BofA Takes Out Lows As Sheila Bair Says Servicers' Issues Could Be "Very Damaging", "More Problems" To Arise In Mortgage Servicing

Tyler Durden's picture

Finally the FDIC acknowledges the shitshow:


And the kicker:


Oh, so there are flaws??? As a result, Bank of America takes out 10/20 lows

And Bair continues being on a roll:



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SheepDog-One's picture

'Crisis'? What crisis...Erin Burnett just hours ago assured all this was just a tiny little paperwork its a CRISIS huh? Dang, and GS just recently said 'bottom is in' on BofA didnt they? Oh well, I guess its really true, bottom picking is for chimpanzees.

Financial_Guardian_Angel's picture

Disinformation is the business du jour.

BofA may be the sacrificial lamb, offered up to the masses in hopes that such a "crisis" may lead to sweeping congressional legislation that will be prefaced with words such as "in the interest of national security..."

This is going to create havoc after Nov 2. I'm going long on Mars treasuries. They may not exist, but they're safer than anything from this planet!

MarketTruth's picture

No worries, when it gets serious about the HUGE fraud of MERS, Obama will come on TV and change the laws and make them retroactive. He did the same thing to Chrysler/GMAC debt holders before their collapse/restructuring.

Oh regional Indian's picture

MT, while reading your comment, I read retroactively as radioactively.

Somehow, in retrospect, it seems to be the more appropriate word, eh?

Radioactive laws, with long half lives, that no one will touch with a bargepole (Cap and Trade/Health Care Reform/Homeland Security to name a few).




JLee2027's picture

Obama has no power to change state property laws. His "decrees" there would be ignored.

MsCreant's picture

Just like Chrysler/GMAC debt holders ignored him?

JLee2027's picture

What state governments and state laws were affected by that?

MarketTruth's picture

Oh Regionaln and JL, while on the face of things i 100% agree with you, yet back door deals and typical political pressure can do wonders. Agree it is fraud, fraud and more fraud, but the bansters are Too Big To Jail or Fail.

Mako's picture

Said loan servicer lacks "standing" to foreclose... it's not a little paperwork problem, it's a unable to fix problem if the deadbeat homeowner finds out the Truth.


What "global solution" is she talking about?  There is no "global solution" to a plaintiff that lacks "standing" to foreclose.


JLee2027's picture

I had the same question. A global reset of all debts worldwide?

Mako's picture

Well, the system will reset or collapse anyway.  Nobody can stop that from happening.

i-dog's picture


You really have to laugh at how the functionaries in the DC Politburo keep trotting out this oligarchic mantra for a "global solution" at every turn!

They can't even manage the simple job of defending "life, liberty and the pursuit of happiness" for 50 fledgeling states with a common language, history and culture ... yet they have the hubris to suggest that a single central committee can solve every problem for 7 billion people world-wide! FFS!

whatsinaname's picture

Global solution - global banks get to collect al the crap that BofA throws to them.

Ripped Chunk's picture

Erin's brain is a tiny little paperwork error.

Spalding_Smailes's picture

Green Shoots ~

Green shoots is a term used colloquially and propagandistically to indicate signs of economic recovery during an economic downturn.


flacon's picture

Green Shoots are only possible in the demented world of faux-economics Keynesianism. 

John McCloy's picture

BAIR: Already Devastated and Poverty Stricken Taxpayers in FoodStampistan Will be Notified Shortly of How Much More This Will Cost Them.

Max Hunter's picture

"FoodStampistan".. How funny.. Thanks for that!

John McCloy's picture

I stole it from someone else on here on ZH this morning. I cannot remember who but we now have a new vocab word in the ZH Canon.

Ripped Chunk's picture

A suburb of Assfuckistan. Here it comes taxpayers!!!!!!!!!!

TraderTimm's picture

Wonder when the algos will nail it to a wall. Oh irony! The cynical part of me thinks that this will get somehow legislated/swept under the rug though. Nobody has paid the price for their crimes, why start now? This system makes me sick to my stomach.

minus dog's picture

Eh.  I don't really give a shit anymore as long as I got my pile of stuff ready for whatever might come tomorrow.  Not much else I can do.

MsCreant's picture

You get your stuff ready. TSHTF full chunk mode. You and yours survive. What then? Without justice, without the rule of law, there is no normal that works. Instability to infinity will be the new normal. We need to try for justice now or there can't be anything after TSHTF. We may have become disillusioned, but that does not mean we should give up on the concept and practice of honesty and fairness.

I like that constitution thingie pretty well...

downrodeo's picture

Alas it would seem that the constitution doesn't apply. I am with you that we have to have some sort of legal code or ethical mores that we all follow. The problems is that the enforcers are on the take. In my opinion, this is why things are breaking down. The law no longer applies, at least not to the 'leader class' (or their minions). For instance, an associate of mine is always telling me how there are enough laws on the books to arrest every single individual who has committed a crime against the American people. It just doesn't happen though. Do we need to apply more pressure to the local DA or something? Would they listen?

Anyway, I'm all for the return to the rule of law, but I just can't see how we get there.

MsCreant's picture

The workers need to take over the means of production, in this case, the justice system. 

kaiserhoff's picture

Ms, Ms, Ms,  If you keep talking like that, Baldy Ben is so "not going to the prom with you."

Actually something you wrote a couple of weeks back really hit me.  "Family doing well, extended family a little less so", but nothing ever sinks quite to average in Lake Woebegon, does it?  Still, how secure can anyone be, when the center cannot hold?

I think the pace of change is accelerating.  The bastards are fighting on all fronts.

It is frustrating as hell, but I wouldn't want to be the dude trying to hold all of this together with band aids and chewing gum.

Not sure any of that makes sense.  Just hang in there, kid, we need ya!

MsCreant's picture

Wow, stood up by Ben for the prom. Where to start...:-)

I guess we should all be careful what we ask for. When you let the house go, the cleaning gets backed up, and often you find ugly surprises, hidden from daily view. Let it go far enough, you may have to gut the place to get it back up to standards.

We are the center kaiserhoff. Each one of us, locally, is the center. When we are in sync with each other, when we trust each other, it feels damn good. We don't need so much stuff to feel okay because we are not empty. 

I wouldn't want to be Ben either. That would be a damn cold existence.

You take care too!

kaiserhoff's picture

Well said.  If there is a single, underlying problem in this country it just might be expectations.

chet's picture

Yep.  The banks will be bailed out again, and a bunch of underwater homeowners will have a bunch of their loan principal "disappear" whether they deserve it or not.

This will cost us another trillion dollars and all other homeowners will see their values drop anther 30%.

Anything to avoid responsibility and the rule of law.


Clint Liquor's picture
  • Now that's a scary thought!

    SheepDog-One's picture

    YES ClintLicker that IS the real pull-quote! 'Global solution', sounds so creepily similar to 'final solution' doesnt it...1 world global currency, 1 world global govt...the 'all is well' crowd keeps forgetting that little reality that keeps poppin its head up.

    hedgeless_horseman's picture

    Her use of the term global solution is a very, very, bad tell.  The banks are fucked, despite what the stress tests said.  Financial Crisis II will likely be at least two orders of magnitude worse than the first.

    MeTarzanUjane's picture

    To be realz, I think it means China is fucked as they are the majority investor in the American Home Dream.

    Ripped Chunk's picture

    That's why they supplied all that great drywall...........

    Confused's picture

    Thanks. That made me laugh. Needed it. 

    NotApplicable's picture

    Just in time for Basel III to save the day!

    All your banksters R belong to us.

    MsCreant's picture

    Cool. We could like, give China all our bankers... Gosh, wonder what they would do with them?

    flacon's picture

    We already have a one world currency. 

    MsCreant's picture

    Please don't hate me, it must be said:


    lynnybee's picture

    no one hates you; no one hates on ZEROHEDGE.   I think most would agree with you !!

    ATG's picture

    At $922 200 week moving average

    We have a lot of debt default deflation between now and then

    taraxias's picture

    Yup, we need those "global" investors to accept that what they bought were "empty box" MBS's and there's not a damn thing they can do about it................that's what she means.

    John McCloy's picture

    You got that right. Here comes this push for a Global Currency.  The MSM and entertainment industry better start lining up back to back seasons of Jersey Shore, The Kardashians, Americal Idol and extend the Football Season to 25 games if they are going to get this one past the Zombies. With inflation in foods costs the Snookites will certainly begin to take notice when their Big Macs resemble White Castle Sliders in a year.

    jdrose1985's picture

    With inflation in foods costs the Snookites will certainly begin to take notice when their Big Macs resemble White Castle Sliders in a year.


    Pfft +1

    flacon's picture

    We already have a Global Currency. In fact we have been living in the New World Order since the 1930's. What we are about to see is the end of the Global Currency and the end of the NWO. 


    What does the reverse of the One Dollar bill say again? Who put those words on the dollar bill?



    the rookie cynic's picture

    Mr. Ferguson's recent speech intimated this same sentiment. The U.S. is loosing it's grip on the world:financially, culturally, and militarily. I didn't say lost its grip, but losing its grip.  Who can argue that the dollar and U.S. hegemony are not in decline? The only question is crash or crumble.

    system failure's picture

    Once they choose the path of not telling the truth the shit just keeps getting deeper and they want to pile even more shit onto the taxpayer, who is already overloaded with even more shit from the last batch of lies.

    If they had told the truth to begin with, people (taxpayers) would have been more supportive, but now it is too late, and now we have a list of people with names on them for future reference.