Banks may be getting their comeuppance anyway.

[longfisher]

Looks like the banks are in trouble again.

At the risk of oversimplifying, it seems like the way the sub-prime mortgages were handled in many, many cases as they were being assembled in the Mortgage Backed Securities and then into derivatives was illegal in many to most states...poor or fraudulent documentation and illegal assignment of ownership rights of the mortgage as it was transferred between many hands and, finally, the fraudulent way the securities were transformed into AAA rated instruments.

Recent court rulings in several states have found that the foreclosures were also illegal because the entity that foreclosed (in many instances) did not own the property due to the above mentioned irregularities. Same rulings suggest that the chain of title was irretrievably broken and that those properties may be unsellable for the foreseeable future (who's going to buy a property without title insurance?).

This could result in a ton of lawsuits from the thousands of international banks and governments which were harmed by these faudulent vehicles and from homeowners who lost their homes through fraudulent and illegal foreclosures.

Banks seem to realize their exposure and they did two things. Firstly, they froze all pending foreclosure to get a handle on how deep in the hole they were and to avoid a Federal moratorium that was in the works. Secondly, they virtually secretly passed a bill through both houses of Congress WITHOUT SO MUCH AS A MOMENT OF DEBATE which would have allowed foreclosures to regarded as ligitimate even if the necessary and correct documentation was not in the package.

Fortunately, today Obama exercised a pocket veto of that bill. It won't become law.

If the properties can't be sold, housing without title difficulties will rise in value.

If the foreclosed homeowners and all banks that were harmed sue the banks that issued these fraudulent vehicles and sold them as AAA will surely be imperiled. They may face bankruptcy AGAIN.

But this time there's no appetite for another bailout and the new Federal Financial Reform bill allows them, if they're considered a threat to the financial system, to be taken over by the Feds and broken up.

So, there's a chance that they're going to have their butts handed to them via the justice system. Wouldn't that be nice. Finally, some accountability for their transparent crimes.

Now, if we can just get Bush and Cheney too, somehow, for their war crimes.

LongFisher

[lowtide]

I feel bad for you - no one responded.

Here - I ll throw ya a bone ----------


Have you ever soiled yourself ???

[longfisher]

http://www.washingtonpost.com/wp-dyn...l?hpid=topnews

Longfisher

[longfisher]

If I had money or credit from any of the top banks (see list of top 6 below) I'd move it. They appear to be in imminent danger of bankruptcy as the mortgage foreclosure crisis mounts.

1. Bank of America Corporation (Charlotte, NC) $2,340,667,014
2. J.P. Morgan Chase & Co. (New York, NY) $2,135,796,000
3. Citigroup Inc.(New York, NY) $2,002,213,000
4. Wells Fargo & Company (San Francisco, CA) $1,223,630,000 5. Goldman Sachs Group, Inc., The (New York, NY) $880,677,000
6. Morgan Stanley (New York, NY)

All my money's in TIPS and the credit union.

LongFisher

[longfisher]

Most lost between 5 - 10% Thursday and Friday due to concerns over the foreclosure crisis. Maybe the bill to the piper is coming due.

LongFisher

[longfisher]

http://www.housingpredictor.com/fore...stigation.html

Now every state is on board and the headline suggests the liability for the big banks and their servicers could be as high as 11 TRILLION DOLLARS.

Makes TARP look like peanuts at 700 Billion, huh?

Anyone think there's going to be another bailout? Not me.

LongFisher

[longfisher]

http://www.rawstory.com/rs/2010/10/w...closure-fraud/

Maybe the banksters will get now what's been coming to them for a long time.

LongFisher

[Fannypackerwife]

I hope you can teach these idiots something useful honey!

[longfisher]

It's a move to protect itself from the fraud perpetrated by the banks in their foreclosure documents. Of course, it's intended to make the banks instead of themselves responsible for the damages if the foreclosure documents are later found to be fraudulent.

This story has legs.

LongFisher

[longfisher]

The sherrif in Cook Count, Illinois has refused to enforce eviction orders unless the paperwork for the foreclosure can be shown to be correct and legal or unless the lawyer submitting the paperwork submits an affidavit that the lawyer personally reviewed the paperwork and affirms that it's correct and legal.

I suspect there's going to be a voluntary lawyer-enforced foreclosure moratorium in Cook County. About damned time.

For those of you (us?) who believe local authorities should have freedom of action to enforce local statutes even if doing so runs counter to the wished of the cursed Federal Government, here's an example to applaud.


LongFisher