| User Info
| HERE IT COMES! (MBS Trustee Investigation) in forum [Market-Ticker]
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Corn1945
Posts: 4167
Incept: 2009-04-30
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They'll just change the law (or ignore it) to make them valid.
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Mannfm11
Posts: 3556
Incept: 2009-02-28
DFW, Tx
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They can't validate fraud and negligence, nor can they interfere with contracts between people under the constitution. Seeing as the court has ruled a corporation is a person (persona or mask), they can't dodge this. Also, they can't pass a post facto law. Criminal negligence is what this is.
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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
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Bertdilbert
Posts: 2666
Incept: 2008-12-22
CA
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If the trusts are deemed invalid, will the IRS step in is the question.
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Dear Euroland: Relax, Germany has a plan for your money!
Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro.
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Corn1945
Posts: 4167
Incept: 2009-04-30
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They'll just ignore the law. The law is a meaningless idea when no one enforces it.
Somebody is going to get ****ed in this deal and it is most likely not the banks.
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Irishsamurai
Posts: 1150
Incept: 2008-11-03
GA
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Quote:
They'll just ignore the law. The law is a meaningless idea when no one enforces it.
Thread winner. See plethora of "selective application of laws" precedence ... not enough time to list all the grievances and if anyone needs a list of examples, you haven't been paying enough attention to our transition to Animal Farm ...
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“Why is it the ship beats the waves when the waves are so many and the ship is one? The reason is that the ship has a purpose.” - Churchill
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Kylafoon
Posts: 2460
Incept: 2009-02-05
Zombie Portal Lookout
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My suspicion would be that they are only now pursuing
some answers to the fraud is because they have concocted
the answers needed to cease further investigations.
Yea, I'm that ****ing cynical....
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"...But whenever we see things done wildly, but taken tamely, then the State is growing insane..." - Gilbert Keith Chesterton 1910
"I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works." - Alan Greenspan, October 2008
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Hogman
Posts: 7874
Incept: 2008-02-18
Derby City, USA
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^^^^hallelujah
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Curbyourrisk
Posts: 3595
Incept: 2008-08-19
Farmingdale, NY
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Gen: Are there any statue of limitations on these cases???? Your question, of WHY NOW just seems to interesting.
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Time is up.
I hate to burst your bubble, but there is no Santa Claus, the tooth fairy does not exist and American justice does not involve the courts.
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Lowbeyond
Posts: 16938
Incept: 2008-02-11
CO aka West NJ/East CA
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Quote:They'll just ignore the law. The law is a meaningless idea when no one enforces it.
Somebody is going to get ****ed in this deal and it is most likely not the banks. This x eleventy Billion. The only thing the law is there for is to use a a weapon against the "little" people
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Maybe it was a birdy bread-bomber from the future?!
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Peteb
Posts: 128
Incept: 2010-11-16
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"Legal? We will make it legal."
- Senator Palpatine
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Krzelune
Posts: 5513
Incept: 2007-10-08
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The federal govt will take over real property
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The desire of millions, the inconvenience of millions, the suffering of millions, the death of millions, does not concern them because of the evolutionary humanist lens they peer through.
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Steelhead23
Posts: 2043
Incept: 2008-09-09
Portland OR
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What a fun day. I encourage everyone to read Yves Smith post on this investigation. http://www.nakedcapitalism.com/2011/06/n....She makes the point that the statute of limitations on criminal fraud is three years. Hence, the securitizers won't be going to prison. However, the trustees have to annually declare that the trusts are alive and well. If they knowingly signed such flop, well, they may have committed fraud and could be prosectuted. The explosion will likely not be criminal indictments but outright bankruptcy of the banks themselves as disgruntled investors seek reimbursement for failing to protect the trusts. The Delaware AG has said, ”And if Countrywide’s mortgage securitizations systematically failed as it appears they did, Bank of America’s potential liability dwarfs its shareholder equity.” I know Corn believes the politicos will find a way to protect their friends and contributors, but these are real losses suffered by real entities, many of whom have the wherewithal to sue the shysters to death. As profit maximization was the root-cause of this fiasco, I suspect that taking away their money might be just about as punitive to these fat cats as rotting in cell would be. To be clear, I perceive that this fraud involves international finance and the Bank of International Settlements is unlikely to look favorably on protecting America's TBTF banks from angry investors. Criminal prosecution of the servicers may start an avalanche.
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"Give me control of a nation's money and I care not who makes it's laws" —Mayer Amschel Bauer Rothschild Benjamin Bernanke
For-profit commercial banks are a menace and should be eradicated
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Genesis
Posts: 130798
Incept: 2007-06-26
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Quote:The explosion will likely not be criminal indictments but outright bankruptcy of the banks themselves as disgruntled investors seek reimbursement for failing to protect the trusts. Yep.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Corn1945
Posts: 4167
Incept: 2009-04-30
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Quote:I know Corn believes the politicos will find a way to protect their friends and contributors, but these are real losses suffered by real entities, many of whom have the wherewithal to sue the shysters to death. Sure. Sue them in the same court that told you to go **** yourself the first time. Yeah, that'll work! I don't think you guys understand how this game works yet and we are three years into it. You are scaring me... |
Perseid
Posts: 1933
Incept: 2008-01-28
I'm Packing...
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Quote:What happens, may I ask, if the trusts are not valid? Free houses for everyone! Bankers go to jail, do not pass go, do not collect $200... Bank error in your favor collect $50!
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Wall Street is a high-on-crack driver that just smashed into your house and killed your spouse, and the government won't even give it a blood test. -Janet Tavakoli
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Peterm99
Posts: 4995
Incept: 2009-03-21
SoCal
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If, for the sake of argument, the financial institutions are held fully liable for this clusterf*ck and bank shareholder equity goes to zero and bank bondholders get haircuts to zero, will the liquidation of the banks be sufficient to make good the pension funds', insurance companies', and others' investments in these mortgage-based securities?
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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed
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Mrbill
Posts: 7857
Incept: 2008-10-19
North Carolina
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Quote:If, for the sake of argument, the financial institutions are held fully liable for this clusterf*ck and bank shareholder equity goes to zero and bank bondholders get haircuts to zero, will the liquidation of the banks be sufficient to make good the pension funds', insurance companies', and others' investments in these mortgage-based securities? That depends, do you think your pension or insurance is going to be able to pay out if its the new owner of Bank of America? Because it will be, and then it'll have to sell it to someone else to get actual money. Does BofA make money any other way than via fraud? |
Grashopa
Posts: 2626
Incept: 2009-02-03
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Quote:
If, for the sake of argument, the financial institutions are held fully liable for this clusterf*ck and bank shareholder equity goes to zero and bank bondholders get haircuts to zero, will the liquidation of the banks be sufficient to make good the pension funds', insurance companies', and others' investments in these mortgage-based securities?
No, thats the reason there is a "financial crisis"
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Theft is evil
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Captainkidd
Posts: 594
Incept: 2010-05-25
Pasadena, Texas
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Quote:If, for the sake of argument, the financial institutions are held fully liable for this clusterf*ck and bank shareholder equity goes to zero and bank bondholders get haircuts to zero, will the liquidation of the banks be sufficient to make good the pension funds', insurance companies', and others' investments in these mortgage-based securities? No. Hence the ubiquitous...  ...when this subject comes up ****************************************
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A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
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Peterm99
Posts: 4995
Incept: 2009-03-21
SoCal
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Thanks for the responses.
I had been under the impression that it was the refusal to hold the financial institutions responsible for this mess that was the primary problem and that the major part of it would go away if they were held to account.
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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed
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Bigbluffer
Posts: 1330
Incept: 2010-11-01
NC
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Peter,
It isn't even just the investors, pension funds, and insurance companies, every foreclosure that stemmed from one of these trusts, which is the vast majority, immediately becomes invalidated. If the home has been resold, that sale becomes open to question. And homeowners who have been responsible and made their mortgage payments every month, have paid the wrong entity.
That's why you hear it described as a clusterf**k of epic proportion. It would literally take years to sort out who the real owners of the debt are, and what money is owed to whom. One thing is for sure though, the assets of TBTF are pocketchange compared to what they would be liable for. There will be massive casualties, and not just TBTF. If they stop allowing the banks to skirt the law on this, it will make 2008 look like a blip on the radar. I supported the bailouts in 2008 because I believed, and still do, allowing the banks to fail would have caused a global depression. Today I think it was a mistake, that they should have gone into receivership. As Karl says, we kicked the can down the road. And allowed the problem to grow bigger and badder than ever.
Reason: submitted by mistake before finished
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Mikek31
Posts: 4359
Incept: 2009-05-04
Chicago
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More good news! Feels like a take-down is imminent. What the heck took them so long? Can't hide the stinky dead fish forever...
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Intentional manipulation of markets is usually thought of as a crime, not a benefit, and should lead to indictments, not praise. -Karl
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Halfbrite
Posts: 2459
Incept: 2008-10-13
Arizona via California
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For clarity:
People gave their cash (via 401K's, pension funds) etc. to the American FINANCIAL SERVICES COMMUNITY. We gave them cash, they gave us a "promise".
The "promise" was a FRAUD AND A LIE.
THEY STOLE YOUR MONEY - IT'S GONE, GONE, GONE, 1000X GONE.
The people are screwed - all of us-unless you work in financial services - banking, insurance, and investments, in which case, you are LIVING LARGE!
The nitwits worrying about - is my neighbor getting to live there free? - are exactly that - dim bulbs, blockheads, simpletons, dorks, ignoramus'!
You can put all the lipstick you want on this pig, but the financial services industry stole ALL the money we entrusted to them, and we're screwed.
When an industries aggregate profits go from 12% to 40% in a short time frame, and they pay themselves all those profits, WHAT DO YOU THINK HAPPENED? WHERE DO YOU THINK THOSE "PROFITS" CAME FROM?
THEY CAME FROM STEALING YOUR 401K and your pension and your savings.
When the banks go BOOM, so do you, so let's get it over with!
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"That which cannot continue, will not continue. Brace for impact!"
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Nbpundit
Posts: 60
Incept: 2011-04-05
Texas
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As to the reporting trusts on an annual basis, that's not necessary if the custodians filed a 15b form after about two years of reports. That's what most of them did.
Most likely there will be nothing done until it's revealed most of the trusts are
probably either full of dog crap, or they are empty.
I'm not excited about this news, much too cynic. This will be covered up too
until it gets to the point it blows up like a nuclear bomb.
I suggest all be ready for some primative reactions and extreme lifestyle changes.
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