Bloomberg: BofA Mortgage Morass Deepens on Promissory Notes Issues
“If the notes weren’t properly transferred to the trusts, then investors have the mother of all put-back claims,” Adam J. Levitin, an associate professor at Georgetown University Law Center in Washington, wrote on a blog four days after citing the Wizmur ruling during a hearing by a House Financial Services subcommittee.
It is ALL 'putbacks.' The banks in Europe (and now Australia) realized the mortgage-backed securities they purchased from Wall Street are fraudulent and demanded refunds, plus the credit default swaps. THAT is what the Federal Reserve spent trillions of tax dollars on while refusing to say where the money went, all the while knowing that since repurchased fraudulent securities can never earn a profit, that the American people would ultimately be forced to make good on the loans. So much cash flowed out from Wall Street to cover the bad paper that the major banks and investment houses would be insolvent unless other assets were found to put on the balance sheets, and those assets were the homes of the American people. But the government could not simply confiscate the houses the way Roosevelt had confiscated the gold in 1933, so the government changed the tax policy to send high paying American jobs offshore, making it impossible for millions of suddenly jobless Americans to pay their mortgages, which made it easy for the banks to grab the properties, all the while making it look like it was the homeowners' own fault they lost their home!
Federal Reserve Bank (a private bank) Doled Out 9 Trillion in Buyouts (not Bailouts)
Under orders from Congress, the Federal Reserve finally had to tell Americans, that they gave a whopping nine trillion dollars in short term loans to eighteen different financial institutions during the peak of the financial crisis. AlterNet's Zach Carter breaks down these new findings.
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