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Wells Fargo Prepares For Tsunami Of Loan Repurchase Demands
Zero Hedge has obtained Wells Fargo's brand new confidential protocol guidelines on loan repurchase demands by investors and mortgage insurers, sent out on October 15, and which becomes effective tomorrow. We have reproduced these below to see just how much more "streamlined" the process is, now that the bank is fully aware of the massive liability it faces as a "loan puttable" entity in a world that is suddenly replete with pervasive and rampant title fraud. Amusingly, in the CIM, Wells states: "Wells Fargo is committed – just
like you are - to honoring contractual obligations with investors and
mortgage insurance (MI) companies*. We want to ensure that the
resolution process for Repurchase and Rescissions is as smooth and swift
as possible." And even so, Wells continues to refuse to halt foreclosures knowing full well it would face billions in impairments should it do so voluntarily, even though as we confirmed Warren Buffett's pet bank was recently caught with its robosigning pants down as well (an event which was sufficient for everyone else to invoke a self-imposed moratorium, even Goldman, whose Litton Loan Servicing unit was rumored to have serviced about 4 or 5 mortgages in the past century... but not the California real estate monster). What is critical, is that Wells Fargo admits that should all avenues under existing legal guidelines be exhausted, and robofraud is certainly a dealbreaker that can not be "explained or validated away", then the bank will be forced to repurchase the loan. In other words, starting tomorrow Wells is preparing for the loan repruchase tsunami to hit the fan as investors and insurers everywhere swamp the bank with tens if not hundreds of billions of repurchase and recissions demands. Suck it in, Wells investors.
Here is the simplified flowchart that will end up costing the bank pretty much all of its balance sheet cash. The only question is how soon.
Step 1
Wells Fargo receives a deficiency notice or demand from the investor. Typically, Wells Fargo has 60 days to resolve the issue.Step 2
Wells Fargo notifies the Seller and provides supporting documentation when available. At this time, the Seller is given twenty-one calendar days to provide an explanation, facts or documentation to demonstrate that the mortgage loan complies with the requirements. If the Seller does not respond within 14 days of the initial notice, Wells Fargo will follow up with the Seller.
Step 3
Wells Fargo will begin internal research (concurrently with Step 2) to resolve the loan issues. During this process, Wells Fargo will determine if there is a missing document and if the document can be located.
For all other issues, Wells Fargo will perform research to determine if there is evidence that proves or disproves the validity of the issue. For example, if the investor provided a review appraisal indicating a value deviation, Wells Fargo will order an independent appraisal review of the origination appraisal and the investor’s review appraisal from a third party vendor.Step 4
The Seller responds to Wells Fargo’s request and either agrees with the investor’s findings or provides an explanation, missing documents or information for Wells Fargo to utilize in drafting an appeal to the demand or MI rescission notification.
If an appeal is not practical, based on all the information collected, Wells Fargo will notify the Seller, allowing them a final opportunity to provide additional documentation.
If an appeal is submitted to an investor, the Seller will be notified of the result of the appeal. If the Seller provided a response that specifically addressed the investor's issues and the investor deems the information to be insufficient to rescind the repurchase demand or MI rescission, the Seller will be given seven (7) calendar days to provide new documentation to support a second appeal. (Please note: Even if documents are provided by the Seller, the appeal may not be successful).
And here is the punchline that will make old uncle Warren just a few billion bucks poorer:
If attempts to refute the demand or MI rescission are unsuccessful, Wells Fargo will be obligated to repurchase the loan from the investor or accept the MI rescission. Likewise, Wells Fargo will issue a demand to the Seller for the repurchase of the mortgage loan pursuant to the provisions of the Loan Purchase Agreement or reimbursement for costs and expenses, if applicable.
Readers can be confident that over the weekend loan investors and mortgage insurers have received identical letters from all other banks as well. The next step: an attempt by every single mortgage investor and insurance company to get every single mortgage repruchased by the originating company on grounds of robosigning fraud.
The banks had their party of a lifetime, and now the terminal morning after hangover has commenced.
And as the letter highlights, all those who may have questions about this particular suicide process, are encouraged to write to IRMRepurchaseResponses@wellsfargo.com.
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Couldn't happen to a nicer bank. Well, actually it could. At least 5 more come to mind immediately.
Charlie Munger should "suck it in and cope"...F*cktard...
http://www.bloomberg.com/news/2010-09-20/berkshire-s-munger-says-cash-st...
he wears depends...hope he has the type with the double lining..it'll be one of those shit storms come monday.
OMG, it's really about to go down huh. the oncoming shit storm will be catastrophic but morbidly I can't..seem...to..look..away..
WFC ... puts the 'w' into banking........
+ 400 JAN 25 PUTS
Watch out with those put against Wells. I've got me my ass creamed twice shorting it.
There always happens something magical thanks to tinkerbell, and those banks get a lucky street.
Take BAC for example. The media is cooking them, but short interest is only 2,5%.
For WFC, there are only 1% shares short!!
These stocks will soons see a heavy rebound!
Wait at least 2 more week before going short and see what Obama plans to do into election time with this mess.
Me, I'm going long on BAC
True - I nailed them in late 08 - they've got some of it back since then.
One of these days people are going to figure out that earnings going forward will disappoint all but the bears!
Could someone please break this down, for a half drunk layman....TIA
This may help you - http://www.youtube.com/watch?v=OQufxG1GcAk
Trailer Park Boys
Excellant!
double entry error
"Your ears will implode from the shit pressure. You've been warned Bubs...Beware my friend, shit winds are a comin'..."
Perfect
beautiful
Following up on Beanblower's comment:
Banks sold shit to investors as candy. Investors aren't all that thrilled, but figured they got the shaft. Turns out selling shit as candy isn't legal unless it's properly documented, conveyed and disclosed. The shit barometer in the Wells office is going off the charts as the winds of shit build into a category 5 shiticaine of forced poo repurchases.
:) Concise and to the point, Dr Murray.
You guys are awesome!!
OMG...haaahaaaa!...what are your tour dates?
It's Monday, that means everyone needs some music to get the week rollin. Here is my answer to Steak's call for playlists (music this time, not comedy):
Steak and Shake:
http://www.youtube.com/view_play_list?p=438A49417E0A53F7
while we all win here by having more (very capably selected) tunes to bump to, the big winner here is that baby seal. go on little one, you won't be clubbed...this week at least :)
Mortage-gate
http://www.youtube.com/watch?v=ib6lLP6dLdU
"It's just a flesh wound" The Black Knight
"It's just a process issue" Sheila Bair 10/17/2010
http://www.c-span.org/Watch/Media/2010/10/17/NM/R/39500/FDIC+Chair+Expla...
+1
- oh god bless, jesus, Sheila Bair, why can't she hold her head in a "upright position"? wtf the fuck is she mumbling about?
He told me, ....uuuhhhhhhhhh... heeeeee t..t ..to.....-----------------.-------.-.---------
..."How will developments in the subprime market affect the evolution of the housing market? We know from data gathered under the Home Mortgage Disclosure Act that a significant share of new loans used to purchase homes in 2005 (the most recent year for which these data are available) were nonprime (subprime or near-prime). In addition, the share of securitized mortgages that are subprime climbed in 2005 and in the first half of 2006. The rise in subprime mortgage lending likely boosted home sales somewhat, and curbs on this lending are expected to be a source of some restraint on home purchases and residential investment in coming quarters. Moreover, we are likely to see further increases in delinquencies and foreclosures this year and next as many adjustable-rate loans face interest-rate resets. All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable"......
..........."Servicers of loans aim to minimize losses, and they appear to be actively working with thousands of individual borrowers to modify their mortgages. To some extent, the dispersed ownership of mortgages may combine with legal and accounting rules to make successful workouts more difficult to achieve. For example, the "pooling and servicing agreement" associated with a given securitized mortgage pool may restrict the share of accounts that can be modified. Accounting rules that, in some cases, require substantially modified pools to be brought back on the originator’s balance sheet may dissuade lenders from undertaking workouts. And extensive modifications that reallocate expected cash flows across different securities associated with the pool could trigger a review of those securities by the ratings agencies. At the same time, if workouts are economically viable, then an incentive exists for third parties to purchase distressed pools at a discount and to undertake the workout process. We see these purchases taking place in the marketplace, a development that should help to increase the number of successful workout"..........
Chairman Ben S. Bernanke At the Federal Reserve Bank of Chicago’s 43rd Annual Conference on Bank Structure and Competition, Chicago, Illinois May 17, 2007
The Subprime Mortgage Market
"Hi, this is John Stumph over at Wells Fargo, is Shiela Bair available?"
"I am sorry Mr. Stumph, Ms. Bair has several calls ahead of yours. If you would like to hold, you will be after Mr. Dimon, Mr. Moynihan and Mr. Pandit. Or you can leave your number, I will make sure Ms. Bair calls you back by the end of the day."
"It's somewhat of an emergency, could you please get her on the phone?"
"That's funny Mr. Stumph, that is what the other gentelmen said, too. She has your number, have a nice day."
I wish you were right. But the dialogue is probably more like this:
Sheila Bair calls John Stumph.
Sheila: John, it's Sheila.
John: Hi, Sheila! Just got off the phone with Timmy. He says we gotta wait until after the election to make this go away.
Sheila: I am afraid he may be right, John, but don't worry. We are not gonna let them lay a finger on you. We are going to to change the laws wherever necessary, use that NSA directive to keep some of this silent (and send a few black ops teams after pests like that 4closurefraud.com guy), and then, if necessary, we will have Fannie and Freddie and the Fed buy every last trillion of this crap to get it off your books.
So the Wachovia steal from Citibank may not have been such a sweet deal after all - thanks to Golden West's mortgage fess ?
Wasn't the loss on the purchase assets limited for WF with any excess being absorbed by a something or other in Washington equally as unidentifiable as the legal owner of the underlying mortgage notes in question?
I think they got stopped out. Anyone else recollect?
they thought they were buying a bank, turns out they were buying a bunch of lawsuits and a large portfolio of trailer parks.
Actually, all kidding aside, trailers (well, mobile homes) are the bad mortgage product, while trailer parks are great. If a trailerowner defaults to the bank or quits paying for his campsite so to speak, ya just tow it away and there's room for a new trailer.
I know, I know, sounds silly, but for real....
William Blacks simplified version of "Control Fraud" and the pathological environment in which it flourished.
http://www.youtube.com/watch?v=O3JTPzW3xmg&feature=player_embedded#!
I posted this earlier on another post because this is what took 1-1/2 hours at my branch bank on Friday.
Bank Alert: My bank has changed 6 x since the 70's. The last change is Wachovia to Wells Fargo. So, being a customer since 1970 to present. Never bouncing a check and credit in great standing I got the shocker. I have a standing 5k balance in checking acc. and a average of higher. I went to cash a check from Scottrade for 10,000 in cash. I was told I would have to wait for it to clear. I said, "Oh really, Why?" No answer, just has to be. So I said: "O.K. I'll be back in three days to get the cash. 2nd Shocker: They said: "No, you won't be able to get it then either. It will take a week for us to get that much cash ordered and we only order cash on Fridays". Bottom line, they get to hold the cash for about 10 to 12 business days before I can receive my money. Something tells me there is going to be a bank holiday soon.
I plan to do this all again for 15k just to protect my own future needs if there is a actual run. I will do it just because of the line of crap I was fed on Friday. I'll just put it in my safe deposit box with my gold and silver. Screw them. Does anyone trust that they have your money ??? Ironic that this comes out tonight on WFC. Maybe it explains why they are not willing to give up cash.
If there's a bank holiday, you're not getting access to your box, either.
You need to go to a main branch in order to get your money faster.
Any bank must report any transaction $10,000 and over to the IRS. Holding your money is likely part of the government's overall efforts to interfere with money laundering, drug purchases, etc. Cash a check for $4,000 and see if it takes as long to get you your money.
Any bank must report any transaction $10,000 and over to the IRS.
There's a bit more to it than that, they're also supposed to report anyone that they think may be making transfers in amounts intentionally set to avoid the $10k threshold. In other words, they report everything over $10k, and anything under $10k that they feel like. More info here:
http://en.wikipedia.org/wiki/Bank_Secrecy_Act
It's just another one of those crazy things that the US has to do so differently. Plenty of other countries (take australia for example) you can log into your netbank, direct transfer to any other domestic bank account (regardless of the bank) up to $100k. Not in the US though, apparently that would make life too easy.
I wouldn't look for a Bank Holiday , your bank is simply gaming the system with your large check and 1000's of others . Totally interest free money to play with for 10-12 days . Also this money , if withheld from depositors , near end of quarter can make bottom lines look oh so much better . If you see it in a bank , it is fraud , anything a bank does it is for them alone . But look at the bright side . Pretty soon we will be getting $100 bills by the wheelbarrow load , so no more worries of cashing your Scottrade checks .
If you think that safe deposit boxes are safe, read this:
http://www.dailymail.co.uk/home/moslive/article-1222777/The-raid-rocked-...
never going to happen the laswt two administrations are willing to destroy the economy in order to rescue the bankers.
not going to happen!!!!!
when you start to realize the system is corrupt, and those in power have no other choice, you realize the end point.
the banks will no be asked to pay for their mistakes. that comes from the tax payer to pay for their bonus.
the end result wll be a new american revolution, or those in power leave and give up the goodies.
I think it will end in violence, and it should have already. the only question is: will the militry come on the side of the people, or the side of the criminals
Explains why PIMCO is buying MBSes hand over fists.
Yep, buy em up cheap, then force bank to buy back at original sale price.
[Yep, buy em up cheap, then force bank to buy back at original sale price.]
Thanks for your post, FEDbuster.
Very interesting.
PIMCO and the FED do indeed "have a thing going on."
They're going to be so happy to buy them. I mean heck, that's the good stuff they homemade themselves! Just a good ole' comin' home, hello darlin, haven't seen you in while kinda love!
They eat all they can and they sell the rest!
Suck it in indeed.Today's word is insolvent.Can you say insolvent boys and girls?
I knew you could.
"Ensolivent"
Um, let's try that again.
"Insoilvant"
Getting closer. One more time.
"Insoiledvants"
Almost have it.
"Ivsoiledmpats"
Just about there. Come on, you can do it.
"I've soiled my pants!"
Good boy Charlie, I knew you could do it. Here, have a bank lolipop as a reward.
Someone send Charlie another box of Depends.
xtra small sized so he can suck it in when he puts them on
Thumbs up CD!
Insolvent Green is non-existent Home Loans!
Did Mr. Munger actually say "suck it in"! Anyone who has played even Jr. High sports knows the phrase is "suck it up". "Suck it in" might be heard in beauty contest school. Pencil neck geek!
burn baby burn
+1
The ZH crew outdoes itself once again. Over under on SPY?
I sold my Citi puts Friday for a nice chunk of change. The Wells puts were just to rich. I usually buy the flip side of my sell however with this crazy up is down, down is up market I just can't pull the trigger on much these days. SPY, who knows, the Vix might be a better play?
If only Wells had an "easy" button.
Interruptous Maximus.
Sanctus excrementa!
Glad to see it all resolved in a nice, neat package.
Screw hundreds of years of contract and property law, we had lawyers from Harvard and Yale working ALL week to get this back on track.
+ A whole bunch.
So beautifully and subtly scathing.
Is this the begining of the end for some banks? OR Congress and the FED will spend $1-2Trillion to rescue them.
Do you even need to ask? The only question I am asking myself is "How are they going to put this one in a box?" The taxpayers won't stand for another TARP. We all know the precious goddamned banks can't be allowed to fail, and we all know the precious goddamned Fed won't be allowed to be exposed. The cries of "foul!" are growing.
False Flag?
Y'know, this saddens me greatly to think it'd come to that, but, at the same time, it wouldn't surprise me one iota. It's funny how my perspective has changed. Had this happened 8 years ago, it wouldn't have bothered me nearly as much as today, with two young boys to protect and plan for. I am ashamed of the world we'll be leaving to them and their cohort.
SWR
I expect something big after the election Nov 4-10ish. Maybe an announcement saying they are buying all MBS and quasi nationallizing it. Maybe throw in a FalseFlag to ram it thru.
Maybe taking over hundreds of banks (help out the next 6 months worth of failures for the broke FDIC) at the same time. And anything else major they want to pass quick.
Something like how the Patriot Act was handled. Completely written and in the can, Just waiting for the "Big Event". Then a month later run it thru congress. Send a "Special" envelope to a couple congresssmen who balked signing it. Just to persuade them....
Something like that there.
Jus sayin
PARIS (Reuters) – Interior Minister Brice Hortefeux said on Sunday that France had been warned by Saudi Arabia that al Qaeda was targeting Europe and especially France.
"Several hours or days ago, there was a new message from the Saudis that said al Qaeda in the Arabian Peninsula was without doubt active or planning to be active in Europe, especially France," he told French radio RTL.
"This is not about overestimating the threat or underestimating it," he said. "I am indicating, based on all these elements, that the threat is real."
http://news.yahoo.com/s/nm/20101017/ts_nm/us_france_terrorism
Main article: Timeline of the 2005 French civil unrest
While tension had been building among the juvenile population in France, action was not taken until the reopening of schools in Autumn, since most of the French population is on holiday during the late summer months. However, riots began on Thursday 27 October 2005, triggered by the deaths of two teenagers in Clichy-sous-Bois, a poor commune in an eastern banlieue (suburb) of Paris. Initially confined to the Paris area, the unrest subsequently spread to other areas of the Île-de-France région, and spread through the outskirts of France's urban areas, also affecting some rural areas. After 3 November it spread to other cities in France, affecting all 15 of the large aires urbaines in the country. Thousands of vehicles were burned, and at least one person was killed by the rioters. Close to 2900 rioters were arrested.
On 8 November, President Jacques Chirac declared a state of emergency effective at midnight. Despite the new regulations, riots continued, though on a reduced scale, the following two nights, and again worsened the third night. On 9 November and the morning of 10 November a school was burned in Belfort, and there was violence in Toulouse, Lille, Strasbourg, Marseille, and Lyon.
On 10 November and the morning of 11 November, violence increased overnight in the Paris region, and there were still a number of police wounded across the country.[4] According to the Interior Minister, violence, arson, and attacks on police worsened on the 11th and morning of the 12th, and there were further attacks on power stations, causing a blackout in the northern part of Amiens.
Rioting took place in the city center of Lyon on Saturday, 12 November, as young people attacked cars and threw rocks at riot police who responded with tear gas. Also that night, a nursery school was torched in the southern town of Carpentras.[5]
On the night of the 14th and the morning of the 15th, 215 vehicles were burned across France and 71 people were arrested. Thirteen vehicles were torched in central Paris, compared to only one the night before. In the suburbs of Paris, firebombs were thrown at the treasury in Bobigny and at an electrical transformer in Clichy-sous-Bois, the neighborhood where the disturbances started. A daycare centre in Cambrai and a tourist agency in Fontenay-sous-Bois were also attacked. Eighteen buses were damaged by arson at a depot in Saint-Étienne. The mosque in Saint-Chamond was hit by three firebombs, which did little damage.
Only 163 vehicles went up in flames on the 20th night of unrest, 15 to 16 November, leading the French government to claim that the country was returning to an "almost normal situation". During the night's events, a Roman Catholic church was burned and a vehicle was rammed into an unoccupied police station in Romans-sur-Isère. In other incidents, a police officer was injured while making an arrest after youths threw bottles of acid at the town hall in Pont-l'Évêque, and a junior high school in Grenoble was set on fire. Fifty arrests were carried out across the country.[6]
On 16 November, the French parliament approved a three-month extension of the state of emergency (which ended on 4 January 2006) aimed at curbing riots by urban youths. The Senate on Wednesday passed the extension - a day after a similar vote in the lower house. The laws allow local authorities to impose curfews, conduct house-to-house searches and ban public gatherings. The lower house passed them by a 346-148 majority, and the Senate by 202-125.[7]
Coming to select states in the US.
The young are the powder keg -- oppressed and 3 generations of wealth extinguished or stolen for welfare, both corporate and political.
Soon only banks will be given free houses as failure is only rewarded.
There isn't a mature adult or leader anywhere, only stupified boomers and boomer grandparents who forfeited the future decades ago in the name of free markets for greed and corporate enablement, while continuing to commit their young into the desert of tears, indefinitely.
Not one boomer I know recognizes the cataclysm their generation bestowed on the next, nor connects the dots to the future. Not one.
Mission Accomplished (as long as one looks good saying it, or takes a magic walk with Billy Graham) is only good enough for corporate sell outs, the rich, and wannabe rich.
Not one boomer I know recognizes the cataclysm their generation bestowed on the next, nor connects the dots to the future. Not one.
Then you need to meet some better-quality boomers. I'm one, and I've been trying to warn people about the coming cataclysm for the last 30+ years.
Oh, and by the way, just to set the record straight, the Federal Reserve wasn't created by baby boomers.
The boomers were still in school when the war-time adults -- Kennedy, LBJ and Nixon -- kicked this sucker off ..... Vietnam war, dictatorial Executive Orders, Great Society, Medicare, Medicaid, FRN losing gold backing,.................
Of course, the boomers did absolutely nothing to fix it, either. Shame on us ... and every other generation since that stood idly by and watched it accelerate! :(
Fuck, I'm getting tired of all the finger-pointing going on here in the last few days. Get with the program: This is a controlled demolition (as was 9-11 - for those that are STILL half-asleep!!) that has been planned for a VERY long time! Now, VERY strong steps need to be taken by the SOVEREIGN STATES to bring Washington to heel, or take it down.
Might be easier than one would think to convince a post-election/lame duck Congress with [hopefully] more than a few incumbents not returning in the next one, to pass legislation essentially overriding state real estate laws and allowing/legitimizing electronic tracking of mortgage note ownership. Along with a payoff to counties for all the uncollected recording and transfer fees. States would likely challenge, but it could be bogged down in courts for years while the Fed gov't, Fed Res. and banks power on through the foreclosures.
I believe that most candidates get to keep their unspent election campaign contributions on leaving office. A nice donation on the last day of a failing campaign might do the trick - to late to be spent, but early enough to wind up in the kitty? May be off base here, but that was my understanding last I read on the topic.
No need to worry about the FED running out of Tbonds to buy during QE 2, 3 and 4. QE 2 will be another couple trillion in MBSs.
"Mr. Bernanke just one more wafer thin MBS. Bon appatite!"
http://www.youtube.com/watch?v=rXH_12QWWg8
Share prices of the zombie banks should get pummelled. Instead they'll get POMO'ed.
Hmmm. They will surely need to hire some qualified hair stylists to assist them in this matter.
-AIG Quant
Tire and Lube Express Technicians Bitchez..
A global scramble to recover actual deeds, titles or whatever those little pieces of paper that is called a mortgage between a home buyer and a bank.
I weep not for the banks.
They brought it upon themselves when they repackaged the loaned mortgages and resold it to overseas or other investors as bundles.
When every home buyer in America starts demanding proof that the bank that loaned the money still holds the note to the house then we will see how it goes. If the bank does not hold the note, does NOT find out who STILL have the note after selling said bundle of mortgages then the BANK does NOT deserve to recieve ONE STINKING DIME of the home buyer's money.
Only the investors who bought the packaged mortgages will recieve the payment each month... maybe several investors collectively recieve a portion of the total house mortgage each month spread all over the world.
What a headache.
Yes we have had our party, now we are waking up among the shattered bottles, pools of vomit and besoiled and dirty party friends who passed out all around.
Going to be a hell to pay to get this one cleaned up.
Frankly I dont think the Bank gives a damn, what they will do is stonewall with rules, new paperwork and make home owner go round and round the hamster wheel until exhaustion and quits fighting the bank for the note to the home.
Or said homeowner quits paying all together and we become a nation of squatters that need either eviction or mass court rulings ensuring that the squatters are free and clear home owners.
What have we done?
That is just Residential. Commercial and assets are not included yet.
Whole forests will be stripped from the earth to feed the mountains of paper that is about to crush the industry and thus the United States.
What do you think is gonna happen when OTHER nations of the world watch our own agonizing pain and all of THEM start demanding to be free from THIER mortgages and obligations TOO?
"What have we done?" - continually elected gangsters.
Can the banks actually fight the volume of lawsuits if 1% of people with scaMERS take civil action in every American county, or do they lose most cases by default from not showing up.
And they get bailed out of the problems by over indulgent parents (the good ole taxpayer) again. Yet again. Hide and watch.
A slo-mo train wreck to keep the sheeple asleep and watching dance a thon, a billion here, 10 billion there..
Come on, let's get this show on the road. The equity markets suck at present. Let's have some fireworks.
So we have BAC and WFC internal memos that state they are in BIG TROUBLE.
Does this mean that their stock price will go up?
As long as crApple, which now is the market, continues to go up all is well.
Share prices of the zombie banks should get pummelled. Instead they'll get POMO'ed.
So sick of Buffet talking his book, saying things like the middle class needs to get over its anger.
The explanation for this, however, should be entertaining.
When you have 50 billion and lose 49 billion your still ungodly wealthy.
I really don't think he gives a shit (he's giving it all away anyway)
"Wells Fargo is committed – just like you are - to honoring contractual obligations with investors and mortgage insurance (MI) companies*. We want to ensure that the resolution process for Repurchase and Rescissions is as smooth and swift as possible."
They sound like very nice people. Understanding. Caring.
Luv itself.
I think this was bankster for "the check is in the mail".
[They sound like very nice people. Understanding. Caring.]
Love it! Thanks, Village Idiot.
If I understood the memo, it looks like it is geared towards those who sold the mortgages to WFC that it then turned around and securitized (with the assumption that some were originated in-house). In other words, their response is to look to put back mortgages that they purchased from others for securitization purposes, unless the original sellers can come up with the requested documentation. Or at the least, look to the "original" originators to share some of the pain. Unless your BAC and you bought one of your main suppliers....
Wow! This means Uncle Ben isn't on the hook for $ 2 trillion in MBS on the Fed's balance sheet!!!
All he has to do is return them to the banks and they will pay him in cash they borrow from ZIRP!
This is a load off my mind.
Barliman
/sarcasm now switched to the OFF position
My first thought as well.
Something simply must be done about the fiat price of gold say's Ben.
Whoop der it is ;-)
Outstanding...right on time.
I was wondering what happened, and the first place to go to in order to get the answer was ZH. You're right.. it was right on time.
Thanks, Tyler. The fight is on. I wonder how many recognize that you have provided us ringside seats.
Indeed
I would love to see nothing more that the TBTFs FAIL, but somehow I don't think that is going to happen despite all my wishes for a fair and just market place.
Our government has something against capitalism and will do anything to prevent proper free market function.
I'm not so sure about that. The anger against Wall Street is papable. Don't you think they might let one of the TBTF go down to prove that they "really feel our pain"? I wouldn't want to own any WFC or BAC right now.
I wouldn't be surprised if they let one of the lesser players go under in a sacrificial manner.
If only Wells Fargo was based in Ireland. That nice Mr Lenihan would sort everything out in no time.
Anyone want to wager that assets being purchased under QE2 will be these same repurchased MBS? This has all been planned.
Ironically, imo, our only reasonable choice will be to cut loose the Fed. They have become the instrument of their own assured destruction.
They played their hand too early, perhaps by a full generation, if you subscribe to such a perspective. People who didn't personify breathtakingly tragic hubris would have waited until there was another planet to go to before they called and raised the rest of mankind.
With so many loans to repurchase guess those call rooms in India will be bzyyyyyyyyyyyyyyyyyyyyy uh uh uh uh beeeeeeeeeeeeeeeeeeeeeeeeeeep
'MAILBOX....... FULL'
'No, we're not allowed to answer the phone!'
Business as usual, I hope to God the Wall Street Pedophilia Brokers take some of the heat for misrepresenting and prostituting these loans to Investors! CLAWBACKS, BITCHEZ!
when I dip , you dip , we dip
a classic. song.
Leos dip. pitty do dah phiffffft solarpanels. fun in the sun chasing magic unicorns. Oh the pity that life is real. more or less.
Oil is king bitchez
The rating agencies could also use a spanking.
i think the pope should do it with a wholy paddle, sure he 'd get a hard on . He's catholic aint he?
Good herb, sleeping dogs and a peaceful nite. Soon the Shit will hit the Fan.
Until then, this is still the greatest adventure of our lives.
I knew a Domino's Pizza guy who calculated that one of his outlets lost $1.50 every time they answered the phone. He instructed them to not answer.
Some quant will undoubtedly figure this out and probably instruct them likewise.
LA Confidential, eh? Never thought a WF had it in 'em.
Market reaction?
Classic knee jerk reaction to "Risk Off".
Investors start dumping "Things" in favor of more "Paper"
The case for hyperdeflation is greater than the case for hyperinflation. From a contrarian persepctive, just look at where sentiment is.
Lay out the case for the survival of the USD in the event of hyperdeflation.
No case. Hyperinflation and hyperdeflation are the abrupt end of the line.
Define "hyperdeflation".
If hyperdeflation is the opposite of hyperinflation, then it means that everyone gains an enormous amount of trust in the value of the dollar, and prices fall due to falling monetary velocity (and destruction of dollars by the Fed). Further, it would imply that prices are falling by 50+% per month (as hyperinflation is generally defined as a rise in prices of more than 100% per month.
I just don't see that. The Fed is printing like a madman with no end in sight. I just don't see people being so stupid as to allow the Fed and the US government to confiscate all of the real goods in the world by maintaining current prices as they print, much less LOWERING them.
Investors start dumping....good start
....and then the 4am magic time. Everyday. Set my alarm to it. What opens at 4am EST?
Where are the loan docs? Who has the notes? Aren't they in Benny B's desk drawer?
Notes?
Loan Docs?
We don need no stinkin paperwork!!
This is just another instance of the hubris of thinking that computerizing a process that was working perfectly fine (in this case, for hundreds of years) will NOT result in any gotchas -- guess foolish business creatures will now understand that just because a PC can be used to solve almost any problem, doesn't mean that it should!
Tell that to Benron. He keeps a bowl full of extra "zero" and "comma" keys for the FED's magic money keyboard on his desk. Saves on the cost of paper and ink.
heh.. we should find a bunch of old keyboards and send him the comma's and zeros.. ;)
Hey Stycho,
Multiply your computer comment by a million. Everything that workd well is now computerized.
So, ultimately, the binary event will be a binary event, if you get my drift.
Seeing "computerization" NOT work in India is funny.
ORI
http://aadivaahan.wordpress.com
Doesn't matter. It's all the fault of the Earls and their 9 kids.
I have said in the past (on other forums) and been downvoted for my trouble - that Warren B is a "child of fiat" - born in 1930, he has ridden the false boom of fiat money expansion, and thus has a complete blind spot about what happens when fiat stops expanding, or even dies.
Read his spiel on why his 320 million or whatever, shares of WFC are such a good idea, from April 19, 2009:
http://money.cnn.com/2009/04/19/news/companies/lashinsky_buffett.fortune...
The only thing that will save BRK (if you want to call the shell that will be left, BRK) are the physical assets like the railroad.
So, we all are, as i doubt anyone older than 80 is on ZH or uses the internet...
Notice nothing in step 1 or 2 suggest Wells will attempt to verify they have a legal right to foreclose to begin with.
So they will keep scamming as much as inhumanly possible?
Which one will get squeezed ala Lehman? Probably Wells Fargo. JPM did their part and continues to "lead". BAC perhaps in an attempt to unhook ML. But of the big three, I think Wells will be the one that takes the puttable heat. Who holds those puttable assets? Who has the most exposure on the wrong side of the CDSs. All answers worth knowing.
-profd
Damn.. Fire in the hole on Silver..
Re: Ag/Au
Look at $USD Index
Couldn't happen to a bigger group of phucknuts.
h/t Dead Head
It's been three years since this skunk was exposed and the barn door's been flapping in the breeze.
Now we have WF here saying -
"OK, you say you have a claim, let's see"
Until I see some in chrome bracelets, this is hogwash.
OK, ZH crew- I need some learned opinions. The short question is: How at-risk is Wells Fargo for either 1. a bank holiday, or 2. fully going under? And when?
Here is why I ask. After several years of trying to get my retired father-in-law to buy some physical gold as a hedge for his retirement investments, 3 months ago he finally did. Told me I was a genius after the recent rise. Unfortunately, he then, despite my most polite suggestions to keep it carefully hidden in his posession, stubbornly insisted on putting it into his safe deposit box. At his local Wells Fargo branch. DOH!
So far, all warnings to him of WF's potential problems vis-a-vis Fraudgate have fallen on deaf ears... so any educated guesses as to if / when this beast goes down for the count?
Safe deposit boxes at a bank are a belief in your government or any government for that matter, doing the right thing by you.
If you or he believes that, after reviewing the past actions of it, then it is the right decision for you or him.
If you do not, then you can only believe in what's right for you or him and why you bought physical gold in the first place.
There is no middle ground.
Regards.
Did you say safe deposit boxes?
http://www.youtube.com/watch?v=wy81dVuS6oU
A tad OT, the original bollywood sequence. Take a break, it'll still be rotten news tomorrow.
http://www.youtube.com/watch?v=jdb3iSBEb7c&feature=related
Yes. Seen it and love it. Two great pieces of art. Musically, a beautiful song to listen to when the sun is breaking the horizon and you wargame out the day with a smile.
Does your father have any angst towards the government? If so I'd kindly remind him of what FDR did to safety deposit boxes the last time things went boom.
As for the chance Wells Fargo goes boom? It all depends on the politicians ability to save their asses.
A search for "dhs safety deposit box gold" may help you find what you need.
I believe that the British raid on ALL sdb's at a particular location, which was a fiasco, may also give your father pause... http://www.dailymail.co.uk/home/moslive/article-1222777/The-raid-rocked-...
Also: if the bank fails or a branch closes, they are under no obligation to give you immediate or timely access to an SDB. They can take their time in giving you access.
[...problems vis-a-vis Fraudgate have fallen on deaf ears...]
Dear Pining,
I understand your frustration, trying to get through to your father. It's amazing he bought any gold in the first place. There's something impenetrable about your(my) father's generation. My dad was born in the late 1930's. My dad has only ever known "the government will solve the problem." The notion of another Great Depression is outside his scope possibility. I've tried many times to warn my dad about the unfolding economic collapse, but he thinks I'm crazy.
To your question about when things go down for the count, unfortunately, no one knows. No one can know the future. Particularly specific events. If the events of the last Great Depression is a guide, we can expect events will unfold in ever descending steps---as opposed to ONE great big tsunami wave. I expect your insight about the value of gold has got your dad's attention. He's watching things. As he sees the economy deteriorate he will likely act again to further secure his wealth. Your father has a loving son. God's speed.
And God bless our countrymen and patriots.
Tell your friend to do an internet search on "Operation Rize" in the UK.
Almost as interesting as the tales of theft is the difference in coverage of the operation between various UK newpapers and media sources.
I've been saying for a while, Bennie and the Ink Jets have been eluding to QE2 for this exact, fuckin reason: he is going to pull the ol' Hank Paulson "bait n switch!"
"The Federal Reserve will purchase $2 trillion in Treasury securities......"
Gotcha, Bennie turns his coat one week later.......
"Due to banking emergency, the Federal Reserve will purchase $2 trillion in AAA MBS from the Nation's banks....."
If QE2 is more than a bluff, then I would think their strategy may go something like the above......
And the public wouldn't give a shit. The fed has publicly said countless times it can buy whatever the hell it wants to prevent "it". Year after year, speech after speech, the general populous genuinely believes this is part of business as usual.
QE2 is as American as apple pie and firefighters now, it's just part of how we run America.
They have already bought and sold MBS's. Nobody gave a shit. Market up.
They can buy whatever they want, and we'll have to like it. Until we don't.
Yes and no. People are starting to awaken, albeit slowly. For example, I spent the weekend in a small, central PA town...the local rag was talking about "the Fed buying Treasuries to spur inflation, keep rates low etc....."
Now, for the first time ever, I got the question: "Why the fuck are they trying to spur inflation, my food costs more, gas costs more, we already have inflation. Are these guys sociopaths?"
Of course, my answer was "Yes, these people are sociopaths....of the worst kind".
So, it is slowly starting to trickle through. I'm not sure there is the political will to let this happen either...it's gonna be close.
Zero Hedge needs bumper stickers. WB7. A simple ZeroHedge.com is all it takes. I disagree that the populous is catching on. As I stated in an earlier post on a different thread, we were much closer to the cliff in 2008 then we are today. ZeroHedge "viewership" continues to rise impressively, it's made Drudge a few times, but in order for it to go parabolic - work must be done by more than Tyler. Spectators accomplish nothing.
No one wants to advertise they have shit figured out.
Why would I advertise I have gold, its an easy parallel.
If you are not looking for answers, you dont care to know.
Swear to God, I was at walmart yesterday and a much older lady ask me if I was feeding an army as I went by her with my typical cases of tuna and boxes of cereal. I told her I was preparing for the end of the world, and she laughed and ask me if "I believed in that crap"...
I retorted, "I hope you are not relying on ss for the coming hyperinflation or deflationary collapse", she just stared at me in awe, like she knew what I was talking about...I think the sheeple know, they are just looking to reassure themselves that it wont happen.
Paraphrasing:
Dear Wells Fargo investors:
Even though for the last few weeks you have seen evidence sprayed all over the Internet how banks like ours gave signing authorities to janitors and walmart greeters working for shells of shell companies, we believe the onus is on you (the investor) to raise any suspicions you might have with our closing and documentation practices.
Surely you can appreciate we were very very busy and didn't have much time to make sure there was clear title and proper credit & income qualifications while preparing investment vehicles for your carnivorous investor appetite.
When filing your you inquiries, please make sure you provide any missing documents you believe the seller forgot to include to give us a hand. Feel free to do all your own dilligence to make our job easier, because we're going to need all the help we can get and we really aren't looking to calling "Uncle Snowballs" for more cash.
Love,
The Banksters.
PS. In a silver lining, perhaps the new bubble won't be alternative energy, but actually will be a lawyer bubble, that will do for the law industry what Sarbanes-Oxley did for accountants. We will be preparing our first prospectus shortly for AAA rated law-firms only who have the highest rate of monetary success. But this time, we'll use Burger King and McDonalds employees for the tough stuff. We know you're you're a discriminating breed and deserve the best.
How brain-dead would a Lawyer have to be to NOT make any currency from all this?
I have another question for the ZH enlightened. How are reverse mortgages affected by this action? My wife got very sick and we have no insurance so I had to do a RM on our 100% owned home two years ago. I know - stupid move, but no choice. Question now is - how can I take advantage of WF's problems to cancel my RM loan? Please spare me the lectures unless you have practical advice - I just want to bail on my debts - is there a way or am I still screwed whatever happens to conventional mortgages? Looking for creative thinking not nasty comments - although I'm prepared to accept those if you must.
I don't know about these things but I will say a prayer for you and your family. May God bless you. Make sure you get your story heard in front of a Judge. In my experience they don't like bullies.
You are going to have to do some research on how the RM was done. Is there a "note" that you can ask for? Are you in a non-recourse or recourse state? etc.
like you i got a reverse mortgage. paid 5 grand for insurance for the bank. In my view that insurance should set me free as well if it kicks in. Should, probably only writ to be good for the bank. But who holds the note is the question, if in doubt , you may be owner of last resort as possession is said to be 9/10s of the law. Oh i forgot..what law, ah hem ..the law of the rich for the rich. Good luck. i sold my half for 10 bucks. You are bound to do better than that. When my best friend dies i will be homeless and she is in the hospital now. At 89 i felt she should have all and the best for the many years of mistreatment she endured at hands of deceased husband.
Me at 59 care less for goods and things nor money. I like the american indian way of old. When your body is in decay its time to walk into the mountain or the sea. I will die drowning, have known the way, but not the time.
I hope others will be more informative than i. Frankly i dont give a damn what happens, its all good.
Your situation is part of their grand plan.
What money, luquidity, solvency is left in this country?
Why...any asset the responsible have acquired up until now of course!
Home, IRA, savings, retirement, pension - it will be theirs one way or another.
All they need to do is ape the young with some trinkets and gadgets and bread and circuses (mission accomplished).
The machine must be fed; the pharmaceutical/medical corporate machine, the lawyers, the insurance executives, and all the middle level managers and sales reps need their comission.
"It's a procedural error."
Yeah, right.