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View Diary: New York Attorney General Kicked Off Government Group Leading Foreclosure Probe (390 comments)

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  •  Site? Right here, freedom of speech in action (28+ / 0-)

    Obama is definitely urging a "quick solution" to get a 30 billion dollar pot to bandaid many former homeowners not helped by HAMP or other one shot agency efforts to patch up the foreclosure crisis.

    Only there are 3 million more foreclosures  in the pipeline, and at the rate of 1.5 to 2.0 million more to come each year will be far worse in total by 2013.

    The basics of the corruption which involved thousands of mortgage brokers, collusion between the largest banks and ratings agencies, inspectors, appraisal firms, bond rating firms,  and captive or satellite real estate firms and industry associations to pump up prices and take advantage of prospective buyers is many times worse than the S & L crisis of the 80's.  After investigations and referrals, that resulted in a thousand white collar criminals including actual bankers and CEO's going to federal prison.

    Schneiderman is using NY's strict laws of financial wrongdoings as a tool  to do what the Obama/Holder DOJ refuses to do with less than a dozen minor figures in the banking/mortgage industry brought up on charges in the past three years.

    totally unacceptable. the push for''immunity" and a deal to save the banks receiving trillions from the treasury department at the pittance of an absurdly low $30 billion as hush money is outrageous and borders on collusion with criminality and corruption.

    The bankers have in effect, stolen hundreds of billions for their own slice of the business. now at an average of 5 billion each they make the investigations and plea deals and future litigation for recovery go away.

    First the get out of jail free card, than immunity from defrauded and harmed consumers, homeowners, bond purchasers.

    Cheney Bush got "Looking Forward" smooches.

    Now Goldman Sachs, B of A, Citi, and the rest will get them too.  Lot of sore lips in that Administration these days.

    Iowa's Miller?  A tool, a complete tool.  Who is he on a mission to help?  What does Iowa get out of it?

    If Obama is serious about this he would ask for a special prosecutor taskforce with 50 state participation and regional investigations.  He wants to wind it down, not clean it up and out.  He needs the banks on his campaign donor list, FIRE, right now more than cleaning out the criminally deficient mess they made.   that is as frustrating as anything to getting the right thing done.

    •  You Are Absolutely Correct (14+ / 0-)

      The banks are not trying to settle claims of fraudulent forclosure for $20-30 billion.

      Instead, they want an overbroad settlement, where they will no be liable for any actions related to the entire mortgage crisis, in exchange for their money.    

      But, think about this.  The phoney forclosure issue is the snowball that could cause a financial avalanche destroying our most powerful banks.

      The snowball--The only reason a mortgage servicer would provide phoney documents to a court to forclose on a homeowner is that they do not have any proof that they have the right to forclose.  The mortgage servicers used fraudulent documents because without fraudulent documents, they cannot show they have the right to forclose.

      The avalanche Each and every one of the hundreds of billions of dollars in mortgage backed securities proclaimed that holders of the security had the right to forclose on the borrowers.  

      However, the fraudulent forclosure cases show that this claim is false.
       Because of sloppy paperwork and corner cutting by the mortgage industry, morgtage backed securities purchasers don't have this right.

      Thus, each and every one of those mortgage backed securities were fraudulently sold.  Purchasers of these moprtgage backed securities have the right to get their money back from the sellers who misrepresented the claim that the mortgage holders could be forclosed upon.  Like I said, hundreds of billions of dollars would need to be refunded from our largest banks. And our largest banks would fail because they simply don't have this type of money to pay back bond purchasers.

      What isn't being said is that the banking industry really wants to buy immunity for selling fraudulent bonds, and doesn't much care about the fraudulent forclosures.  Because the mortgage backed securities were formed under New York trust law, the banksters need the NY AG to give them blanket immunity for all mortgage related wrongdoing, under the guise of giving them immunity for fraudulent forclosures.

      btw--There is no evidence that the state AGs investigated shit about the banks.  This isn't an investigation panel.  Instead, its a settlement-whitewash panel.  As the NY AG isn't going to go along with the settlement-whitewash, he was booted off the panel.

       

      •  Great comment! Perfectly summarized. (4+ / 0-)
        Recommended by:
        TimmyB, BeeDeeS, dkmich, tote

        An broad-as-possible immunity deal is really an existential need for the banks.  

        Sumud muqawim. Unadikum. Salaam.

        by Terra Mystica on Wed Aug 24, 2011 at 12:46:52 PM PDT

        [ Parent ]

      •  Two broad areas of criminal corrupt practices, (5+ / 0-)
        Recommended by:
        TimmyB, LillithMc, dkmich, neroden, lotlizard

        one is the zeal and push by the largest banks, the "NY Five" to outdo FannyMae and Feddy Mac and securitize for themselves all those juicey loans that the two GSE's were combining under the guidelines that have existed for good reasons and were NOT off the books, beyond regulators reaching  pyramid schemes  that dwarfed Bernie Madoff's.

        The banks took a legitimate business and blew it up.

        Many smaller associates jumped in and to garner added business and pleasure the banks strategy, went for illegal and corrupting practices to win and keep the bank's new bubble businesses.

        There are large predators and small fry by the thousands who did criminal acts knowingly and in collusion.

        Where are the RICO referrals?  The DOJ is trying to come up with the continuation of the sleaze and decay of the Bush 2 Justice department, to substitute as many "deferred prosecutions and slaps on the wrist and stern lectures as they can to avoid putting white collar millionaires and billionaires in jail.

        Madoff was a distraction, a Ponzi schemer who succeeded with a corrupt SEC for over 20 years.

        The DOJ can't even figure out who in the government agencies should be investigated, let alone prosecuted.

        Letting Bush off the hook meant junior crooks like a Christopher Cox, former congressman (R) on whose SEC watch Madoff made his billions and was asked FOUR TIMES to investigate and refused get to skate free as a -vulture- bird.
        COX had Madoff's son in law as his top forensic investigator and in charge of enforcement!  For years and years!

        Speaking of corruption (we remember the AG scandals were certain ones were framed and driven out of public life beyond a simple resignation for political reasons but as bad........

        How many career DOJ people were in on the coverups and "go slow" or not at all when evidence of financiers 'criminality was presented?  How much political or very big money was brought to bear on Justice so nothing gets done? We don't know except for whistleblowers and we know how much this White House just loves whistleblowers!  Making hardships for their BEST donors!

        Meanwhile we have to six to seven million families thrown out of their homes and any equity they had vanished while the poor suffering banks get a 1.2 trillion line of credit or direct infusion from the Fed.  The Treasury is backstopping those same banks even as they sit quietly allowing the horror show to rumble on.  No workouts, just accelerated foreclosures on a very fast track to keep the banks CDO/CDS humming. Except it crashed anyway.  What about the phoney workouts the banks are doing to get around the good faith efforts to work  out and keep people in their primary homes? Where is the DOJ?  (Crickets, chirp, chirp).

        They need this "fixed".

        Not prosecuted or corrupt practices changed. Who agreed to this?

        If we don't have at least ONE honest prosecutor, we get zilch for answers and even less for justice-we get much more of the same.

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