Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

[skyson]

Another article from Ellen Brown.
http://www.globalresearch.ca/index.p...t=va&aid=15324

It raises a few interesting points. When Paulson pushed through the bail out plan last year, he threatened with "immediate collapse of economy". Yes, it was indeed true that not only the financial system of US would collapse, but also the financial oligarchs would be put to death:

“. . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .
“What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.”

and "the invisible hand":

“For decades now, . . . I have been receiving letters [warning] me about the dangers of a secret government running the world . . . . [T]he closest I have recently seen to such a world-running body would have to be a certain large investment bank, whose alums are routinely Treasury secretaries, high advisers to presidents, and occasionally a governor or United States senator.”

[krakknisse]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Yay... Jubilee...

[sunskyfan]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Not Inflation nor Deflation but ..... Jubilation .

[MulaMan]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Yes, it was indeed true that not only the financial system of US would collapse, but also the financial oligarchs would be put to death.

I support this.

Which part of capitalism do Americans no longer understand?

[Diarmuid]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Another article from Ellen Brown.
http://www.globalresearch.ca/index.p...t=va&aid=15324

“What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.”

What has prudence and logic got to do with the current system - it is all about who owns what - and the people who might benefit from this ruling do not own congress, the senate, the judicary at the highest levels and the main stream media, so I will not be holding my breath for "justice" to be served, and will expect a contradictory ruling later down the line.

[Rajiv]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Reading the judgement, and the legal principles it is based on, it is hard to see how the banks can get out of the immense legal liabilities that this judgement implies

[rabot10]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Cool!!!!! Time for some pay back

[Diarmuid]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Reading the judgement, and the legal principles it is based on, it is hard to see how the banks can get out of the immense legal liabilities that this judgement implies

Rajiv I hope your right, but considering the experience to date, I expect the worst.

[vinoveri]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Not Inflation nor Deflation but ..... Jubilation .

for whom?
Speculators, strategic defaulters, greedy living beyond their means "middle class" AND those honest folks who have lost their job(s) and really can't pay their mortgage get a debt jubilee AND

The banking system (including the shadow system) gets a $5 trillion infusion by the Fed and Treasury to cover the losses at the expense of the taxpayer, present and future, and the savers of the world ...

Actually this sounds like it coudn't be more well planned by the government and financial oligarchs to please all of the perpetrators ...

[Slimprofits]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

http://www.housingwire.com/2009/09/1...e-mers-appeal/

MERS has defended its operations in court. According to the company’s Web site, MERS was successful in getting a class action suit dismissed in 2007 that was filed in US District Court and that questioned the firm’s right to operate. The Second District Court of Appeals of Florida ruled in 2007 that the company has a right to be a party of foreclosure actions in the state. The New York Court of Appeals also ruled in the company’s favor in 2006 in a similar case.

[Kcim67]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

for whom?
Speculators, strategic defaulters, greedy living beyond their means "middle class" AND those honest folks who have lost their job(s) and really can't pay their mortgage get a debt jubilee AND

The banking system (including the shadow system) gets a $5 trillion infusion by the Fed and Treasury to cover the losses at the expense of the taxpayer, present and future, and the savers of the world ...

Actually this sounds like it coudn't be more well planned by the government and financial oligarchs to please all of the perpetrators ...

Only if you perpetuate the system were we allow private entities to lend us our own money and charge us interest for the privilege, you couldn't make it up!!!!!!!

[dbarberic]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Cool!!!!! Time for some pay back

It doesn't work that way.

The banks will ALWAYS be made whole by the Fed. They will never loose. Maybe some homeowners get a debt jubilee but the losses will not come from the assets held by the banks (like your dream implies). The Fed will cover the bank's losses and all holders of US dollars will pay for the jubilee through inflation.

One way or another, we will all pay.

[sunskyfan]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Okay work with me just for a second: Deflation is where prices fall for goods and services, Inflation is where prices rise for goods and services, and Disinflation is where the rate of inflation goes down (or acceleration of prices goes negative). Perhaps Jubilation is where the concept of price becomes meaningless due to the fact that money has lost its meaning either through over creation by central banks or by some other kind of corruption(s) to the financial system. During a period of Jubilation it doesn't matter what the price of something is at a particular instance since it really is a meaningless metric. Thus, the endless and meaningless debates between Inflationist and Deflationist. Just some thoughts .

[Rajiv]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Finally got covered by NY Times -- On the net, their analysis does not seem to differ much from Ellen Brown's

[Rajiv]

Re: Landmark Decision: Massive Relief for Homeowners and Trouble for the Banks

Also Pam Martens has a take on this and the other legal decisions -- The Next Financial Crisis Hits Wall Street, as Judges Start Nixing Foreclosures

The financial tsunami unleashed by Wall Street’s esurient alchemy of spinning toxic home mortgages into triple-A bonds, a process known as securitization, has set off its second round of financial tremors.

After leaving mortgage investors, bank shareholders, and pension fiduciaries awash in losses and a large chunk of Wall Street feeding at the public trough, the full threat of this vast securitization machine and its unseen masters who push the levers behind a tightly drawn curtain is playing out in courtrooms across America.

Three plain talking judges, in state courts in Massachusetts and Kansas, and a Federal Court in Ohio, have drilled down to the “straw man” aspect of securitization. The judges’ decisions have raised serious questions as to the legality of hundreds of thousands of foreclosures that have transpired as well as the legal standing of the subsequent purchasers of those homes, who are more and more frequently the Wall Street banks themselves.

Adding to the chaos, the Financial Accounting Standards Board (FASB) has made rule changes that will force hundreds of billions of dollars of these securitizations back onto the Wall Street banks balance sheets, necessitating the need to raise capital just as the unseemly courtroom dramas are playing out.

The problems grew out of the steps required to structure a mortgage securitization. In order to meet the test of an arm’s length transaction, pass muster with regulators, conform to accounting rules and to qualify as an actual sale of the securities in order to be removed from the bank’s balance sheet, the mortgages get transferred a number of times before being sold to investors. Typically, the original lender (or a sponsor who has purchased the mortgages in the secondary market) will transfer the mortgages to a limited purpose entity called a depositor. The depositor will then transfer the mortgages to a trust which sells certificates to investors based on the various risk-rated tranches of the mortgage pool. (Theoretically, the lower rated tranches were to absorb the losses of defaults first with the top triple-A tiers being safe. In reality, many of the triple-A tiers have received ratings downgrades along with all the other tranches.)

Because of the expense, time and paperwork it would take to record each of the assignments of the thousands of mortgages in each securitization, Wall Street firms decided to just issue blank mortgage assignments all along the channel of transfers, skipping the actual physical recording of the mortgage at the county registry of deeds.

Astonishingly, representatives for the trusts have been foreclosing on homes across the country, evicting the families, then auctioning the homes, without a proper paper trail on the mortgage assignments or proof that they had legal standing.
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