DouCHe BaNK oF AMeRiKa

williambanzai7's picture

DOUCHE BANK

Alert readers may have noticed that Douche Bank of Amerika is busy trying to negotiate an all encompassing settlement that would forgive it and it's executive racketeering  clique of all criminal liability relating to mortgage  and fraudclosure abuses. This in and of itself creates a "criminal moral hazard" that adds a new dimension to the word "farce." 

However, the quid pro quo for this settlement (which is by no means a done deal) is an expanded mortgage relief program for borrowers in distress. 

The conditions of this program are described by Shahien Nasiripour as follows:

 

"If an accord were reached, which participants stress is a ways away, borrowers that met the following criteria would be eligible for some kind of assistance:

• Their mortgages would have to either be owned by Bank of America or be serviced by the bank on behalf of private investors. Fannie or Freddie loans would not be eligible;

• A current principal balance of 1 million or less;

• The homes would have to be occupied by the owner, so no investor-owned properties;

• And the borrowers’ monthly mortgage obligation would have to comprise at least 25 percent of their monthly income.

Participants believe such a pool would lessen the risk posed by moral hazard [Emphasis added], a scenario in which people escape consequences for destructive activity, thus encouraging more destructive activity in the future, sources said"

Lessen the risk posed by moral hazard?

You know what I am thinking...

Will somebody please take this Too Big Too Fail Bag of BAC Shit out back and hang it and it's executive management from the rafters of the mortgage latrine!

 

Remember him? What Carribbean stronghold is he hiding out in?

h/t k.a.

MORAL HAZARD CLASSIC

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the grateful unemployed's picture

no love for BAC but Lewis was shafted by Paulson and Bernanke who told him he was going to buy Merrills assets without revealing their real balance sheet to his stockholders. Reason they both should be jail, but if they everybody responsible for 2008 in jail, Washington DC would be a ghost town. (thank  goodness Debt Brother rode to the rescue)

NickyG's picture

Nice Post banzai. I read about this the other day. It keeps getting more obscene everyday. Your cut and pastes make this farce a little easier to bear. Might as well have a laugh.

Trifecta Man's picture

The end is near. I saw the fat ladies gathering. And I doubt they sing.

Beau Tox's picture

Leaning and NOW FALLING Tower of Pisa!

Dr. Engali's picture

When I saw the heading on this I was afraid of what I might see after what you did to Berlusconi yesterday. :)

Irish66's picture

Funny, all the people  I know who lost their jobs at JP are now at BAC.  They can't find their way out of a paper bag.

duo's picture

I used to call BAC "Bank of Central America".  Maybe "Bank of Corrupt America" is more apt.

disabledvet's picture

Let's face it--our banks have in effect been nationalized and the government can't decide whether to allow them to do their job (and fail) or whether to just obliterate them for a "Few Voters More." I sense a theme song:
http://www.youtube.com/watch?feature=player_detailpage&v=8s8l75Oxf1U

Sam Clemons's picture

Problem is that all the profits are privatized.  All the losses are passed onto the people, which is worse than outright nationalization.

TaxSlave's picture

This is murika.  Everything will be all right as long as some token handouts can be put up on the tube.

Mr Kurtz's picture

We don't need no steenking regulations.

nmewn's picture

Good thing we got law & regulation to protect the laws & regulators.

Friggin financial terrorists.

tip e. canoe's picture

nmewn, at the risk of spamming, i be pimpin Martin Armstrong's new essay Barbarians at the Gate this morning.   you should read it, it tackles this very subject:

http://www.martinarmstrong.org/economic_projections.htm

nmewn's picture

tip e,

Armstrong saved me a lot of earnings. I can't remember the year (I want to say Feb 2007) but there was a mini stock crash from out of the blue. I cashed out and started casting around for why...which led me to Armstrong.

I'll check it out, no pimpin...lol...thanks for the link I'm not as up to speed on him and his travails as I used to be. There is more there than meets the eye on his prosecution.

Edit: From your link...

"The American way has always been when in doubt, create another layer of government. There is never any consolidation for this would not merely reduce the cost of government, but it just might make it even function for once."

Ain't that the truth.

And I agree people tend toward the conspiratorial side, its human nature.

And when I say Vito in a market sense...it is Goldman, not some Italian guy ;-) 

"The young Republicans are refusing to compromise. They are changing the dynamics of politics more so than most expect. This is the start of the third party movement that may take hold by 2016. They are refusing to follow the party and are demanding deep cuts. They see half the problem correctly as it is the debt, but they are not addressing any lasting changes to the system ensuring this is going to get much worse. The current debt ceiling crisis illustrates the problem of fragmentation and competition. Unless there is a full scale willingness to review the entire structure and respect that everything has to be reorganized, we should expect more of the same. This is competition, not cooperation. So grab your socks – this is approaching the Barbarians at the Gate."

?He's a little off here IMO...we are not just republicans, thats a fact. I consider myself a fiscal conservative but socially liberal in the classic sense. Because a libertaian party is not a viable option I am a registered republican. One of the few in my town...lol...but most think like I do regardless of "party".

I believe what it is, is a lot of things. But mostly, everyone is sick of nanny-statism. This started long before Barry Bush. The core of it is no one is entitled to anothers labor without the one the labor is being taken from having a say.

But he is correct that we are now refusing to compromise. Compromise has gotten us where we are now.

?One can actually compromise themselves into the poorhouse as we now see...lol. You can also compromise your own liberty in the belief that the guy next to you will hold to a compromise he never intended to really keep, as he is a thief. That card has been played more than any other. 

Compromise is way over-rated. The barbarians are just in time to save us from compromising ourselves out of existence ;-)

Miles Kendig's picture

If there ever were a reason to invoke the "enemy combatant " statute under law it's these folks. I might be willing to look at a downward departure to the sections of 18 USC for sedition, treason and "unlawful enemy combatant" for some of the lesser players IF they provided every assistance under section 5K1. Pound these wanna be punks WB7 & the labs. I say wanna be simply because calling these POS'S "punk" is a serious disrespect to all the hard working gay for the stay subs in male prisons all over the globe.

nmewn's picture

;-)

"I might be willing to look at a downward departure to the sections of 18 USC for sedition, treason and "unlawful enemy combatant" for some of the lesser players IF they provided every assistance under section 5K1."

There will come a time when men & women of like minds and strong character will be needed. Am I pissed to the point of madness sometimes?...yes.

Do we have to let it collapse of its own weight?...I think so, for the lesson.

It would do no good for you or I to become martyrs fighting for people who could are less, no matter what their "status" is. They can't see it or ignore it for their own greed & selfishness as your recent article pointed out. This is an education of sorts for the purposely made ignorant...and it pains me to say that. Its not that most people are born "sheeple" as the meme goes, its that not everything is shared in the learning years so the "sheeple" can make proper decisions.

I did want to address the subprime/real estate/mortgage seed that was planted among us.

Here, banzai points out the obvious conumdrum of mixing government, finance/economy with an erstwhile desire of society to help the less fortunate...at least in my view. I'll leave conspirators to their own views.

The CRA was started with the best of intentions in my estimation. However, over time, these things take on a life of their own. Someone at one point in time benefited from the program, there can be no doubt. But we know from past history no program can be stopped once government becomes involved. It (the program) must be funded so becomes a part of the baseline, in the budget and will funded in perpetutuity until it implodes. As such, the bankers seeing profit at no risk of their own capital will feed more & more less deserving notes into the program...all under the watchful eye of regulators because banking is one the (if not the) most regulated "industries" in our nation. 

So, in the last phase, it finally devolves into open fraud & theft by all involved, as what is ultimately on the hook here is the "full faith & credit" of the government, not any of the interested parties as they (the originator, the local banker, the new homeowner & Wall Street) got a taste without the commitment of anything on their part.

There is a reason no one of any significance has gone to jail for the latest ponzification.

Time for squires driving lesson ;-)

Miles Kendig's picture

;) and yes, without pain association there is no real sense of ownership of ones failures, or the sweet taste of hard won success later. I used to be amazed at how quickly a luxury became an overlooked and taken for granted necessity. All to soon we're gonna get schooled on how the baseline isn't. Tragic since so many have no concept of what the baseline standard was just 50 years ago. We can all look in the mirror to find the guilty. Fact remains that some of us are more guilty than others. Have fun driving and remember to save some fun for high speed ice encrusted parking lot spinning fun this winter. Pax brutha

nmewn's picture

"Fact remains that some of us are more guilty than others."

The time will come when this cold dish can be savored properly, just like dessert ;-)

Peace bruh.

Doyle Hargraves's picture

Supposed free market professors I had when all this unfolded back in 2007-2008 or so would say "I know it is a moral hazard, but look at what will happen if we don't intervene and save these 'institutions'", to which I replied "They fail and solvent institutions would pick up the pieces and provide a continuation after the dust settles, rewarding those who were responsible with their lending practices", and they said oh well, what would happen in the mean time? There will be martial la! There will be bank runs! The whole system will crash until someone steps in and picks it back up, the gubmint has a responsibilty, etc, etc. I don't know what is more amazing the fed and TPTB have ruined the pool of Economics PhD's through bribery for those PhD's research or the fact that like everything else in kaleefornya anything the hand of the state touches or gives money to is totally and utterly worthless! Fucking Douches!

DavosSherman's picture


Capitalism Fixes Problems & Preserves Democracy: Capitalism is what we should be relying on to fix our problems. Capitalism has it's own ecosystem, just like biology's ecosystem. An economic ecosystem that weeds out the weak, has parasites that eat the failures and new bacteria that evolves and grows replacements for that which failed. A system that keeps everything in balance.

The problem is we are no longer a capitalistic society. What we were taught in school is now utter and absolute nonsense. Capitalism is a thing of the past.

Wakanda's picture

Capitalism is simply supply and demand in mutually agreed exchange - nothing more, nothing less. 

Everything else is fraud, ponzi, or coercion.

williambanzai7's picture

"Capitalism" is like all other labels, it is a generalization that purports to cover a whole spectrum of economic activity. 

Unfortunately, we now  find ourselves predominantly in the kleptofraudocratic end of the Ponzi spectrum.

Cognitive Dissonance's picture

We are all trapped by our language and symbols.

nonclaim's picture

Time to work on telepathic skills then. On a more serious note, you are only trapped until you realize nothing is really stopping from breaking free except, perhaps, fears of taking your own mental reins.

tip e. canoe's picture

Winter is coming...

"The reality of our stupidity is we have utterly destroyed the future of the next generation." - Martin Armstrong