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Another Blow For America's Banks (And Bank Of America) After California Kills Robosigning Settlement

Tyler Durden's picture





 

Anyone exiting the third quarter with a Bank of America (or Wells, or JPMorgan, or Citi) short on their books will be delighted to learn that the "other" mortgage fraud scandal, not the putback litigation which is sure to cost Bank of America billions in incremental legal fees now that that particular settlement appears to be challenged and banks even across the Atlantic are joining in the legal free for all, but the "Linda Green" robosigning affair, which various conflicted attorneys general had held a tenuous grasp over with a settlement in process, has just blown out wide into the open once again, after California joined New York AG Schneiderman in pulling out of the talks, and leaving Iowa Atty. Gen. Tom Miller with a completely lost cause. We expect all other states to promptly follow New York and California's examples. The net impact is quite adverse for all mortgage lenders, as this development will merely snarl the traditional foreclosure process for even longer, and while beneficial to borrowers, it will put even less cash into the depleted coffers of the banks that so desperately need it. Since few if any will actively pursue distressed, or any, housing sales, it will not only hinder further balance sheet repair of the banking sector, but will keep a lid on any potential housing market improvement, which as BCG confirmed a few days ago, is the most critical missing link to any economic recovery. Without it the hands of the Fed chairman are  tied even more, and leave him (and the middle class) with just one, nuclear as it may be, option.

The Los Angeles Times reports:

California Atty. Gen. Kamala Harris will no longer take part in a national foreclosure probe of some of the nation's biggest banks, which are accused of pervasive misconduct in dealing with troubled homeowners.

 

Harris removed herself from talks by a coalition of state attorneys general and federal agencies investigating abusive foreclosure practices because the nation's five largest mortgage servicers were not offering California homeowners relief commensurate to what people in the state had suffered, Harris told The Times on Friday.

 

The big banks were also demanding to be granted overly broad immunity from legal claims that could potentially derail further investigations into Wall Street's role in the mortgage meltdown, Harris said.

 

“It has been  a process of negotiating and sitting at a table in good faith, but ultimately I have decided that we have to go our own course and take an independent path. And that decision is because we need to bring relief to Californians that is equal to the pain California experienced, and what is being negotiated now is insufficient," Harris told The Times in an interview.

 

Harris delivered the news in a letter sent Friday to Iowa Atty. Gen. Tom Miller, who has been leading the 50-state coalition.

What is left open to interpretation is whether this is an open attack by the very much insolvent state of California against the Obama administration which has actively been pushing for precisely this settlement, which would be highly beneficial to banks, and quite damaging to the legal system, and specifically the perception of how easily it can be trampled if one is a TBTF bank.

The removal of California from the discussions is a major blow to fraying efforts by the coalition, which has been trying to strike a settlement deal with the big banks for months. The move by Harris to reject the settlement talks is also a key departure from efforts by the Obama administration, which has been pushing for a fast resolution to the so-called robo-signing scandal that erupted last year.

Chris Whalen chimes in:

“This whole concept of a settlement on foreclosure abuse is probably dead,” said Christopher Whalen, the founder of Institutional Risk Analytics. “Nobody in their right mind is going to opt into a settlement right now.”

And with California no longer on the side of Miller, the state is sure to enjoin the active pursuit of a far more comprehensive resolution to the robosigning fiasco, which will inevitably result in far greater pain for the banks.

New York Atty. Gen. Eric Schneiderman, who was originally part of the 50-state negotiations, has launched a wide-ranging investigation into Wall Street's role in the mortgage meltdown -– focusing on the efforts to bundle low-quality mortgages into sophisticated bonds.

 

Schneiderman has been highly critical of the proposed 50-state settlement and expressed concern that his counterparts in other states may let the banks off too lightly and provide immunity from other efforts to bring them to account for misdeeds. Schneiderman has also won support from attorneys general in Delaware, Nevada, Massachusetts, Kentucky and Minnesota, some of whom have launched their own investigations.

 

A spokesman for Schneiderman, Danny Kanner, welcomed Harris's move.

 

“Attorney General Schneiderman looks forward to his continued work with Attorney General Harris and his other state and federal counterparts to ensure those responsible for the mortgage crisis are held accountable and homeowners who are suffering receive meaningful relief,” said Kanner.

Bottom line: America's TBTF banks, which increasingly are looking like they just may be NTBTF, had a horrendous Q3. It appears that Q4 will not be any better. And as Bullard indicated yesterday, all it takes for the Fed to "act" is for "further economic weakness to develop - read another step down in the stock market." California's decision just made it certain that further "weakness" will develop. And on the day that the New York Fed first published its Operation Twist POMO schedule, it is already time to start thinking about what form the next new and improved form of  quantitative easing will take...

 


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Sat, 10/01/2011 - 08:29 | Link to Comment ian807
ian807's picture

This smells a lot like California angling for federal money to bail out its economy. Expect a Cal bailout deal in the next month or two - one you'll never hear about in the MSM.

Sat, 10/01/2011 - 09:02 | Link to Comment Cloud9.5
Cloud9.5's picture

The whole banking system is based on fraud.  If you want to save the country then you must reestablish the rule of law.   Some people need to go to jail.

Here in Florida, the banks sit on the judical nominating committees.  They own the courts.

There is no justice.   There is just us.

 

Sat, 10/01/2011 - 10:06 | Link to Comment scatterbrains
scatterbrains's picture

All you Chris Christie sycophants  should rememeber he is a member of the bankster harem of whores.. I supose for those Banksters that like them big.. after all, to each his own.  How much bankster nut licking is his appointed AG doing I wonder ?

Sat, 10/01/2011 - 10:48 | Link to Comment Seasmoke
Seasmoke's picture

Christie is a dirty , fat , lying scumbag......i triple dare him to run for president.......the people will get their (100 pounds) of fat

Sat, 10/01/2011 - 11:03 | Link to Comment DeadFred
DeadFred's picture

Christie is cool!

Christie is a shill!

ZHers let your views be known!

Sat, 10/01/2011 - 11:47 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

I thought Christie is trying to fire people swilling at the government cheese.

How can this be bad?

On the other hand, he's a politician.  How can this be good?

Sat, 10/01/2011 - 12:16 | Link to Comment Seasmoke
Seasmoke's picture

yeah his taking on the public leeches of the teachers union was fun to watch and made for good entertainment , watching the teachers get their heads bashed in, but he hasnt touched a state employee.....its all been squeezed to the local level......so all he accomplished was to have services cut and highest property taxes in country  continue their rise, all while patting himself on his fat back, that HE didnt raise taxes .........dont get me started on how he hasnt done a thing about double dipping scumbag politicians (although i will admit he cant do it himself) but lets not give this guy any credit for be a conservative.....he is anything but !!

Sun, 10/02/2011 - 04:51 | Link to Comment jeff montanye
jeff montanye's picture

squeeze the school teachers and fellate the felon bankers; that seems about right.

Sat, 10/01/2011 - 15:52 | Link to Comment Pladizow
Pladizow's picture

Politicians and diapers need to be changed often and for the same reason!

Sat, 10/01/2011 - 12:19 | Link to Comment G-R-U-N-T
G-R-U-N-T's picture

Nice 12 minute interview to remind us of the magnaitude of this fraud and a perspective rarely, if ever reported on in the MSM.

 

http://www.youtube.com/watch?v=_txiRtAbeaI

Sat, 10/01/2011 - 15:34 | Link to Comment Kiwi Pete
Kiwi Pete's picture

Excelent video. Bill Black nails it yet again! Thanks for posting it.

Sat, 10/01/2011 - 19:13 | Link to Comment tom a taxpayer
tom a taxpayer's picture

G-R-U-N-T - Thanks for link.

1st and best option - Relace Holder with William Black as Attorney General.

2nd option - Appoint William Black as Special Prosecutor.

Sat, 10/01/2011 - 14:40 | Link to Comment stopthejunk1
stopthejunk1's picture

Agree, Christie will not "fix" anything serious.  He will create the kinds of problems that righties like (e.g., more corporatism, more private plutocracy) at the expense of the kinds of problems that lefties like (more welfare statism, more public plutocracy.) 

I don't care that he's fat.  I'd almost rather that, than the made-for-TV stuffshirts that we have to look at most of the time.  But I do care that he's just "more of the same."

Sun, 10/02/2011 - 08:46 | Link to Comment Cloud9.5
Cloud9.5's picture

I like the fact that Christie has the sand to do what he says he will do.  But, he is a Johnny come lately compared to Ron Paul.

Sat, 10/01/2011 - 09:33 | Link to Comment sunnydays
sunnydays's picture

Totally awesome!  the banks need to lose all those houses - they committed the fraud and now they have to pay up for the fraud!  Let the people win for once!

Sat, 10/01/2011 - 10:30 | Link to Comment john39
john39's picture

i for one enjoy watching the banks burn... but long term wonder what the implications of a widespread banking collapse will be...  freedom for the people?  or one mega bank "to rule them all" which only furthers the centralization of power and control in the hands of the elites?   a related question, is the collapse now a controlled demolition?  impossible you say...

Sat, 10/01/2011 - 14:49 | Link to Comment stopthejunk1
stopthejunk1's picture

It may help kill the Fed, which underwrote the whole thing.  More people, after they lose their savings, will wake up to the inherent evils of fractional banking and fiat currency, and demand a return to something more honest.

Sat, 10/01/2011 - 11:19 | Link to Comment DosZap
DosZap's picture

sunnydays,

dude the people that are fortunate enough to still be in those LINDA GREEN homes, are winners.

The only problem(and one I would love to have on a $350-500k home for free, is there will NEVER be a way to get a clear title.

So, if you want,you cannot sell it, it's yours for life.

Taxes and all.

Sat, 10/01/2011 - 12:19 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Of course there is. Called an action to quiet title. If no one shows up to defend the action, it's a slam dunk.

Sat, 10/01/2011 - 15:22 | Link to Comment scatterbrains
scatterbrains's picture

You could always listed on Ebay stating the title is unclear via Linda Green.  I would buy one marked down 70% or so.. life is about chances... anyway live in it mortgage free for 30 years and then dump it on Ebay kinda thing.. or stay until you die. Let your peeps flip it on Ebay or move in for another life time of no payments.

 

Sat, 10/01/2011 - 11:36 | Link to Comment Das Capitalist
Das Capitalist's picture

I'm in Florida too.  Just got word that Bank of America restarted ALL of their foreclosure cases yesterday or Thursday.  A large portion had been on hold for robosigning, loss mitigation, etc. review.  I don't know what this means, but it is an abrupt change in the company policy.  They were doing this review to protecte themselves from future litigation.  Now they seem to be saying "F*** it."

Desperate?

Sat, 10/01/2011 - 11:51 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Squatting has become big in my area.

I am seeing serial squatters.  One group moves out.  The next group moves in.  The For Sale sign remains.

What I smell is this.  Insurance.  Banks can't insure vacant properties.  Insurers wont' insure vacant properties.

Also, there is the need to keep the heat on so pipes don't freeze.  Or fix a piece of trim if a raccoon rips it off.  And then there is lawn mowing if there's a town ordinance about appearance.

It's a fucking disaster and there is zero progress working out of it.

Sat, 10/01/2011 - 13:10 | Link to Comment decon
decon's picture

I live in a rural area of the sw US.  The house next to me has been vacant for 2 years.  I've been irrigating the trees (canal fed) to keep them from dying and occasionally mowing the yard.  The other day the BofA dicks showed up to assess what they needed to fix to sell it.  I had an upleasant conversation with them where one made the comment that they're "tired of getting bent over by the public" on all the housing defaults.  As I walked away I told him to buy some KY because the banks getting bent over is only starting.  I then proceeded to by some more FAZ on a pop. 

I know it was good risk managment to sell my FAZ position near the close on Fri. but I still feel regret for being too chicken to hold it and try and extract more out of the fuckers.

Sat, 10/01/2011 - 18:34 | Link to Comment IrritableBowels
IrritableBowels's picture

Rolled the dice and stayed. ERY/FAZ/feeling good about next week. Thanks ZH.

Sat, 10/01/2011 - 23:57 | Link to Comment decon
decon's picture

Good luck!

Sat, 10/01/2011 - 13:34 | Link to Comment toady
toady's picture

The squatter problem here in AZ has a couple of interesting twists due to the illegals.

First, the bulk of them took their money and went home. This leaves a BIG bunch of empty houses, so there aren't enough people to fill all the empty houses.

The flip side is the illegals that remain are the hard core, make money, gangsters. When they are found squating there are usually assault weapons and tons of dope or hundreds of people jammed in there.

So I'll take the vacant houses. I call the cops if I see anybody I don't recognise at a house with a for sale sign. Better vacant than caught in the crossfire.

Sat, 10/01/2011 - 12:41 | Link to Comment Boxed Merlot
Boxed Merlot's picture

I've heard the same thing here in CA. Just anecdotal at this point, but an acquaintence with over 24 months of BAC negotiations just popped to the foreclosure card overnight. 

 

Not asking for a free house, looking for some of the relief provided to the banks to be used to asisst an honest person whose mortgage was destroyed by these bifurcating fools.

 

I'm afraid justice will be displaced by retribution as the rule of law is removed from the judiciary and finds it's way into the hands of the people directly.

Sat, 10/01/2011 - 14:54 | Link to Comment stopthejunk1
stopthejunk1's picture

Yep. I see homeowners standing on their porches with shotguns, in a molon labe pose... sherrifs refusing to evict, because they're elected, not appointed or annointed like our Washington politicians.  Could get interesting.   

Sat, 10/01/2011 - 17:12 | Link to Comment calltoaccount
calltoaccount's picture

18000 viewers watching live feed of cops arresting NYC protestors against corporate and bankster crim greed.  they are there for us.

 

http://www.livestream.com/globalrevolution

Sat, 10/01/2011 - 10:43 | Link to Comment litoralkey
litoralkey's picture

THis has more to do with that fact that Kamala Harris is a moron.  Truly reached her Peter Principle several jobs back. She is a bonafide socialist whack job.

http://articles.latimes.com/2009/jun/22/local/me-harris22

 Kamala Harris program "trained illegal immigrants for jobs they couldn't legally hold"

San Francisco District Attorney Kamala Harris is a contender for California state Attorney General. She's bad enough that some liberals in her city think she's incompetent and soft on crime. Not only that, but even the Los Angeles Times offers "San Francisco D.A.'s program trained illegal immigrants for jobs they couldn't legally hold/As she runs for state attorney general, prosecutor Kamala Harris faces questions over a program that trained illegal immigrant drug felons for jobs, kept them out of jail and expunged their records" (by Michael Finnegan, link).

 

Sunday, May 1, 2011
May Day! — Democrat-Socialists Rally Around Unions Of course.

It's May Day, the "International Day of the Worker."

And right on cue, at Los Angeles Times, "California Democrats rally around unions":

Framing the union battles taking place across the nation as a fundamental attack on working Americans, Democratic leaders on Saturday accused Republicans of scapegoating public employees for political gain.

"They are intent on dismantling the very economic ladder that lifted our middle class and made California the richest and greatest state in the greatest nation in the world," Atty. Gen. Kamala Harris told thousands of delegates and supporters gathered at the Democrats' annual convention in Sacramento.

Sat, 10/01/2011 - 11:44 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Too bad CA couldn't get together with NV and reopen the Au/Ag mines that were used to finance our little family spat in the 1860s.  NY financial interests sure played that one well, didn't they?

 

CA / NV  still has the remnents of our sound currency days in that US mints and coinage capacities exist to strike constitutionally correct money for our own populace. Trust needs to be restored and for better or worse, we're re-entering the trust and verify stage of commercial activity. 

 

Script may be useful again in the future, but the fed's feeble attempt at continuing to pass their's off as USD is rapidly coming to an end.  imo again.

 

Bifurcate the fed from the USD.

Sat, 10/01/2011 - 13:26 | Link to Comment dizzyfingers
dizzyfingers's picture

"... how much can we soak US taxpayers..."

Sat, 10/01/2011 - 14:29 | Link to Comment Hansel
Hansel's picture

Thread FYI:  Bank of America's website is still down, now for about 1 day.  This is a great way to frighten customers.  http://www.bankofamerica.com

Sat, 10/01/2011 - 14:59 | Link to Comment stopthejunk1
stopthejunk1's picture

Hmm.  Maybe the Fed showed up on Friday afternoon, to take them under "stewardship."  

Sat, 10/01/2011 - 08:32 | Link to Comment Eugend66
Eugend66's picture

Off with their heads !

Sat, 10/01/2011 - 09:32 | Link to Comment X.inf.capt
X.inf.capt's picture

im still waiting for a perp walk....

all this banking b.s. would immediately stop.....if they would put one, ONE ceo from a bank in a butt pounding prison....not club fed.

oh well, justice to the best lawyer in this system...

Sat, 10/01/2011 - 14:54 | Link to Comment gina distrusts gov
gina distrusts gov's picture

im still waiting for a perp walk....

 

If there are no  actions by the "leagle" system i fear that  vigilant justice will make a come back

Sun, 10/02/2011 - 14:04 | Link to Comment WebWeasel
WebWeasel's picture

It may start with a large number (I'm not even sure it has to be a majority) of people with a TBTF servicing their mortgage to simply stop making payments. It would overwhelm even the fraudclosure system and kill the TBTFs dead.

Sat, 10/01/2011 - 08:38 | Link to Comment doomandbloom
doomandbloom's picture

who put boiling water in the bathtub?

Sat, 10/01/2011 - 08:51 | Link to Comment LMAO
LMAO's picture

Bathtub?

The Orthodontist of Omaha will not be a happy camper this weekend!

Sat, 10/01/2011 - 11:07 | Link to Comment DeadFred
DeadFred's picture

Maybe he'll change his mind and say there is very little chance of a recession instead of very, very little chance.

Sat, 10/01/2011 - 08:39 | Link to Comment LMAO
LMAO's picture

I'm starting to believe we're in for an interesting monday European opening session.

Sat, 10/01/2011 - 08:48 | Link to Comment youngman
youngman's picture

If this was  a normal market I would think that too...but nothing seems to move it the way it should move...Greece defaults...it will go up I bet...my Econ 101 fell apart after the first bailout....nothing seems to be working to economic plan after that for me at least....

Sat, 10/01/2011 - 09:39 | Link to Comment LMAO
LMAO's picture

True, but the DXY has just left the launching pad and its' fuel will probably be paid for by the equity/commodity complex.

Combined with financials nose-diving on Monday in light of this robo-signing turmoil and general weakness and a failed EOM stick save I believe it's about time to put on our DOW 10.000 hats on the way down.

 

Sat, 10/01/2011 - 10:37 | Link to Comment unum mountaineer
unum mountaineer's picture

the dxy leaving the launch pad is the last thing ben wants. currency wars this is.leads me to ponder when it will be time to focus on americas issues instead of europe. as bullard hinted at, fed just needs a reason, any reason. insert blank here and they will do more easing, more monetization, more dilluting of the dxy. of course there are many ways to trade this, including picking an american bank thats #winning, shorting dollar by buying gold. been reading reggie middleton?  heard hes going hunting for squid.

Sat, 10/01/2011 - 11:01 | Link to Comment Ruffcut
Ruffcut's picture

Even Reg can't swim deep enuff, in such murky waters to locate those slimmy squid.

Sat, 10/01/2011 - 10:44 | Link to Comment Dapper Dan
Dapper Dan's picture

If more news from the MSM,  like the news linked below, keeps coming out yes monday will be

a panic.

 

No Rise in Home Prices Until 2020: Bankers

 

Published: Saturday, 1 Oct 2011 | 8:49 AM ET Text Size By: Karina Frayter, CNBC Markets Producer

 Home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday.

   

 The survey conducted by the Professional Risk Managers’ International Association for FICO, found that 49 percent of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would.

Sat, 10/01/2011 - 08:45 | Link to Comment SOLnow
SOLnow's picture

Biden's son is AG in Delaware.  Interesting to see him named alongside Schneiderman. 

Sat, 10/01/2011 - 10:51 | Link to Comment litoralkey
litoralkey's picture

http://www.washingtonpost.com/wp-dyn/content/article/2008/08/23/AR200808...

http://brontecapital.blogspot.com/2009/04/economics-of-paradigm-global-a...

http://brontecapital.blogspot.com/2009/05/question-about-appropriate-eth...

 

Joe Biden's other son, Robert Hunter Biden, and Joe Biden's brother, James Biden, outright stole over $100MM through a ponzi investment scheme across international jurisidictions and walked away scot free because Obama and Holder refused to investigate, let alone prosecute the crimes.  Now Beau Biden sits in judgement of other investment bankers in Delaware, jurisdiciton of convenience of many of the other investment banker fraud fronts in the country, and rakes in campaign cash and peddles influence with his father from inside his government offices on the DElaware state government dime, and he does so daily, every single day.

 

 

Sat, 10/01/2011 - 08:46 | Link to Comment youngman
youngman's picture

This is an Obama jobs program...for Lawyers....the broke states see a back door bailout available...win a 50 billion dollar award...and the Fed backstops the banks...easy money..politically correct...no State bailout....no nothing there...but saving the banking system from total collapse and with it the Western world.....yeah a Politician can run on that....

Sat, 10/01/2011 - 08:46 | Link to Comment JailBank
JailBank's picture

What the hell does Miller want to settle with these bitches for?

Sat, 10/01/2011 - 10:03 | Link to Comment nowhereman
nowhereman's picture

For the money, and future considerations.

Sat, 10/01/2011 - 11:23 | Link to Comment DeadFred
DeadFred's picture

Maybe they have photos of that incident with <insert embarrassing/criminal/immoral event here> and he has to play along.

Sat, 10/01/2011 - 11:32 | Link to Comment Boxed Merlot
Boxed Merlot's picture

You mean the photos of Barney Frank bifurcating Freddie's fanny?

Sat, 10/01/2011 - 08:47 | Link to Comment chunga
chunga's picture

How does glossing over fraudulent robosigned conveyances "keep a lid on any potential housing market improvement"? The chains of title are fucked.

Sat, 10/01/2011 - 11:13 | Link to Comment DosZap
DosZap's picture

chunga

That,my friend is as you know the issue in a nutshell.

There are no LEGAL titles.

Robo Signing basically has GIVEN all homeowners with the nads to do so, the ability, and legal right to keep their homes, and not pay for them.

The Banks are in a word,screwed.

Sat, 10/01/2011 - 11:18 | Link to Comment Sockeye
Sockeye's picture

Good summary.

Sat, 10/01/2011 - 11:30 | Link to Comment DeadFred
DeadFred's picture

"Robo Signing basically has GIVEN all homeowners with the nads to do so, the ability, and legal right to keep their homes, and not pay for them"

And this situation can be changed by inserting two paragraphs into some legislative bill sometime. IMHO all this political posturing is based on finding an acceptable way to insert those two paragraphs and get away with it.

Sat, 10/01/2011 - 13:00 | Link to Comment chunga
chunga's picture

And guess what...the robosigning deal is not some benign gimmick paper technicality where "corners were cut" employed by deadbeats. Let's use an analogy that will be popular on ZH. Suppose all the holders of paper PMs called in to collect their physical. Would there be enough? Ha ha

There are more holders of paper on physical houses than there are physical houses. They are all insured against default, hence the reluctance (refusal) by these "lenders" to comply with discovery requests. Talk about "unjust enrichment"...lol.

JP Morgan Chase/WAMU just got bitch-slapped pretty heavy in the state of Rhode Island on Friday. I'll throw the details on Foreclosure Hamlet Monday and link it up here on whatever "fraud of the day" post seems most appropriate. Today is all about cold beer.

Sat, 10/01/2011 - 14:53 | Link to Comment DCFusor
DCFusor's picture

That's just silly.  If there's no legal title, the person living there doesn't have a legal title either.  The only thing is, no one has the authority to toss them out either.  But they can't sell without a title.

Sat, 10/01/2011 - 18:20 | Link to Comment geekgrrl
geekgrrl's picture

But do counties have a vested interest in kicking out all the people supporting them in the way of property taxes? I'm curious if the counties are being paid property taxes by the banks for all the unoccupied houses they hold off the market?

As a practical matter, it seems the idea that posession is 9/10 of the law would apply, and so maybe legal title could be granted to the occupants by the county unless the banks can prove they own it. With all the MERS assignment problems and other recording problems, I think there is going to need to be a big do-over anyway.

Sat, 10/01/2011 - 09:10 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

Sat, 10/01/2011 - 08:53 | Link to Comment carlnpa
carlnpa's picture

Time to make restitution to the victim, that would be me.

Robosigning stole transfer fees from my school, county, and state funding.

I bailed them out, they continued to robosign, 100% bondholder haircut should be comming.

Nationalize these sobs, make a special tax catgory for banking execs, and throw their asses in jail with bubba.

This is the mesage that the 99's need to get out and learn themselves.

Goldman Sachs rules the world.

 

Sat, 10/01/2011 - 11:54 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Nationalize?

That's not the focus.  The focus is on declaring things to be fraud.

The word FRAUD triggers clawback provisions in the law.  We don't need to shut down banks and have their executives retire to Barbados from their severance package.  We need to have FRAUD be part of any declarations.

The NY state laws enable CLAWBACK if fraud is involved.  Let's go out and clawback EVERY PENNY OF BANK EXECUTIVE COMPENSATION . . .NOT JUST FROM THIS YEAR, BUT FROM THEIR ENTIRE CAREERS.

Sat, 10/01/2011 - 09:12 | Link to Comment cramers_tears
cramers_tears's picture

Ron Paul believes in the RULE OF LAW.

Sat, 10/01/2011 - 09:14 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

I am Linda Green

Sat, 10/01/2011 - 10:18 | Link to Comment disabledvet
disabledvet's picture

that's funny.

Sat, 10/01/2011 - 10:19 | Link to Comment disabledvet
disabledvet's picture

And I'm Eric Schneiderman!

Sat, 10/01/2011 - 15:03 | Link to Comment Phil Free
Phil Free's picture

I am Spartacus.

Got 'chu beat.

Sat, 10/01/2011 - 23:24 | Link to Comment Drag Racer
Drag Racer's picture

ya, but I'm Batman

Sun, 10/02/2011 - 02:51 | Link to Comment StychoKiller
StychoKiller's picture

I'm Zaphod B. Belbrocks, and I have the ID to prove it!

Sat, 10/01/2011 - 10:39 | Link to Comment repete
repete's picture

But I am also Linda Green.

Sat, 10/01/2011 - 10:48 | Link to Comment scatterbrains
scatterbrains's picture

me too! What a coincidence.

Sat, 10/01/2011 - 09:27 | Link to Comment Bangin7GramRocks
Bangin7GramRocks's picture

The weekend douche Tyler strikes again! This article makes the California AG the bad guy. He states that the poor banks can't heal until the states relieve them of all legal liability for 10 years of fraud. Fuck the banks. I hope California AG and New York stay strong.

Sat, 10/01/2011 - 14:51 | Link to Comment crazyjsmith
crazyjsmith's picture

Wow, speaking of douche, have mirrors in your home?

Well, I am "the point" and I don't think we have ever met.

Maybe u should find another blog where the message or "point of the story" are. a little easier to follow.

Sat, 10/01/2011 - 09:30 | Link to Comment Cursive
Cursive's picture

And on the day that the New York Fed first published its Operation Twist POMO schedule, it is already time to start thinking about what form the next new and improved form of  quantitative easing will take...

The train has already left the station, the Fed is out of bullets.

Sat, 10/01/2011 - 09:55 | Link to Comment scatterbrains
scatterbrains's picture

Speaking of pomo, does anyone recall when the pomo launches would start during QE2? was it 10:30ish ? I forget. Would this smaller version be enough to cause a tiny blip up during that window? I ask because with my sinister mind I expect to see no effect this go round because they will shift to the late night globex market to get as much juice as possible out of it.. but my thought processes are tainted these days and I expect the most evil plotting by these thieves so I'm probably wrong.

Sat, 10/01/2011 - 09:31 | Link to Comment williambanzai7
williambanzai7's picture

Guess they played their shitty bluff too hard.

Sat, 10/01/2011 - 09:49 | Link to Comment moneymutt
moneymutt's picture

Make no mistake, the banks and Wall Street and their supporters in Congress and the WH really wanted this settlement.

When Elizabeth Warren and former OH AG Cordray now at the CFPB were trying to contact State AGs to discuss how bad this propped settlement would be for rule of law and for the states and investors defrauded by these lenders, the banks really pushed back.They had the Congress people they contribute the most to, make a big issue about Warren lying about her involvement in the settlement talks, and Treasury basically threw her under the bus. They so wanted her to back off and they so wanted the AGs all to agree to this settlement. One journalist discovered via Warrens published meeting schedules, that she was the one that pushed Obama veto the "nationalizing notaries" bill, another Wall Street loved piece of legislation that would have pre empted states rights and robo signign claims.

Issa's staff guy, who is a former GSacs VP(quite pay downgrade, gee I wonder why he took such a cut) who changed his name to avoid attention, Haller, was the key architect of a stupid little political theater acted out by Rep McHenry, another Congressman who gets huge funds from Wall Street, who used a scheduling mess up for Congressional hearings to call Warren a liar, smear her. The banks really, really didn't want her running amok.

There is still plenty of time for these rebel AGs to sell out in the future, so it's not a clear victory yet. But I know is the banks really, really wanted this settlement and were really leaning on their Treasury and other WH connections and their Congressional connections to get it.

I suspect the banks would have paid big money to avoid rule of law, but in this case, they may not have the money to meet NY and Cali's demands.

Sat, 10/01/2011 - 15:02 | Link to Comment Amish Hacker
Amish Hacker's picture

It's not as if these criminals didn't know at the time that what they were doing was illegal. But, hey, everyone was doing it, and they were making a ton of money. Of course, now that the jig is up, the banks are demanding immunity from prosecution, and the "Obama administration has been pushing for a fast resolution to the scandal." I submit that these are not the actions of people with a clear conscience.

Remember the Paulson Plan? (http://www.nytimes.com/2008/09/21/business/21draftcnd.html) Even as Hank Paulson granted himself $700 billion in spending authority to bail out his friends and former co-workers, he made sure that the plan included language to cover his ass legally. Section 8 stated that "Decisions by the Secretary...may not be reviewed by any court of law or any administrative agency." How's that for pre-emptive, blanket self-immunity? Not exactly the kind of language someone acting in good faith would insist on.

BTW, another section in the plan raised the Statutory Limit on Public Debt to $11.35 trillion. The debt clock now reads $15.12 trillion.

Sat, 10/01/2011 - 09:45 | Link to Comment scatterbrains
scatterbrains's picture

At first when I clicked the link to the L.A. times I saw the timing of the news release at 1:51pm and thought, shit this bomb hit while the market was opened.. then I relized I had to add 3 hours time zone differential (4:51pm) putting it after the market closed. Now I feel all comfy cozy with my BAC puts.

Sat, 10/01/2011 - 09:50 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

Banks can't crash fast enough! BUT... POMO fear mongering: QEx, "it's the end of the world", "GOLD to the moon", hyperinflation!!! perhaps briefly...

To quote you Tyler in a previous article dated 9/26/2010: http://www.zerohedge.com/article/why-qe2-qe-lite-may-mean-fed-will-purch...

In summary, David Tepper may well be right that stocks will benefit from QE2, as will Bonds and as will commodities. In fact, every asset class will explode in a supernova of endless liquidity. To be sure, all of this will be very short lived. Very soon, all those assets denominated in fiat paper, will promptly collapse in the great black hole of reserve currency devaluation, as it becomes clear that the Fed will stop at nothing to win the race of global currency debasemenet. And of course, none of this is to be confused for an actual improvement in the economy, as QE2 will result in a dramatic and irreversible deterioration in the US, and thus global, economy, which, once the initial euphoria from QE2 recedes, will promptly progress to isolationism, protectionism, currency wars and exponentially accelerating monetization of each and every asset class, thereby rendering price discovery irrelevant, as central banks around the world stampede into irrelevant capital market, each buying up as much of everything as their printing presses will allow them, until the ink runs dry.

Nothing has changed from 9/26/2010 Tyler. History has proven you were 100% correct. The Titanic is sinking in a frenzy of competitive devaluation, transitory hyperinflation may spike stocks and comodities again As Osama Bin Bernanke announces the Bankster Dining Room will be moved to the upper deck of the Titanic. The end is the same, the Titanic sinks! And as the Titanic begins to list and confidence in central planning dies EVERYONE will exchange hyperinflated equities for dollars as they scramble to the lifeboats ( http://www.zerohedge.com/article/what-american-bank-run-would-look )just as they have post QE2 and will post-QEx or who knows during QE3. The fact is pre-wipeout hyperinflation is transitory and will collapse into a liquidity desert Inception style where Jack realizes he is Cobb and the Titanic is lying on its side in the Liquidity Desert surrounded by the skeletons of middle class investors. Massive Deflation is the only Endgame as confidence is lost in the inflated PONZI.

The dollar may morph into something else, Gold Backed or Greenbacked as the Fed is ran out of town on a rail, but the fact remains the world will run to the dollar as they have in a post-QE2 environment. And for those of you who think GOLD will go to the moon when everyone sells their stocks for dollars and in unison flock to physical cash, well you are on CRACK. Credit Evaporation will destroy the economic landscape as we see it as fractional reserve banking implodes in on itself and pennies actually buy something again. (GOLD BUGS FLAME AWAY I CAN TAKE IT;)

Sat, 10/01/2011 - 09:58 | Link to Comment r101958
r101958's picture

"Nothing has changed from 9/26/2010 Tyler"

Wrong! We are $1.5 trillion more in debt.

Sat, 10/01/2011 - 10:06 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

For now. In the end all sovereign debt will go through restructuring and creditors will take the ultimate haircut. Decapitation!

Sat, 10/01/2011 - 10:12 | Link to Comment watchingdogma
watchingdogma's picture

Gold goes to the moon during the banking holiday - when the great devaluation occurs and you end up with 1 "New Buck" for every 100 "FRNs"

Sat, 10/01/2011 - 10:44 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

That would put GOLD at $16.22/ounce if that happened today. I would buy GOLD at that price.

Sat, 10/01/2011 - 11:12 | Link to Comment watchingdogma
watchingdogma's picture

The last time the US did this, the price of gold went up 75%

Sat, 10/01/2011 - 11:52 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

I can see this happening after the dollar soars and Gold collapses due to massive deleveraging and margin calls. Then the 1 for 100 exchange... at that point one ounce of gold may be worth one dollar when all is said and done. The following run up would put the price of Gold at $1.75/ounce, a 75% run up.

Who knows for sure? One thing is for certain! The Global Monetary PONZI will collapse! How order will be restored remains to be seen.

Sat, 10/01/2011 - 15:13 | Link to Comment decon
decon's picture

When that happened the currency was backed by gold.  They changed the system a while back!

Sat, 10/01/2011 - 10:57 | Link to Comment What_Me_Worry
What_Me_Worry's picture

Yeah, go ahead and buy gold.  The FRN is backed by the US government, whereas gold is not backed by anything.  

Don't you watch the news?

Sun, 10/02/2011 - 00:05 | Link to Comment Ag Star
Ag Star's picture

Gold has always been money and has never gone to zero, where as no fiat currency has lasted more than 50 years.  That's a fact people--you don't have to like it.

Sat, 10/01/2011 - 10:53 | Link to Comment centerline
centerline's picture

Is certainly a plausible series of events.  There are simply too many variables to consider in order for anyone to marry-up to any distinct path at this point.

I appreciate the effort you put into this.  Thanks.

Sat, 10/01/2011 - 09:50 | Link to Comment apberusdisvet
apberusdisvet's picture

Hard to see more bailouts since even the sychophantic MSM is finally doing some reporting on this issue.  The minions of the Creature from Jekyl Island have definitely caught a virus and it will be interesting to see what medicine the captured politicians, whether in the US or in the Eurozone, ultimately provide.  Nationalization of the the TBTF for "national security", perhaps?  The toadies of the Troika in Europe might certainly go this route.

Sat, 10/01/2011 - 09:52 | Link to Comment Sambo
Sambo's picture

After enough shorts are piled up, expect Ben to hit the print & buy button. That is the shock & awe method. BAC & other financial stock shorters be careful. I feel these are dangerous times. Dont gamble more than you can afford to lose.

Sat, 10/01/2011 - 10:48 | Link to Comment unum mountaineer
unum mountaineer's picture

thats why im looking at who has euro flu out of the u.s. banks. granted their are domestic problems, but im thinking i need to play off this euro theme for now. who knows though...dangerous times indeed

Sat, 10/01/2011 - 09:53 | Link to Comment bugs_
bugs_'s picture

These AG's are just shakedown artists trying to grab what they think is some low hanging fruit.  What they don't get is that all the low hanging fruit is gone.  The states are already being bailed out by "extra" transfers of unemployment insurance funds to them.  Its not enough and its never enough.  They broke the housing market which was a pillar of the middle class.  The shakedown funds these states get (if any) will not be used to heal any damage to the middle class.

Sat, 10/01/2011 - 09:56 | Link to Comment r101958
r101958's picture

"I suspect the banks would have paid big money to avoid rule of law"  -yeah! taxpayer bailout money.

Sat, 10/01/2011 - 10:02 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

kamala harris is a very polically savvy crimefighting wench, BiCheZ!

spot-on analysis of all aspects, here, especially the obama-miller-bankster alignment which has just been seemingly derailed by two eager big-state AGs both in their first year of office

Sat, 10/01/2011 - 10:26 | Link to Comment disabledvet
disabledvet's picture

blah, blah, blah, blah, blah. This comes as no surprise. The State of California is simply reading the writing on the Wall Street wall--they know the banks with their friends in Washington are not capable rolling over the massive overhang of underwater mortgages. The response by BofA will be equally swift: all claims vis a vis Country-wide Financial will be ignored with "all queries re-routed to Barney Frank's office" i imagine. Anywho without acknowledging both the obviousness of the decision as well as BofA's response ZH is doing us all a disservice. I think the technical term is "propaganda."

Sat, 10/01/2011 - 10:46 | Link to Comment beachbumsix
beachbumsix's picture

This system of government we live under is only 235 years old and unfortunately we have had our heyday. We are a babe in the woods. The great experiment is over. It is insanely foolish to believe we will ever get back to the way it was. What is certain is as long as people are not held accountable for their actions we, as a country will continue to fall into the abyss. Learning from mistakes creates a foundation for growth.

 

With the eroding of the middle class the future will consist of an upper strata made up of Government workers, Military personnel, and the Clergy. The Clergy wil be to busy trading souls for money. The Government will continue its ignorance and ineptitude as reflected its value proposition, and thus the Military will be left left. Can you say Coupe d'dtat. Its happening everyday and America doesn’t see it as it munches away on dollar meals, hypnotized to 200 channel TVs and the modern day gladiatorial games. This is the future, as proven by the evolution of forms of government much older than ours. Big brother will be watching the sheep, the offspring of what was once my country.

Sat, 10/01/2011 - 13:31 | Link to Comment unununium
unununium's picture

Tell the truth.  Did you bother to exercise the right the founders fought for, and vote in the last election?

Sat, 10/01/2011 - 10:52 | Link to Comment SwingForce
Sat, 10/01/2011 - 11:21 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

When confidence is lost none of the mechanics mentioned in the video apply as everyone runs for the exits.

Sat, 10/01/2011 - 11:01 | Link to Comment centerline
centerline's picture

The really scary way I read this is a heating-up of a battle between broke banks and broke states.  Considering that the banks own the political process and the money supply, it is more likely in today's age that they will win in the end.  And it appears they are looking to have complete control over the foreclosure process, and complete immunity at the same time.

To me, that is likely the last big step into complete hell - and the official end of America.

Sat, 10/01/2011 - 11:27 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

As the scales tip between the fraction of 1 percent who control most of the money and the 99% who don't, the US will again find equliibrium, "somehow". An escalation of current conditions is not sustainable. 

Sat, 10/01/2011 - 11:17 | Link to Comment bill1102inf
bill1102inf's picture

At the end of the day, the thieves, BAC,C,WFC,etc will go bankrupt with TRILLIONS(in $) of houses ON THEIR BOOKS. Eventually, the debt will be purged, the houses will finally be sold.  When it is no longer common for 1 out of 10 Americans to be living RENT FREE any longer, the economy can begin to improve. Of course, this means, that the 'value' of your housing 'investment'(COUGH) will be 50% less than it is today.

 

This will be good, actually great, fantastic, and wonderful for the main street economy.  It will be bad for the banks, boomers, land owners, horders, mcmansion owners etc.

 

The extremely sad part is that the same people responsible for this mess (brokers, realtors, builders, developers, banksters) will be the ones ready with cash to gobble up these properties and rent them for cash flow. That is, unless they are in jail which is where many of them belong.

Sat, 10/01/2011 - 11:29 | Link to Comment FederalReserveB...
FederalReserveBankofTerror's picture

Yes!

Sat, 10/01/2011 - 11:29 | Link to Comment centerline
centerline's picture

So much moral hazard on that course.  But, to be fair, I haven't yet seen a good "out" that does not involve a massive amount of moral hazard.  So, I suppose I just said absolutely nothing.  Oh well.  Pissing in the wind today.

Sat, 10/01/2011 - 11:53 | Link to Comment bill1102inf
bill1102inf's picture

I almost forgot to mention the MAIN ROOT CAUSE - "POLITICIANS" like the oh so loved Bill Clinton "We must make home LOANERSHIP available to everyone in any and all and most importantly* FRAUDULENT way possible."

Sat, 10/01/2011 - 11:37 | Link to Comment tom a taxpayer
tom a taxpayer's picture

 

Origin of BAC:

"Bank of America's history dates to 1904, when Amadeo Giannini founded the Bank of Italy in San Francisco to cater to immigrants who were denied service from other banks.[24][25] Amadeo was raised by the Fava/Stanghellini family when his father was shot while trying to collect on a $10.00 debt.[citation needed] When the 1906 San Francisco earthquake struck, Giannini was able to get all deposits out of the bank building and away from the fires. Because San Francisco's banks were in smoldering ruins and unable to open their vaults, Giannini was able to use the rescued funds to start lending within a few days of the disaster..."

"In 1922, Giannini established Bank of America and Italy[26] in Italy by buying Banca dell'Italia Meridionale,[27] itself only established in 1918.[28][29] On March 7, 1927, Giannini consolidated his Bank of Italy (101 branches) with the newly formed Liberty Bank of America (175 branches). The result was the Bank of Italy National Trust & Savings Association with capital of $30,000,000, and resources of $115,000,000."

"In 1928, A. P. Giannini merged with Bank of America, Los Angeles and consolidated it with his other bank holdings to create what would become the largest banking institution in the country. He renamed his Bank of Italy November 3, 1930, calling it Bank of America. The merger was completed in early 1929 and took the name Bank of America. The combined company was headed by Giannini with Orra E. Monnette serving as co-Chair."

http://en.wikipedia.org/wiki/Bank_of_America

 

Sat, 10/01/2011 - 12:29 | Link to Comment Rainman
Rainman's picture

BAC was actually a fairly well run institution until it decided to merge with Security Pacific in the early 90s. That bought them greater access to the SoCal market. The integration problems were epic on that particular deal. They then decided to gorge themselves with even more mergers progressively across the Nation. It didn't take long for the merger of various banking cultures to confuse the core mission....it became a business without a plan other than bigness.

Countrywide and Merrill were just two final straws that broke this camel's back. The gluttony of the consolidated franchise did them in. Big Fail was long overdue.

Sat, 10/01/2011 - 11:47 | Link to Comment JW n FL
JW n FL's picture

 

 

The Banks have to go.. in their present form.

Law Enforcement that is nothing more than private security for the Bankers, Lobby and Government has to go. Your neighbor who just got back from Iraq or Afghanistan.. who lives on your street or a street over from you.. can be the Cop for your neighborhood.

 

The Military.. with the elite top structure.. all that West Point Trash.. has to go.

The State Houses filed with wanna be Washington DC Lobby Puppets.. have to go.

We the People.. need to take back our Country, our money and most importantly.. OUR FUTURE!

any and all guilty of Treason.. get hung on National TV every night at dinner time, LIVE! until "We the People" are rid of the Treasonous Scum that have STOLEN the rule of Law and Corrupted the Constitution of the United States of America.

America's Founding Documents

The Magna Carta

The Mayflower Compact

The Declaration of Independence

The Constitution of the United States of America

The Bill of Rights

The Federalist Papers

The Anti-Federalist Papers

The American Creed

Washington's Farewell Address

The Gettysburg Address

http://www.miatoday.com/AmericasFoundingDocuments.asp

WAKE UP!!

I know that reality sucks and the Feel Good Cable News.. makes you soooooooooooo much more happy that having to deal with the truth.. they are counting on your being weak and unable to want to be plugged back into the system.

Ignorance is Bliss and Stupidity is Heaven!

http://www.youtube.com/watch?v=2iD1AO7osvQ&feature=related

Red-pill/Blue Pill

You take the Red Pill and then you figure out it is a downer and you would rather be plugged back into the system.. the Blue pill makes you happy.. or happier than knowing the truth..

No One Likes the Truth.. living the lie is so much easier on a person.. being a sheep is so comfortable.. not having to care which way to go because they will tell you..

now get back in line, single file and just ignore those people with all those ugly truths.

JFK assassination: Secret Service Stand Down

http://www.youtube.com/watch?v=XY02Qkuc_f8

WTC7

http://www.youtube.com/watch?v=Zv7BImVvEyk&feature=related

I could go on but now you know I am one of those crazy conspiracy people! now you can ignore everything above.. you can ignore the fact that the Truth makes you feel like shit and that the lie makes you feel good.. it is not hard to understand why weak, lazy and or ignorant people prefer the Lie to the truth!

Remember that the Feel Good News is just a few clicks away on your remote control and that you can be bathing in that warm, Feel Good Propaganda when EVER! you want.. instead of being pissed off with a headache all the time..

Feel Good? or Be Pissed Off?? it really is a no brainer!

 

Sat, 10/01/2011 - 12:01 | Link to Comment JW n FL
JW n FL's picture

 

 

All of You Worried about Bank of America??!!

Do NOT!! FEAR!! POMO is on its way!!

Across all operations in the schedule listed below, the Desk plans to purchase approximately $44 billion and sell approximately $44 billion in Treasury securities over the month of October.

http://www.newyorkfed.org/markets/tot_operation_schedule.html

The $44 Billion of Performing that is being sold is worth 3 X's that amount.. and the $44 Billion being Bought is worth 10 times LESS than that amount! LOL!!

The American People will be losing Good Product and Gaining Horrible Product! YAY!!!

 

FUCK AL OF YOU POOR, IGNORANT SERFS!!! NOW GET E A CUP OF COFFE AND SHINE MY SHOES!!

YOU ARE LUCKY THAT I EVEN SPIT ON YOU!!

YOU SHEEP ARE TAPPED OUT!!

AND THEREFORE USELESS TO THE SYSTEM!

 

 

Sat, 10/01/2011 - 11:48 | Link to Comment Robslob
Robslob's picture

 

 

Annnd que bank run here in the good ole USSA and to add insult to injury their WEBSITE is DOWN just like their STOCK

Sat, 10/01/2011 - 11:55 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Everyone believes in the Rule of Law; the problems arise when TPTB write laws to suit their needs and indeed, they Beliveve in those.  All we ever needed is in the Constitution...

Sat, 10/01/2011 - 12:04 | Link to Comment Calculated_Risk
Calculated_Risk's picture

Something to consider..

The IRS Mortgage forgiveness debt relief act and deb cancellation ends december 2012.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

edit: This means if you want to escape the taxes, you better consider dumping the home very very soon. Because it may take at least three months to foreclose, and up to eight or twelve. This expires in fifteen months..

I know four people that are dumping their homes (one already did, three in process) for the sole reason of getting out from under the irs thuggery on taxes they would be owing.

If I know four, and I'm not even a social butterfly.. this HAS to be much bigger, and possibly bring this shit down.. thoughts??? anyone???

Sat, 10/01/2011 - 13:01 | Link to Comment bill1102inf
bill1102inf's picture

The banks know this and will not process the foreclosure before the 15 months is up.  Best to save ALL YOUR MONEY, especially what you were suppose to pay for the mortgage. People walking away after living for FREE for 24-48+ months had better have saved at least $50,000.00 in cash or else they are idiots.  Most people are idiots though and will walk away from their house with the cash for keys money, wondering 'what happened?' and somehow convinced that it was they who got the short end of the stick.

Sat, 10/01/2011 - 22:15 | Link to Comment Cloud9.5
Cloud9.5's picture

The IRS will not follow you into bankruptcy.

Sat, 10/01/2011 - 12:05 | Link to Comment mr. mirbach
mr. mirbach's picture

If the states had any sort of long range vision and the ability to formulate a strategy, they would continue to disallow foreclosure proceedings long enough to be able to sieze properties for unpaid property taxes. Once siezed, they could sell the properties, put the money in their cofferes and issue a clean title. All problems solved.

Sat, 10/01/2011 - 13:05 | Link to Comment MissCellany
MissCellany's picture

Don't be too sure that they don't have such a strategy...

Sat, 10/01/2011 - 12:29 | Link to Comment onlooker
onlooker's picture

The State of California vs Bank of America is a powerful Socialist State Dictatorship vs the Robber Barron Bank who helped destroy this Nation.

 

It is Evil against most Evil. I doubt the California citizen will be the beneficiary. But, in that there is a study in California to form a State owned bank giving access to the Fed window and a mono control of all state activities including state wage deposits and issuing paper to cover debt payment--- the idea of some sort deal to grab BofA assets or organization or merger is certainly attractive to the socialist mind.

 

The old adage that Socialism works well until you run out of the other guy’s money may ring true. California has run out of the other guy’s money and run many money guys off to other places. With half a trillion $ negative in the Calpers retirement and all the other problems, coupled with the retread/retard leadership, California certainly needs $.

 

The pity is that any side deals will not be known. And side deals there will be.

Sat, 10/01/2011 - 13:19 | Link to Comment PulauHantu29
PulauHantu29's picture

Cali RE will drift 40-50% lower if you can even sell your house with a clouded title like this, soaring unemployment, massive trade deficits, and the fact "no one wants to buy a house" anymore.

 

Sat, 10/01/2011 - 13:52 | Link to Comment RSloane
RSloane's picture

That's what I was thinking. In the mostly-appropriate frenzy of 'fuck the banks' the end result may not be what people hope it to be. The banks will lose trillions, yes. The end result for the people will be individuals stuck with their own monstrosity whose ownership prohibits their mobility to seek jobs elsewhere. In the end, large tracts of housing developments in California are going to look like downtown Detroit. People who bought and paid for their homes will watch their property values deteriorate further. Not to mention that they will be living jeek by jowl with homes that have long since been either abandoned or look abandoned because the property owner cannot afford to maintain it. This is not going to end well for anyone. 

Sat, 10/01/2011 - 13:29 | Link to Comment Golden Boy
Golden Boy's picture

This is getting boring. I want to see some carnage before the open on monday.

Sat, 10/01/2011 - 13:42 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture
The Federal Reserve is neither Federal nor a "Reserve". This private bank run by the "Bank of England" has been stripping the US of its assets since the days of Andrew Jackson.  If the $16,000,000,000,000.00 given away secretly, since 2007, to the member banks isn't reason enough to overhaul our entire government financial system then our country is doomed to financial failure. You won't read this in the mainstream media....but it may emerge in the coming elections. Read about this first ever audit of the Fed and understand why we are in such trouble.  Tuesday, September 27, 2011 First Ever GAO Audit Of The Federal Reserve

(You can click on the site and read the report).

The first ever GAO audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke, Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve nearly 100 year history were posted on Senator Sanderâs webpage earlier this morning.

sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3   (Summarized below)

What was revealed in the audit was startling:

$16,000,000,000,000.00 (TRILLION) had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the worldâs banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.

Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs. To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is only $14.5 trillion.


The budget that is being debated so heavily in Congress and the Senate is only $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world. In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. 
That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion. ****

 

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self-identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

 

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super-corporations like Halloween candy.

 

The list of institutions which received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows:

Citigroup: $2.5 trillion($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion* ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)

 

IT WILL BE INTERESTING AS TO HOW MUCH ATTENTION (AS WELL AS THE SLANT) THE MAINSTREAM MEDIA GIVES THIS UNBELIEVABLE POSITION OF OUR GOVERNMENT HAS PLACED US IN WITH NEVER PREVIOUSLY HAVING AN AUDIT OF THE FEDERAL RESERVE.

I AM CONFIDENT THAT WE WILL HEAR SOMETHING LIKE THE FED HAD TO GIVE STIMULUS TO WHOM THE $16 TRILLION WENT TOO BECAUSE IF WE HAD NOT ALLOWED THIS IT WOULD BE THEIR COLLAPSE AND THE OURS.

HAS ANYONE EVER HEARD OF CLOWARD AND PIVEN ECONOMICS? (PARAPHRASING) IT INVOLVES TWO HARVARD PROFESSORS WHOSE BOOK SAID TO CHANGE ANY GOVERNMENTâS ECONOMIC SYSTEM INTO A SOCIALIST ONE, IT SIMPLY DRIVES THEIR ECONOMY INTO THE DITCH THEN THE CITIZENS ALLOW THE GOVERNMENT TO DO WHAT THEY WISH TO SAVE THEM


Good news - banks have already sucked the life out of the USA through the FED - free money, zero percent, and the American tax payer is on the hook for all of it. Gutted like a fish for dinner - no wonder they are looking at China next - we're done. Bank bar b q anyone?  

Sat, 10/01/2011 - 15:13 | Link to Comment Newsboy
Newsboy's picture

Hi -Yo Silver...

Long, but no rant.

Sat, 10/01/2011 - 14:30 | Link to Comment dizzyfingers
dizzyfingers's picture

More shit sandwiches coming up. Had enough yet?

Sat, 10/01/2011 - 15:33 | Link to Comment snowball777
snowball777's picture

Keep in mind that this isn't 48/2....California is the giant gorilla in the room, especially for the proud owners of CountryWide (that's how we'll spread ya) as the preponderance of the fucked morts came from Cali.

This is absolutely game over for any kind of broad (pun!) settlement that would go in the banks favor; I wouldn't rule out Kamala merely playing hardball so that she can collect some "AG subsidies" alone instead of in tandem though. She's got her eye on Sacramento and this serves both as feather in cap (does it have to be true?) and huge leverage with would-be "donors" for her next race.

 

Sat, 10/01/2011 - 15:37 | Link to Comment tkinfo
tkinfo's picture

Works for us since our hedge fund has remained 50% short the major money center banks and brokers beginning in December 2007. I can only hope that, like Citibank, BofA falls below $5 a share and then does a 10 to 1 reverse split so we can build our short position even more.

http://www.thebeareconomy.com

 

Sat, 10/01/2011 - 22:26 | Link to Comment snowball777
snowball777's picture

That's a really long time to hold your breath.

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