Originally posted by Vitchilo
And I bet all that money comes from bailouts.
Remember how the banks sold the notes proving they own the mortgages? They have lost most of them, they don't have proof they own the mortgages. And of course they are being sued for fraud because they don't own the mortgages so the houses are the property of their owners, not the bank's property anymore...so they don't get to foreclose if people don't pay their mortgage... since they have no proof they own the houses.
But now the banks want a ``deal`` that will disregard all that fraud and make all fraudulent mortgages they own legal.
Banks Offer $5 Billion to Resolve Foreclosures Probe
Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM), along with three other U.S. mortgage servicers, proposed paying $5 billion to settle a probe of their foreclosure practices by state and federal officials, two people familiar with the matter said.
But not only that...
They must also reach an agreement on the claims state officials and federal regulators will surrender as part of any settlement. Banks are less likely to sign off on any deal that doesn't provide a broad release of claims from state attorneys general in the most populous states.
They want to be made IMMUNE forever for their fraud...
I bet they'll get away with this.
* SEC TO HOLD CONFERENCE CALL TO DISCUSS ENFORCEMENT VS JP MORGAN
* JP MORGAN TO PAY $153.6M TO SETTLE SEC CHARGES
* JP MORGAN TO SETTLE SEC CHARGES ON MISLEADING IN CDO ON HOUSING
* SEC CITES MISLEADING INVESTORS IN CDO TIED TO HOUSING MARKET
* KHUZAMI: JPMORGAN FAILED TO DISCLOSE MAGNETAR'S ROLE, INTERESTS
* KHUZAMI: JPMORGAN HAS REIMBURSED INVESTORS IN TAHOMA CDO
* KHUZAMI SAYS SEC MISLED INVESTORS IN SQUARED CDO
Anyone exiting the third quarter with a Bank of America (or Wells, or JPMorgan, or Citi) short on their books will be delighted to learn that the "other" mortgage fraud scandal, not the putback litigation which is sure to cost Bank of America billions in incremental legal fees now that that particular settlement appears to be challenged and banks even across the Atlantic are joining in the legal free for all, but the "Linda Green" robosigning affair, which various conflicted attorneys general had held a tenuous grasp over with a settlement in process, has just blown out wide into the open once again, after California joined New York AG Schneiderman in pulling out of the talks, and leaving Iowa Atty. Gen. Tom Miller with a completely lost cause. We expect all other states to promptly follow New York and California's examples. The net impact is quite adverse for all mortgage lenders, as this development will merely snarl the traditional foreclosure process for even longer, and while beneficial to borrowers, it will put even less cash into the depleted coffers of the banks that so desperately need it.
What is left open to interpretation is whether this is an open attack by the very much insolvent state of California against the Obama administration which has actively been pushing for precisely this settlement, which would be highly beneficial to banks, and quite damaging to the legal system, and specifically the perception of how easily it can be trampled if one is a TBTF bank.
And with California no longer on the side of Miller, the state is sure to enjoin the active pursuit of a far more comprehensive resolution to the robosigning fiasco, which will inevitably result in far greater pain for the banks.
Bottom line: America's TBTF banks, which increasingly are looking like they just may be NTBTF, had a horrendous Q3. It appears that Q4 will not be any better.
Originally posted by Davian
Its reached the point where we're gonna have to bomb one of the Bilderberg meetings...