Goldman Sach is behind it all! Wall Street Destroyed Main Street for their own purposes! I am starting to LOVE Jesse Ventura - He really is looking for the FACTS!
Showing posts with label Wall Street Fraud. Show all posts
Showing posts with label Wall Street Fraud. Show all posts
Wednesday, November 10, 2010
Wednesday, October 20, 2010
Interesting Perspective - George Washington Blog - A Mortgage of $300,000, is Worth 9 Million Defaulted and Foreclosed On with the MERS Banks!
George Washington Blog has an article up on ZeroHedge, saying a Mortgage of $300,000 taken out is Worth 9 MILLION To the Banks when it has Defaulted and Been Foreclosed On, due to how the Derivatives and credit default swaps are set up.
Portion:
But there might have been another reason that loaning to borrower who couldn't repay was the prevalent business model.
As foreclosure expert Neil Garfield notes, mortgages are worth a lot more if they default than if they perform.
Specifically, a mortgage worth $300,000 if the homeowner repays in full might be worth $9 million to the various owners of synthetic cdos and credit default swaps if the owner defaults.
We know - as alleged by the SEC:
But Garfield says that it is broader than just a couple of investors like Paulson and Greene. He believes that was basically the business model for the entire mortgage industry.
He said that the big banks that packaged mortgage backed securities had an incentive to suck in really bad mortgages. If a certain percentage of the mortgages default, the cdo and cds side bets pay many times more than the actual mortgage could possibly pay.
This is yet another nail in the coffin, as far as I am concerned and explains the Goldman Sachs people laughing about their "shit mortgage funds" they were selling and then shorting! It also explains WHY all the Big Wall Street Firms have MADE Money this year while those they advice have Lost Money this year, due to their advice.
They Sell junk purposely and created mortgages purposely to Fail in packages just so they could short and bet against them! The evil that I thought I knew of the Wall Street banks, is no where close to the evil they really are! They will go against homeowners and investors for their idolizing the Paper of a Dollar!
Portion:
But there might have been another reason that loaning to borrower who couldn't repay was the prevalent business model.
As foreclosure expert Neil Garfield notes, mortgages are worth a lot more if they default than if they perform.
Specifically, a mortgage worth $300,000 if the homeowner repays in full might be worth $9 million to the various owners of synthetic cdos and credit default swaps if the owner defaults.
We know - as alleged by the SEC:
Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure.Paulson also advised Los Angeles apartment mogul Jeff Greene to do something similar. Greene was heavily involved in the subprime market, and he bought the worst of the mortgage backed securities, and then bet against the bonds using CDS.
But Garfield says that it is broader than just a couple of investors like Paulson and Greene. He believes that was basically the business model for the entire mortgage industry.
He said that the big banks that packaged mortgage backed securities had an incentive to suck in really bad mortgages. If a certain percentage of the mortgages default, the cdo and cds side bets pay many times more than the actual mortgage could possibly pay.
This is yet another nail in the coffin, as far as I am concerned and explains the Goldman Sachs people laughing about their "shit mortgage funds" they were selling and then shorting! It also explains WHY all the Big Wall Street Firms have MADE Money this year while those they advice have Lost Money this year, due to their advice.
They Sell junk purposely and created mortgages purposely to Fail in packages just so they could short and bet against them! The evil that I thought I knew of the Wall Street banks, is no where close to the evil they really are! They will go against homeowners and investors for their idolizing the Paper of a Dollar!
Sunday, October 10, 2010
Saturday, October 9, 2010
Biggest FRAUD In History of Capital Markets - BANK MORTGAGE FRAUD! MERS!
This Article says IT ALL!
Ezra Klein: What’s happening here? Why are we suddenly faced with a crisis that wasn’t apparent two weeks ago?
Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met. In the past, you had a certain period of time, 60 to 90 days, where you sort through these loans and, if they’re bad, you kick them back. If the documentation wasn’t correct, you’d kick it back. If you found the incomes of the buyers had been overstated, or the houses had been appraised at twice their worth, you’d kick it back. But that didn’t happen here. And it turned out there were loan files that were missing required documentation. Part of putting the deal together is that the securitization professional, and in this case that’s banks like Goldman Sachs and JP Morgan, has to watch for this stuff. It’s called perfecting the security interest, and it’s not optional.
EK: And how much danger are the banks themselves in?
JT: When we had the financial crisis, the first thing the banks did was run to Congress and ask for accounting relief. They asked to be able to avoid pricing this stuff at the price where people would buy them. So no one can tell you the size of the hole in these balance sheets. We’ve thrown a lot of money at it. TARP was just the tip of the iceberg. We’ve given them guarantees on debts, low-cost funding from the Fed. But a lot of these mortgages just cannot be saved. Had we acknowledged this problem in 2005, we could’ve cleaned it up for a few hundred billion dollars. But we didn’t. Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one.
EK: My understanding is that this now pits the banks against the investors they sold these products too. The investors are going to court to argue that the products were flawed and the banks need to take them back.
JT: Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It’ll be a case-by-by-case basis.
EK: Given that our financial system is still fragile, isn’t that a disaster for the economy? Will credit freeze again?
JT: I disagree. In order to make the financial system healthy, we need to recognize the extent of our losses and begin facing the fraud. Then the market will be trustworthy again and people will start to participate.
EK: It sounds almost like you’re saying we still need to go through the end of our financial crisis.
JT: Yes, but I wouldn’t say crisis. This can be done with a resolution trust corporation, the way we cleaned up the S&Ls. The system got back on its feet faster because we grappled with the problems. The shareholders would be wiped out and the debt holders would have to take a discount on their debt and they’d get a debt-for-equity swap. Instead we poured TARP money into a pit and meanwhile the banks are paying huge bonuses to some people who should be made accountable for fraud. The financial crisis was a product of our irrational reaction, which protected crony capitalism rather than capitalism. In capitalism, the shareholders who took the risk would be wiped out and the debt holders would take a discount but banking would go on.
This of course is about MERS mortgage FRAUD!
Article:
Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met. In the past, you had a certain period of time, 60 to 90 days, where you sort through these loans and, if they’re bad, you kick them back. If the documentation wasn’t correct, you’d kick it back. If you found the incomes of the buyers had been overstated, or the houses had been appraised at twice their worth, you’d kick it back. But that didn’t happen here. And it turned out there were loan files that were missing required documentation. Part of putting the deal together is that the securitization professional, and in this case that’s banks like Goldman Sachs and JP Morgan, has to watch for this stuff. It’s called perfecting the security interest, and it’s not optional.
EK: And how much danger are the banks themselves in?
JT: When we had the financial crisis, the first thing the banks did was run to Congress and ask for accounting relief. They asked to be able to avoid pricing this stuff at the price where people would buy them. So no one can tell you the size of the hole in these balance sheets. We’ve thrown a lot of money at it. TARP was just the tip of the iceberg. We’ve given them guarantees on debts, low-cost funding from the Fed. But a lot of these mortgages just cannot be saved. Had we acknowledged this problem in 2005, we could’ve cleaned it up for a few hundred billion dollars. But we didn’t. Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one.
JT: Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It’ll be a case-by-by-case basis.
EK: Given that our financial system is still fragile, isn’t that a disaster for the economy? Will credit freeze again?
JT: I disagree. In order to make the financial system healthy, we need to recognize the extent of our losses and begin facing the fraud. Then the market will be trustworthy again and people will start to participate.
JT: Yes, but I wouldn’t say crisis. This can be done with a resolution trust corporation, the way we cleaned up the S&Ls. The system got back on its feet faster because we grappled with the problems. The shareholders would be wiped out and the debt holders would have to take a discount on their debt and they’d get a debt-for-equity swap. Instead we poured TARP money into a pit and meanwhile the banks are paying huge bonuses to some people who should be made accountable for fraud. The financial crisis was a product of our irrational reaction, which protected crony capitalism rather than capitalism. In capitalism, the shareholders who took the risk would be wiped out and the debt holders would take a discount but banking would go on.
Friday, October 8, 2010
Explaining the FRAUD of MERS at Seeking Alpha by Jeff Nielson - Says DO NOT BUY A FORECLOSURE - No Title Records! Excellent Article - Must Read
Must Read! EXCELLENT ARTICLE
Jeff Nielson wrote an article on Seeking Alpha. He explains the Whole Fraud of MERS by the Wall street Banks. He warns against buying Foreclosures!
Portions:
Jeff Nielson wrote an article on Seeking Alpha. He explains the Whole Fraud of MERS by the Wall street Banks. He warns against buying Foreclosures!
Portions:
Readers must understand how our legal systems operate. A party which has defective title to a property (i.e. the Wall Street banks) can never pass "good title” to any buyer. From the time that defect is created, no subsequent buyer can ever own that home, legally. Should that defect be discovered – several years later – by the original owner, that owner then has several more years in which to file a claim (based upon our limitations statutes).
If the original owner can demonstrate that he was stripped of his title through one of these millions of acts of Wall Street fraud, the original owner must and will be awarded clear title to that property, without one penny of compensation to the new owner.
The most-obvious warning siren applies to foreclosure sales. Previously seen as a way to get a cheap home, it now appears more like a way to buy a home with a ticking-bomb inside it. No one in the U.S. should consider purchasing a foreclosed property without conducting extensive research on its title.
Much of this additional uncertainty can be attributed to the Wall Street creation known as “MERS”. This private company was created by Wall Street to attempt to bypass established legal procedures for financial companies to hold and transfer mortgages. The Wall Street fantasy was that any one of the Oligarchs could submit a file to MERS, claiming rightful title to a particular property, and have MERS rubber-stamp that title.
When the housing-bubble created by Wall Street imploded (and the real fun began for the Oligarchs), they expected to be able to waltz into foreclosure courts, show the judge their rubber-stamp from MERS, and then have the judge, in turn, rubber-stamp the foreclosure. This problem will last for much longer than ten years – since MERS has not yet been entirely wiped-out by court judgments finding against it.
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