Won't happen. We'll get billed, and billed more.

I wonder if the law firms getting paid were connected to the same lobbyists that were bribing Congress over FAnnie and Freddie..............

No shortage of work for lawyers. Litigation bubble?

Maybe it's because I have been around for a while, but I just don't believe any thing is going to change in my lifetime.

This fraud, that fraud, banksters and other bad stuff will just go on and on. It is hard to imagine, no matter the anger and frustration posted here, that anyone is going to do anything.

The reason is simple. No majority of voters in this country cares. Do you recall a time when heads would roll with an U3 rate of 10%? Now, it is just one big yawn. Congressional hearings on the matter? Who is having a hearing related to any of this fraud? Anyone?

The way I see it, things are just going to grind along for the next several decades. Folks will make money scamming the taxpayer and others will make money writing blogs about how horrible it all is.

But in the end, same old same old, the status quo will rule. I am frustrated but resigned.

'I just don't believe any thing is going to change in my lifetime.'


Traderd9, with all due respect, i hope you're really old. i hate to think we've devolved into another 'society of lies'.

Quote:

No majority of voters in this country cares.

And you cannot get a majority of voters to agree on anything. At all. Period.

It's gonna change alright and soon. Your just not gonna like the "change".

All I'm gonna have left is change.

A fortune to the person who discovers how to affordably turn actual pennies into bullets and casings...

I am not optimistic that your entirely reasonable suggestions - as in, cutting Fannie/Freddie off the public teat (can you imagine the delicious howls of whiny protest from Bawney Fwank to even a hint of such a suggestion?) and thereby exposing the MBS bagholders to negative exposure - are going to feature in The Teleprompter's SOTU farce tomorrow.

It's a joke, but of course the joke is on us.

I sometimes think that we are on the brink of a catastrophic reset...then I think of the Soviet Union, and how dysfunctional it had to get before it finally collapsed. IMHO, we could blow tomorrow, or we could sputter along for decades, becoming more irrelevant and impoverished than we ever thought possible...

"All I'm gonna have left is change."


AND HOPE DON'T FORGET "THE HOPE" :)


if not soon when -- if not you who???

Hopey and folks.

I wonder how much the taxpayers are paying for AIG's legal fees.

Quote:

I sometimes think that we are on the brink of a catastrophic reset...then I think of the Soviet Union, and how dysfunctional it had to get before it finally collapsed.

It's hard to imagine a more DYSFUNCTIONAL regime than the current US government. Our Founding Fathers must be tearing their hair out while rolling in their graves when they see what a pathetic travesty this once great nation has become.

Should'nt I have to get some kind of notice before I help pay to defend someone?
Oh wait here it is. Bend over, squeal, grunt and receive no reach around.

Nah, they are just laughing at the circus, they wouldn't lift a finger toward the clown car this place has become.

land of the fraud and home of the lazy.

They used the term good old boys network to describe the game in the south years ago. Well, they have a good old boys networks, but it is Eastern Ivy League. The chain is long. Mr. Raines, Harvard. Mr. Obama, Harvard. Ms. Clinton, Welsley. Mr. Clinton, Oxford. Bush I & II, Yale, Skull and Bones. Where do you stop? I think the old saying from Laurel and Hardy is, "This is a fine mess you got me into this time Stan".

The link the administration has to these guys is up the ass and out the nose, through and through. Raines was a Wall Street guy, pretty uncommon for a black guy his age, as was his attendance at an Ivy League school. He also ran FNMA, bankrolled Obama and the Congressional black caucus and said ahead of time he was going to blow a huge mortgage bubble in a speech he made to the MBA in 2001. The wealth effect on Wall Street and mainstreet had taken a huge hit and a mortgage bubble was a welcome sight. The government, Wall street and FNMA were blowing each other. They still are.

Government officials can be sued. It is in title 26 that you can sue an IRS agent. A lot of public officials carry E&O insurance. IF we are talking about mistake or negligence, the official should pay. If we are talking fraud, the FBI should pay a visit. More than likely, what is being paid is another big Wall street bonus.

Just to put an exclamation point on this - but fraud by Phoney and Phreddie masked the frauds in mortgage originations. So, here we have taxpayers, paying the legal costs of the leaders of quasi-governmental businesses, while the business these entities conducted was arguably robbing the very same American taxpayers. This is the functional equivalent of the U.S. providing the very best legal service available to Al Capone. Does anyone here remember the sentence meted out in Communist China for the owner of the factory that put melamine into baby formula? I don't want to have to live in Communist China to enjoy the rule of law.

On the other hand, if the U.S. spent $150 million prosecuting these gents, why then I would see that as money well spent. Hell, we'd toss a party.

This is the real racket from Zerohedge:

The solution to the ongoing fraudclosure fiasco is so simply and yet so brilliant (in a way that benefits the banks naturally) is so brilliant, that it has to date evaded most... but not all. The solution: just shred it all. That is what insolvent mortgage lenders Mortgage Lenders Network USA and American Home Mortgage are pushing hard to get permission from their respectively bankruptcy judges in their chapter 7 liquidation cases. Says Reuters: "Federal bankruptcy judges in Delaware are due to hold separate hearings Monday on requests by two defunct subprime mortgage lenders to destroy thousands of boxes of original loan documents. The requests, by trustees liquidating Mortgage Lenders Network USA and American Home Mortgage, come despite intense concerns that paperwork critical to foreclosures and securitized investments may be lost." With servicer banks increasingly unable and unwilling to provide the original lender docs (since they don't have access to them) to parties curious in seeing if there is a legal case to continue paying their mortgage, what better solution than to have the banks retort that the original document was sadly destroyed in a court-appointed shredding. In that way all the fraud canaries are killed with one stone, and the party responsible is none other than some bankruptcy judge who had given the go ahead for the wholesale destruction. And since we are not talking peanuts, in the case of MLN it comes to 18,000 boxes of records, while in the AHOM case it is just over 4,000 boxes, we wonder just how many other originators have gotten a comparable idea from the banks, and are currently busy shredding every last detail of an original mortgage note. Good luck trying to convince anyone that the bank is not in possession of a mortgage that was "purposefully" destroyed as part of a company's liquidation proceedings. Soon to follow: the burning of all books and the banning of all websites that dare to claim this is nothing but pure, grade-A criminal destruction of evidence.

More from Reuters on this stunning development:

In the Mortgage Lenders case, the U.S. Attorney in Delaware has formally objected to the requested destruction because loss of the records "threatens to impair federal law enforcement efforts."

The former subprime lender shut down in February 2007. In a January 6, 2010, motion, Neil Luria, the liquidating trustee, asked Bankruptcy Judge Peter J. Walsh for permission to destroy nearly 18,000 boxes of records now warehoused by document storage company Iron Mountain Inc.

In the American Home Mortgage case, the liquidating trustee, Steven Sass, has asked Bankruptcy Judge Christopher Sontchi to approve destruction of 4,100 boxes of loan documents stored in a dank parking garage beneath the company's former headquarters in Melville, Long Island.

AHM had been one of the biggest originators of subprime loans until it abruptly collapsed and closed in August 2007. The boxes are the last still held by AHM. Sass stated that the local fire marshal wants the documents removed as a fire hazard, and he said the cost of moving them would be prohibitive.

The reason cited for this scandalous request: warehousing costs:

Luria stated that destruction is necessary to eliminate $16,000 per month in storage costs as he disposes of the last assets of the bankrupt company.

This is akin to the Fed terminated the reporting of the M3 due to the exorbitant costs associated with keeping track of a few data series...

And, not surprisingly, we find that some have already been going through with document shreeding for a long time already:

In accordance with a 2009 court order, the bankrupt company earlier had destroyed the contents of thousands of other boxes after banks and other loan servicers had been given a chance to request and pick up particular files.

Gee, we wonder why the banks opted out of picking up files confirming they are not the proper servicer on thousands of mortgages.

And in conclusion:

In court documents, Sass stated that most of the records AHM still has in storage relate to mortgages issued more than eight years ago. He also said that employees had searched the files and pulled out all vital original records, such as promissory notes, and had handed them over to the appropriate mortgage servicers, and that most of the documents had been electronically imaged and retained in a database.

But people involved in winding down AHM's affairs say that neither the contents of the boxes or the database have been audited, and that it's possible the boxes still contain crucial documents such a promissory notes. Investors must have the original promissory notes, not copies, to be able to foreclose.

The take home message: should the bankruptcy court side with the liquidation trustees, Neil Luria and Steven Sass, who without a doubt have had extended discussions with the current batch of TBTFs which will be hung out to dry if the fraudclosure issue is further prosecuted, then it is safe to say that any claim that America has a fair and impartial judicial system can follow the last hopes of Emanuel's mayoral campaign dream right out of the window.

In private industry, E & O (errors and omissions) coverage is purchased for its officers through an insurance company. I'm unclear why Fannie and Freddie chose to self-insure, unless they were unable to purchase coverage. Criminal acts, including fraud if I am not mistaken, are excluded from E & O coverage. In most private industry if officers commit fraud, employers hang the offenders out to dry. Only in the financial sector is fraud sanctioned.

Bigbluffer wrote..

Only in the financial sector is fraud sanctioned.

Which, in terms of consequences, is the absolute worst sector in which to allow fraud to occur.

One lesson that the last American generation that faced a depression learned, was that the financial sector was too key to the real economy to allow it to be gamed in any way shape or form -- by means legal or illegal.

It was a lesson that they embodied in law by Glass-Steagall, for instance. But unfortunately, that generation has passed. While this generation (like all before) thinks, "This time it's different!"

No it's not.

911 whats the problem?
Help I was robbed!
We will send someone right over. Please stay on the line. What is your name mam?
My name is Fanny.
O K mam the officer is there.
OK mam my name is Timmay. Are you ok?
Oh im fine but they took all the money!
Do you have insurance?wink wink
Yes.wink
How much was taken? Its all going to be given back mam?
Well um does 700T $ sound like to much?wink
OK mam I will cut you a check right now.

Jstanley01 wrote..

One lesson that the last American generation that faced a depression learned, was that the financial sector was too key to the real economy to allow it to be gamed in any way shape or form -- by means legal or illegal.

It was a lesson that they embodied in law by Glass-Steagall, for instance. But unfortunately, that generation has passed. While this generation (like all before) thinks, "This time it's different!"

No it's not.

+1000

Some people always retort, "well it's always been gamed". Bull****. Not nearly to this extent. What's worse is now EVERYTHING has to be gamed because of this ****storm, from the government on down to the small businessman. This is a FRAUD bubble.

ZH:

Quote:

The solution: just shred it all.

Or wipe it. But that could never happen. Right?

Great article...again. Another 20 things that should infuriate you:

http://tinyurl.com/45jabvx