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State AGs And Banks Prepare Fraudclosure Settlement, Bailout Number Two For BofA Imminent

Tyler Durden's picture





 

CNBC's Diana Olick reports that the investigation into the biggest financial fraud in recent history is about to be shelved: the reason, state AGs are nearing a settlement with banks, which will slap a few wrists, will see banks put some lunch money in a settlement fund, will result in some principal reductions, and everything will be well again, as banker bonuses surpass 2009 levels (as noted previously). Retroactively in perpetuity. In other news, state sponsored fraud in America is alive and well.

Update: don't spend that bonus money on the January edition Perfect 10s just yet. In what seems to be a day of relentless newsflow, we have just learned via Charlie Gasparino and Fox Biz, that Phil Angelides is launching his own probe into the mortgage market. Then again, all this means is that BofA will need to spend a few million extra dollars to bribe the key people in this latest development, and then everything shall be well again.

Add Phil Angelides to the growing list of regulators investigating whether banks committed fraud in the $6.4 trillion mortgage-bond market, the FOX Business Network has learned.

The Financial Crisis Inquiry Commission, which Angelides chairs, has begun investigating whether mortgages packaged into bonds and now held by investors including government agencies like Fannie Mae and Freddie Mac were done so improperly, thus calling into question the legality of trillions of dollars of debt, according to people with direct knowledge of the matter.

The inner workings of the mortgage-backed securities market have come under intense scrutiny in recent months following revelations that big banks may have committed fraud by hiring so-called robo-signers to approve foreclosure applications on tens of thousands of mortgages. At issue: Whether the robo-signers properly approved foreclosures and whether people forced from their homes received due process.

The latest twist in the robo-signer controversy involves whether improper foreclosures and banks failing to follow proper legal procedures will call into question the mortgage bonds themselves. Many of the foreclosed mortgages aren’t held by banks, but have been placed in bonds held by investors. The money thus is returned to an investor holding the bond.

But if the foreclosure has been done by a robo-signer, or if the banks creating the bond did so improperly, as a recent congressional study suggested, then the bonds themselves could be declared illegal. That could pose big problems for the banks that created the mortgages and sold the bonds, like Bank of America (BAC: 11.94 ,-0.16 ,-1.32%) and JPMorgan (JPM: 39.58 ,-0.47 ,-1.17%) because it would allow investors to “put”, or force the banks to buy back, the underlying mortgages.

And here is Diana Olick's disclosure:

While sources say there is no universal solution to shoddy foreclosure practices at some of the nation's largest mortgage banks/servicers, the three largest, BofA, JPM and Wells Fargo, may be agreeing to the same solution.

First, banks would pay into a fund used to compensate borrowers who have claims after their home has been sold in foreclosure. The borrowers would have to prove they were wronged in the process, and the attorney's general would allocate the funds. In other words, the AGs would be the administrators. The amount of said fund is still undetermined, and likely still in negotiation. Each bank could settle on its own amount, or there could be a joint agreement.

Secondly, the banks would do away with the dual track of modifications and foreclosures. That means that only after all options of modification are exhausted can a bank begin foreclosure proceedings. Many borrowers currently complain that they are in the midst of the modification process when they get a notice of foreclosure sale. The drawback to eliminating the dual track is even greater extended timelines to foreclosure for borrowers. As it is, borrowers on average can be in their homes for a year and a half without making mortgage payments before eviction.

Finally, there would be some kind of agreement to third party mediation for review of all the cases in the first part of the agreement where borrowers are seeking compensation from the AG fund.

There has also been talk of principal write down as part of settlements, perhaps with some banks and not others. "It's been on the table," says one source.

Read more here

 


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Tue, 11/16/2010 - 16:58 | Link to Comment trav7777
trav7777's picture

wtf, bitchez

Tue, 11/16/2010 - 17:15 | Link to Comment bigdumbnugly
bigdumbnugly's picture

sorry, but was there ever any doubt?

Tue, 11/16/2010 - 17:42 | Link to Comment No Mas
No Mas's picture

It is as I have said before:  Banks will make money, lawyers will make more money and no one will be the wiser.

Defaulting homeowners will be kicked to the curb and become renters subsidized via section 8 housing.

Banks will write down the loans over time but no problem for the reserves or income as the Fed will take care of all of that.

Who in their right mind ever thought anything would come of this?  Christ, this is the USA and it is owned outright by the banks.  Nothing will happen to any of them or theirs until their is no currency.

Keep up the bitching and complaining.  The banks will simply laugh all the way to the,well....  BANK!!

Tue, 11/16/2010 - 18:34 | Link to Comment Fraud-Esq
Fraud-Esq's picture

never a doubt. Keep track of each AG that settled-up with the banks. You can bank on their bright futures....

They had loads of leverage. Time to send in Internal Affairs! LMAO... 

Tue, 11/16/2010 - 22:01 | Link to Comment Dental Floss Tycoon
Dental Floss Tycoon's picture

IA would just be one more pig at the trough.  Lots of bucks to spread around.  How do I get a cut?

Tue, 11/16/2010 - 22:25 | Link to Comment RECISION
RECISION's picture

Keep track of each AG that settled-up with the banks.

Yes...

More names for the Hit-List

Tue, 11/16/2010 - 23:21 | Link to Comment Triggernometry
Triggernometry's picture

"This is a god damned traveshamockery"

Tue, 11/16/2010 - 16:58 | Link to Comment Duuude
Duuude's picture

 

 

FTW

 

 

Tue, 11/16/2010 - 17:00 | Link to Comment Altan311
Altan311's picture

Not gonna happen, too many angry people...

Tue, 11/16/2010 - 17:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

This so called "settlement" might just be the flash of the magician. I suspect it might just be designed to fail in order to allow Congress to pass a law retroactively making the bank boo-boo's all better.

If "we the people" get too pissed off, Congress will say that the banks are repentent and the AG's are "satisfied" with the settlement. In the interest of keeping the economy on the mend, we "must" save them from themselves.

Or like a ping pong game, the "settlement" can appear to be failing, thus forcing Congress to pass a law "against it's will", thus forcing the AG's to "compromise" after all and settle.

This is a political soap opera folks. I was saying weeks ago there will be a political solution. It will be done before Xmas. The Ponzi will not tolerate anything less.

Tue, 11/16/2010 - 17:49 | Link to Comment johngaltfla
johngaltfla's picture

Sorry CD. THAT oversight was signed away with Frank-Dodd. The Federal Reserve has the power now. We're just newspapers on the floor waiting on the puppy shit to hit us.

Tue, 11/16/2010 - 21:47 | Link to Comment BrosMacManus
BrosMacManus's picture

more like a full grown mastiff...

Wed, 11/17/2010 - 02:28 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

I can take just about anything but puppy shit.

That is all for me boys and girls.

Puppy shit? Puppy shit?

I saw some pictures from a gay parade in San Francisco the other day and almost vomited. Middle aged men were performing oral sex on one another in broad daylight while in public.

Puppy shit and gay men performing oral sex in public.

I quit.

Wed, 11/17/2010 - 05:24 | Link to Comment Andy Lewis
Andy Lewis's picture

I told you not to watch. ;)

Wed, 11/17/2010 - 07:00 | Link to Comment Mentaliusanything
Mentaliusanything's picture

As a man, I am now scared for life. Thanks for coming

Tue, 11/16/2010 - 17:30 | Link to Comment MachoMan
MachoMan's picture

This is all about plausible deniability post collapse.  The fact of the matter is that the watchdogs for the citizens of each state, the attorney generals, sat on their hands this whole time, in sheer ignorance of the banks' transgressions or, worse, knowingly turned a blind eye.  Either way, it is a complete embarassment for them.  As a result, the best possible solution for them is not to go into a lengthy trial whereby the negligence of each attorney general is on full display, but rather make a settlement so it stays out of the limelight.  The angry people are completely immaterial to the determination unless they have molotov cocktails and a thirst for blood and are knocking on the door.

Tue, 11/16/2010 - 17:47 | Link to Comment DaveyJones
DaveyJones's picture

not gonna knock

Tue, 11/16/2010 - 23:47 | Link to Comment snowball777
snowball777's picture

How much AG apathy was the result of Dubya's specifically castrating state-level enforcement via executive orders to the OCC?

 

Wed, 11/17/2010 - 00:07 | Link to Comment MachoMan
MachoMan's picture

Are you suggesting that AGs are out parading with this argument?  The point where they have to defend themselves will never be brought up...  they don't want to deal with it, which is why they're capitulating and settling...  before the thing even gets started...  I mean, we really aren't even to the cursory discovery phase yet...  It's kind of like an opponent of mike tyson taking a dive before the fight starts...

Thu, 11/18/2010 - 09:31 | Link to Comment dizzyfingers
dizzyfingers's picture

...since you brought it up, the last two sound good.

Tue, 11/16/2010 - 17:00 | Link to Comment El Gato
El Gato's picture

Damn, it feels good to be a bankster

Tue, 11/16/2010 - 17:00 | Link to Comment RobotTrader
RobotTrader's picture

Nice vacuum pump into the bell to stauch the losses before the GM IPO.

LOL.....

Tue, 11/16/2010 - 17:02 | Link to Comment slaughterer
slaughterer's picture

Meanwhile, PIMPCO High Income Fund (PHK) gets pummeled.  Surprised Robo has not pinned up a chart of Bill Gross's crash and burn fund. 

Tue, 11/16/2010 - 17:05 | Link to Comment Cleanclog
Cleanclog's picture

Super ugly when you look at the long term muni funds!

Tue, 11/16/2010 - 17:44 | Link to Comment Cruel Aid
Cruel Aid's picture

All varieties dumped.

Ugly if you slept thru support levels. There was time to bail.

 

Tue, 11/16/2010 - 17:09 | Link to Comment RobotTrader
RobotTrader's picture

Really not that bad....

Not as bad as this....

Tue, 11/16/2010 - 17:12 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

You think like Cramer

Tue, 11/16/2010 - 17:13 | Link to Comment slaughterer
slaughterer's picture

Don't worry: Munis are next on the Fed's buy list.   Thanks for the comparative chartology.

Tue, 11/16/2010 - 17:23 | Link to Comment tallystick
tallystick's picture

Seriously Robo, what a clown.  Calculate the percentage drops and try again.

 

Your first chart clearly shows a >10% drop, while the second is clearly less than 10%

 

Tyler, can you remedy Robo's image clutter issue?

Tue, 11/16/2010 - 17:26 | Link to Comment ATG
ATG's picture

PHK -14%

MUB -8%

Tue, 11/16/2010 - 17:47 | Link to Comment Minion
Minion's picture

I love it.  Robo for the play by play, PPT is in effect!

Tue, 11/16/2010 - 21:28 | Link to Comment RockyRacoon
RockyRacoon's picture

How come on the gold charts you choose to post the last 12 hours chart?

Take a look at this one, choose the 2010 YTD button:

http://graphics.thomsonreuters.com/F/10/GLB_MKTQEP.html

Tue, 11/16/2010 - 17:01 | Link to Comment Shameful
Shameful's picture

And now to watch for campaign contributions to certain AGs. After all can't mount a reelection campaign without kickbacks...err contributions.

Tue, 11/16/2010 - 17:02 | Link to Comment johngaltfla
johngaltfla's picture

Private Property rights fucked again. Why bother keeping "the damned piece of paper" undre glass. Let Bernanke's dog or Obama's use it to shit on.

 

Lawyers and banksters have been for years.

Tue, 11/16/2010 - 17:02 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Wet clean up (vomit) under my desk.

Tue, 11/16/2010 - 17:02 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

I see Chris Dodd's leprechaun is dancing a jig singing "They're magically delicious!"

Tue, 11/16/2010 - 17:03 | Link to Comment Cleanclog
Cleanclog's picture

It could be worse.  

In Ireland the banks were borrowing at 8%, when they could find a lender, and then making mortgages at 5% - to keep a floor on housing prices that are obviously going to plunge again . . . as I doubt the ECB and EFSF will further support Irish housing prices lest they must do the same in Portugal, Hungary, Greece, Romania, Italy, and eventually every country in Europe.

Tue, 11/16/2010 - 17:03 | Link to Comment Chuck Bone
Chuck Bone's picture

People, it's time to get angry.

Tue, 11/16/2010 - 17:04 | Link to Comment HarryWanger
HarryWanger's picture

Been saying this would happen while everyone kept trying to make this into a big story here. It's always this way, slap a few wrists and on to the GM IPO and a new episode of "Glee" tonight.

Tue, 11/16/2010 - 17:15 | Link to Comment Bastiat
Bastiat's picture

You are a confirmed cynic, Harry and that seems to be a more comforatable adaptation to the world we live in.  It seems many of us here suffer from a sense of outrage fueled by some childish idealism about judicial legitimacy and the necessity of clear legal structure defining property rights.

Tue, 11/16/2010 - 17:22 | Link to Comment SheepDog-One
SheepDog-One's picture

Harry the ultra cynical hyper optimist!

Tue, 11/16/2010 - 17:24 | Link to Comment RichardENixon
RichardENixon's picture

You'd better get over that fast or you're gonna be in for some real misery ahead.

Tue, 11/16/2010 - 17:39 | Link to Comment Bastiat
Bastiat's picture

No shaking it; I've adapted adapted over the years.  May be a self help book in it:  "Living With Outrage." 

Tue, 11/16/2010 - 17:53 | Link to Comment DaveyJones
DaveyJones's picture

I'm living with outrage and anger. It's a polygamy state

Tue, 11/16/2010 - 19:28 | Link to Comment samsara
samsara's picture

A cynic.  He knows the price of everything and the value of nothing.

He doesn't care about the constitution, or the law really.  If he can work the angles to make a buck, he's happy.  And considers himself "Smarter" than the average dope who expects fair play, equality and all those things that don't make you a dime and just paints a big bullseye on your back for the P.T. Barnums like himself.

He's never disappointed because he doesn't have expectations.    Just results.

 

Tue, 11/16/2010 - 17:48 | Link to Comment Minion
Minion's picture

Good ol' Wanger telling it like it is.  JPM was on fire all day, then experienced a stick save of UFO proportions, right before the bell. 

Tue, 11/16/2010 - 18:03 | Link to Comment tahoebumsmith
tahoebumsmith's picture

Harry,

Guess what? Slap a few wrists? You wait and see how many people have stopped paying their mortgage because of the light shed on this problem. 35% of homes are underwater and people now have no moral obligation to pay these assholes. So like I always say, just sit back and watch, because the shell game is running out of hands and soon the ball will be revealed.

Tue, 11/16/2010 - 17:05 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

WTF? they spend 6 man-hours on this then settle? Bull shite!

 

Don't pass the smell test then again it's Donna Olick reporting

Tue, 11/16/2010 - 17:05 | Link to Comment Mad Max
Mad Max's picture

I'll take a 100% principal and interest reduction and call it good.

Tue, 11/16/2010 - 17:06 | Link to Comment Bartanist
Bartanist's picture

Fraud is a crime!!

There needs to be criminal trials and jail time for crime. These corrupt pussy AGs need to stop worrying about maintaining the lifestyle of the bankers and need to start putting them in jail.

Tue, 11/16/2010 - 17:06 | Link to Comment M4570D0N
M4570D0N's picture

"In other news, state sponsored fraud in America is alive and well."

Indeed it is. Rangel was just convicted on 11 counts of ethics violations. Punishment shall be a public scolding. That'll teach him.

http://www.reuters.com/article/idUSTRE6AF54T20101116

 

Tue, 11/16/2010 - 17:24 | Link to Comment Implicit simplicit
Implicit simplicit's picture

He got caught. They should throw Frank in there with him to be his bitch.

Tue, 11/16/2010 - 17:28 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Rangel is "old school" corruption. He has worn out his welcome and he does not follow the  "New Big Book of Corruption" game plan. So they threw him under the bus.

See ya old timer ! 

Wed, 11/17/2010 - 00:39 | Link to Comment palmereldritch
palmereldritch's picture

There should have been an additional count: Too delusional (or practical) to hire a defense team.

Fuck it.  Pocket it all and walk.

Wed, 11/17/2010 - 09:40 | Link to Comment azusgm
azusgm's picture

Maybe his friends on the ethics committee chose to proceed so that he could be spared any further legal expense since they never intended to mete out any real punishment anyway.

 

How kind.

Tue, 11/16/2010 - 17:06 | Link to Comment TruthInSunshine
TruthInSunshine's picture

It's ONLY a real property/title/constitutional RIGHT.

Some of you are so sensitive!

 

Sheesh!

Tue, 11/16/2010 - 17:07 | Link to Comment buzzsaw99
buzzsaw99's picture

Color me shocked.

Tue, 11/16/2010 - 17:09 | Link to Comment 99er
99er's picture

Chart: SPX

Three days of POMO under QE2 and three days of red closes. Heckuva job, Ben.

http://99ercharts.blogspot.com/2010/11/spx_4659.html

http://www.zerohedge.com/forum/99er-charts

Tue, 11/16/2010 - 17:21 | Link to Comment Divided States ...
Divided States of America's picture

Insiders taking this one in a lifetime opportunity to unload like no tomorrow. Makes sense.

Tue, 11/16/2010 - 17:27 | Link to Comment ATG
ATG's picture

Bingo Bango Bongo

Tue, 11/16/2010 - 17:11 | Link to Comment Ragnarok
Ragnarok's picture

It is the duty of every citizen to remain vigilant, 60 years of "I can't be bothered" is culminating as we speak.

Tue, 11/16/2010 - 17:12 | Link to Comment treemagnet
treemagnet's picture

Hungry lawyers will not be denied.

Tue, 11/16/2010 - 17:13 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

I rather go hunting with Cheney than rent from Dodd

Tue, 11/16/2010 - 17:21 | Link to Comment Mad Max
Mad Max's picture

Why not just send Cheney out hunting for Dodd?

Tue, 11/16/2010 - 17:30 | Link to Comment Ripped Chunk
Ripped Chunk's picture

His new robotic heart requires him to stay close to a 120v outlet. They could drag a generator along.............

Tue, 11/16/2010 - 17:54 | Link to Comment quasimodo
quasimodo's picture

Dick has the lead role in the movie "Thinner" sequel. He looks like shit. Anyone else see him at the GW library groundbreaking? He was able to joke about the shovel ready project

Tue, 11/16/2010 - 19:49 | Link to Comment Rainman
Rainman's picture

Clinton's looking rough too ( Bill that is, but an argument can be made for the other ). Cheyney's always looked like shit to me. Decades of wires and robotics will do that to you, I guess.

Tue, 11/16/2010 - 17:14 | Link to Comment rookie
rookie's picture

Hey CD, you were right.  I was naive.  I thought the state ags might actually get to the fraud underneath the fraud.  That was the quickest investigation ever.  I want my faith in my country back.

Wed, 11/17/2010 - 07:09 | Link to Comment Mentaliusanything
Mentaliusanything's picture

If you want that, you had better start with family and a new dream on a new bit of land owned by some underarmed and naive natives that you can take over........... Oh shit they are doing it in Afghanistan - fuck I - knew there was a rock solid reason. 

Tue, 11/16/2010 - 17:16 | Link to Comment gkm
gkm's picture

I'd say the fraud is more like "sanctioned" than sponsored.  The taxpayers would actually be the sponsors since they ultimately gave (and give) the banks the cash to pay the fines (and bonuses), but since the states are directing this whole thing I think the verbiage is a little misleading.  ;)

Tue, 11/16/2010 - 17:22 | Link to Comment taint
taint's picture

If this is allowed to go to its proper, rightful conclusion, there is a giant Kaboom.   If you are going to bet, bet that the cover up and collusion will continue until it can't.  Then kaboom......

Tue, 11/16/2010 - 17:23 | Link to Comment Hondo
Hondo's picture

If they are truly settling this mess WTF is the buffoon Dodd doing holding a hearing for??

Tue, 11/16/2010 - 17:28 | Link to Comment Implicit simplicit
Implicit simplicit's picture

He is using the crisis to see if he can squueze a few more thousand from the banks berfore he retires. Frank is right behind him, he better not bend over.

Tue, 11/16/2010 - 17:31 | Link to Comment Miss Expectations
Miss Expectations's picture

It's a side show.  Bring in the midgets.

Tue, 11/16/2010 - 17:23 | Link to Comment bullwinkle
bullwinkle's picture

The settlement is just for Robo signing.  ZHer's shouldn't be too despondent.

The banks have a slow moving tidal wave of shit coming down on them and the Robo signing

is just a sideshow.  I believe the wave is somewhere out in the mid Alantic and should

be coming ashore in the near future.  Bankers will be wearing hip waders to work.

If they're waiting 18 months before foreclosing you know they're sitting there waiting for

real estate prices to pick up so they can save their sorry asses.  Not gonna happen.

Tick tock....tick tock....tick tock..

Tue, 11/16/2010 - 17:32 | Link to Comment Gone Full Retard
Gone Full Retard's picture

There's nothings a little hyper-inflation's can't cures.

Tue, 11/16/2010 - 17:32 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Agreed. It will be a massive wave of shit when the bond holders unite and make them take back the piles of shitty mortgages.

It's coming.....................

Tue, 11/16/2010 - 17:45 | Link to Comment HarryWanger
HarryWanger's picture

Ok, so now we have to wait longer again? "It's coming......" Really? It's like you guys can't let go of it. It's not a huge deal and never really was. When MSM covered it like the end of the world, you knew it was going under one giant rug. 

So now, once again, we get "just wait until..." or "it's going to get ugly when..." On to the next story please.

Tue, 11/16/2010 - 17:50 | Link to Comment bullwinkle
bullwinkle's picture

Hey Harry you should back up the truck on bank stocks.  Preferably on margin.

Tue, 11/16/2010 - 17:38 | Link to Comment MachoMan
MachoMan's picture

Bingo.  What the robosigning "fix" will do is clear up the possibility for fraud on the court.  In the past, this might have lead to say, a free house for the debtor.  It may also prohibit courts from reviewing previous foreclosures given the only basis for doing so would be fraud on the court (retroactive law issue aside).

But, what I still don't understand is how this will affect priority.  Those assignments that were not recorded should lose priority to the liens filed in the meantime that are properly recorded and stamped (tax paid).  In other words, fine, it is no longer fraud on the court, but why do you get first priority when you failed to pay the tax man?  These things are going to be in front of judges whose livelihoods are maintained by the recording fees...  rock and a hard place...

Tue, 11/16/2010 - 18:19 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Hey, ya' think a state AG would make a deal with me if I committed tens of thousands of frauds against the court (that were caught) making it likely that tens of thousands that weren't were used to fraudulently foreclose on home owners? I think I know what that deal would be.

Justice is blind? Har...

Wed, 11/17/2010 - 01:57 | Link to Comment StychoKiller
StychoKiller's picture

"But that trick never works!"  God, I love Rocky & Bullwinkle!

Tue, 11/16/2010 - 17:24 | Link to Comment Caviar Emptor
Caviar Emptor's picture

State sponsored massive fraud to be punished with at least 12 minutes of rebuke by members of Congress. Meanwhile, California builds more new prisons than schools. 

Tue, 11/16/2010 - 17:25 | Link to Comment SwannDog
SwannDog's picture

First post here...been lurking for a couple of months. I guess all the years of telling my son to take the "high road" makes me look like a chump. Where do you turn to find examples of morals, values, and integrity other than a history book?

 

Tue, 11/16/2010 - 17:27 | Link to Comment RichardENixon
RichardENixon's picture

Try the WWE.

Tue, 11/16/2010 - 17:28 | Link to Comment bullwinkle
bullwinkle's picture

Google "complete opposite of Lloyd Blankfein" and you might find your answer.

Tue, 11/16/2010 - 17:31 | Link to Comment Implicit simplicit
Implicit simplicit's picture

Teach what is really going on out there. Allow him to swallow the blue pill. Truth is freedom.

Tue, 11/16/2010 - 17:47 | Link to Comment traderjoe
Tue, 11/16/2010 - 18:08 | Link to Comment Implicit simplicit
Implicit simplicit's picture

Right, red for real. Got it.

Tue, 11/16/2010 - 17:34 | Link to Comment Gone Full Retard
Gone Full Retard's picture

FOX NEWS? Bitchez!

Tue, 11/16/2010 - 17:33 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Tibet

Tue, 11/16/2010 - 17:34 | Link to Comment Peterpaul
Peterpaul's picture

You won't find it in a history book, either. But that shouldn't stop you from trying to teach him to take the high road.

The bitterest cynics are idealists that had their expectations shattered by reality.

Tue, 11/16/2010 - 17:35 | Link to Comment M4570D0N
M4570D0N's picture

Sarah Palin. Duh.

:)

Tue, 11/16/2010 - 17:35 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

The Chicago Democratic Party.

Tue, 11/23/2010 - 12:23 | Link to Comment Heavy
Heavy's picture

Those (first) two replies made me laugh out loud, thanks guys.  And welcome to this land of angry humorists SwannDog.  Whether a person listens within themselves when they make decisions seems to largely be a matter left up to the individual, just make him aware that this is the game being played.

Tue, 11/16/2010 - 17:59 | Link to Comment DaveyJones
DaveyJones's picture

real prostitutes. At least the taxpayer knows what he's buying 

Tue, 11/16/2010 - 18:05 | Link to Comment DaveyJones
DaveyJones's picture

.

Tue, 11/16/2010 - 18:24 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Alan Greenspan's memoirs.

Wed, 11/17/2010 - 02:54 | Link to Comment Seymour Butt
Seymour Butt's picture

Memoir? I thought I was reading Fiction.

Wed, 11/17/2010 - 00:43 | Link to Comment Fraud-Esq
Fraud-Esq's picture

The internet! They've scattered us. 

Tue, 11/16/2010 - 17:32 | Link to Comment max2205
max2205's picture

the rug is getting bumpy and stinky with all the crap swept under it

 

how big is the rug?

Tue, 11/16/2010 - 17:37 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Its really fucking big.

Harry would always poo poo the mortgage mess, he was right. Now its under the rug with citi s&l crap, mexico debt, siv's,mbs ....

Tue, 11/16/2010 - 17:48 | Link to Comment HarryWanger
HarryWanger's picture

And countless other "messes" throughout our history. It's a big rug and it's amazing what can and does get swept under there. 

Tue, 11/16/2010 - 18:59 | Link to Comment samsara
samsara's picture

Not Resource depletion babes.

Can't print oil

Tue, 11/16/2010 - 17:33 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

If you read this it is actually a rather narrow subclass of the foreclosure problem that is being addressed. It says nothing about repairing faulty loan files, or retroactive repairs of bad MBS creations, etc.  This is small stuff. A defective loan assignment is still defective after this. 

Tue, 11/16/2010 - 18:45 | Link to Comment Fraud-Esq
Fraud-Esq's picture

Bullwinkle is right. This is one aspect of the banks problems with the STATES under the AG's jurisdiction.

Watch for rushed state legislation too.  

Tue, 11/16/2010 - 17:36 | Link to Comment No One
No One's picture

of the corporations, for the corporations by the corporations shall perish from this earth. 

 

 

Tue, 11/16/2010 - 17:53 | Link to Comment sporb
sporb's picture

Ha! You USA guys have a real good thing going there - If I'm ever an oligopolist, I'll be sure and set up some corrupt BS enterprise in order to milk you of your hard-earned coin, just like they've been doing to you for generations.

Tue, 11/16/2010 - 18:25 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Hey! I resemble that remark!

Tue, 11/16/2010 - 17:37 | Link to Comment Grill Boss
Grill Boss's picture

consolidating everything into fannie and freddie and GS is the goal here, BAC or whoever they want can fail, and if so will be %100 on purpose then they can just give all the money to GSE's in huge payments instead of BAC, Wells etc. Ag's raised a stink to get paid off that is all. The serfs will see, and should expect, no change until there is actual blood in the streets.

Tue, 11/16/2010 - 17:46 | Link to Comment Bastiat
Bastiat's picture

They payoffs to the defrauded investers in MBS might be a little tougher.  The injured parties in foreclosuregate are scattered and generally weak--MBS investors are a different bunch. 

Let me see how the negotiation might go:  Bankster:  take the offer and shut up or we'll just let Freddie and Fannie default.  Investor:  But they have the implicit Fed guarantee behind them.  Bankster:  Funny thing about that "implicit" shit . . . like it's "implicit" when I'm selling you something and when you call on it it's just shit.

Wed, 11/17/2010 - 00:46 | Link to Comment Fraud-Esq
Fraud-Esq's picture

Best plaintiffs are banks. Only one powerful enough to get justice. Bank on bank crime and punishment is to watch. The hedge funds are...

 

Tue, 11/16/2010 - 17:46 | Link to Comment economessed
economessed's picture

Yeah, I was wondering how they can get around Section IX of the consititution:  "No Bill of Attainder or ex post facto Law shall be passed."

I continue to believe the rule of law won't wind-up under the bus.  If I'm proven wrong, I'm sure I'll find the company of a few fellow citizens who will work to restore it (the hard way.)

 

 

Tue, 11/16/2010 - 18:14 | Link to Comment Shameful
Shameful's picture

The same way they have gotten around most of the Constitution.

1. Ignore it.

2. Use the court to re-imagine it's meaning.

Tue, 11/16/2010 - 18:25 | Link to Comment DaveyJones
DaveyJones's picture

3. create a war than has no ending, boundary, or clear enemy 

Tue, 11/16/2010 - 18:29 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

4. Use #3 as an excuse to create a security/police state through perpetual "wartime" emergency powers and fostered paranoia

Wed, 11/17/2010 - 02:01 | Link to Comment StychoKiller
StychoKiller's picture

I seem to recall the phone companies getting a hall pass for (illegal) wiretapping, after the fact! :(

Tue, 11/16/2010 - 17:58 | Link to Comment Catullus
Catullus's picture

Call. Continue to not pay your mortgage.

Tue, 11/16/2010 - 18:03 | Link to Comment WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

...

Tue, 11/16/2010 - 18:00 | Link to Comment Humpty Pundit
Humpty Pundit's picture

I heard Kyle Bass bought a bunch of BOA recently.

Tue, 11/16/2010 - 18:01 | Link to Comment Humpty Pundit
Humpty Pundit's picture

I heard Kyle Bass bought a bunch of BOA recently.

Tue, 11/16/2010 - 18:02 | Link to Comment tony bonn
tony bonn's picture

this is one more reason why i hate this country.

Tue, 11/16/2010 - 18:13 | Link to Comment treemagnet
treemagnet's picture

The starving lawyers will never let their payday be stolen from them - they've got plenty of legislative power too.

Wed, 11/17/2010 - 02:47 | Link to Comment Seymour Butt
Seymour Butt's picture

Not as much as the Bank Cartel.

Tue, 11/16/2010 - 18:18 | Link to Comment belogical
belogical's picture

My guess is that money is moving from the freshly printed treasury to the cash starved states as we speak. 

Sad, but justice is gone. We are no longer the shining light of the world we deserve everything we are about to get.

 

Tue, 11/16/2010 - 18:24 | Link to Comment NotApplicable
NotApplicable's picture

Settle all they want, there is still no guarantee that anyone can EVER have a clear title.

I think I'm going to report the AG to the AG's office, as he is now complicit in fraud.

Tue, 11/16/2010 - 19:08 | Link to Comment detersbb
detersbb's picture

Are you crazy?

 

They just papered over Trillions of dollars of fraud and you think that a clear title is going to mean something?

 

It is sad that you actually believe that any AG will ever be investigated for being complicit in fraud.  Exactly who is going to do the investigating?  Who is going to file the charges?  Which judge is going to SEE any evidence of wrong doing or just dismiss the casue with prejudice for failure to state a claim because...

 

You are wildly nieve.  If you think that there will ever be a political, social, economic or legal fix for this you are sadly mistaken and must think you are living in America.  Wrong son you are residing in UNITED STATES Inc.  There is a world of difference between the two.

Wed, 11/17/2010 - 09:00 | Link to Comment ReeferMac
ReeferMac's picture

+99

Sad, but true!

Tue, 11/16/2010 - 18:39 | Link to Comment greenewave
greenewave's picture

To find out more about the Imminent Collapse of the Global Economy, watch the YouTube video "Wall Street Thieves, Bailouts Galore, Broken America" at (http://youtu.be/I93dzfs8WIc).

The United States economy is rotten at the core and has been stolen from the American people by the Wall Street Thives that drove the Titanic into the iceburg in the first place!!

32 minutes ago

KA-BOOM! Crash will be any day now! It is going to be like nothing else ever seen? here or anywhere else in history. God bless!

-Anonymous

Tue, 11/16/2010 - 18:41 | Link to Comment Haywood Jablowme
Haywood Jablowme's picture

Time to stop paying income taxes.....

The social / psychological trends are being set. 

 

 

 

 

Tue, 11/16/2010 - 18:55 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Pssst - don't tell anyone I told you this, fellow ZHers, but banks have rising inventories of foreclosures and growing delinquency rates, and many people have now  been living in homes for more than 3 years without making a payment.

On top of this, many banks do not want to take homes back via foreclosure in many parts of the country, because there is no market for the house whatsoever, and they do not want to pay the carrying costs (especially if the resident is taking care of the place).

In some areas, property taxes can run 4k up to 80k a year on homes in nicer areas, and if the owner is also current on this, banks have even less inclination to foreclose. They may send a letter of intent out to the homeowner, but there are many cases on non-action over extended periods of default.

Do the math on the carrying costs, and add to this the fact that it could take many years or vastly reduced prices (on top of the already occurring hit) to unload foreclosed homes - thus requiring the banks to write down far more in REALIZED losses - and you can start to see the logic in what must seem like insanity to the casual observer.

THIS is one of the main reasons for both the TNote carry trade (via discount window) and Bernanke stuffing banks full of as much cash as possible; to give them a massive cushion for what lay ahead, which will be a tsunami of red ink.

Many of you probably knew all of this, but for those who may not have, yes Virginia, America is full of insolvent, Zombie banks, and things are only getting worse.

If this deal with states' AGs actually goes through, it won't help the banks' balance sheets, and in fact, it still is subject to serious legal challenge on constitutional grounds under various and legitimate causes of action.

The states are doing this, if the deal goes through, and if it's not overturned by the courts, because they like so many others need cash now.

Property taxes, income taxes and sales taxes aren't what they used to be, ya' know.

Tue, 11/16/2010 - 19:11 | Link to Comment Kina
Kina's picture

There should be a further amemdment to the Constitution that creats the seperation of Bank and State just like the seperation of Church and State.

 

No former bankster should be permitted to take up any govt position or in any regulatory body. Politicians and political parties should be prohibited from taking donations from banksters. The opinion of banksters should be excluded from the govt policy making process.

Having watched that doco The Secret of Oz it is clear that banks are a pernicious evil not averse to creating human conflict, destruction, suffering to enrich themselves and increase their power.

 

buy silver till it hurts, crash JPM.

Wed, 11/17/2010 - 09:08 | Link to Comment ReeferMac
ReeferMac's picture

just like the seperation of Church and State.

 

Hahahaha heheheheh hoohohohohoooo

That's a good one!

"In God We Trust"

Which one?

Heaven forbid anyone go against the catholic church in this country. It's not like you can go build a Mosque anywhere you want in this country or anything....

Tue, 11/16/2010 - 19:23 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

i've said before and i'll say it again...the only way to deal with socipaths is to let them know n no uncertain terms that u r willing to put a cap n their ass if need b to ensure that u r treated fairly and equitably... what more proof is required n order to understand that the common man and woman have absolutley no advocate n matters of soci-economic justice as their government is under the complete control of the bankers...

if u aint ready to lay one of these pieces of shit down then get accustomed to perpetual servitude & usury.....PERIOD

Tue, 11/16/2010 - 19:28 | Link to Comment Haywood Jablowme
Haywood Jablowme's picture

+ .308

this ain't gonna be pretty...

 

 

Tue, 11/16/2010 - 20:51 | Link to Comment Everyman
Everyman's picture

I second that "+ .308"!

I don't think these idiots know what is going on with the rest of America.  There are 330,000,000 people here and we are currently screwing the majority AND the next generation and ignoring the rule of law, to do what?

Oh yeah, give bankers bonuses!  They can't do with out those now can they?  And the AGs that line up for this shit deserve what the will get.  I am not a fan of anarchism, but these pricks are asking for anarchy.  That is by definition the rules don't apply any longer.

Tue, 11/16/2010 - 23:09 | Link to Comment Sennett
Sennett's picture

No kidding their rules don't apply any longer.  They never really did, did they?

Tue, 11/16/2010 - 23:47 | Link to Comment Everyman
Everyman's picture

Does that realization mean we are "enlightened"??

Tue, 11/16/2010 - 19:28 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

I say that the problem has so many aspects to it that it is like a metastisizing cancer in the banking sector. Even when it "goes away" in one spot, it will come back in another.

Robosigning itself has different levels, and it is not the only problem.

Was a robosigner used to simply expedite the foreclosure paperwork, which is otherwise in good order? (sometimes, and this is where the TBTFs would like you to stop your questioning, sort of a "aw shucks, you got us, we were just trying to get this silly lawyer paperwork filed on these, you know, dead beats so you got nothing here and just move along people. . . ")

Was a robosigner used because the facts in the foreclosure documents are inaccurate, and no one wants to sign it? (sounds like quite a bit)

Do the "inaccurancies" in the foreclosure relate back to the original packaging of the loan into  MBS form? Does this problem have a MERS component? What is the nature of the defect? Is there a wet signature note available? Was it properly assigned? Was it assigned to  the proper entity? And now that you've got doubts about the particular loan in front of you being foreclosed upon, and questionable title to the loan is the issue,  ponder all the rest of the loans in that MBS, even though they are not in foreclosure, and ask yourself: are they "owned" by the MBS? Or did the sale and transfer to the MBS never consummate, leaving the loan in the hands of the original transferor? Did the original transferor take this opportunity to sell this loan a second time?

Were the note and mortgage assigned together, or were they separated by intention or negligence such that that holder of the mortgage is not the holder of the note?

This scrapes the surface. The problems are endemic and throughout -the cancer has spread and is now working its way through the system. As one tumor is lopped off, another will pop elsewhere. This will not lend itself to hiding under a rug. Cash flow is king.

This is what Hank Paulson knew when his first gut instinct was that we needed to buy up all the "toxic assets" by using $700 billion and unquestioned authority - a position he quickly moved away from when it became apparent that you couldn't buy enough of them to wall off and hide the problem.  But how do you tell everyone you need the money to hide the fraud bombs?  So he quickly went with PLan B  - give the banks money and buy time to figure out another way.  Fast forward to now, as the fraud bombs start going off in earnest.  Slow, but unstoppable.  You will see.

Tue, 11/16/2010 - 21:48 | Link to Comment RockyRacoon
RockyRacoon's picture

Nice synopsis, Ned.   Well done.

Tue, 11/16/2010 - 22:11 | Link to Comment BrosMacManus
BrosMacManus's picture

excellent summation Ned.

Wed, 11/17/2010 - 02:23 | Link to Comment WaterWings
WaterWings's picture

so much for title insurance

short that shit

Tue, 11/16/2010 - 19:39 | Link to Comment JLee2027
JLee2027's picture

I can't believe this would be all swept away so easily. Crooks abound then, in all the important high places.

 

Wed, 11/17/2010 - 06:46 | Link to Comment cossack55
cossack55's picture

You are just now reaching this conclusion?  Must have been a long nap.

Tue, 11/16/2010 - 20:01 | Link to Comment Kina
Kina's picture

The banksters in continuing to steal shareholder and bailout money to pay themselves massive bonuses are simply trying to give every body a clear message...

 

We the Banksters own your judiciary, we own the regulators, we own the security services, we own your politicians, we own the wealth of the nation, we own your (our) country. AND there is nothing you will do about it, we completely control your thinking, desires and worries. American's 'we' own your ass.

Tue, 11/16/2010 - 20:04 | Link to Comment Kina
Kina's picture

There is no deceit or crime, no matter the magnitude, that the banksters will be held accountable for. They are above everything, they are untouchable. They will play games to make it seem they are being held to account, but it is a child's puppet play for a nation of childlike thinkers.

Tue, 11/16/2010 - 20:27 | Link to Comment Everyman
Everyman's picture

This is where the "targets" start choosing themselves as such.  ANY politician, banker, or judge deserves that considers to bail out these crooked fuckers AGAIN in another "DEAL" they deserve to be shot in the fucking head.   I won't shed a tear for them, and will celebrate it as a holiday!

These fucking idiots just don't "get it"!

If the "laws do not apply" to these elitist pricks, then "OH WELL" guess they have it coming.  There will be some State AGs that will suffer for this and I believe will be assaulted, and rightfully so.  These corrupt pricks. They don't even cover it up anymore.

YES we know there is ALWAYS a deal for these criminals.

What happens when the "criminals" start getting raped, assaulted, shot and robbed"????

If this shit does not stopp there are going to be a lot of shootin' goin' on.

Tue, 11/16/2010 - 21:27 | Link to Comment NumberNone
NumberNone's picture

States would cut a deal with Jeffrey Dahmer if they thought it would put a fucking nickel in their coffers.  They are desperate and banks have cash...taxpayer cash...but cash nonetheless. 

CNBC actually has buried on their site an article on bloated pensions and how folks are gaming the system.  Tie this to the recent article about the massive increase in the number of long-time government employees padding their retirement with newly bumped 6-figure salaries...and you've just laid one more stone in the looonng overdue taxpayer revolt highway.  

http://redtape.msnbc.com/2010/11/the-secret-sauce-behind-bloated-state-pensions.html

Wed, 11/17/2010 - 01:42 | Link to Comment Seymour Butt
Seymour Butt's picture

This is the difference between americans and europeans.

 

In Europe, the government is afraid of the people.

 

In the US, the sheeple are afraid of the government.

 

They are too stupid to understand they are being screwed. US is quickly becoming a police state. Go ahead, junk me you bastards.   

 

 

Tue, 11/16/2010 - 22:24 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Americans will do nothing to stop the rape and pillaging by the Federal Reserve, Banksters, Wall Street shylocks and fraudsters and other motherf**king criminals unless and until they're deprived of American Idol/Dancing w/The Stars, Xbox 360, Call of Duty, Hot Pockets and booze - lots and lots of booze.

The chosen few in D.C. and in Manhattan will continue to bleed this nation and global capital markets dry for their own self-interest.

Only a spectacular uprising by Joe and Mary Q. Public, with weapons in hand, could stop what is the most incredible and swift theft in all of human history.

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