Mortgages Pledged Multiple Times — a System of Fraud

Yesterday, I showed that mortgages were fraudulently pledged to multiple buyers at the same time. Today, foreclosure expert Neil Garfield (former investment banker, trial lawyer and board member of several financial institutions) confirms this, explains that the loans were not actually securitized, and the whole “sloppy paperwork” excuse... Read more...

The Putback Parade Cometh

As the putback parade gets going, the question is not whether the banks can afford to buy back the mortgages. The question is “Can the Banks Afford the Instantaneous and Guaranteed HIT to CAPITAL?” What investors will lend money to see it instantly evaporate, and how much will they charge for those evaporation services? TARP 3.0 coming to a door... Read more...

Financial CDS Spreads Explode

The bloodbath in fin CDS is even worse than what is going on in equities. Bank of America is currently at the widest it has been in 2010.The latest rack is provided below, and the LTM 5 year Sr CDS spread is charted below. Yet the biggest bloodbath continues to take place in woefully underreserved HR Block, which is certainly not too big to fail. Read... Read more...

Pimco, Blackrock and New York Fed Said To Seek Bank Of America Mortgage Putbacks

Putbacks, bitches! This headline that has just flashed, can not be right. Otherwise it would mean the New York Fed (and Bill Gross) is preparing to sink Bank of America with hundreds of billions of par MBS putbacks. It would however explain why PIMCO has been gobbling up MBS on margin in the past month as we highlighted. We will bring you more as we... Read more...

Korea Adds Bank of America, ANZ to Derivatives Audit Program

South Korean regulators have added Bank of America Corp. and Australia & New Zealand Banking Group Ltd. to a list of banks whose currency derivatives trades they will audit, it said today. The announcement comes after the government said on Oct. 8 it will examine selected domestic and foreign banks’ trades in non-deliverable forwards to ensure... Read more...

Mortgages Were Fraudulently Pledged to Multiple Buyers at the Same Time

Bank of America alleged in a court filing this June: “It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies.” April Charney – a consumer lawyer with Jacksonville Area Legal Aid – and CNBC’s Dennis Kneale noted in February 2009 that courts have... Read more...

CME Group Begins Clearing Over-The Counter Rate Swaps With Banks, Funds

CME Group Inc., the world’s largest futures exchange, began clearing interest-rate swaps traded between dealers and money managers as U.S. regulators seek to lower risk in the $615 trillion private derivatives market. Participants in the plan include Freddie Mac, Fannie Mae, Pacific Investment Management Co., BlackRock Inc. and Citadel LLC, Chicago-based... Read more...

Banks’ Stakes in Derivatives Exchanges at Issue

Federal regulators on Wednesday proposed to cap the stake that banks and other market players can own in exchanges where the complex investments blamed for hastening the financial crisis are traded. The Securities and Exchange Commission voted to seek public comment on the proposed rules, which are designed to prevent conflicts of interest in the operations... Read more...

Bank of America Re-Remics Cut Debt as Basel Looms

Bank of America Corp., seeking to reduce risk and meet new capital standards, upgraded billions of dollars of distressed mortgage bonds by repackaging them into new securities using a variation of a Wall Street technique that failed during the credit crisis. The transactions, known as re-remics, are designed to add a layer of protection to residential... Read more...

Federal Home Loan Bank of Chicago sues B of A, others

The Federal Home Loan Bank of Chicago has sued several of the nation’s largest banks, including its biggest shareholder, Bank of America Corp., alleging that their failure to disclose lax mortgage underwriting standards led the Home Loan Bank to suffer losses after purchasing poor-quality mortgage-backed securities from them. The Home Loan Bank’s... Read more...

Foreclosure Fraud Propped Up Mortgage-Backed Securities

The reason they’re faking the mortgage documentation? If the bankers admit what’s wrong with the chain of title conveyance, the mortgage loans are no longer eligible for the trusts the bankers sold to investors — and under their own terms of agreement, the chain of title  was breached, “true sale” was probably not achieved... Read more...

Bank of America Downgraded by Bonds on Loans

Bondholders are penalizing Bank of America Corp. the most of any of the largest U.S. financial firms as the investigation into the foreclosure crisis expands. Credit-default swaps on the country’s largest bank by assets are above those of its peers by a record margin, according to data provider CMA. The contracts, which imply Bank of America has lost... Read more...

A Look at the Fed’s Suddenly Worthless Trillions in MBS Holdings

At first, there was a deafening silence from Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke on the foreclosure front. It was as if they: 1) didn’t read the news; or 2) were afraid someone would notice afresh their incompetence in dealing with the ongoing housing crisis and deteriorating economy, while convincing everyone that the bank... Read more...

Largest Financial Swindle in World History

The tidal wave of evidence showing that the giant banks have engaged in fraudulent foreclosure practices is so large that the attorneys general of up to 40 states are launching investigations. People’s homes are being taken when they didn’t even hold a mortgage, and the big banks have been using “robo signers” to forge mortgage... Read more...

Grayson Calling for Prosecution of Banks

Congressman Alan Grayson is once again back on the scene, sending the following letter to the US Attorney in the middle district of Florida, and to FBI Director Mueller, “asking for prosection of banks engaging in illegal activities.” The particular catalyst to this action was the much discussed last week mistaken breaking in of Nancy Jacobini’s... Read more...

Credit Default Swap Rout In Financials Continues

First thing yesterday, when we first highlighted that CDS in mortgage fin names were blowing out, even as the moronic market was all giddy on JPM’s earnings beat which was really a miss, we warned “be careful trading financial stocks: JPM’s earnings were actually very bad, and so far only credit has figured it out. Equities, being... Read more...

Karl Denninger Explains Foreclosure-Gate

Karl Denninger, who has been tracking the issue of title fraud in the mortgage space for years, was on the Dylan Ratigan show earlier, and not only provided one of the most comprehensive explanations of where we are, how we got here, and where we are going (unfortunately nowhere pleasant) to date, but also was gleefully and sarcastically rhetorical... Read more...

Bank of America Halts All Foreclosure Sales

Bank of America is halting foreclosure sales in all 50 states as part of a widening investigation into flaws in the process, the company announced Friday. The announcement came a week after the nation’s largest bank said it was freezing home foreclosures in 23 states where foreclosures must be approved by the courts. The bank said the foreclosure... Read more...

Biggest Fraud in the History Of Capital Markets

In the following interview with the WaPo’s Ezra Klein, Janet Tavakoli shares some more information on why every bank is about to shut down all foreclosures, in what she calls the “biggest fraud in the history of capital markets. Not very surprisingly, we are, so far, spot on in our 29th September projected timeline at this point: “We... Read more...

Grayson Demands Foreclosure Freeze

Alan Grayson is back on the scene, having sent a letter to Financial Stability Oversight Council which includes pretty much all of Wall Street’s pawns, including Bernanke, Geithner, Bair, Gensler, Walsh, and DeMarco, in which he asks the FSOC to “suspend foreclosures until this problem is understood and its ramifications dealt with.” And... Read more...

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