has caused me to close out that trade. That is good enough.
The "Cable" British Pound / USD currency pair has 2 reasons to want to push higher. The 78 Fibo and the PRS 177. This would also push US equities higher, although the multi-year correlations may be now at risk of no longer working.
Also, Expiry week is done. The Monday after expiry often finds some good size fireworks to correct the antics of Expiry week. Sunday futures will be interesting. We banked some serious coin last Sunday playing the futures, which seemed to move in perfect 5 and 3 wave patterns, almost like shooting fish in a barrel. Not that I will complain, any win is a win gratefully accepted.
Bond Interest Rates are at a 61Fibo, also looking a near perfect bull flag. Choose your own poison on how to play this. Perhaps TBT or even JNK? However, one concern is that there is so much media coverage about muni bonds being risk, and States being allowed to declare bankruptcy--defaulting on pension obligations and bonds. I have to take this amount of media coverage (it is large) as a contrary indicator--when they pimp it out that much, there must be some opposite plan coming out....like a TARP for borrowing for State Governments.
This feeds back into my tin foil hatter theory of Fed Gov as the economic hit man, enslaving everyone, including State Governments with debt. What a great plan to consolidate power at the Federal Level. Time will tell.
http://oahutrading.blogspot.com/
All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............
https://sites.google.com/site/sueyourlendernow/home