Matt Weidner – Fighting For The American People

Posts Tagged ‘wall street’

The stock market is up. Unemployment is “only” 10%. There are “only” 25 percent of homes in foreclosure.  I just came back from New York City and things really are booming.  The malls are full. Restaurants are packed.  So Matt, why are you screaming that the sky is falling?

This is an argument I find myself frequently engaged in.  Some of my closest friends don’t get at all where I’m coming from with my “paranoid delusions” and dire predictions of collapse.  First, none of the numbers that are being quoted by anyone mean anything anymore.  They’re all lies or fraud or hopelessly optimistic estimations or purposeful misstatements.  I don’t trust one word coming out of anybody, especially anyone associated with our government at any level and I damn sure don’t trust anyone associated with Wall Street, the banks or institutions.

I’m not the only one that’s bubbling over with anger and rage….the word is out now and everyday Americans all over this country are becoming increasingly angry at what has been done to all of us.  If you’re one of the few who are not yet angry, you’re just not getting it.  You’re not reading.  You’re not thinking.  Because you need to be informed first, then angry, then ready to do something about it.

In the coming years we’re going to continue to be treated to more and more details of the Greatest Fraud That’s Ever Been Committed on a Society.  One of the latest examples is the current Bank of America/Countrywide litigation.  The bottom line is Bank of America/Countrywide sold millions of loans to institutional investors all around the world.  The investors didn’t look at each loan, they relied upon the representations made in the prospectuses that were prepared by Bank of America/Countrywide.  Now the investors have taken the time to actually look at the loans and they’re accusing Bank of America/Countrywide of lying in the documents…..

Please read the following link from ZeroHedge for details.  The banks and institutions engage in widespread patterns of abusive behavior, lies, mistreatment and fraud….but not the first one has ever been prosecuted….not one has been put in handcuffs…..

SO MUCH FOR EQUALITY.

The foreclosure crisis that continues to grip our courts in 2010 and that will only get worse in years to come all began in 2005, 2006, 2007, when the mortgage industry and Wall Street colluded with each other to engineer the largest financial fraud in modern history.  The facts are simple.  Wall Street Wizards figured out a way to monetize then trade billions of dollars in wealth when they figured out how to convert mortgages into currency.  Dollars and stocks were regulated, but because mortgages were new currency, they were totally unregulated, unsupervised and completely subject to manipulation.

The biggest players on Wall Street, JP Morgan, Bear Stearns, Chase…they all got together to create larger pools of mortgage backed securities that they sold to investors nationally and abroad.  THEY COMMITTED MASSIVE FRAUD UPON THESE INVESTORS BY LYING ABOUT THE FUNDAMENTALS OF THE COLLATERAL IN THOSE SECURITIES.

The loan originators at Countrywide, New Century, Argent and most of the other subprime players were submitting loans that contained false information from top to bottom.  The appraised value of the homes were all lies, credit scores were all lies, income and employment….all lies.

THE WALL STREET WIZARDS KNEW THE INFORMATION CONTAINED IN THE LOAN FILES WERE LIES.…but they didn’t care because they hired credit rating agencies to lie to the end purchasers (institutional investors).

And now all these players that were lying and committing fraud from the inception of all these deals come into our courts of equity seeking redress from our local circuit courts.  A fundamental concept of courts of equity is those seeking affirmative relief from courts must come into court with clean hands…they must be innocents in the matter for which they seek relief…..and the players seeking relief in courts across this state and indeed across the country are far from innocent.

THEY ARE THE ARCHITECTS OF THE FRAUD THEY CREATED

THROUGH FRAUD, MISREPRESENTATION AND POTENTIALLY CRIMINAL ACTS THEY SET UP THE FORECLOSURE CRISIS CHOKING OUR COURTROOMS ACROSS THE COUNTRY

But don’t just listen to me, read the lawsuit attached below….it describes in excruciating detail how the architects of this crisis….the biggest players on Wall Street and the gang of thieves that are choking our courtrooms…set this crisis up when the set this whole system up….read on:

Plumbers v JPMorgan Chase As Depositor

One shocking aspect of the Great Mortgage Meltdown and the Bajillion Dollar Boondoggle Bailout was the fact that many of the parties that were directly responsible for the fraud, meltdown and collapse were paid off  IMMEDIATELY 100% of EVERYTHING THEY COULD EVER CLAIM TO BE OWED. No negotiation, no reduction in value, just good ole USA cuts a check to AIG, Goldman, Merrill, et. al. for 100% of their investment, to the tune of $62 Billion Dollars.

Today’s Wall Street Journal reports that the  massive payoffs were the result of a ploy by the French where they essentially floated a totally nonsense theory that their creditors had to receive their full investment back…and not one penny less…or risk jail.  According to the reports…..

The banks and the regulator, known as the Commission Bancaire, said bank executives could be criminally liable for accepting a discount on their contracts, according to a November report of the inspector general of the Troubled Asset Relief Program.

While true in the abstract, “their argument was very overstated,” said Pierre-Henri Conac, a University of Luxembourg law professor and a director of France’s oldest corporate-law review. “Banks give haircuts every day.”

Just so we’re clear, the French come up with some totally nonsense, the feds and their friends just buy right into it and US taxpayers cut a $62 billion dollar check….that’s nice work…

The Baajillioin Dollar Bailout Bonanza

Across the country more than 9 million Americans either have loans that were originated by Countrywide or which were serviced by Countrywide which had a portfolio of loans that totaled $1.5 trillion (according to Bank of America’s website) at the time Countrywide’s assets were purchased by Bank of America in an all stock deal on January 11, 2008.

Bank of America “paid” $4 billion in a stock transaction for the assets of Countrywide which at that time were valued at $208 billion.  I say “paid” because as an all stock deal which was backstopped by the taxpayers, Bank of America didn’t stroke a check as much as taxpayers actually did.  Anyway, while some value for Countrywide’s assets was given to the more than 1,000 field offices and sales force of nearly 15,000, clearly the primary asset being purchased by Bank of America was the portfolio of mortgages (many of them troubled or toxic) that Countrywide held just before Countrywide’s market value has plummeted 85 percent to $3.66 billion during the past 12 months as the lender reported its first quarterly loss in 25 years. At the time of the purchase the combined companies would handle 25 percent of U.S. mortgage originations and a 17 percent share of servicing, which involves billing and collections.  (See Wall Street Journal Article here.)

How Much Did Consumers Pay to Save Bank Of America?

Before we can determine what Bank of America paid for Countrywide assets, it’s important to remember that taxpayers paid somewhere north of a Bajillon dollars to bail out Bank of America.  God only knows what the actual cost has been thus far, but a January 2009 article in Business Week pegged the taxpayer bailout of Bank of America at $138 billion.   This bailout, when combined with all the other preferential payouts received by Bank of America in the form of taxpayer dollars in the preceeding months, represents a huge windfall BofA received at the expense of taxpayers.

So Here’s The Math:

A Bajillion Taxpayer Dollars To Buy Out Countrywide Mortgages

+

A Bajillion Taxpayer Dollars Pays Back Bank of America

=

Consumers Don’t Owe Anything on Countrywide Mortgages!

Now obviously that math isn’t quite right, but nonone really knows what kind of numbers were dealing with anymore.  The reality is if a homeowner has a $200,000 Countrywide loan on her home and Bank of America receives $100,000 in proceeds from a short sale transaction, it is clear that Bank of America would be making a net profit on that “short sale” because Bank of America didn’t pay anywhere near $100,000 for that loan.  As Wall Street annonces record profits, profits that were realized as a direct result of taxpayer intervention, it’s critically important to realize that the banks have already profited tremendously on the backs of the consumers and taxpayers who are now seeking modifications or short sales from these very institutions.  With this in mind, it’s important that we all start to re-consider what it means when we talk about a “short sale”….the truth of the matter is even the shortest payoff short sale represents a huge windfall for the institution that receives those proceeds!

Up next…..the next biggest boondoggle….OneWest purchases Indymac!

For more information visit my website at www.mattweidnerlaw.com!