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Today's Exercise In Wristslapping: Full Text Of Toothless Draft Banker-Regulator Settlement

Tyler Durden's picture


We haven't read the whole thing. We probably won't. In essence banks promise to never engage in robosigning. Atualy monetary penalty - none! With every bank signing this form of agreement, the administration can again say all is well, and people can go back to purchasing mortgages whose notes are forever lost in the black hole that is multi-trillion bank fraud. But don't worry: they promise to never do it again.


h/t MM


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Wed, 04/13/2011 - 13:27 | 1165828 schoolsout
schoolsout's picture

fucking bullshit

Wed, 04/13/2011 - 13:26 | 1165839 Sqworl
Sqworl's picture

MF bullshit..

Wed, 04/13/2011 - 13:32 | 1165861 slaughterer
slaughterer's picture


Wed, 04/13/2011 - 13:53 | 1165987 Bananamerican
Bananamerican's picture

"they promise to never do it again."

Do they NEED to? Aint dem niggaz set fa' life??

Wed, 04/13/2011 - 13:56 | 1166003 j0nx
j0nx's picture

You can never be too rich or too thin.

Wed, 04/13/2011 - 15:02 | 1166308 metastar
metastar's picture


Wed, 04/13/2011 - 16:04 | 1166557 velobabe
velobabe's picture

i think that is amerika, alma mater!

Wed, 04/13/2011 - 13:34 | 1165886 101 years and c...
101 years and counting's picture

there you have it. if you break the law, just promise to never do it again.

open season on drunk driving, domestic abuse and robbing banks....well, maybe not that one.  penalty for that is torture then death.

Wed, 04/13/2011 - 13:38 | 1165896 the mad hatter
the mad hatter's picture

they probably robosigned the agreement not to robosign.

Welcome to bankersocialism. He who prints the money writes the rules.

Wed, 04/13/2011 - 14:08 | 1166053 divide_by_zero
divide_by_zero's picture

Skipped ahead to the last page or two, looks like they didn't even have to promise not to do it again. If compliance is unfeasible they can request relief.

Wed, 04/13/2011 - 14:20 | 1166114 imapopulistnow
imapopulistnow's picture

The banks agree to hire consultants to determine if the banks have overcharged or improperly or illegally charged fees to the homeowner accounts.  So, what could possibly go wrong?

Wed, 04/13/2011 - 15:14 | 1166350 NotApplicable
NotApplicable's picture


Wed, 04/13/2011 - 15:30 | 1166406 Urban Redneck
Urban Redneck's picture

Not even that-

Page 1 - Cease & Desist Order (this isn't even a PCAD or SEB notice)

Page 2 - Bank neither admits nor denies

nothing to see here. move along.



Wed, 04/13/2011 - 15:52 | 1166505 defn8Dog
defn8Dog's picture

This will put in place all the expensive procedures the banks somehow forgot up to now and will absolutely dent their operating margins.

Wed, 04/13/2011 - 13:27 | 1165830 oklaboy
oklaboy's picture

And this suprises anybody here at ZH how? Did you really think Bernake, Blankenfeld and co were going to do the perep walk?

Wed, 04/13/2011 - 13:45 | 1165937 gordengeko
gordengeko's picture

Right.  I have a question for everyone.  At what point does it become old just reporting the news of the overly apparent ass raping of humans everywhere?  I'm about to stop putting information out there and revert to just sarcastically good and bad attempts at commentary.  I mean nothing is secret anymore, we know who they are, where they came from, where they studied at (where that came from) and they are blatantly telling you what the agenda is.  Don't get me wrong, I love this site and has helped me tremendously piece together missing bits of info and be able to profit from it.  For me, it's getting old seeing more of the same and hearing more of the angry commentary especially from anonymous (where ya at?), whatever happened to that btw?  Nothing is done and we are just trodding along bitching the whole way to our own destruction.  I don't know how you do it TD, seeing this shit day in day out. 

Wed, 04/13/2011 - 14:01 | 1166018 flattrader
flattrader's picture

Go here.  Plenty of time to make travel reservations.

Takin' it right to the black heart of Wall Street.

Be there or be square.

Time for the ZH keyboard kommandos to rise up!

Wed, 04/13/2011 - 14:28 | 1166163 Incubus
Incubus's picture

nah, I like being behind the keyboard.  And I wouldn't want to risk seeming like some douche with a Guy Fawkes mask. 

I'll start playing when "we" put away the masks and bring out the pitchforks and guillotines.

Wed, 04/13/2011 - 14:42 | 1166246 flattrader
flattrader's picture

I don't know why you think you have to weark a Guy Fawkes mask other than the graphic at the site.  It won't afford much protection.

Having been on both sides of the line, I will have a N-95 in my pocket and polarized, gasket-sealed ski sunglasses.

>>>I'll start playing when "we" put away the masks and bring out the pitchforks and guillotines.<<<

This shit is real now.

and you'll always be a key board commando if you're afraid of being a douche.

Oh, already are.

I have to agree with Gordon,  ZH has become tiresome.

Wed, 04/13/2011 - 14:52 | 1166283 Incubus
Incubus's picture

I just think that we're past the point of mindless demonstration.  Demonstrations are for functioning societies where they fulfill an actual purpose; as things are right now,  demonstrations do nothing but make the participants feel better about themselves, nothing more. 

I don't need to "participate" for some sort of ego fulfillment. 

Let's just skip the goddamned foreplay already and get to what we know will be inevitable.

Wed, 04/13/2011 - 15:03 | 1166314 flattrader
flattrader's picture

Study some history.

The catalyst is usually a "demonstration(s)."  You never know which one will the the flashpoint.

Behnind THAT is a rising tide of discontent and restentment which I believe already exists.

An example--


"By 1917, the average working woman was spending 40 hours per week in bread cues.

"The 23rd of February 1917, was International Women's Day. And ironically that day a bread riot started in Petrograd led by the women themselves. They were fed up with waiting for bread. Many of them sleeping outside bakeries overnight to be first in line because so many bakeries had closed.


"They marched through the workers' districts of the city gathering their men folk from the other factories, and occupied the center of the city. About a 100,000 people were in the fashionable downtown districts of Petrograd that day, and over the next three or four days they again occupied the city. More and more people flooded into the center of the city – not just workers, but students, officers, society ladies, and spectators.


"The chief of the military district, General Khabalov, could not cope with the situation.


"But then on the 26th of February, he effectively turned what was a chaotic bread riot into a revolution by ordering his troops to fire on the unarmed crowds. It was that firing which was to turn these bread riots into a revolution. The next day thousands of troops came out from the Garrison. They occupied all the key buildings. They started arresting ministers running for their lives, opened prisons and began to converge on the Tauride Palace."

Don't forget, smart phone, earplugs...and a bicycle helmet is a good investment.

Wed, 04/13/2011 - 16:09 | 1166576 velobabe
velobabe's picture

i would change bicycle helmet, to either hockey or football.

Wed, 04/13/2011 - 16:47 | 1166732 macholatte
macholatte's picture


the key phrase: " ordering his troops to fire on the unarmed crowds.."

and, presumably, the troops did what they were ordered to do.

There is no reason to believe American police, National Guard, Army, Marines or other authority will do anything other than follow orders and even kill their own fellow citizens. (see Kent State).

Wed, 04/13/2011 - 16:59 | 1166778 flattrader
flattrader's picture

Yes, exactly.

And so it begins.

If anyone believes this will change without a large number of people getting physically hurt and/or dead, they are so very, very wrong.

Wed, 04/13/2011 - 16:38 | 1166690 macholatte
macholatte's picture

The outcome was never in doubt. The jury found all of the defendants guilty, and the Lord Chief Justice Sir John Popham proclaimed them guilty of high treason. The Attorney General Sir Edward Coke told the court that each of the condemned would be drawn backwards to his death, by a horse, his head near the ground. They were to be "put to death halfway between heaven and earth as unworthy of both". Their genitals would be cut off and burnt before their eyes, and their bowels and hearts removed. They would then be decapitated, and the dismembered parts of their bodies displayed so that they might become "prey for the fowls of the air".


Sounds like a good way to end the FED.


Wed, 04/13/2011 - 16:40 | 1166700 macholatte
macholatte's picture

duplicate error

Wed, 04/13/2011 - 14:03 | 1166031 Josh Randall
Josh Randall's picture

Hang in there Brother Gordo - just because we can't see it, doesn't mean it's not taking place, the unemployed have plenty of time on their hands and have been researching, calling, and and starting to kick bee hives around - it will be a long hot summer I predict.


For those that want the whole story:

"United States declared Bankruptcy on March 9th, 1933.."



Wed, 04/13/2011 - 14:05 | 1166033 tradewithdave
tradewithdave's picture

You're finally starting to get it.  That's the entire purpose of this site and the "intelligence industry" and believe me it's an industry, not some guy in Mom's basement.  Once you're worn down and conditioned then the battle is won.  You won't be surprised when the implementations are put in place.  You can say "I knew it" or "I told you so" with the best of them.  Google Rosenthal effect, observer effect, quantum physics, or simply rent My Fair Lady or read Pygmalion.  It's all the same and it's all for you.  How do you like it?    

Dave Harrison

Wed, 04/13/2011 - 14:42 | 1166239 gordengeko
gordengeko's picture

Well this site is very good at stirring up the pot and providing information.  No real meat tho with no long term solutions, so you are right either they are intelligence or they still don't get it.  And judging from the articulate pieces presented here I know they are well educated and well versed people.

Wed, 04/13/2011 - 14:37 | 1166221 pazmaker
pazmaker's picture

Gorden....I'm with you on that..... not just what I see on ZH but what I see in out inmy community as well.   I love where I live.... rural area   prepared with food and water and a food and water source not dependent upon electricity...but I'm sick of the mess in this country(USA).  I still have a mortgage and that is my only debt no other loans or credit cards....but I'm thinking of moving to Ecuador and live debt free off the grid(we own property there debt free)

It realy is depressing   not sure if I'll stay and tough it out or go!

Wed, 04/13/2011 - 14:44 | 1166250 ParisianThinker
ParisianThinker's picture

I have noticed the language, the never ending hostility, and the sarcasm too.  This, in fact, represents the American culture. I found it too harsh to live there. Who needs it? Only the predators.

What can an individual or a group do to change plutocracy? Whatever the answer, the fight is endless and never ending. 

I learned how the system really works. It is a predatory, gun slinger culture devoid of humanity. It knows the value of nothing and the price of everything.  Those who run the show do so only for their vested interests: power and profit.You must always be aware of this context. That in itself is a full time job. 

Wed, 04/13/2011 - 13:26 | 1165833 Dr. Richard Head
Dr. Richard Head's picture

And the music keeps playing and the people still dance and life goes on as if everything is OK.

Wed, 04/13/2011 - 13:28 | 1165834 Gubbmint Cheese
Gubbmint Cheese's picture

where are my matches?

Wed, 04/13/2011 - 13:30 | 1165837 bugs_
bugs_'s picture

bankstering is hard

(ah crap he fixed the typo)

Wed, 04/13/2011 - 13:26 | 1165838 andybev01
andybev01's picture

I totally believe that they will abide by this decision.

They will just come up with a newer more profitable way to fuck with your money.


Wed, 04/13/2011 - 13:30 | 1165848 Traianus Augustus
Traianus Augustus's picture

These guys are just asking for a firing squad.

Wed, 04/13/2011 - 14:46 | 1166254 ParisianThinker
ParisianThinker's picture

One day, their wish will be granted.

Wed, 04/13/2011 - 15:31 | 1166424 quasimodo
quasimodo's picture

Sadly never to happen in our lifetime

Wed, 04/13/2011 - 19:32 | 1167157 KingdomKum
KingdomKum's picture

not soon enough,  any volunteers?


Wed, 04/13/2011 - 13:29 | 1165856 Shameful
Shameful's picture

Wow not even a slap on the wrist for a few million.  I'm impressed, shows how much they really think of the collective intelligence of the mass man.

Wed, 04/13/2011 - 13:57 | 1166006 Ferrari
Ferrari's picture

I think you touch upon the crux of our predicament. We do nothing to resist them. The French demonstrate over nothing, at the drop of the hat they pile into the streets, but we just reach for the remote every time we get sodomized by TPTB, and they have nothing but contempt for us. The more they steal, the less they pay, the more they sodomize us, the lower we sink into the couch, into our abject torpor. They think this is what we deserve, and on some level they might feel it's their moral obligation to give us more of the same. They're begging for a pirchfork in the chest, but we don't even make a peep.

Wed, 04/13/2011 - 14:05 | 1166044 flattrader
flattrader's picture

Go here.

Plenty of time to make travel plans.  My summer vacation just changed.

Takin' it right to the black heart of Wall Street.

Be there or be square.

Time for the ZH keyboard kommandos to rise up!

The Tylers(s) should get a button concession so we can all recognize each other.

Wed, 04/13/2011 - 14:38 | 1166230 Ferrari
Ferrari's picture

Sounds good. I think I'm in. It's my son's last day of school, but I'm contemplating yanking him and taking him with me. This is what we've both been waiting for. Thanks. Maybe see you there. I'll be wearing my ZH hat.

Wed, 04/13/2011 - 15:09 | 1166341 flattrader
flattrader's picture

Seriously, consider something more circumspect, like a ZH button.

The only hat you want to be wearing is a bicycle helmet...or have one stashed in a backpack. [See my posts above for demo ware.]

I've got a politically active older kid who loves demos.

Yeah, time for some bonding.

Wed, 04/13/2011 - 13:29 | 1165858 treemagnet
treemagnet's picture

If you believe in karma, I'd hate to be those assholes.

Wed, 04/13/2011 - 13:43 | 1165928 Shameful
Shameful's picture

I think anyone living in this world and looking at things with a open mind and eyes will see there is no such thing as karma.

Karma is a belief us little people have to try to justify the evil that is done to us "Oh, well they'll get theirs!". Evil is rarely harmed by it's actions, unless it runs into an even greater evil. Look at the great mass murders of the 20th century (Stalin, Mao, Pol Pot, Hitler) funny how only one died in a violent manner, when facing down with a greater evil as well (look at kill counts).

Wed, 04/13/2011 - 16:29 | 1166654 Arkadaba
Arkadaba's picture

"And the meek shall inherit the earth" - they have been selling this s*** for a long time.

Wed, 04/13/2011 - 13:29 | 1165860 Solemn Simulacrum
Solemn Simulacrum's picture

Ain't that some shit...

Wed, 04/13/2011 - 13:31 | 1165870 slaughterer
slaughterer's picture

Furthers the harmony of our "harmonious society."

Wed, 04/13/2011 - 13:30 | 1165862 LostWages
LostWages's picture

The inmates are running the asylum....what else should we expect.

Bad dog!   Here's another biscuit for you.

Wed, 04/13/2011 - 13:32 | 1165864 X. Kurt OSis
X. Kurt OSis's picture

You really can't make this stuff up. I've said it before.  There are a lot of conspiracy people around here.  Secret government conspiracies don't make sense.  They openly engage in theft, oppression, murder, fraud, etc. in plain sight with no apologies on the assumption that the public's eyes just glaze over anytime math is involved.  Why would the government go through all of the hassle to hide its activities, when it can blatantly fuck its counterparty to this "social contract" in plain sight?

Wed, 04/13/2011 - 13:32 | 1165865 the not so migh...
the not so mighty maximiza's picture

not even fined....  bs

Wed, 04/13/2011 - 14:15 | 1166092 MachoMan
MachoMan's picture

What is the point in fining entities you're just going to have to bail out?

Wed, 04/13/2011 - 13:45 | 1165871 svendthrift
svendthrift's picture

Ok, enough.

American self-deception regarding what's happening has got to end.

Wed, 04/13/2011 - 13:34 | 1165872 TruthInSunshine
TruthInSunshine's picture

Scratch that.

On page 12, MERS is referenced.

I have to read through it.

Wed, 04/13/2011 - 13:37 | 1165887 JLee2027
JLee2027's picture

I just read MERS...briefly. MERS to comply with MERS, blah, blah, blah. They can't "legalize" it, so it's meaningless.

Wed, 04/13/2011 - 13:34 | 1165876 JLee2027
JLee2027's picture

It's bullshit, because state law controls property, so it's pissing into the wind. 

Wed, 04/13/2011 - 14:51 | 1166279 ParisianThinker
ParisianThinker's picture

The law is a joke if you are an "owner". That is what I learned as a lawyer, n'est pas?

Wed, 04/13/2011 - 13:32 | 1165880 Solemn Simulacrum
Solemn Simulacrum's picture

Let you or I try to perpetuate some fraud on this scale, and see how quick we'd get snapped up.

Wed, 04/13/2011 - 13:36 | 1165885 apberusdisvet
apberusdisvet's picture

Let me take a wild stab:  The lost chain of title on millions of mortgages will now reflect that the new owner is the FED.  Surprise!

Wed, 04/13/2011 - 17:08 | 1166801 JLee2027
JLee2027's picture

Of the dead mortgage yes. Not the property itself.

Wed, 04/13/2011 - 13:35 | 1165892 ReallySparky
ReallySparky's picture

So does this mean the banks still have to fight off the State A. G.'s, (aspiring governors), and also all the class action lawyers?  Or do they get off Scott free from those people?  I thought for sure that this would end up like the Tobacco Settlement, windfall to States and Attorney's.

Wed, 04/13/2011 - 14:20 | 1166115 MachoMan
MachoMan's picture

State AGs can't speak for the individual rights of their citizenry...  only the collective rights of the state...  As a result, the scope of the settlement is...  small.

Wed, 04/13/2011 - 14:37 | 1166226 Apply Force
Apply Force's picture

Yep - and still going through with my Quiet Title claim...

Wed, 04/13/2011 - 13:37 | 1165894 4horse
4horse's picture

then time for that

one beautiful haiku

which is just finally a simple Fuck U 

Wed, 04/13/2011 - 17:08 | 1166662 Arkadaba
Arkadaba's picture



summer is approaching

streets burning in the city

no caesium here

Wed, 04/13/2011 - 18:40 | 1167011 4horse
4horse's picture



the final efficacy of the F U . . .
only known by what at last
was first thing we must do



Wed, 04/13/2011 - 13:39 | 1165898 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

North American Protectionism Just Around the Corner

Wed, 04/13/2011 - 13:42 | 1165907 Mach1513
Mach1513's picture

Wrist slap?

Looks like a blow job to me.

Wed, 04/13/2011 - 14:55 | 1166286 ParisianThinker
ParisianThinker's picture

How right you are.

Wed, 04/13/2011 - 13:42 | 1165922 WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

Blood in the streets, bitchez!

Wed, 04/13/2011 - 13:47 | 1165956 SRV - ES339
SRV - ES339's picture

lol... unlike the middle east, Americans are obviously a bunch of pussies... never happen!

Wed, 04/13/2011 - 13:42 | 1165926 chindit13
chindit13's picture

"Let's 'win the future' by forgetting the past"

---Barry Obama

Wed, 04/13/2011 - 13:43 | 1165930 Geoff-UK
Geoff-UK's picture

How does one get *hired* at these teflon banking insitutions of which you speak?  Cuz I would love the job security.

To all personnel officers at the big banks:  I'm willing to sign an oath of loyalty to the Federal Reserve of the United States and to follow the orders of the banking officers appointed over me, according to regulations and the Uniform Commercial Code.  So help me Satan.

Wed, 04/13/2011 - 13:46 | 1165944 butterbean57
butterbean57's picture

I believe what just happened and I do not believe it.  That's the point. We the poeple are dying.

Wed, 04/13/2011 - 13:47 | 1165950 butterbean57
butterbean57's picture


Wed, 04/13/2011 - 13:49 | 1165952 ZippyBananaPants
ZippyBananaPants's picture

Why are they clapping?

Wed, 04/13/2011 - 13:49 | 1165958 williambanzai7
williambanzai7's picture

Yes thank you Obama, for releasing this today of all days. 


Wed, 04/13/2011 - 14:53 | 1166273 Miss Expectations
Wed, 04/13/2011 - 16:18 | 1166610 velobabe
velobabe's picture

that is a good one, missy†

Wed, 04/13/2011 - 13:53 | 1165976 Troy Ounce
Troy Ounce's picture


It would matter if someone would care.

However, cancel repeat episode Night Rider and DC will burn.

Wed, 04/13/2011 - 13:53 | 1165980 AlaricBalth
AlaricBalth's picture
This is the reward the former Deputy Comptroller for Large Bank Supervision receives for having been lax in his oversight of the fraud and other criminal activities which were perpetrated on the public by the major banks. PwC US hires former US Department of Treasury senior executive Douglas W. Roeder for its Financial Services Regulatory practice

Industry veteran adds to the depth and experience of PwC's Financial Services Regulatory team


New York, February 3, 2011 – PwC US announced today that Douglas W. Roeder has joined the firm’s Financial Services Regulatory practice, where he will advise the firm’s financial services clients on regulatory matters.  Roeder is the former Senior Deputy Comptroller for Large Bank Supervision at the Office of the Comptroller of the Currency of the US Department of Treasury, a position he held since 2001.

The move further expands PwC’s Financial Services Regulatory practice and its position as a leading advisor to the major US and global banks and financial institutions.  In addition to Mr. Roeder, PwC has also recently added to its practice Thomas Sullivan, the former Connecticut State Insurance Commissioner; Coryann Stefansson,  former Associate Director, Banking and Supervision from the Board of Governors of the Federal Reserve; and, William Penner, former Deputy Director of the Division of Clearing and Intermediary Oversight at the Commodity Futures Trading Commission.

 “Our financial services regulatory practice is comprised of some of the most seasoned and knowledgeable regulatory professionals in the industry, like Doug, who can help our clients develop strategies and manage risks that meet the expectations of regulators and all their stakeholders” said Bob Sullivan, PwC's Global Banking and Capital Markets leader.  

Roeder has spent his entire career at the Office of the Comptroller of the Currency (OCC) within the US Department of the Treasury. In his most recent role as Senior Deputy Controller, he was responsible for examinations and supervision activities in the largest national banks and federal branches and agencies. Additionally, he oversaw operations of the International Banking Supervision group and the OCC’s London office. Previously, he had served four years as Deputy Comptroller for Large Bank Supervision.

Roeder holds a B.B.A. in finance from the University of Cincinnati, and is a graduate of the Stonier Graduate School of Banking. 

About PwC        
PwC ( provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 161,000 people in 154 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

Wed, 04/13/2011 - 13:57 | 1165995 SignsAndWonders
SignsAndWonders's picture

Anyone with the patience to read this nonsense know if it limits the ability for other agencies to continue their own investigations/prosecutions? 

Wed, 04/13/2011 - 14:02 | 1166009 jplotinus
jplotinus's picture

What to do, when and where to do it?  Has the planning committee formed yet?

Agreement contains a number of timed steps and, probably, opportunities for a lot of "discovery" requests about those steps that can be made in individual foreclosure cases in state courts.

Self-help websites will probably dissect the agreement and post hints, clues and suggestions.

Wed, 04/13/2011 - 14:05 | 1166040 AlaricBalth
AlaricBalth's picture
If you read the OCC's mission and funding source, it is logical to see why the banks are getting nothing but a slap in the wrist. They are paid by the banks not by the taxpayers. Protecting the interests of the American people is not in the OCC's charter.  

The OCC's primary mission is to charter, regulate, and supervise all national banks. We supervise the federal branches and agencies of foreign banks. Our goal in supervising banks is to ensure that they operate in a safe and sound manner and in compliance with laws requiring fair treatment of their customers and fair access to credit and financial products.

In regulating national banks, the OCC has the power to:

  • Examine the national banks.
  • Approve or deny applications for new charters, branches, capital, or other changes in corporate or banking structure.
  • Take supervisory actions against national banks that do not comply with laws and regulations or that otherwise engage in unsound banking practices. Remove officers and directors, negotiate agreements to change banking practices, and issue cease and desist orders as well as civil money penalties.
  • Issue rules and regulations, legal interpretations, and corporate decisions governing bank investments, lending, and other practices
OCC Funding

The OCC does not receive appropriations from Congress. Instead, the OCC's operations are funded primarily by assessments on national banks. National banks pay for their examinations, and they pay for the OCC's processing of their corporate applications. The OCC also receives revenue from its investment income, primarily from U.S. Treasury securities.

The OCC's Objectives

The OCC's activities are predicated on four objectives that support the agency's mission to ensure a stable and competitive national banking system

  • Ensure the safety and soundness of the national banking system.
  • Foster competition by allowing banks to offer new products and services.
  • Improve the efficiency and effectiveness of OCC supervision, including reducing regulatory burden.
  • Ensure fair and equal access to financial services for all Americans.
Wed, 04/13/2011 - 14:07 | 1166041 LawsofPhysics
LawsofPhysics's picture

Wake up sheeple, the central bank and central planners are three to four fraudulent moves ahead of you.  Be smarter than the average bear and hedge accordingly.

Wed, 04/13/2011 - 14:09 | 1166063 jplotinus
jplotinus's picture

Wait a minute folks.  The agreement contains the following that the bank neither admits nor denies:

"(2) In connection with certain foreclosures of loans in its reside~tial mortgage servicing portfolio, the Bank:

(a) file~ or caused to be filed in state and fede~al courts affidavits executed by its employees or employees of third-party service providers maki:tlg various assertions, such as . . . .ownership of the mortgage note and mortgage, the amount of the principal ,and interest due, and the fees and expenses chargeable to the borrower, in which the affiant represen,ted thaf the assertions in t:h,e af~davit were made based on pe:-sonallmowledge or based on a review by the iaffiant of the relevant books and records, when, in many cases, they were not based on such personal knowledge' or review ,of the relevant books and records;"

pg 2, par 2(a)


I foresee claims of fraud being made that will be hard for banks to defend against.

Wed, 04/13/2011 - 14:11 | 1166064 weenus
weenus's picture

Yeah, this sucks.  They are not going to prosecute the fraud that has already happened.  They do, however, still have a big fucking problem. 

This order says they now have to have all the paperwork, with full assignments, to do a foreclosure.   They don't have the paperwork, the original notes were never transferred through to the trusts, and as we all know, you can't do it retroactively per the PSAs.

The thing to do now is attack via quiet title for the mortgage DOT, and attack chain of ownership on the note.  

One individual lawsuit at a time to 1) quiet title then 2) attack the note is how we win this. 

It is going to be much tougher to forge documents from now on, and since they don't have the originals, the banks are SOL.   But everyone needs to get off their ass and file QT.  I have and I'm not in arrears.   Got default judgements against the table funder and trustee of DOT, just submitted discovery to MERS.   They have no financial interest, I'm going to get the judge to throw them out.   Then my note will be unsecured.  

Once unsecured, I will be calling my 'lender' to work out a massive principal reduction at 0% interest or I walk.  I will dare them to sue me--I know they have no paperwork. 

When I say I know, I know from the head of structured finance at one of the big five in a direct coversation.    THERE IS NO PAPERWORK ASSIGNING INDIVIDUAL LOANS THROUGH ABCD TO THE TRUSTS.   None.  Zero.   It was SOP.  

Don't get mad and call bullshit on this wristslap.  Get mad and file quiet title.

Wed, 04/13/2011 - 14:23 | 1166148 MachoMan
MachoMan's picture

What is it you're planning on doing with a quiet title action?  Destroying every lien but the recorded one?  And this helps you how?

Wed, 04/13/2011 - 14:26 | 1166155 flattrader
flattrader's picture


Most people need more detail.  Please provide.

Do you recco a real estate attorney to assist or handle the action?

In the meantime, start reading here--

Wed, 04/13/2011 - 16:10 | 1166571 SilverFiend
Wed, 04/13/2011 - 17:03 | 1166791 MachoMan
MachoMan's picture

Ok, so you get the liens extinguished, but what about the note?  Unless the guy is planning on some fraudulent conveyance/repurchase arrangements, I fail to see how he is going to benefit...

People never seem to understand the difference between causes of action and defenses and how they interact with fraudclosuregate...

Wed, 04/13/2011 - 16:47 | 1166733 Carnegie_IB
Carnegie_IB's picture



can i change my testament will in the loan docs. where it states that it is my will to give the lender my property if i dont make payments.


changing the will to read, [it is not my will]?


2. can i argue that there is no securitized transaction because it lacks [perfection].







Wed, 04/13/2011 - 19:11 | 1167112 chunga
chunga's picture


FWIW...I'm going to throw all the consent orders on scribd.

You have to be very crafty and thorough to execute "Quiet Title" which has become somewhat of a catch phrase. The applicable statutes vary by state and I've furnished links to excellent and effective examples that have yet to be stopped in any court. No need to link them further. They've been characterized here by some as too lengthy which is utterly erroneous and will not work. The instant action must be air tight and address every aspect and detail. The particular statutes in my examples need to be adapted to your particular state. That's what it takes to be a "Fight Club Lawyer".

Basically you switch the shoe. There are legal creations out there such as "Reclamation Deed" and "Repudiation of Title" which cause alleged lien holders to prove "they" have clear chain of title custody as opposed to you having to prove they don't. Done right, alleged lien holders are out of the game until they show their cards. This is not territory of a Pro Se litigant.

If you do this properly you will gain the attention of title insurers and their very vulnerable Errors and Omissions policies.

Think of this. If I were to sue you for harm caused by you running me over with your car (and in this illustration you don't even own a car or ever drive) aren't you going to sue me back?

Believe me if you want, or don't, there will be hand cuffs coming soon.

Wed, 04/13/2011 - 14:19 | 1166119 New American Re...
New American Revolution's picture

Right on Gordon Gecko,... time for the NEW AMERCIAN REVOLUTION!!!!    I'll have the details out by the summer and we can replace the whole Goddamn mess in November 2012.    And once it becomes obvious that America is going to turn the whole bunch of rascals into the criminals they are, things will start to change so that by November America will be well on its way to FREEDOM!!!


Wed, 04/13/2011 - 14:19 | 1166121 New American Re...
New American Revolution's picture

Right on Gordon Gecko,... time for the NEW AMERCIAN REVOLUTION!!!!    I'll have the details out by the summer and we can replace the whole Goddamn mess in November 2012.    And once it becomes obvious that America is going to turn the whole bunch of rascals into the criminals they are, things will start to change so that by November America will be well on its way to FREEDOM!!!


Wed, 04/13/2011 - 14:19 | 1166125 theprofromdover
theprofromdover's picture

Sometimes Zerohedge is too quick to criticize.................................

I had a quick read of it, this document -as far as I can see- is intended to set out the rules of compliance (which of course should have be in there right from the start). It does not say everyone gets off scot-free.

It demands that the Board of Directors of each Bank sets in place a whole series of procedures to collate and organise all the historical data, put together comprehensive files on all foreclosures in 2009 and 2010, and work out what to pay back those they fraudulently ripped off. It makes each Board responsible for compliance.

It requires independent reviewers to be appointed, who will assess all sorts of shennanigans (William K Black, now is your chance), and should eventually (on quite a tight timescale) give the authorities all the information they need to pursue the fraud.

I can imagine Elizabeth Warren getting her teeth into this once all this data has been put in order.

Nowhere did I see that no financial penalties will now apply, indeed the opposite, the standard clause that says if we find fault, we will pursue.

Of course it may turn out that some weak successor to Mr Douglas W Roeder of OCC might sh*t his pants at the very idea of chasing fines and gaol, but this document doesn't preclude the full vengance of the law

(Have a little faith, Moriarty).

Remember, there are some good people trying to fight from the inside.


Wed, 04/13/2011 - 14:28 | 1166180 MachoMan
MachoMan's picture

All they did was buy more time...  in the end, they can pursue individual cases, breaking the agreement, and then the AGs are likely back at square one trying to pursue...  and this is how many months/years down the road?  Presuming the AGs even have cases for consumer protection laws...  and that, if true, they can be afforded some remedy with teeth...

Wed, 04/13/2011 - 16:21 | 1166613 SilverFiend
SilverFiend's picture

Well in one case in Utah that filed a quiet title action the judge awarded the homeowner complete ownership of the home with no mortgage.

Wed, 04/13/2011 - 17:05 | 1166795 MachoMan
MachoMan's picture

A.  wait for appeal.

B.  the note remained...

C.  the debtor owns the home until proven otherwise...

Wed, 04/13/2011 - 17:03 | 1166792 fat tony slim
fat tony slim's picture

the strategy has much to do with buying "time" and "slowing" markets down. This enables strategy to be made, and executed with stronger positioning.

The banks here will now be forced to collabarate, and reorganize the information management system as well as slow the decision making process where judges will table the matter until more evidence is found.

The settlement must only apply as of NOW, and not be used to circumvent historic activity.

Sure. make a better policy and procedure process. This is like placing a massive bet, not winning, and then expecting to keep your ante. 

You bet, you gamble, you lose, you don't keep your bet.

Bankers are scared. Makes trading a bit more challenging, just wondering where more than $5 Trillion lurks in the dark pools leveraged up against you has been coming from and only operates to take more.

Wed, 04/13/2011 - 14:29 | 1166166 Forgiven
Forgiven's picture

Time to burn those rodents out!

Wed, 04/13/2011 - 14:29 | 1166168 Bansters-in-my-...
Bansters-in-my- feces's picture

Mamma keeps Baby all toasty and warm....

And you all keep paying taxes....

Too funny.

Wed, 04/13/2011 - 14:39 | 1166233 AldoHux_IV
AldoHux_IV's picture

One day I hope America wakes up and smells the slavery-- their masters continue to flaunt and laugh in their ignorant lazy faces.

Wed, 04/13/2011 - 14:57 | 1166297 ParisianThinker
ParisianThinker's picture

All true, so what are Americans to do about it?

How about letting the entire world know what really went on here and what is coming their way?


Wed, 04/13/2011 - 14:43 | 1166249 TheGoodDoctor
TheGoodDoctor's picture

What a god damned joke.

Wed, 04/13/2011 - 14:48 | 1166256 weenus
weenus's picture

How to file QT:

1.  Get your deed of trust at the courthouse.   If it has Mers on it, you're in business.

2.  File suit to Quiet Title.  Only list the lender on the DOT, MERS, and the trustee for deed. Copy HARVEY V. GARBETT MORTGAGE in Utah.  Super simple.  Can do it pro se.  Do not list your servicer, the trust, etc.  Death trap.  Keep paying your mortgage during suit.   

3.  The 'lender' and the trustee will not show up.  They have no $$ reason too.  Mine resigned as trustee as soon as I filed.   My lender (not my present servicer/supposed owner) did not show up.  No rea$on.  If they don't show up in allotted time, get judge to file DEFAULT JUDGEMENTS against them. 

4.  If MERS shows up, file discovery and ask interrogatories that make Mers admit they have no financial interest in the note. They will have to admit this.  Its on their website and in depositions by RK Arnold that are out there.   If they lie you bust them.  They won't lie though. 

5.  Once established that MERS has no financial interest in case, ask judge for summary judgement to bar any claims on your house from anybody associated with your promissory note. 

6.  Your note is now unsecured.  If you default, its tough titties for the bank.  They can't take the house.   If they bank sues, force them to show ownership.  They can't.  There is no paperwork for securitized loans--they all blew it off because of the craziness of the go go boom.   There hasn't been a single set of full endorsements that has shown up anywhere in court in the entire country.  They don't exist.   No one can prove they are entitled to payments from you.  This part will get sticky, I'm sure, but in my state you have to prove the transactions when security interests are transferred.   They can't.  

Do not do this for the free house.  Do this because the big banks must be brought down by legal action to have them fail.   If they are not broken up, they will cause another crisis and that one will be the tipping point on sovereign default. 

It is a pain to do this, but it can be done cheaply.   Call it an act of civil obedience.  

Wed, 04/13/2011 - 14:58 | 1166302 darteaus
darteaus's picture

Stop paying for your house!!

Forward my young Socialist Friends!  Forward for Amerika!!

Break the banks and their Capitalist masters!

Wed, 04/13/2011 - 15:00 | 1166310 ParisianThinker
ParisianThinker's picture


Wed, 04/13/2011 - 16:07 | 1166564 flattrader
flattrader's picture

Thanks weenus.

It's much clearer now.

I found this too.  It might be helpful to some people.


Wed, 04/13/2011 - 16:21 | 1166623 SilverFiend
SilverFiend's picture

Weenus,  good idea.  I found the below article of quiet title action being used successfully in Utah.

Wed, 04/13/2011 - 16:52 | 1166755 flattrader
flattrader's picture


You should do a "Contirbutors" how-to post on Quiet Titile action.

A refreshing change of pace to the garden variety "screaming at the rain" essay.

Wed, 04/13/2011 - 17:21 | 1166823 MachoMan
MachoMan's picture

No he should not...  He has managed to leave out the distinction between recourse and nonrecourse states...  in the latter, the effort will be wasted given the creditors or their assigns will come after you on the note...  and, obtain an easy judgment given the debtor is in default...  and then execute the judgment, most notably by foreclosing on the house...

Further, a judgment is only binding on the parties thereto...  if there are names in the chain of assignment that are unknown to you, then it's going to be pretty difficult to get a judgment against them...  these issues should be resolved during discovery...

There is no magic solution here as a plaintiff in an original suit...  rather, the success to be had is when the idiots foreclose on you without actually being legally entitled to do so and swear to the court otherwise.  Success may also be had when used as a defense to a foreclosure action...

It may be possible to get a judge here and there to decide whatever...  until you get an appellate decision, you don't have binding precedent...  and, even then, it will probably only be persuasive given the distributed nature of these cases...

Also, I would strongly suggest hiring an attorney...  if you screw up anything, you may ruin your case...  and will likely not preserve your case for appeal...  if your attorney screws up, you get to sue him for malpractice.

Wed, 04/13/2011 - 15:02 | 1166307 boiltherich
boiltherich's picture

God I just hate it when documents of this size are inserted into the piece rather than made available by hyperlink, it crashes my computer almost every time, because even with 10 meg broadband service from the cable company the files are too large and Charter just will not allow the request to process.  Illegal now yes, but still...

As to the banking settlement, did anybody here actually entertain any hope at all that there would be consequences to pay in the form of fines for blatant frauds? 

I do feel OK about the settlement for the moment though since my mortgage was through Chase and I was told in 2009 that in order for them to talk to me about a modification or HAMP or anything else I would first have to be 90 days or more in arrears on my payments, wink, nod, hint hint.  So I skipped the July-September payments and called back that fall to discuss my mortgage modification.

I was told at that point I did not qualify for a modification since I could "afford my monthly payments."  And now being three months behind and having my credit whacked, as well as being pissed that they could not have just told me that while I was current I decided to just wait and see what happened without paying.  I really would have liked to have sold and moved but the value of my house dropped by about 50% in the first year I owned it. 

Well, I changed my mind and decided to keep the place for a little longer because the IRS wanted $7,500 returned from the BushCo era homeowner credit if I vacated in my first three years, so I called Chase and we agreed to a workout in which they stuck the missed payments onto the tail end of the loan and reported the account current, and I resumed paying starting with the December 2009 installment.  They were to send me the paperwork to make it official along with requests for income and address confirmation and other details, I made the December payment and all was well.  Until January of 2010 that is, I found out that the payment for 12/09 was posted to the accounts past due not the current month for which it was paid, and when I phoned to find out why and where was the workout agreement paperwork that had not yet come I was told that there was no workout agreement, the loan was 100% guaranteed by the USDA Rural Development office so any such agreement would require them to sign off and that would take at least six months.

By this time I had already lost my credit score, was seriously behind in the payments, and hated the neighborhood which was not that bad when I first bought but which had devolved into a haven for the undocumented and uneducated, welfare/HUD, taggers, people refusing to get garbage service, just an out of the box slum, new but blighted by foreclosures and strapped homeowners barely clinging to houses they could not afford.  I waited till May then rented an apartment in a better area and mailed the keys back to Chase.

A year later it is still in my name, the HOA is threatening me for unpaid dues and fees, Chase has bought an insurance policy in my name for almost $1,500 per year which only covers their financial loss should anything happen to the place which under Oregon law I remain responsible for.  They have no intention of selling the place at a foreclosure auction because they have it booked as an asset worth 360,000 (P&I 130k @6.5% for 30 years) but the moment they sell they have to book it as a liability of the 130k P minus sale proceeds. 

Because of the banks questionable "advice" to skip three payments, and then the phony workout agreement that they subsequently denied I lost it all.  This was not their only tactic by the way, but it was done to hundreds of thousands of homeowners.  I just wonder how big the check they send will be  :)  As if I were dumb enough to believe I will recoup anything from those miserable bastards.  If I do get anything it will be used to emigrate that I can promise.

Wed, 04/13/2011 - 16:35 | 1166679 velobabe
velobabe's picture

Chase Home Finance, is pure EVIL. they did pathetic heinous crimes to me as well. i have great empathy for all these people and their lives being ruined. i blame myself first. thinking any one had my best interests in mind. i reflect now on those 4 years of fighting, to enlightenment that was much needed in my own life. i don't think i would be the person i am today, if it weren't for these totally miserable years, i had a nervous breakdown.

Wed, 04/13/2011 - 17:37 | 1166875 MachoMan
MachoMan's picture

My guess is that your note/mortgage can only be amended in a writing signed by the parties...  In other words, you agreed to a verbal modification of a written contract that forbits such action and expected them to go through with it...  or to have any recourse should the deal fall through...

Also, FYI, on the first time homebuyers credit for 2008 (the $7500 one), you only have to repay the credit to the extent you have gain on the sale of your home...  calculated as your basis in the home, less 7500, to get your taxable basis...  It seems to me that if you're 50% in the hole on a $300k house, you don't need to worry about repaying the first time homebuyers credit...  File a 5405 with your taxes for the year of sale and tell them to pound sand.  (NOTE:  I believe until you sell your house, you owe the $500/year repayment on the credit).

Further, do you live in a recourse state?

Wed, 04/13/2011 - 15:01 | 1166317 AldoHux_IV
AldoHux_IV's picture

How conveniant, at a time when we're talking about slashing budgets and spending-- the CFTC and other so-called regulatory agencies are talking about needing more funding to effectively enforce their new mandates.  What a joke!  The criminals that put this country into dire straits knew their best exit strategy was to leave the country crippled in debt so they can continue the social class genocide worldwide.  Futher reasons why need to end the fed, reform the treasury and start taking our fucking country back.



Wed, 04/13/2011 - 15:07 | 1166325 weenus
weenus's picture


How about we insist on clear land ownership recordations so notes can't be sold more than once?  How about we force the reinstitution of Glass Steagall?  How about we go forward with a capitalist society with well regulated banks that don't privatize gains and socialize losses?   How about we regulate derivatives? 

Unregulated and concentrated capital is as dangerous as socialism, and in fact, may lead to facism quicker.  

You promote a false dichotomy with your sarcasm by lumping it with an anti capitalist stance.  I'm am pro-capitalist.  We don't have a capitalist system at present, at least not as it pertains to the financial industry.

Wed, 04/13/2011 - 15:29 | 1166404 pazmaker
pazmaker's picture

weenus,  can this be done for a USDA rural development loan as well as long as it was done through MERS?   example loand done by broker sold to sidus financial who then transferred it to Chase.  Note only has sidus financial and MERS on it.

Wed, 04/13/2011 - 15:09 | 1166335 Eireann go Brach
Eireann go Brach's picture

Are we really that surprised considering we have our first woman president who has no balls! Fuck you!

Wed, 04/13/2011 - 15:10 | 1166344 Dr. Porkchop
Dr. Porkchop's picture

Promise never to do it again! Try that one if you're poor, black and just robbed a convenience store.

Wed, 04/13/2011 - 15:13 | 1166351 Eureka Springs
Eureka Springs's picture

How is perpetually doing something never doing it again?


The arsonists still have the matches and the gasoline.

Wed, 04/13/2011 - 15:22 | 1166379 wally_12
wally_12's picture

This must be the solution Sheila Bair mentioned on 60 minutes that was necessary to “keep the situation from getting out of hand”.

All you ZH’ers talking revolution better read Tyler’s article on Chuck E Cheese  raid.

Better to watch Dancing With the Stars. Kristie Alley may lose more than her shoe.

Wed, 04/13/2011 - 15:31 | 1166425 jmc8888
jmc8888's picture

Besides the fraud of it all....and I mean ALL...

I'm sure they've fully priced in the enormous cost of actually putting the mortages through the proper process. 

Wed, 04/13/2011 - 15:34 | 1166440 weenus
weenus's picture


Wed, 04/13/2011 - 16:23 | 1166638 JonNadler
JonNadler's picture

Bloomberg is reporting this:


Is this wrong?




The 14 largest U.S. mortgage servicers must pay back homeowners for losses from foreclosures or loans that were mishandled in the wake of the housing collapse, according to consent decrees released today.

Wed, 04/13/2011 - 16:37 | 1166685 Oliver Heaviside
Oliver Heaviside's picture

Ahhh, the wheels of Justice turn slowly...  very slowly.  In fact, in the United Socialist States of America, they turn so slowly as to not really be turning at all.  Zeno's Paradox, for the modern age.  Differential calculus won't solve it this time around, however.  


Those in the know are aware of what WILL change it, but that time has not yet come.  Unfortunately.



Wed, 04/13/2011 - 18:18 | 1166960 Gold 36000
Gold 36000's picture

There is not enough money for the recent Fed-approved bank dividends and a 10 or 20 billion dollar bank settlement.

The bank settlement had to be a no cash deal.

Wed, 04/13/2011 - 18:20 | 1166966 Gold 36000
Gold 36000's picture

I can't download such a huge embeded text on my mobile.

I sat there for an hour trying to keep reloading this news column.

Now I know why.  The embedded text was too large.

On mobile we get frozen out.  How about a hyperlink?

Wed, 04/13/2011 - 18:32 | 1166995 Seasmoke
Seasmoke's picture

with all the fraud in the chain of assignments , the bank, which are just the servicers, have no standing to foreclose.......i dont expect a free house that i can resell at a profit, but i do expect to live in my house mortgage free for the next 40 years and hopefully my children for the 40 years after that


the problem/fraud of chain of assignments post dated and signed by non bank employees will never go away

Wed, 04/13/2011 - 18:43 | 1167021 honestann
honestann's picture

Amazing, no?  Go 5mph over the speed limit on our own roads, that we paid for several times over by paying gasoline taxes, and we must definitely pay a nice big juicy fine.  No ifs, no ands, no buts, no outs, just pay!

And the banks can (and did) do anything and everything, multi-trillion dollar OVERT, ADMITTED, PROVEN FRAUD... and... nothing.

It is infinitely past time to start finding banksters and beauracrats hanging from trees every morning.  It is infinitely past time for a new revolution war.  Why people today cannot see that, when they were ready to revolt over a 1% tax in the 1770s... is amazing to consider.

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