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View Diary: William K. Black to FDIC/Obama: Stop the Friggin Fraud (178 comments)

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  •  No, but three people were. (3+ / 0-)
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    Angie in WA State, Geekesque, shrike

    And those three stories are making the rounds so frequently that many people think that all or most of the hundreds of thousands of defaults are not defaults at all but rather a case of fraud on the part of banks. Nevermind the simple fact that banks LOSE money on every one of these; for some reason people are convinced that banks want to go through the time and expense of taking our houses so they can sell them at a huge loss. That does not make sense, and is not what is happening.

    The sooner we can process the foreclosures on borrowers who cannot pay (and cannot or will not modify), the sooner we can get our country back on track economically.

    I'm in the I-fucking-love-this-guy wing of the Democratic Party!

    by doc2 on Fri Oct 22, 2010 at 03:45:30 PM PDT

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    •  It does not make sense but that is what the banks (2+ / 0-)
      Recommended by:
      Badabing, nippersdad

      are doing.  They cannot modify the loans because they don't have the documentation.  They thought they could defraud the courts and push these through so that the investors wouldn't get wise and push the bonds back on them.  If they pushed the bonds back, the banks would have to come up with money they don't have.  That is what this whole thing boils down to.

      "When fascism comes to America, it'll be wrapped in a flag and carrying a cross." Sinclair Lewis

      by lakehillsliberal on Fri Oct 22, 2010 at 04:27:06 PM PDT

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