Obama Pushes Hard to Protect Big Banks from Fraud Prosecutions ... But We Can Stop Him

George Washington's picture

As we've noted for years, the entire strategy of Washington towards the economy is to cover up the fraud which caused the financial crisis ... even though prosecuting fraud and re-establishing the rule of law is the only way to get out of this depression.

One major front in Washington's cover-up effort has been to settle fraud cases with the big banks for pennies on the dollar. This is a backdoor bailout for the banks, encourages them to commit more fraud, and fails to plug the basic holes in the economy which are preventing a recovery.

Why are we bringing this up now?

Because Obama is making a giant push to pressure the states attorneys general to settle all of their mortgage-related fraud claims against the banks for pennies on the dollar.

Yves Smith - who has an ear to the ground on this - warns that a settlement which hurts consumers and the economy will happen very quickly if people don't raise a ruckus.

Smith is asking people to call their state attorney general (not their elected reps) to oppose the settlement:

Here are some of the reasons to oppose a settlement:


1. There have been virtually no investigations, and the Administration has engaged in cover-ups rather than trying to get to the bottom of the mortgage mess


2. The big argument made in favor of the deal, that it will help borrowers, is patently false. Remember, Countrywide entered into a deal with attorney generals just like this, where they agreed to do mods in return for a settlement on abuses. Guess what? They didn’t do the mods. To add insult to injury, they actually abused homeowners who should have gotten mods. Nevada AG is suing Countrywide now over its failure to comply with the terms of its settlement. And even if some mods miraculously did get done, the settlement is designed to have banks hit a dollar amount. That means they will focus on the biggest loans, which means any relief will go to a comparatively small number of people in (originally) big ticket houses.


3. The Administration has only one chance to get this right. Now you might argue that Team Obama has no intention of getting the mortgage mess right, but the tectonic plates suddenly seem to be moving in elite circles. The Fed realizes that housing is a BIG problem and has even started making noise about it. Yet Obama is moving forward with a plan cooked up in late 2010 that is completely out of whack with the urgency and severity of the problem. Note that this settlement will NOT stop private actions, such as borrowers fighting foreclosures. And we will continue to banks refuse to take losses and drag out foreclosures to maximize fees. That will lead to continued pressure on housing prices in many markets as buyers stay on the sidelines, fearful of buying before a large shadow inventory clears.


Leaving the AGs free to investigate and increase the pressure that is already building up in the system is the best chance we have to deal with widespread fraud.


The attorneys general really need your support. It helps them to hear that their constituents appreciate them standing up to the banks and the Obama administration.


PLEASE call them TODAY. Here is a list of phone numbers. If you can’t get through, send an e-mail.


Please also sign this petition from Campaign for America’s Future (it has some talking points if you need them for the AG calls). Note you can opt out of being put on their mailing list (I know that has been a sore point with some past petitions). I know it is futile to ping Obama, but they will collect the number of people who sign, and that will in turn bolster the dissident AGs.


Please call today. Unlike Congresscritters, who get a lot of constituent mail and phone calls, AGs get much less in the way of messages from state citizens, so your calls will make a difference.

Smith tells me that it is especially important for residents of California,  Virgina,  Texas, Florida and South Carolina to call their attorneys general and tell them that they need to stand firm in the face of pressure from Obama.

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hermes trismegistos's picture

where the fuck you get your news source.The president pushing the state attorney to accept the bank conditions?Could you please point at the source that is used as base for this article?



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cranky-old-geezer's picture



I'm siding with banks on this one. 

Anyone foolish and stupid enough to buy a home at some inflated price in a collapsing market, then lose their ability to make the payments, can't sell it because it's way underwater, deserves to be foreclosed on and lose every penny they put into it.

I personally know two people who did that, both are being foreclosed on now, and I have no sympathy for them.

Those dumbass sheep spend all their free time with their nose stuck in the damn TV, they know nothing about what's happening in the economy, they believed all the ra-ra hopium bullshit about the economy recovering, went out and signed up 70% of their income to make mortgage payments ("keeping up with the Joneses"), now they're way behind and being foreclosed on ...and they fucking deserve it.

ucsbcanuck's picture

I agree with you on one level, but we're talking about mortgage fraud here. The banks have committed multiple instances of mortgage fraud, which hurts the market and stops genuine buyers from coming in. Surely they should be punished for this.

dexter_morgan's picture

Wasn't his illustrious AG appointee Eric 'the dick' Holder one of the biggest representatives of the finacianal fraud  industry out there?


Would anyone else out there just love to slap the smirks off those smarmy faces?

Zer0head's picture

15 minutes to Wapner


(emefffers elitist ahole csuckers and .gov sycophants are deciding to redefine (loosen) definition of autism) 

XenOrbitalEnginE's picture

The National 'Sociation of Realtors really buys...a lot of R's.   And some D's.  But look into OpenSecrets.org to see the exact purchase of blame-deflecting.

Puff up "values" aren't only the Banksters fault. 

Spaceman Spiff's picture

Good article Mr. Washington...  One thing missing though.   The blatant vote buying:   http://online.wsj.com/article/SB10001424052970203735304577169014293051278.html?mod=WSJ_hp_LEFTWhatsNewsCollection



A pending settlement of an investigation into U.S. banks' foreclosure-processing problems would benefit about one million families with cuts in the amount they owe on their home loans, Housing and Urban Development Secretary Shaun Donovan said Wednesday.

Administration officials and attorneys general are "very close" to a settlement with major banks of the so-called robo-signing issues after about a year of negotiations, Mr. Donovan said at a conference of U.S. mayors meeting in Washington.

The reductions in borrowers' principal balances contained in the settlement, Mr. Donovan said, will be "far and away the largest principal reduction of the [housing] crisis" ...


Rainman's picture

Nobody goes to jail for mortgage fraud until Eric Seat Holder says so...and he ain't talkin for a good reason


4horse's picture


good article,link -- unfortunate you're not this lady's rainmaker . . .

See, our top prosecutor, his top criminal enforcement deputy, and two key architects of Justice’s approach to Financial Meltdown enforcement all worked or now again work for the very people and companies Justice is failing to prosecute.

My full piece is at http://abigailcfield.com/?p=686


like the weather, everybody talks of, but does nothing about

The Heart's picture










The Calling

Part 1:


Part 2:


Part 3:


Part 4:


Part 5:


Part 6:


Part 7:


Part 8:



Original source:



Who controls the nuk industry?




Westcoastliberal's picture

Just called Kamala Harris & left comment on VM.  Dial the #

(916) 322-3360 or (800) 952-5225

Then press "1" for English (if that's your choice), then press "7" to reach the comment line.

americanspirit's picture

Thank you for this article. Just called Greg Abbott Texas AG's office, spoke with a very helpful deputy AG named Andrea, and she assured me that my message would join others on the AG's desk on this subject.

chunga's picture

Thank you GW for inspiring all these calls (and thanks to those calling).

I sent piles of stuff - Registered Return Receipt - to FL AG Bondi. Bondi's office sent it back with a boilerplate "Thank You" note.

This was after Bondi gave Edwards and Clarkson the can. Blech

Tyranny is Love's picture

As per yesterdays article on Zerohedge, 3 carriers crrently in the Arabian Gulf.


Bastiat's picture

Yeah, when I started to write that, I was joking . . .

Steve in Greensboro's picture

For your Leftists, Big Government is everybody’s friend until somebody gets their eye poked out. 


When will you learn that Big Government is not the solution; it is the problem.

true brain's picture

Obama= Uncle Tom in Chief.



The shocker is I voted for him. I was on hopium and deluded by all the jazzy talk of "we can."

the grateful unemployed's picture

being a life long Democrat, I did NOT vote for Obama because he looked like a tinplated phony. (I was right, no joy in that, believe me) anyone who voted for George Bush twice should be made to do community service, (yes children there are consequences for your actions) and the same offer should be extended to Obama who is every bit as criminal as the shrub. and we could do this, because Diebold and me, we know who you are.

George Bush should have been a car salesman in Midland Texas, and Obama should have been a high school principal in some crime infested inner city school. these guys rose to the top because the electorate thought that somehow both of them connected with the common man. huge mistake and one fostered on a gullible electorate by a fawning media.

Obama couldn't have screwed the working people in this country any worse that Mitt Romney would have done. (which is why Romney is their guy- can't tell the difference can you? and which is why the Libertarians aren't looking bad either.) most people don't know how to vote in their own self interest.

and while Ron Paul is just going to give you what Obama was going to give you, and some straight talk instead of dissembling,  i suggest we holiday SCOTUS and redirect the power of the CONGRESS by taking away all the post WW2 powers given to the POTUS,  or 1/2 POTUS. and you would be surprised who much MORE popular Congress would be with the american people.


DaveyJones's picture

crappy jazz, good jazz borrows musical sentence and turns it into value

Westcoastliberal's picture

As were many of us, TB.  I for one will NOT be making that mistake again.  I'm voting for Ron Paul even if I have to write in his name.

Bansters-in-my- feces's picture

This "Obama" creature sounds like some kind of terroist.

And he leads your country?

chunga's picture

Obama is a sock puppet.

The first rule of Too Big To Fail Club is you don't talk about Too Big To Fail Club.

Bank of America CEO Moynihan to be Named as Defendant in Federal Foreclosure Lawsuit

I'll be watching on PACER for the Lis Pendens and I'll put it on ZH for laughs! Ha HA!

Document # 1, (attached hereto), is a purported assignment of mortgage that was filed with  the United States Bankruptcy Court for the State of Rhode Island as part of a your Motion for Relief from the Automatic Stay.   This document was submitted to the Court, by an officer of the Court, for the purpose of establishing that your Bank had Standing to Seek relief in the Bankruptcy Court.   This document, in the form in which it appears in Document # 1, was never filed in the Town of Narragansett Land Evidence.


            Document #2, (attached hereto), is the same document but for the illegal alterations that were made to it.  I suggest that you and your staff review this document and compare it to Document # 1.   Document # 2 was filed months later in the Narragansett, Rhode Island Registry of Deeds for the sole purpose of effectuating a foreclosure on Mr. Brady's home.   This is the very same document, with the same signature of Attorney Walsh, the same notary seal and signature.   Your company or your minions simply changed it with impunity to fit its needs and to steal Mr. Brady's property.  Let me remind you that this is the United States of America where justice still reigns supreme.


            I hereby accuse your bank, or one if its functionaries, of altering the original document, which is a crime in the State of Rhode Island, and then recording the altered document in the Narragansett Rhode Island Registry of Deeds for the sole purpose of illegally foreclosing on Mr. Brady's property.   This too is a crime.   I hereby impute this crime to you as the Captain of the Ship that is Bank of America.


            This is but a small sampling of the documentation that I have amassed in this file, but I am certain, that as an educated man, in charge of Billions of dollars, you can see that such practices as working fraud on the Federal Court and the Town of Narragansett, Rhode Island, are not sound.


            The gratuitous letter my client received from Mr. Lara, an alleged Customer Advocate in your office, states that "[p]roper foreclosure & bankruptcy notices were issued accurately in accordance with the status of your account."  (attached hereto)  This statement is also imputed to you since Mr. Lara works out of your office.


            Let me be clear, I am going to file an action for Mr. Brady in the Federal District Court for the District of Rhode Island and I am going to name you a Defendant.  Let me stress that I do not operate from a position of fear, nor do I stand in awe of you or your company.  The time has come for you to be called to task for your role in the destruction of my America.


                                                                                    Very truly yours,




                                                                                    George E. Babcock, Esquire







cc:US Trustee for District of RI

     RI Attorney General

     Narragansett Town Solicitor



4horse's picture

Let me be clear, I am going to file an action for Mr. Brady in the Federal District Court for the District of Rhode Island and I am going to name you a Defendant. Let me stress that I do not operate from a position of fear, nor do I stand in awe of you or your company. The time has come for you to be called to task for your role in the destruction of my America.


Very truly yours, 

George E. Babcock, Attorney-at-Arms: Fearless

chunga's picture

I wish I were an Attorney; and not for the money.

Good foreclosure attorneys toil long and hard for their clients with relatively little monetary reward.

Some rewards are best not measured in dollars...

I can tell Attorney jokes with the best of them, but right about now we need as many as we can get.

You are right. Mixing it up with the TBTF crowd is not for the faint of heart.

Not only must one be highly skilled at their craft...one must have no fear. None.

This Lis Pendens will be a masterpiece.

It's my hope that those of us who aren't attorneys heed George Washington's call to turn up the heat on every single AG.

chunga's picture

The assignments are PDF files embedded on Hamlet. I can't post the flash here or I would.

bill1102inf's picture

I hope they choke on that Cock letter, er I mean Babcock letter. 

HarryM's picture

You going to GITMO , Bro

the grateful unemployed's picture

i'm in GITMO bro, and some guy just flushed the Bill of Rights down the toilet.

Widowmaker's picture

Sounds expensive.

Did it have George W Bush's skidmarks (lieberman marks) on it?

antisepticWipe's picture

If you ain't going to GITMO, your doing something wrong.

chunga's picture

Yeah, probably.

I'll still post the Lis Pendens...for the children.

(Unless I am captured first)

AmericanBulldog77's picture

On a long enough timeline everyone will be in a FEMA Camp

bill1102inf's picture

If you are imprisoned at GITMO or a FEMA camp, on the twelf night at aprox 2AM, get under your bunk and cover your ears, face, and neck as best as you can and be prepared to haul ass.

Endurus's picture

The little known side of the Mortgage/Fraud/FC crisis is that it was as much perpetuated by the state and federal government as it was the banks. BOTH PARTIES ARE EQUALLY GUILTY... this is not a big banks taking out the little man.. this is collusion at the highest levels of government.

Banks wouldn't lend to people because they were not financable. Congressmen passed laws that made homeownership a 'right'
Congress then penalized and sued banks who did not lend to 'X' number of black/hispanics/indians/white below certain income levels.
So the banks said "screw it" If we are going to be penalized... we are going to write as many of these stinking things as we can... that's when the 'gold rush' happened.
So now the banks win on both sides of the coin... they won taking billions in 'fee money' to write the loans and lining their pockets... then when the crash happened, lots of banks went under... and the big boy banks started to take over all of the assets for penniees on the dollar.... now they are raking in servicing fees and modification fees from the investors who will do anything to get their asset performing again.... which buy the way is also being subsidized by the federal government.

Congressmen won because they forced the banks to get people into homes, therefore winning votes, and they win again because now they are forcing the banks to take it in the shorts for the stupid decisions they made... which makes them look good (and therefore wins votes). Obviously we aren't fooled but the majority of people are.

So long story short.. government going in... govermnet int he middle and government going out.
Private sector doing it's on thing... exploited  now legalized bad lending practices... and are still left with more assets in the hands of the elite at the end of the day.

True PURE capitalism is absolute chaos... there must be some rule of law... but mandating from washington has to stop.

I'm from Texas and I will be calling Gregg Abbott

Office of the Attorney General
PO Box 12548
Austin, TX 78711-2548
(800) 252-8011

rayduh4life's picture

When everyone is guilty, no one is.

fledermaus's picture

Just called the AG's office in Florida.  Was transferred then on hold for a minute or two -but then I got a rep who seemed interested and encouraged me to voice the above opinion in writing as well as encouraging everyone I knew to get involved and do the same.  The fax number for FL Attorney General office is 850.410.1630.  If you are in FL I encourage you to fax something in. 

I personally and professionally know the Assistant Attorney General's who were fired FOR uncovering the Fraud and abuse by the big Banks... Our A.G. needs to hear from the people...

minosgal's picture

Conveeeeeeniently, a snarky, smirky interview between Bondi and Florida Channel's Beth Switzer is missing from the FL Channel website.

The two discussed the firing of two mortgage fraud whistle blowers from the FL AG office back in October of last year, wherein Bondi makes some vague allegations impugning the fired attorneys' motives.

Maybe it's just FL Channel housekeeping issue.


Beth Switzer

Executive Director


fledermaus's picture

Yes that would be convenient. /sarc

And sadly Bondi did a full coverup, and the "investigation" is nothing of the sort.  <-That whole thing and the Governor's behavior REALLY opened my eyes, as to how it is...  SUNshine State... My Ass.  But many foreclosure fraud websites originate from here, and there is bubbling activism...  Some very brave citizens I've had the pleasure to volunteer with...  The heads of 4closurefraud.org, Who posts articles here.  foreclosurehamlet.org, who is a nurse who I thought was an attorney! -tireless advocate for the people.  frauddigest.com the author who was interviewed on 60 minutes that broke the whole robo-signing story nationally.  And I'm very proud to call the 2 fired attorneys friends.

I've not seen many A.G. /assistant A.G.'s follow the evidence "wherever it leads" despite the consequences to their careers... (Although the FL pair are doing great now, in private practice for foreclosure defense!) 

I like seeing individuals challenge 'the powers...'  I applaud all who see this article and call or fax and try to fight for justice.

fledermaus's picture

Thank you for the Ledership, General Washington.  I have been a supporter of yours for a long time... Keep it up. 

I'm looking forward to crossing this de-law-are...

DaveyJones's picture

George and others show us but only the growing collective work of folks like you can turn it into some effect. Thank you.