http://www.businessinsider.com/fbi-mortgage-fraud-2010-11?slop=1#slideshow-start
They say part 2 of a movie is never as good as the first, but in this case I do believe part 2 of the FBI mortgage fraud investigation with included in depth looks into the government collusion as well as the mortgage backed securities fraud will have people lining up at the door for a ticket to see the final outcome of the "END GAME" in all of it's tech-know covered glory.
The cast of villains will be the unprecedented event of "OUR" life times.
The FBI will be up for the nomination of Super Hero as the righteous defender of this country, against the enemies within, thus rightfully displacing the office of Homeland Security back to where it came from, right back up the ass of Corporate America and being realised for what it truly is, just another well to be drawn from by the Wall Street opportunists!!
Besides crushing owner's equity and hitting home prices nationwide, the housing bubble saw an unbelievable amount of mortgage related crime than ever seen before.
The FBI has been warning of a mortgage fraud uptick since 2004, and have outlined the various ways that fraud can be committed in a presentation (via Public Intelligence).
From former Wall Street executives, to the low level house flipper, the FBI has it out for all of the potential criminals in the subprime crisis.
While this presentation was made in November 2008, it provides a look into the FBI's thinking in terms of the mortgage fraud issue and was somewhat prescient in the days before subprime became national nomenclature.
Showing posts with label sub-prime lending. Show all posts
Showing posts with label sub-prime lending. Show all posts
Wednesday, November 10, 2010
Monday, October 25, 2010
U.S. Housing Subprime Mortgage Market Securitization Debacle, They Knew What They Were Selling
http://www.marketoracle.co.uk/Article23741.html
Gee, I wonder if Ben and Timmy has read this yet?
Even if they haven't do yourself a favor and enlighten yourself.
It's a real easy read, without any bogus misrepresentation of the actual events occurring.
The "three strikes rule" is a mind blower, in how low the investment banks went to satiate their need for greed.
What I can't understand is, that in light of all that has come out, WHY THE HELL SHOULD THE TAXPAYER BE ON THE HOOK TO PAY FOR ANY OF THIS GARBAGE.
FRAUD AND EMBEZZLEMENT DON'T GET PAID FOR, THEY GET PROCECUTED.
At the end of last week's letter on the whole mortgage foreclosure mess, I wrote:
"All those subprime and Alt-A mortgages written in the middle of the last decade? They were packaged and sold in securities. They have had huge losses. But those securities had representations and warranties about what was in them. And guess what, the investment banks may have stretched credibility about those warranties. There is the real probability that the investment banks that sold them are going to have to buy them back. We are talking the potential for multiple hundreds of billions of dollars in losses that will have to be eaten by the large investment banks. We will get into details, but it could create the potential for some banks to have real problems."
Real problems indeed. Seems the Fed, PIMCO, and others are suing Countrywide over this very topic. We will go into detail later in this week's letter, covering the massive fraud involved in the sale of mortgage-backed securities. Frankly, this is scandalous. It is almost too much to contemplate, but I will make an effort.
But first, let me acknowledge the huge
Gee, I wonder if Ben and Timmy has read this yet?
Even if they haven't do yourself a favor and enlighten yourself.
It's a real easy read, without any bogus misrepresentation of the actual events occurring.
The "three strikes rule" is a mind blower, in how low the investment banks went to satiate their need for greed.
What I can't understand is, that in light of all that has come out, WHY THE HELL SHOULD THE TAXPAYER BE ON THE HOOK TO PAY FOR ANY OF THIS GARBAGE.
FRAUD AND EMBEZZLEMENT DON'T GET PAID FOR, THEY GET PROCECUTED.
At the end of last week's letter on the whole mortgage foreclosure mess, I wrote:
"All those subprime and Alt-A mortgages written in the middle of the last decade? They were packaged and sold in securities. They have had huge losses. But those securities had representations and warranties about what was in them. And guess what, the investment banks may have stretched credibility about those warranties. There is the real probability that the investment banks that sold them are going to have to buy them back. We are talking the potential for multiple hundreds of billions of dollars in losses that will have to be eaten by the large investment banks. We will get into details, but it could create the potential for some banks to have real problems."
Real problems indeed. Seems the Fed, PIMCO, and others are suing Countrywide over this very topic. We will go into detail later in this week's letter, covering the massive fraud involved in the sale of mortgage-backed securities. Frankly, this is scandalous. It is almost too much to contemplate, but I will make an effort.
But first, let me acknowledge the huge
Wednesday, November 4, 2009
Why did blue-chip Goldman take a walk on subprime's wild side?
http://www.mcclatchydc.com/227/story/77852.html
Goldman Sachs was one of the last Wall Street giants to enter the subprime lending world, but when it did, it quickly climbed into bed with profligate, highflying firms — companies such as New Century Financial Corp.
In at least nine deals from 2002 to 2007, Goldman sold bonds backed by more than $5 billion of New Century's mortgages, one even after the California lender's underwriting criteria all but disintegrated and a cash squeeze paralyzed its operation. Goldman also marketed at least three secret offshore deals bearing New Century's name.
Goldman has yet to explain why it risked its blue-chip reputation and financial health to buy and repackage at least $135 billion in loans mostly originated by companies that have since gone bust.
Goldman spokesman Michael DuVally stressed, however, that the firm "was not the largest purchaser of loans from any of these mortgage originators, and in some cases was actually quite a small purchaser."
A glimpse inside New Century's operations sheds light on how one of Wall Street's proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass
Goldman Sachs was one of the last Wall Street giants to enter the subprime lending world, but when it did, it quickly climbed into bed with profligate, highflying firms — companies such as New Century Financial Corp.
In at least nine deals from 2002 to 2007, Goldman sold bonds backed by more than $5 billion of New Century's mortgages, one even after the California lender's underwriting criteria all but disintegrated and a cash squeeze paralyzed its operation. Goldman also marketed at least three secret offshore deals bearing New Century's name.
Goldman has yet to explain why it risked its blue-chip reputation and financial health to buy and repackage at least $135 billion in loans mostly originated by companies that have since gone bust.
Goldman spokesman Michael DuVally stressed, however, that the firm "was not the largest purchaser of loans from any of these mortgage originators, and in some cases was actually quite a small purchaser."
A glimpse inside New Century's operations sheds light on how one of Wall Street's proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass
Monday, November 2, 2009
Goldman takes on new role: taking away people's homes
http://www.mcclatchydc.com/227/story/77841.html?storylink=omni_popular
When California wildfires ruined their jewelry business, Tony Becker and his wife fell months behind on their mortgage payments and experienced firsthand the perils of subprime mortgages.
The couple wound up in a desperate, six-year fight to keep their modest, 1,500-square-foot San Jose home, a struggle that pushed them into bankruptcy.
The lender with whom they sparred, however, wasn't the one that had written their loans. It was an obscure subsidiary of Wall Street colossus Goldman Sachs Group
When California wildfires ruined their jewelry business, Tony Becker and his wife fell months behind on their mortgage payments and experienced firsthand the perils of subprime mortgages.
The couple wound up in a desperate, six-year fight to keep their modest, 1,500-square-foot San Jose home, a struggle that pushed them into bankruptcy.
The lender with whom they sparred, however, wasn't the one that had written their loans. It was an obscure subsidiary of Wall Street colossus Goldman Sachs Group
Monday, May 11, 2009
Massachusetts AG in $60 million deal with Goldman
http://finance.yahoo.com/news/Massachusetts-AG-in-60-apf-15200553.html
This is just Massachusetts, now ask yourself how many other states does Goldman Sachs owe money to.
They were busted dead to rights and now rather than prosecution they are allowed to make a deal for restitution.
Goldman has pledged to provide $50 million in relief to homeowners and make a $10 million payment to the state as part of the settlement. A spokeswoman for Attorney General Martha Coakley says the deal is the first of its kind in the country.
Coakley has mounted a series of legal actions, as she has traced the state's subprime problem from street-level brokers to mortgage providers and, now, to investment houses that turned the risky home mortgage loans into stock market commodities.
This is just Massachusetts, now ask yourself how many other states does Goldman Sachs owe money to.
They were busted dead to rights and now rather than prosecution they are allowed to make a deal for restitution.
Goldman has pledged to provide $50 million in relief to homeowners and make a $10 million payment to the state as part of the settlement. A spokeswoman for Attorney General Martha Coakley says the deal is the first of its kind in the country.
Coakley has mounted a series of legal actions, as she has traced the state's subprime problem from street-level brokers to mortgage providers and, now, to investment houses that turned the risky home mortgage loans into stock market commodities.
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