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Congressman Brad Miller Blasts Legality Of Bank Of America's $8.5 Billion RMBS Settlement

Tyler Durden's picture




 

We haven't commented extensively on the recently announced Bank of America $8.5 billion RMBS "non-settlement" settlement because frankly, it is a total travesty, ripe with so many conflicts of interest, it has no chance in hell of being final, and will likely see numerous revisions before it is complete, in the process costing BAC many more billions in legal fees and charge offs. We also expected that it was only a matter of time before politicians swarmed like a flock of crows on this rotting carcass of a deal, which will only make the life of BAC worse (we did share our amazement that BofA's stock rose on the news). Sure enough, here comes the first Congressman to contest that the proposed settlement is not an "arm's length transaction." And while our opinion of politicians is well-known, Miller's conclusion is spot on: "it is important that the American people know that their government is acting on their behalf, not on behalf of powerful financial institutions. It is important that the public and Congress be able to assess whether the enterprises settled claims that would limit taxpayer losses on a tough, arm's length basis, rather than providing another indirect subsidy to the banking industry." Alas, nobody even remotely believes that the government represents anything but the interests of the banks. But a bold effort. One thing is certain: the final BAC settlement, if one even comes to fruition, will not be $8.5 billion.

Full letter from Brad Miller to the FHFA's DeMarco:

 

 

h/t Manal Mehta

 

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Mon, 07/11/2011 - 12:18 | 1444213 digitlman
digitlman's picture

*applause*

Mon, 07/11/2011 - 12:39 | 1444270 iinthesky
iinthesky's picture

These politicians are all just reacting.. the real credit goes to the brave families that learn all about the massive fraud game, stand up in court, tell the lawyers to go fuck off. The average man or woman that won't lay down are directly responsible for the avalanche of shit the banks have to eat. Good, its time they were on the recieving end of their own fraydulent dealings. This is the tip of the iceberg. If the courts are pressured enough to start to recognize the banks have zero skin in the gme then the whole game is up.

Mon, 07/11/2011 - 12:48 | 1444303 Fish Gone Bad
Fish Gone Bad's picture

Fuck Bank of America.

Mon, 07/11/2011 - 17:45 | 1445540 JuicyTheAnimal
JuicyTheAnimal's picture

That's what I spray painted on the walls of my home before they foreclosed on me and then sold it for the exact amount that I had orginally put down on it. 

Funny that they could afford to pay my insurance policy on it for a year after they sold it and it was flipped and sold again. 

Mon, 07/11/2011 - 12:56 | 1444334 citizen2084
citizen2084's picture

+100

Mon, 07/11/2011 - 14:36 | 1444780 chunga
chunga's picture

Folks, if you have paid off your mortgage make SURE you have your original "Satisfaction of Mortgage" document!

If you have a mortgage send your alleged lender a Qualified Written Request. There are plenty of them that can be downloaded for free and it's your right pursuant to RESPA to do so. (You'll mostly be told to shove off just the same)

These Wall Street magicians have sold these obligations multiple times! Whether you know it or not the bill will be stuffed to your children and grandchildren via the tax-payer funded bailout bonanza.

According to NAR now is the time to BUY!

All you need is:

-Twenty percent down

-Two or three jobs

-Perfect credit to show your lender who is most likely insolvent, the subject of numerous investigations, and involved in thousands of lawsuits

-Add to that the cost of defending yourself in a lawsuit because the instrument backing the purchase has been sold more than once!

Read it and weep baby...

MERS and Fannie Mae sue Short Sale Seller and Buyer

Mon, 07/11/2011 - 12:48 | 1444271 iinthesky
iinthesky's picture

Dup.

Mon, 07/11/2011 - 15:44 | 1445055 cfosnock
cfosnock's picture

For what, he will just flip flop like he always does. http://www.dailypaul.com/115435/worse-than-watt-rep-brad-miller-nc-13-co...

Mon, 07/11/2011 - 12:26 | 1444232 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

BAC memo to Miller :'ssshhh...campaign funds being creditted to your account in 3..2..1...

Mon, 07/11/2011 - 23:07 | 1446534 FEDbuster
Mon, 07/11/2011 - 12:30 | 1444243 apberusdisvet
apberusdisvet's picture

The way this is going to work is that JPM, WF and C will transfer all toxic assets (under the table) to BAC, and then BAC will be thrown to the wolves.

Mon, 07/11/2011 - 12:44 | 1444284 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

EXACTLY!

Mon, 07/11/2011 - 12:32 | 1444247 coppertop
coppertop's picture

Aye, but it was a close run thing

Mon, 07/11/2011 - 12:32 | 1444249 monopoly
monopoly's picture

This govt. is becoming more and more like Russia every day. Disgusting.

Mon, 07/11/2011 - 12:35 | 1444261 coppertop
coppertop's picture

Was it the slain journalists?

Mon, 07/11/2011 - 12:34 | 1444254 props2009
props2009's picture

German warmachine reaping the benefit of war

http://t.co/ByP3dZu

Mon, 07/11/2011 - 12:37 | 1444267 Widowmaker
Widowmaker's picture

Congressman Miller and BAC - FASCIST PIGS!

Mon, 07/11/2011 - 13:02 | 1444339 baby_BLYTHE
baby_BLYTHE's picture

Fascism indeed. It is long beyong time to seize, liquidate and revoke the TBTFs and the Federal Reserve individual charters.

G Edward Griffin authored solutions for ending the system of usury in his book The Creature from Jekyll Island

  • Repeal the legal-tender laws. Both plans repeal legal-tender laws. In addition to replacing Federal Reserve Notes (FRNs) with U.S. Treasury Credit-Notes, NESARA also restores gold and silver coin to circulation [Part I, Section 4(G)(3)]. People will be free to use any of the three currencies. In private exchanges, buyers and sellers are free to contract in the medium of exchange they wish to use, including currencies other than the new Treasury credit-notes, gold or silver coin. With respect to government exchanges, one of the three currencies must be used, but no government can refuse payment in any of the established currencies. With respect to adjudication of contractual disputes regarding currency, NESARA establishes credit-notes as a default currency only if the parties to a contract failed to negotiate and establish the form and substance of the medium of exchange [Part I, Section 4(C)]. Furthermore, NESARA prohibits depository institutions from commingling currency types without a depositor’s affirmative permission [Part I, Section 7(E)]. Lastly, the old federal tax on state-bank notes was repealed several years ago. Thus, theoretically state and private banks already may issue their own currency. The gold-clause restrictions also were repealed several years ago, therefore consumers may already use gold and silver in private contracts.
  • Freeze the present supply of Federal Reserve Notes, except for what will be needed in step number eleven. Both plans halt the introduction and circulation of interest-bearing Federal Reserve Notes (FRNs). NESARA replaces FRNs with debt-free U.S. Treasury Credit-Note. The portion of the national debt held and “owned” by the Federal Reserve System is paid for in full with credit-notes and the Fed System is effectively abolished. With respect to FRNs remaining in circulation, they will be replaced one-for-one as new credit-notes are introduced into circulation.
  • Define the “real” dollar in terms of precious-metal content. Both plans restore ties between circulating currencies and the physical world. NESARA retains the original statutory definition of a dollar, that is, 371.25 grains of silver .
  • Establish gold as an auxiliary monetary reserve. Both plans restore gold coin to circulation. NESARA does not place gold and silver on a fixed bimetallic exchange standard; that was one of the flaws of the original coinage acts—fixed ratios do not work. By statute NESARA establishes the definition of a dollar as a specific weight of silver. Gold coins will circulate containing a known fixed weight of gold, but the market will determine the exchange value of that gold coin with respect to silver and Treasury credit-notes. In fact, the exchange values of all three currencies float in a free market because the paper currency is not compelled to be exchangeable one-for-one but is determined by the market.
  • Restore free coinage at the U.S. Mint. Both plans restore free coinage. NESARA not only restores free coinage of gold and silver at the U.S. mints, but also permits the minting of private stocks of silver and gold into lawful coin which will help to keep both the U.S. and private mints honest. The metal content of the various coins is established by statute.
  • Pay off the national debt with Federal Reserve Notes. Both plans eliminate the debt held by the Fed by eliminating the Fed. Under NESARA, the abolished Federal Reserve Banks are resurrected as U.S. Treasury Reserve Banks, but under a different nature. All assets of the Federal Reserve System are purchased with newly printed Treasury credit-notes at the original nominal stock price of $100. To eliminate the portion of the national debt held by the Fed, all securities and debt instruments held by the Fed system are exchanged for Treasury credit-notes. By statute, the U.S. Government debt instruments must then be destroyed. As the exchange is made, the new U.S. Treasury Reserve System replaces the abolished Fed and those new credit-notes immediately become property of the people via the Treasury; thereby eliminating the quasi-public, quasi-private nature of the monetary system. That currency is placed into the newly created Treasury Reserve Account, a currency shock absorber, and is not introduced into circulation, thus is not inflationary. Likewise, all member and non-member reserve banks must exchange their government debt instruments for credit-notes. Under NESARA, all fractional reserve banks are prohibited from using anything other than the new Treasury credit-notes as reserves. Because government debt instruments were used as reserves, credit-notes exchanged for those government debt instruments will be held as reserves, will not be introduced into general circulation, and therefore are not inflationary. However, NESARA does not force private investors (that is, insurance companies, union retirement funds, fractional reserve banks who hold government bonds in trust for their consumer accounts or as security against customer loans, that little old lady down the street with her U.S. Savings Bonds, etc.) to sell that part of the national debt they own privately. However, the NESARA plan does allow for the newly created Treasury Reserve Board to buy back privately-owned public debt. Ideally, buying back this debt is a sound idea. However, unlike buying back the debt owned by the Fed system and financial institutions, buying back debt from private owners is inflationary and the new Treasury Reserve Board will have to exercise caution as they buy and cancel that debt. Regardless, the entire national debt can never be eliminated as long as Congress possesses constitutional authority to borrow (Article I Section 8 Clause 2). The difference under NESARA is that such borrowing occurs only with currency already in circulation, and is therefore not inflationary.
  • Pledge the government’s hoard of gold and silver. With respect to the remaining FRNs in circulation, after eliminating the Fed’s portion of the national debt, Griffin’s plan requires all FRNs to be “redeemable,” that is, exchangeable one-for-one in gold and silver coin. This requirement contradicts Griffin’s own statement that fixed ratios do not work. NESARA does not require new credit-notes to be “redeemable” in specie, nor is that desirable—the market only should determine the exchange rates of the various currencies in circulation. NESARA prohibits commingling of currency types, and provides a nationally published exchange index so that people will know the exchange rate of credit-notes, gold, and silver coin.
  • Determine the number of all the FRNs in circulation and then calculate the real-dollar value of each one by dividing the value of the precious metals by the number of Notes. NESARA requires no such calculations. Free markets best determine the exchange value of the circulating currencies.
  • Retire all FRNs from circulation by offering to exchange them for dollars at the calculated ratio. NESARA requires that all FRNs be retired, but compels no affirmative schedule or deadline. FRNs are merely replaced and removed from circulation as the new credit-notes are introduced into circulation. Notice that at the instant NESARA becomes law, the character of the existing FRNs changes into the character of the new credit-notes. That is, both types of notes will be equal in exchange value and neither is issued at interest. In addition, notice that large amounts of FRNs are currently held in foreign accounts both by individuals and governments. The NESARA Institute sees no compelling reason to exchange FRNs for gold or silver coin at a fixed pre-calculated rate. Foreigners may exchange their FRNs for gold and silver coin at the market rate, the same as U.S. citizens. Better yet, they should be encouraged to spend those FRNs in the American markets for American goods and services. Regardless, both plans remove FRNs from circulation.
  • Convert all contracts based on FRNs to dollars using the same exchange ratio; including mortgages and government bonds.
  • Issue Silver Certificates 

http://nesara.org/comparisons/griffin.htm

Mon, 07/11/2011 - 13:22 | 1444450 Vic Vinegar
Vic Vinegar's picture

It's high time you get the gal pals together and start a band called 'Benocide'...think Pantera-meets-Pussycat Dolls...call your first album The Creature from Jekyll Island and you are guaranteed to move product with the crowd here.

Mon, 07/11/2011 - 13:38 | 1444533 baby_BLYTHE
baby_BLYTHE's picture

ha

there actually is a legendary extreme death metal band called 'Deicide'.

Not a huge fan, but the aggression in their music excites me.

http://www.youtube.com/watch?v=IJkMrl4AG8w

Mon, 07/11/2011 - 21:20 | 1446173 TheFourthStooge-ing
TheFourthStooge-ing's picture

For a six hundred page book, The Creature from Jeckyll Island is a remarkably quick read.

It's a real eye opener regarding the shenanigans of bankers and politicians. I found the part about the sinking of the Lusitania fascinating. It was a perfect example of the elites condemning innocents to death, using those deaths as propaganda to whip up popular support for war, and then profiting by making loans to both sides.

Recent dives to the wreck of the Lusitania have confirmed that the British and American governments were indeed complicit in the use of passenger liners for the transport of munitions, as had been claimed by Germany:

http://www.dailymail.co.uk/news/article-1098904/Secret-Lusitania-Arms-ch...

http://www.corkman.ie/news/blackwater-diver-finds-smoking-gun-ammo-on-su...

http://www.npr.org/templates/story/story.php?storyId=97350149

 

 

Mon, 07/11/2011 - 12:39 | 1444273 carbonmutant
carbonmutant's picture

The Democrats need money and the banks have it...

They're starting to eat their own...

Mon, 07/11/2011 - 13:56 | 1444599 JW n FL
JW n FL's picture

The "Democrats"?

 

What will you say when Mit Romney is following the same path that Obama is following? you know the same path Lil Bush Followed? the same path Clinton, Bush and Reagan followed?

 

Democrats and Republicans are a Dog and Pony show for the ignorant Sheepish Masses and Nothing! more.

 

The Lobby Monies will flow, The Lobby Monies will mold and control any and all Lobby Whores within the Beltway..

 

But as long as you dumb fucking idiots feel better that is a White, Self Proclaimed Conservative, Republican is in power.. Wigger or not.. "We the Sheepeople" / We the Sheepish Consumers" will be herded and fleeced.

 

Although you will get to enjoy the Abortion Show..

 

I can NOT! Blame the idiots in Washington DC, they just do what the idiot masses let them do.. it is the Idiotic / Stupid / Blind Masses that give the scumbags the power to fuck everyone over. They want to hear the newest meme that makes them feel self righteous or maybe the same ole' meme's that make their tummies tingle.

 

The Country is run by Corporate Media feeding "We the Sheepeople" whatever it is that allows the Lobby Whores to take more from the working man and NO ONE CARES! it is all about the pettiest bullshit that the bottom of the barrel can be concerned with!

Mon, 07/11/2011 - 12:39 | 1444274 djrichard
djrichard's picture

You go Brad.

Mon, 07/11/2011 - 12:42 | 1444277 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

BofA along with bear and lehman must have drawn the shorest straws in the powers that be "finanicial transition" meeting. Gomer Pyle would'nt even been dumb enough to do the shit these guys did.

Mon, 07/11/2011 - 12:58 | 1444344 Fish Gone Bad
Fish Gone Bad's picture

Gomer Pyle owns a very nice home right below Diamond Head in Oahu.

Mon, 07/11/2011 - 13:43 | 1444554 Fish Gone Bad
Fish Gone Bad's picture

.

Mon, 07/11/2011 - 12:57 | 1444340 Seasmoke
Seasmoke's picture

the homeowners have finally started to spread the word of the massive fraud that took place.....no way BOA makes it .......they are finished

Mon, 07/11/2011 - 13:17 | 1444419 petridish
petridish's picture

You wish.  I wish.  We all wish.

It's not over yet.

Mon, 07/11/2011 - 13:19 | 1444438 aheady
aheady's picture

You lost me at "Congressman".

Mon, 07/11/2011 - 13:30 | 1444496 Thisson
Thisson's picture

The BOA settlement doesn't extinguish liability under the securities laws; it only extinguishes liability for certain other claims related to servicing.  As such, it is not the final word.  The most telling fact about the BOA settlement is that it states the losses on the securitizations as roughly $200billion out of pools worth roughly $400billion.  So approx 50% losses.  Now if we apply that percentage to all of the securitizations that took place, we have an idea of what the real losses will be.... staggering!

Mon, 07/11/2011 - 13:44 | 1444567 karzai_luver
karzai_luver's picture

Bunco Of Amerika, a shining and true example of the

greatness of the country.

Bring in the Orange Man as CEO we need prosperity.

 

Between Bonehead - Obamao - Mozzi-the orange we would have

diversity on parade for all to see.

 

 

Mon, 07/11/2011 - 13:57 | 1444616 JW n FL
JW n FL's picture

The "Bonehead Obamao"?

 

What will you say when Mit Romney is following the same path that Obama is following? you know the same path Lil Bush Followed? the same path Clinton, Bush and Reagan followed?

 

Democrats and Republicans are a Dog and Pony show for the ignorant Sheepish Masses and Nothing! more.

 

The Lobby Monies will flow, The Lobby Monies will mold and control any and all Lobby Whores within the Beltway..

 

But as long as you dumb fucking idiots feel better that is a White, Self Proclaimed Conservative, Republican is in power.. Wigger or not.. "We the Sheepeople" / We the Sheepish Consumers" will be herded and fleeced.

 

Although you will get to enjoy the Abortion Show..

 

I can NOT! Blame the idiots in Washington DC, they just do what the idiot masses let them do.. it is the Idiotic / Stupid / Blind Masses that give the scumbags the power to fuck everyone over. They want to hear the newest meme that makes them feel self righteous or maybe the same ole' meme's that make their tummies tingle.

 

The Country is run by Corporate Media feeding "We the Sheepeople" whatever it is that allows the Lobby Whores to take more from the working man and NO ONE CARES! it is all about the pettiest bullshit that the bottom of the barrel can be concerned with!

Tue, 07/12/2011 - 09:38 | 1447465 Urban Redneck
Urban Redneck's picture

I think the "-" might have been important... Boehner - Obama - Mozilo, but as near as I can tell they all have about the same tan.

 

Mon, 07/11/2011 - 13:57 | 1444615 NotApplicable
NotApplicable's picture

Legality? Why, that's just your opinion, man.

Mon, 07/11/2011 - 14:46 | 1444819 RockyRacoon
RockyRacoon's picture

Here at the currently bottom of the comments, I find it interesting that these Congressfolk are accused of doing nothing, being in cahoots, acting as shills, yet one actually does something and he is pilloried.    Where is justice to be done if absolutely nobody acts?   They are accused of inaction and then wrong action, or ridiculed when they do.

No wonder we're screwed.

Mon, 07/11/2011 - 15:42 | 1445031 cfosnock
cfosnock's picture

He sent a letter big deal...he talks the talk but when it comes time for action he does worst than nothing he flip flops. He is acting like he cares because people like me (his constituents have been hounding him) and now his cozy district is being rezoned. Read my post below

Mon, 07/11/2011 - 15:50 | 1445093 RockyRacoon
RockyRacoon's picture

So it would have been better for him had he done nothing.

Short of calling out the National Guard, a letter is a starting place.

There are some good questions asked in the letter. 

I think the best direction for us to take is to goad the press into covering some of this stuff rather than the disappearance of good-looking white coeds.

Mon, 07/11/2011 - 15:58 | 1445138 cfosnock
cfosnock's picture

You didn't read my other post so I will re-post it...Its just lip service...this is the infamous flip flopper. Per Ron Paul, http://www.dailypaul.com/115435/worse-than-watt-rep-brad-miller-nc-13-co.... He makes big waves as if he is going to do something then he does worst than nothing he votes against what he was supporting.

Tue, 07/12/2011 - 01:24 | 1446825 RockyRacoon
RockyRacoon's picture

I read it the first time.  So?  Don't let any small lapse be considered a total capitulation.

Ease up and be glad for anything moving in the right direction.  

Mon, 07/11/2011 - 16:04 | 1445169 cfosnock
cfosnock's picture

I just read my original post and noticed I just repeated myself, but now I can go on the offensive. If you were a teacher you would give all your students As on projects based on what they claimed they were going to do not based on the work.

Student: I'm going to turn in a 10 page project with graphs to prove my point

You: Sounds good

Student: Here is a paragraph that actually disproves my point

You: A+

Mon, 07/11/2011 - 15:29 | 1444999 cfosnock
cfosnock's picture

Its just lip service...this is the infamous flip flopper Per Ron Paul...http://www.dailypaul.com/115435/worse-than-watt-rep-brad-miller-nc-13-co...

Do NOT follow this link or you will be banned from the site!