Bank Of America foreclosure fraud

17 Oct

The Devastating Report On Bank Of America That Everyone Is Talking About

Posted by Foreclosure Fraud on October 17, 2010 · 3 Comments 

Full report below, but first some background…

First from Business Insider…

Here’s That Devastating Report On Bank Of America That Everyone Is Talking About Today

Editors note: This was originally published yesterday, but continues to get plenty of attention today, and was just referenced by David Fasber on CNBC. Without further ado...

Earlier, we wrote about Felix Salmon’s contention that there’s a new mortgage fraud scandal that has the potential to dwarf Goldman’s ABACUS dealings. In this fraud scenario, banks took advantage of their information advantage and sold CDOs with mortgages they knew to be bad without clear representation to investors.

In August, Manal Mehta and Branch Hill Capital put together a presentation targeting Bank of America’s potential exposure to this mortgage fraud, as well as other problems in the mortgage market.

The presentation comes to a pretty damning conclusion: Bank of America’s exposure could nearly halve its share price.

Read more: http://www.businessinsider.com/bank-of-america-mortgage-report-2010-10#ixzz12dvMtRAf

Then we have the spin zone…

CNBC

Sorry Folks, The Put-Back Apocalypse Ain’t Gonna Happen

You should probably be a buyer of Bank of America right now.

But Bank of America’s recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen.

Why not?

Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.

Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.

There’s a big difference between the financial crisis of 2008 and the new crisis. In 2008, banks were destabilized by the growing realization that they were over-exposed to the real estate market. Huge portions of their balance sheets were committed to mortgage-linked investments that were no longer generating the expected revenues or producing losses. That was a problem of economics that could only be solved by recapitalizing banks or letting some of the biggest banks in the U.S. fail.

The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.

So here’s what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it.

You can check out the rest of this along with comments here…

If the latter is what comes to be, am I terrified on what the repercussions will bring…

There will be no rule of law left in America.

If wall street does not have follow the law, why should main street?

We are in critical times here folks…

Oh, and one more thing.

How do you defraud the investor without defrauding the borrower?

They were both sold an empty box…

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4 Responses to “Bank Of America foreclosure fraud”

  1. 0321_GUY October 17, 2010 at 6:07 pm #

    I’m not sure what law school your staff atturns went to or your outside legal researchers went to but they sure do need to go see Pearl Vision ricky tic.

    The Constitution For The United States.

    Article I

    Section 9

    No bill of attainder or ex post facto Law shall be passed.

    There is a little problem CON-gress will have with this and that is Article I section 9.

    They can’t pass an ex post facto law to remedy this mess
    notwithstanding the State constitutions and State Mortgage/real estate laws.

    This mess is a States rights issue not a federal issue,

    AND THIS IS THIS IS SETTLED LAW, Res Judicata [A matter already judged], so not even the States/states can come in and change a mater that is Res Judicata!

    U.S. Supreme Court
    Carpenter v. Longan, 83 U.S. 16 Wall. 271 271 (1872)
    Carpenter v. Longan
    83 U.S. (16 Wall.) 271

    “”The note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity.””

    When the Note is separated from the Deed of Trust it creates a fatal flaw and this is called bifurcation. Bifurcation is not illegal but it does have a tremendous consequence and that is a VOID Deed of trust. IF the Deed of trust is VOID then NO PARTY has CAPACITY let alone STANDING to foreclose. The banks are screwed and they know it. All that is left is to wait for the coals to get hot to roast the weenies and smoars.

    Back to CON-gress, CON-gress can not come in and pass arbitrary laws that circumvent State laws and State constitutions.

  2. J Glenn Lowe October 28, 2010 at 9:38 pm #

    EVERYONE TELL OBAMA TO CRASH THE BIG BANKS NOW!

    The Fed and their complicit banks must be abolished to save the Republic!

    It’s the only thing we can do. CRASH THE BIG BANKS NOW “Too Big Too Fail” apparently means “Too Big To Succeed” and “Too Big for their own Wallets”

    The sooner the better. Why don’t we ask a 3rd grade math student what he thinks? The real problem is that a politician who could do something about it has his own mathematical challenges about healthy economies. “Bite the hand that feeds him” (by indicting Banksters), or make millions putting children in the streets for power and profit.

    Apparently ALL politicians are going to make the same choice over and over again. They have always sold the souls of your children and their future and they always will. Take the big Banksters out of the picture. Build a local banking system that cares about its community and helps it thrive instead of sucking the life out of it by bribing and fixing the entire system for itself, taking us all of a cliff with it.

    Crash all the big banks now. Create new local Banks only = No more Wall Street Banksters.

    Problem Solved!

    J Glenn Lowe

    Die Banker Die – A Tribute to the Wall Street Banksters that suck the life from all of us and our economy just to get a nice Christmas Bonus – http://www.youtube.com/watch?v=YGFZ1Jj3ui8

  3. michaelgrimes November 26, 2010 at 5:54 pm #

    Bank of america , jp morgan , wellsfargo and so on . Haven’t contacted me yet . Are they waiting on the real president owner to passway . Got to be , that cause , nobody haven’t email or call me yet . I’ve I have a united financial mortgage corp account in my bank of america account , nobody called me back on that ,nether ! This a trash can load of crap . Why haven’t the law arrested these folks , and why want they make them give me my paper these folks took out my office ,on sharon st sw of atl ga .why didn’t they try rob my granddaddy s , a .p gannini , and his dad jpmorgan , why citzen bank ,and alliance bancorp me .

  4. a p giannini / mg February 4, 2011 at 12:16 pm #

    I own bank of america , and united financial mortgage corp , theves get out of my companies , all of u . I don’t need none of u . That’s includeing wellsfargo and chase with citi group too .treating my clients like trash . Yall the trash the ceo and the board . Get out pest ,

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