reply to post by seabisquit
Dermo is Right! Many crooks working at very high levels in banks have been arrested since 2006 and a number have received jail sentences after
extradition for money laundering under anti-terrorism laws. Bankers are, also for this reason, not too pleased lately as they had been living under
the impression that they could get away with just about anything, doing what they considered 'business as usual'. Not so anymore, we should see them
cleaning up their act if the European Global Governance Initiative seizes this occasion to take power respective to these matters.
Just look at the sub primes and see what many bankers were really doing: Selling your mortgage 4 times in sliced up leveraged sections as derivative
financial products - using the credibility of their own institution to get investors to believe that real underlying assets existed, but there was no
real mortgage behind these financial derivatives.
The real financial scandal buried underneath the alleged over lending to poor people using variable rate mortgages called 'sub primes' is that the
mortgage bank prospectively gets paid FOUR TIMES per mortgage:
Payment #1:
Down payment and subsequent income stream from the householder granted the mortgage.
Payment #2:
A discounted payment from the ‘mortgage collectiviser’ (such as Lehman Brothers or Bear Stearns) which buys the mortgage at a discount from the
mortgage bank and then sells it on to Fannie Mae or Freddie Mac, which then places the mortgage in a trust, which then creates Collateralized Debt
Obligations (CDOs) after collectivization with other mortgages (or even with dud paper), and then splits the CDOs into tranches (slices), which are
then multiplied creating a ‘basket’ of pools of tranches which are sold off to institutions, especially carousel participating institutions abroad
which didn’t originally do their due diligence, with the resulting avalanche of completely worthless assets being propped up alone by the NAMES OF
THE INSTITUTIONS marketing them.
Of course, from the earliest stage of this avalanche, the owners of the ‘assets’ beyond the original mortgage bank have sold them ‘without
recourse’ to the holder of the original mortgage.
Therefore, if the mortgagee defaults, so that the ORIGINAL asset has become worthless, none of the parties ‘downstream’ is any the wiser. They
just keep on marketing successive tranches of these fake ‘assets’ ON THE UNCHECKED ASSUMPTION that the original mortgage is still intact.
Payment #3:
Since the bank continues to hold the associated Universal Commercial Code 1 document that goes with the original mortgage and does not ‘travel’
with the subsequent hypothecations, the bank is in a position to sell the mortgage a second time, to a third party (which starts the replication
process beyond the mortgage bank all over again).
Payment #4:
Finally, the bank of course continues to demand the repayments from the mortgagee. Should the mortgagee default, and foreclosure occurs, the bank
hopes to be in a position to repossess the property, whereupon it becomes a realtor and proceeds to sell it or to provide a mortgage against it from
scratch (which would open up a further three prospective payments for the mortgage bank in accordance with the above sequence).
In such cases, people facing repossession should demand that the TOP COPY of the mortgage document be presented to the Court.
Since the bank has sold the mortgage on, it may not be able to comply with this demand, in which case the repossession should be adjudged to be null
and void.
