Quantcast
Feeds: Email, RSS & Twitter

Get Our Videos By Email

 

8,300 Unique Visitors In The Past Day

 

Powered by Squarespace

 

Search The Archive Of 15,000 Videos

SEARCH THE DAILY BAIL

 

 

Hank Paulson Is A Criminal - Pass It On

"The Federal Reserve Is A Ponzi Scheme"


Get Our Videos By Email

THE FED UNDER FIRE: Must See Clip

Bernanke's Replacement: Happy Hour In Santa Cruz

Must See: National Debt Road Trip

"Of Course We're Not Going To  Payback the Chinese."

Dave Chappelle On White Collar Crime

Carlin: Wall Street Owns Washington

SLIDESHOW - Genius Signs From Irish IMF Protest

SLIDESHOW - Airport Security Cartoons - TSA

Most Recent Comments
Cartoons & Photos
SEARCH
« Larry Kudlow's On-Air Japan Gaffe: "The human toll here looks to be much worse than the economic toll and we can be grateful for that" | Main | GRAPHIC VIDEO: Bahrain Police Killing Protesters In Drive By Shootings »
Thursday
Mar172011

Geithner Speaks: Foreclosure Fraud Whitewash Agreement Coming Soon To A Blighted Neighborhood Near You

It's been clear for some time that the proposed agreement between the 50 state AG's and the banks and servicers is going to be a whitewash, a get-out-of-jail-free card, and an absolution of past sins all rolled into one.  But the Calgary Herald reports comments made by Tim Geithner yesterday, which pretty much seals the deal.  Geithner told the Senate Banking committee that a fraudclosure deal had to be reached quickly:

  • "It is very important that we try to bring this to bed as quickly as we can.  I think all parties, not just the servicers, but the state AGs and the federal agencies have a strong stake in doing that.

Shahien Nasiripour also reports that the state AG's have been working hand-in-glove with the Obama administration and the various regulatory agencies in crafting the deal with banks and servicers, with the administration calling it a "shock and awe" approach that would lead to a potential $30B in reduced mortgage payments.

Clearly this is another Obama trial balloon.  Luckily, we can count on Yves Smith to pop it.  See here:

Yves points out that the proposed deal "reads like HAMP 2.0. Notice that the banks are NOT being required to make principal mods. The story simply states, 'reduce monthly payments.' So the $30 billion is presumably for a combination of servicer costs, payment reductions, and some second mortgage writedowns."

The fact that Geithner and the administration are now pushing to get a deal done -- any deal -- as quickly is possible, is highly suspicious.  If we didn't know better, we would be inclined to think that Geithner and friends want to grant absolution to the banks and servicers before groups like Anonymous and Wikileaks are able to stir up any more trouble.  As we discussed earlier, the BofA insider who is leaking documents and information to Anonymous has the potential to blow the fraudclosure issue wide open, exposing banks to many billions of dollars in liabilities.  It would come as no surprise that Geithner would like to prevent such a scenario at all costs -- the rule of law be damned.

--

 

 

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (21)

"...exposing banks to many billions of dollars in liabilities. "

DB--

Can you explain this exposure? Does it come from fines levied by state and federal authorities, defrauded homeowners, and/or defrauded MBS investors?

Also, what category of liabilities does the stupid "shock and awe" purport to cut back on? Fines or private lawsuits by homeowners and investors?
Mar 17, 2011 at 11:41 AM | Unregistered CommenterCheyenne
Can you explain this exposure? Does it come from fines levied by state and federal authorities, defrauded homeowners, and/or defrauded MBS investors?
--
Yes, all of the above. Plus the force-placed insurance part, which appears to be widespread, not just at BofA. But it depends on what BofA guy can actually provide in terms of evidence or testimony, and what the relevant authorities actually do about it. OUR job is to make sure as many people as possible know about it. If the state AG's and the DOJ can sweep it all under the $87,000 area rug, they'll do it.

We have no idea what the new Obama "deal" would do for the banks, but from what we know already, the state AG's are not pursuing any sort of criminal prosecution, nor are they planning on any further investigation. (I read somewhere that the DOJ is leading the federal regulators in working with the AG's.) Instead, they are treating this all as a paperwork problem that has caused some hassles for borrowers, not as a deliberate criminal operation, which is what the BofA leaker seems to be saying.
Mar 17, 2011 at 11:50 AM | Registered CommenterDr. Pitchfork
Thanks, Dr. P. So in short, if I understand you correctly, the proposed "deal" is a bunch of government officials keeping their bankster bosses out of jail. But as far as enabling banksters to prevail in civil litigation based, for example, on the inability of mortgage servicers to produce a promissory note, banking towel-boy-in-chief Obama's plan does nada. Is that correct?
Mar 17, 2011 at 12:26 PM | Unregistered CommenterCheyenne
cheyenne...here's more from propublica...

In Proposed Mortgage Fraud Settlement, a Gift to Big Banks

http://www.propublica.org/thetrade/item/in-proposed-mortgage-fraud-settlement-a-gift-to-big-banks/
Mar 17, 2011 at 12:36 PM | Registered CommenterDailyBail
Thanks, DB. That piece answers at least one issue--is the settlement limited to criminal cases?--with a definite "no." The settlement purports to equate 1st and 2nd mortgages, which if not unconstitutional is absurd. But tell that to GM's so-called unsubordinated bondholders. My guess is that the bankster angle here is to eviscerate damages claims in put-back suits filed by defrauded MBS investors.

As far as foreclosure defenses based on lack of standing (no note = dismissal w/o prejudice), I suppose the banksters are content to continue fraudulent foreclosure proceedings against bustout litigants (tapioca homeowners). That's a black swan assumption if I've ever seen one.

Part of the confusion here stems from the nature of fraud, giving rise, as it does, to criminal and civil suits.

In any event, it's St. Patrick's Day and I'm in Chicago. I'll circle back later.
Mar 17, 2011 at 1:39 PM | Unregistered CommenterCheyenne
Great article at Pro Publica. Hadn't seen the part about second liens. Cheyenne, if I understand correctly, the 1st and 2nd are equated ONLY for purposes of accounting (fraud), not in terms of who actually gets paid. It's just more Geithneresque can-kicking gifted to the banks in exchange for nothing. But that's how they roll at US Treasury.
Mar 17, 2011 at 4:14 PM | Registered CommenterDr. Pitchfork
How the NY Fed Gifted an Extra $15.7 Million to Wall Street Today

http://english.economicpolicyjournal.com/2011/03/how-ny-fed-gifted-extra-157-million-to.html
Mar 17, 2011 at 4:30 PM | Registered CommenterDailyBail
Dr. P--

Why do they even waste time on a pretext when they've repeatedly shown they'll rape both letter and spirit of law? I feel like I'm wasting time trying to parse through horseshit for a kernel of corn. These are the most terrifying whores of all time.
Mar 17, 2011 at 5:10 PM | Unregistered CommenterCheyenne
DB--

I caught that piece on zh today. It brought to mind pillories in the public square. If I'm not mistaken, NY Fed owes us an answer for that. They're cowards, of course, and will be silent.

Sooner or later, though, the cost of the effort to get an answer becomes worth it.
Mar 17, 2011 at 5:16 PM | Unregistered CommenterCheyenne
One final anecdote, and see Pat's ghost tomorrow.

Yesterday in Cambodia Indiana I told Manwhore about black swans. That afternoon, as we pulled up to a joint Dillinger robbed I saw my first ever black squirrel. No shit.
Mar 17, 2011 at 5:34 PM | Unregistered CommenterCheyenne
Cheyenne, you crack me up. You should write a book called "The Black Squirrel."
Mar 17, 2011 at 5:47 PM | Registered CommenterDr. Pitchfork
But I'm dead serious, the squirrel on the power line was pitch black. And not from some cheap dye and coal job. No...

Know what? You're right.
Mar 17, 2011 at 5:58 PM | Unregistered CommenterCheyenne
Standard & Poor’s Triple A Ratings Collapse Again. The Question is Why?
by Jesse Eisinger

http://www.propublica.org/thetrade/item/the-trade-credit-rating-agencies-standard-and-poors/
Mar 17, 2011 at 9:41 PM | Registered CommenterDailyBail
What Do 50 Cent, Carmen Electra & Shaquille O’Neal Have in Common? Touting Penny Stocks

http://www.propublica.org/article/what-do-50-cent-carmen-electra-and-shaquille-oneal-have-in-common-theyve-al
Mar 17, 2011 at 9:42 PM | Registered CommenterDailyBail
Mar 17, 2011 at 9:43 PM | Registered CommenterDailyBail
If you don't know him already, you're in for a convo with the chillest hombre in financial blogosphere. Always acknowledged but rarely cited, Jesse's Cafe Americain is the gold standard of civil dissent. With no further adieu...

http://www.zerohedge.com/article/enjoying-coffee-lodge-jesse
Mar 17, 2011 at 10:21 PM | Unregistered CommenterCheyenne
great link cheyenne...we might have to post that here...
Mar 17, 2011 at 10:33 PM | Registered CommenterDailyBail
Royal Bank of Scotland pays £375m to 323 key staff

http://www.bbc.co.uk/news/business-12778142
Mar 17, 2011 at 10:34 PM | Registered CommenterDailyBail
Crooks And Liars connects the force placed insurance scam to the Vampire Guy who foreclosed on the bank (and cites us in the process ;-). That's what all those letter he sent were about -- fraudulent insurance placement and the bank's inability to show the proper paperwork. They couldn't show the paperwork because they were LYING.
http://crooksandliars.com/susie-madrak/we-can-track-widespread-insurance-fra

The blogosphere is putting together all the pieces. All Eric Holder and the state AG's need to do is pull the trigger. Nice work, bloggers. Here's Vampire Guy's story if you need a refresher.
http://dailybail.com/home/man-forecloses-on-bank-and-wins.html
Mar 18, 2011 at 7:27 PM | Registered CommenterDr. Pitchfork
nice work pitchfork...as you said, it's right there in front of eric holder...what will he do...
Mar 19, 2011 at 11:45 AM | Registered CommenterDailyBail
This guy Geitner does not inspire me to offer legal solutions. He and his band of government pirates stand out there waving themselves while their bosses rip the consttution to shreds. Meanwhile, the congress mewls and whimpers and postures and allows violent mayhem and the looting of the treasury. Haven't any of you people seen a Jolly Roger pirate movie? Where are the Marines? The captain of our ship of state is below decks, servicing the lead pirates. Yes America, Pres. Dover is hard at work. Just not the way you think.
Mar 19, 2011 at 10:53 PM | Unregistered CommenterHoward T. Lewis III

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.