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.
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Mar 17, 2011 at 4:20 PM
Reader Comments (21)
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?
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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.
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/
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.
http://english.economicpolicyjournal.com/2011/03/how-ny-fed-gifted-extra-157-million-to.html
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.
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.
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.
Know what? You're right.
by Jesse Eisinger
http://www.propublica.org/thetrade/item/the-trade-credit-rating-agencies-standard-and-poors/
http://www.propublica.org/article/what-do-50-cent-carmen-electra-and-shaquille-oneal-have-in-common-theyve-al
http://www.propublica.org/thetrade/item/goldmans-self-help-eat-pay-trade/
http://www.zerohedge.com/article/enjoying-coffee-lodge-jesse
http://www.bbc.co.uk/news/business-12778142
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