New York Attorney General Eric Schneiderman, kicked out of 50 State Mortgage Fraud Investigation, due to wanting to go by Laws and not just doing what banks want.

New York Attorney General Eric Schneiderman was officially kicked out of the 50 State Attorneys General Investigation doing as the banks say - into Mortgage Fraud by Wall Street.

After reading this, you will fully understand how the banks control our government and our law system.

There is only one Attorney General in these United  Broken States who is willing to actually rule and stand up for laws of the land.  The rest of the Attorneys General are not ruling by law nor investigating by laws, they are only working on how to legalize all illegal fraud committed by Wall Street banks.

This is proof, there is one law for all of us and no laws for banks and corporations in the U.S..

The U.S. is lawless and those who were elected as the top law officer of each state has been working on how banks can get around the law.   Now they are about to give blank immunity to the banks and make any contracts signed by us regular people null and void, if it is not to the advantage of banks.

This act will be the most unlawful act committed in recent history in the U.S. and it will be committed by those who are suppose to uphold the laws of the land.

Understand, the Attorneys General of 49 states will be saying to us regular people "No matter what contract you sign/signed previously or in the future with any bank or corporation, we can/will change it against all laws on the books, if it is not to the advantage of the banks or corporations". 

The other 49 Attorneys General kicked out the one upholder of the laws in the states - New York Attorney General Eric Schneiderman, due to him wanting to actually follow contract laws and hold banks responsible for all their fraud.

We the people have no rights in laws if the Attorneys General of the states do settle with the banks and allow illegal fraudulent foreclosures to become legal.

Notice in this article - it says "The Attorneys General started negotiations with the banks once fraudulent foreclosures came to light last year"!  It does not say started "investigations"  but negotiations!

So last year, when we all heard how the Attorney General of each state jumped on-board of what we thought were lawful investigations into the mortgage foreclosure fraud of the banks, what they have really been doing the last year is working on how to give the banks carte blanc lawlessness and fraud.

I guess they could not figure out how to make it legal since it is so illegal, so now they are throwing contract law out the window and just saying "Here do what you will to the banks - we sanctify all fraud on your part".

This is a moment when there is a full understanding that We the People have no rights and in any way shape or form even in legal matters if it is against a bank or corporation.

Portions from article:

But state prosecutors and federal officials are pressing to complete a proposed settlement with the five companies even though they've initiated only a limited investigation that hasn't examined the full extent of the alleged wrongdoing, The Huffington Post reported last month. Elizabeth Warren, who until recently was a senior adviser to President Barack Obama and Treasury Secretary Timothy Geithner, told a congressional panel last month that government agencies may not have sufficiently investigated claims that borrowers' homes were illegally seized.

Sources said attorneys general like Schneiderman, along with the top legal officers from Massachusetts, Delaware and Nevada, among others, were complicating that goal by questioning the plan to scuttle the state and federal investigations in exchange for a settlement.

These attorneys general have said they're reluctant to sign on to an agreement that effectively kills their ongoing investigations or prevents new ones from being launched. Beau Biden, Delaware's top law enforcer, remains on the states' executive committee.

In a statement of support for Schneiderman, Biden said that the "events leading up to the mortgage crisis must be fully investigated, including origination and securitization practices, before any broad immunity is granted."

"The American people deserve an investigation," he added.

"Effective immediately, the New York Attorney General’s Office has been removed from the Executive Committee of the Robosigning multistate."

This month, Schneiderman accused Bank of New York Mellon, the 11th-largest U.S. bank by assets, of "repeated fraud and illegality" when it came to its actions as a trustee for various mortgage securities, and he accused Bank of America of fabricating missing documents when foreclosing on some homeowners who defaulted on their mortgages.

"Since that time, New York has actively worked to undermine the very same multistate group that it had spent the previous nine months working very closely with," Miller continued. "While we certainly respect the right of any state to choose to no longer participate in a multistate and to pursue another path, working to actively undermine a multistate while still a member of the Executive Committee simply doesn’t make sense, is unprecedented and is unacceptable. Accordingly, today I informed New York that it is no longer a member of the Executive Committee."

Schneiderman's removal will likely make it easier for state and federal officials to reach an accord with the five banks. However, the potential amount of money they'll be able to extract will likely decrease.

The banks targeted by state prosecutors and federal officials would rather settle claims that they improperly bundled home loans into securities than allow those probes to continue. In exchange, they'd shell out more cash to help homeowners and help the Obama administration avert foreclosures.

So there you have it, when one Attorney General actually wants to investigate fraud, he is kicked out.  That means for the rest of us outside of New York State, our Attorney General have each sold themselves off to the banks and are willing to throw out laws for the banks and not rule by the law for the people.

We all have been sold out, not just by Washington D.C. but also by our own state top law official.  Will I bother calling mine?  No.... the voices of the people are drowned and are dead to those who are elected and in office, we are not a country that is "For the people and by the people" anymore.  We are a country "For the fraud of banks and by the fraud of banks".  

Don't worry, when this is sold to the public by the media and government, it will be spun that the Attorneys General of 49 states did something great for the people in how they put out the "settlement" with the banks.  What they won't tell you, is they wiped out all laws and what ever contracts were signed and you were having to uphold the banks do not have to uphold, because they were fraud by the banks.  

The people in New York State are lucky they have a top law official in Eric Schneiderman, who actually is willing to stand up for the law.  

I guess instead of flying my flag upside down to show a country in distress, I should just bury it and give it a funeral, as the country has died from being lawful "For the people and by the people".  It is a very sad day when a country is dead in every way of which it was originally founded and the people are dead and have no meaning to those who are suppose to be the leaders of the land. 

49 State Attorneys General Sanctifying Foreclosure Fraud of Wall Street- Settlement-

It seems 49 State Attorneys General, except for New York are going to allow Wall Street Free rein of Foreclosure and Mortgage Fraud.  They are working on settling all the Fraud of Wall Street and making it legal.

The only Attorney General hold out is New York's Eric Schneiderman, who has said it is "both procedurally and substantively flawed."

Everyone needs to call their Attorney General and ask if they are going to let Wall Street completely defraud the whole American Public and get away with illegal foreclosures?  Also ask, if this was an individual defrauding another, wouldn't that individual be in jail?  Ask why they are going to sanctify crimes by the banks?  Demand answers!

It is so funny, how I am finding out there is no justice for the people when it comes to Wall Street and their crimes.  Wall Street literally gets away with murder and stealing of all the people's money and homes!

Wall Street committed a crime in the first place with all their fraud MBS selling them to investors around the world and the rating companies helped them.

We the people would never have those who are expected to hold up the law of the land - the 50 State Attorneys General, sanctify any crimes we committed.

If there wasn't fraud from the beginning, do you think PIMCO, N.Y. Fed, hedge funds, AIG, and the list goes on, would have sued Bank of America?  No!

Due to all the suits wanting billions back, proves on it's own Fraud and out right Illegal Crimes were committed!  Yet the 49 State Attorneys General, are trying to help Wall Street cover up the crimes and make them legal at the expense of investors and all homeowners!

People wonder why so many of us have lost faith in this country, there are no laws for those at the top, yet there is a clamp down of the people and their freedoms.  There are no morals left of anyone who holds an elected office, they do not work for the people, only for the banks and corporations.

At some point they will have stretched that rubber band too far and it will snap, people will wake up to what has fully been happening in this country and the world, even if MSM ignores the most important news and situations that affect the people directly.  I expect when a settlement of fraud is done, MSM will spin it to be a "great thing" and won't mention how Wall Street has gotten away with stealing by those who are suppose to up hold the law!

Portions of article linked above:

Bank of America Corp may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, Bloomberg reported citing two people with direct knowledge of the matter.

The firm may pursue an accord with most of the 50 state attorneys general, even if it omits New York's attorney general Eric Schneiderman, said one of the people, Bloomberg reported.

The company executives, concerned that a delay in resolving the case is hurting the firm's stock, are open to a deal that would resolve most of it, even if some mortgage investigations continue, said one of the people.


Edited to add:  More information added in a comment on What Really Happened by Micheal Rivero -

Wall Street Mortgage Backed Securities destroyed the U.S. and EU.

Portion from link:

Deutsche Bank, a German lender, has sold the Fed more than $290 billion worth of mortgage securities, Fed data through July shows. Credit Suisse, a Swiss bank, sold the Fed more than $287 billion in mortgage bonds.

The data had previously been secret. It was released Wednesday per the recently-enacted law overhauling the federal financial regulation. The Fed, ferociously backed by the Obama administration, fought lawmakers' desire for full disclosure throughout the financial reform debate.

Attorney Generals Sanctions Fraud of Banks, THEY HAVE ALL SOLD THEIR SOULS TO THE BANKS FOR MONEY! THEY ARE NOT WORKING FOR THE PEOPLE!

I read the 27 page settlement last night.  I have been so upset over it I have not been able to bring myself to post about it.  I really don't want to get arrested. 

Karl Denninger of Market Ticker did write about it.  He is allowing me to post his whole article and what he thinks about it here as I just can not bring myself to say what I think. 

I will say before I put his article up about it, why should we have expected the Attorney Generals whose responsibilities are to UPHOLD the Law to actually apply Law to the banks?  Gosh, I guess we should know by now there is one law for the banks and one law for the citizens of the United States! 

OH - One other thing.... due to the ABSOLUTE FRAUD OF MERS!  The Attorney Generals aren't touching that subject, they have in the report it is for a "later date of discussion"! 

All I can say is NOW I HAVE NO FAITH IN THOSE WHO ARE SUPPOSE TO UPHOLD THE LAW OF THE LAND IN INDIVIDUAL STATES!  THE ATTORNEY GENERALS HAVE ALL SOLD THEIR SOULS FOR PAPER MONEY!  THE PEOPLE ARE NOTHING TO ANY OF THOSE IN POWER!  CALL YOUR ATTORNEY GENERAL AND TELL THEM "THANKS FOR SELLING YOUR SOUL TO BANKS"! 


Here is Karl's article on it:

Adam Levitin: Ad-Hominem Idiot (AG Settlement)

 

You know an argument has been lost when a writer reduces himself to ad-hominem before presenting his argument, as Adam Levitin does here:

Some bloggers on the left (e.g. here and reposted here) are upset with the servicing standard term sheet that got leaked because they think it just prohibits things that are already illegal.  This is an incorrect reading of the term sheet.  Let me give three examples.

Bloggers on the left? 

Certainly you jest.  My political views and positions have been called many things, but left has not, to the best of my knowledge, ever been used in the same sentence with my political leanings.

Steph over at FedUpUSA, incidentally, picked up my article wholesale (they do that over there on a regular basis, with explicit permission) and Yves, over at Naked Capitalism, didn't bother looking either.  I guess this sort of mis-attribution passes for some resemblance of investigation and fact-finding these days too, just as Adam does with his claim that I'm "on the left."

But let's deal with the substance of Adam's claims rather than just get into a whizzing contest:

1.  Prohibition on false affidavits and sworn statements.  

Filing a false affidavit or sworn statement with a court is likely already illegal in every jurisdiction. But what some bloggers have missed is that the definition of "affidavit or sworn statement" in the term sheet is broader than what the law already covers. At best, the law currently covers statements filed with the court--that means in judicial foreclosures. The term sheet mandates certain affidavits and sworn statements in nonjudicial foreclosures and includes them under the definition of "affidavits and sworn statements" to which the false statement prohibition applies. That's an important step.

It is? 

How many felonies do we have to see unprosecuted before we stop pretending that they will be prosecuted in the future?

We have somewhere around 150,000 admitted false affidavits filed with courts thus far.  I will cite from Florida's Perjury Statute:

837.02 Perjury in official proceedings.—

(1) Except as provided in subsection (2), whoever makes a false statement, which he or she does not believe to be true, under oath in an official proceeding in regard to any material matter, commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

We're a judicial foreclosure state.  Therefore, every one of these false statements ("I read the material" when all you did was look for the "X" and sign) presented to a court is a felony.  Exactly how many thousands, or is that hundreds of thousands, of felonies do we have to see before we stop pretending that future violations of the law will somehow be enforced?  Note that the documents in question may be true but that's immaterial in this case, since the affidavit swore the affiant read and had personal knowledge of the contents when in fact if they "robosigned" they knowingly did not.  That's the scienter test for perjury, and it's pretty clear it has been met.

2. HAMP requirements.
The term sheet appears to repeat some existing HAMP requirements.  What bloggers have missed is that the CFPB and AGs currently have no authority to enforce HAMP violations. The inclusion of these terms makes HAMP violations a violation of the settlement with the AGs/CFPB, which means that the AGs and CFPB can enforce these violations. Given Treasury's unwillingness to demand serious HAMP compliance, that too is an important step. 

Again: The State AGs have the authority to prosecute perjury in the courts of their states.  They have intentionally and willfully failed to do so despite apparent and clear admissions that those acts of perjury took place.  It is particularly-easy to prove a criminal case where the person or entity who you would charge has effectively admitted to the essential elements of the offense through a press release!  Incidentally, Florida's statutory "out" for withdrawal of perjured documents without liability expires when it becomes apparent you will be discovered, which means their window to do so expired long before the admissions in the press and mass-withdrawals took place.  

If an AG was unwilling to prosecute murder I would be less-than-enthralled with expectations that they would bother with a "mere" bank robbery, say much less jailing someone who held up a "mere" convenience store.

I agree that the US DOJ and Treasury have been unwilling to prosecute HAMP violations.  Where Adam and I differ is that I see the 50 State Attorneys General as nothing more than co-conspirators in that willing refusal to lay charges since they had and have every ability to do so with the bogus affidavits and didn't.  Therefore, until I have evidence otherwise I find that both the Federal and State "law enforcement" agencies are willfully and intentionally refusing to take action against the banks, because on the clear record that is exactly what has been and is occurring right here, right now.

3.  UDAP and Good Faith/Fair Dealing Requirements
I'm not entirely sure of the purchase of deeming violations of the agreement unfair and deceptive acts and practices (UDAP). It might mean that the penalty for violation would track UDAP penalities for each state or CFPB. Or it might, just might, give homeowners grounds for a suit.

They already have grounds for a suit, which is the point.  This alleged "term sheet" does nothing to advance that case.  It does not, for instance, impose a defined penalty for such a violation and make it a matter of an administrative proceeding or otherwise enhance the penalties available.

This entire set of "requirements" is a fluff job and imposes little or nothing beyond what's already present.

I don't think the AGs and CFPB were just piling on fluff requirements. This settlement is a pretty extensive and well-thought through document designed to give the AGs and CFPB broad ability to reform the servicing industry, and the inclusion of these provisions seems well-thought out (although I haven't cracked the 3d one).

Baloney.

Essentially all of what is in this alleged "term sheet" is already black-letter law.  It fails to impress me when an alleged law-enforcement agency willfully and intentionally ignores the law for years and then says "now now be good in the future and don't break the law again", without having one single hard and defined "or else" present in the settlement on a forward basis, nor is there any actual prosecution of previous actions.

Oh, and how about MERS?  It's not in there.  Intentionally.

Imposing a one-time "cost of doing business" fine is not going to do it.  Locking some of the perjurers up in "pound-me-in-the-butt" prison and making clear that each and every incidence of perjury on a forward basis will be prosecuted would have quite an impact.  But that's missing from this document.

So would a requirement in the so-called "Settlement" that before a foreclosure could be prosecuted a clear and unbroken chain of ownership of the note and mortgage would have to be shown, documented with contemporaneous and sequential endorsements, allonges or actual change in possession that took place from origination to the current holder.  Homeowners (and investors) get exactly zero protection against the very-real possibility that the person standing in court (or filing in a non-judicial state) doesn't actually have legal ownership of the note in question, back-dated documents in a fraudulent manner, or worse, that the security interest under the UCC and the Note itself has been permanently lost and thus there is no right to foreclose at all!   That's missing too.  Oh sure, there's a "requirement" but there's also a back-door for it in the next point down, and once again that requirement already exists in State Law - but is being ignored. 

If the State Attorneys General refuse to bring the cases then all the ink on paper means nothing.

The problem with this "settlement" is the same as that with Pfizer years ago with their off-label marketing which, while a felony, led only to two fines - the second as a repeat offender!  It's a mere cost of doing business and does not deter behavior because it remains profitable to scam.  The only way to stop these acts is to hit people with either a fine that is so large compared to the potential profit that the risk of getting caught makes the activity unprofitable or start locking people up and seizing their assets as the product of a criminal conspiracy (as we do with drug dealers.)

Without deterrent value this alleged "settlement" will do nothing, and there is very little - other than the dual-track prohibition - that is not already a requirement under existing law.

Incidentally, that point - which I've been pounding the table on since this began and which you started with, is exactly what you said here:

The biggest question mark about the settlement and what everything, and I repeat everything, depends on is enforcement.  This agreement is not self-executing, and it doesn't appear to give homeowners the right to invoke noncompliance as a foreclosure defense. If the CFPB and AGs are vigorous in demanding strict compliance, then this settlement is huge. If they are lax in enforcement, then it's largely a paper victory.

What's the record of the AG's thus far Adam?  How many perjury indictments have been filed?

You owe me an apology Adam for leading with an ad-hominem load of nonsense. I'm sure it'll be forthcoming when Hell freezes.  Further, since you "covered" yourself well, I don't expect that when I hoist the "Told 'ya so" sign you'll recant either - you'll simply say "well, I did say that if they didn't enforce it....." 

Which, incidentally, was my entire point.  There's no evidence that the State AGs will do a damn thing when it comes to enforcement for the simple reason that they haven't thus far.

This alleged "tough settlement" is nothing other than yet another fellatio-job provided to the banks - this time by the State Attorneys General, selling out of their respective populations (once again.)

Mark my words: Not one homeowner will be protected against anything by this fluff piece.

I've generally been reasonably-impressed with Adam's work in the past, in that he's been willing to call out the banks as explicitly insolvent and go after MERS.  Where he gets the idea that this "settlement" will somehow address any of the underlying problems is beyond me.

The basic issues with MERS, modifications and Foreclosuregate is quite simple:

• It's just as easy to produce an actual original document bearing all assignments as it is to produce an affidavit.  This, of course, assumes you have the original and it's not defective in some fatal way.  Therefore, there's no reason to permit the routine presentment of these "replacements" for the real thing unless it is to cover up the fact that the actual document either was intentionally destroyed (which is kinda like tearing up a check on purpose) or is defective in some fashion (like, for example, the trust never got it as it was never assigned, which at best means there's no "holder in due course" status and at worst might mean the security interest has been severed and is irrevocable.)  We allegedly already have the protections in this document against this abuse, but it's not enforced.  Why would we believe it is going to be enforced now when there's no explicitly-agreed-to sanction for violations?
  
• The creation of balloon notes is insanely unsound.  If we want a permanent housing crisis with an outcome similar to the 1930s, this is how we get one.  That's idiotic.  It's also exactly what we've been doing with many of these HAMP modifications.  We must not permit balloon notes to be shoved down homeowner throats with the promise that this is a "modification" for their benefit.  It is no such thing - it's a fiction for the purpose of allowing the banks to claim they have performing paper when the loan is deeply underwater and will never recover actual value.  All these do is defer the recognition of a certain loss - to everyone's detriment.
  
• A law without an "or else" is no law at all.  At its core the flaw with this "settlement" is that it does not impose any new "or else" provisions on the industry in any sort of deterministic fashion.  Were it to do so - say, for instance, were it to include a stipulated administrative penalty of $5,000 paid to the State plus all penalties, interest, principal and attorney fees and costs on the loan in question rebated to the consumer for any violation of the settlement terms it would have teeth.  But it doesn't.  Without an "or else" this is just another set of suggestions and we already have hard evidence the Attorneys General will not bring charges - because they haven't up until now.