Oh Oh, A Crack in the MBS Dam?

[CrackSmokeRepublican]

CountryWide was a total Jew operation that intentionally allowed millions of  sub-prime "minorities" to get cheap mortgages (FL, AZ, NV, CO, CA, NM, NY, NJ, some in TX-AL) as recent immigrants.  Most of these bets went bad for the Jew shysters that instigated them...but they didn't care as long as the money flowed into their mortgage scams.  The Jew Fed conveniently had BOA (still another Jew operation) pick up the bill when CountryWide went under due to typical Jew mismanagement and Jew falsifications on the books.  The Fed and the US govt. looked the other way as the mostly "minority" loans went bankrupt. The Jew MBS fiasco cascaded into Lehman and other Jew financial backstoppers in the 2007-2008 crisis... also indirectly this affected banks in Europe that had investments in MBS (Jew financing of financially failed minorities like in Obama's "Chicago" plan).  Well the Jew book cooking may be reaching the end of the believable "rope" after all the Jew scams at the SEC and various Federal mortgage related operations (HUD, FHA,Fannie Mae, Freddie Mac,  Veterans HL, etc.) -- all coached by Jew WallStreet corrupters.  Idiot Jew lackeys such as the Time-People magazine celebrated "Financial Negro" Franklin Raines and convicted Mudd are a testament to the Jew bankruptcy of the USA that is still on-going. The suspension of typical accounting standards as well as secret bailouts of most of WallStreet along with several participating European banks clearly indicates the Jews will stop at nothing to continue to usuriously "Scam" the world... over and over... until of course they are forcibly removed from their unwarranted positions of power globally... on top of their typical "cultural corruptions" in the Jew-ified media -- this is a real powder keg that is creating genuine "Gentile Rage" all across the world....--CSR

 http://en.wikipedia.org/wiki/Fannie_Mae

Leave them fat and comfortable and the G*d Damned Jews will cause Bankruptcy-- and then confiscation by at least one arm of their Protocolist Financial system.. their usurious monster...is a "demon" walking across the Earth...--CSR

In 1999, The New York Times reported that with the corporation's move towards the subprime market "Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980s."[19] Alex Berenson of The New York Times reported in 2003 that Fannie Mae's risk is much larger than is commonly held.[20] Nassim Taleb wrote in The Black Swan: "The government-sponsored institution Fannie Mae, when I look at its risks, seems to be sitting on a barrel of dynamite, vulnerable to the slightest hiccup. But not to worry: their large staff of (Negro-Jew) scientists deem these events 'unlikely'".[21] In his 2006 book, America's Financial Apocalypse, Mike Stathis also warned about the risk of Fannie Mae helping to trigger the financial crisis: "With close to $2 trillion in debt between Freddie Mac and Fannie Mae alone, as well as several trillion held by commercial banks, failure of just one GSE or related entity could create a huge disaster that would easily eclipse the Savings & Loan Crisis of the late 1980s. This would certainly devastate the stock, bond and real estate markets. Most likely, there would also be an even bigger mess in the derivatives market, leading to a global sell-off in the capital markets. Not only would investors get crushed, but taxpayers would have to bail them out since the GSEs are backed by the government. Everyone would feel the effects. At its bottom, I would estimate a 30 to 35 percent correction for the average home. And in 'hot spots' such as Las Vegas, selected areas of Northern and Southern California and Florida, home prices could plummet by 55 to 60 percent from peak values."     [22][23][24]

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Oh Oh, A Crack in the MBS Dam?
 

Hmmmm...

There was much gnashing of teeth in the mortgage-backed securities industry last April, when U.S. District Judge William Pauley of Manhattan ruled that mortgage-backed certificates are debt, not equity. That finding, in turn, led Pauley to conclude that MBS trustees are subject to the federal Trust Indenture Act of 1939, which imposes duties on bond trustees. Under the TIA, Pauley said, MBS trustees can be liable if they fail to notify investors of deficiencies in the trust's underlying mortgage loans and fail to act on those deficiencies. Beth Kaswan ofScott + Scott, who represents the Chicago pension fund that brought the suit before Pauley (which named Bank of New York Mellon as Countrywide's MBS trustee), told me at the time that the "watershed" decision was a way for investors to get around MBS pooling and servicing agreements, which typically require 25 percent of a trust's investors to band together before they can bring any action against an issuer.

There's been relatively little notice of this, but it has potentially-enormous consequences.  If this ruling -- that MBS certificcates are in fact debt, then liability could be extended under the TIA which would upend the attempt to play the game that a trustee has only a "ministerial" duty.

At issue is the fact that MBS trustees are typically paid a relatively-nominal fee and do basically nothing, other than have their name on the deal.  If they suddenly are responsible for monitoring and reporting breaches of reps and warranties on the underlying loans, then suddenly they have a duty to surveil those notes and actually be a gatekeeper on the integrity of the deal itself.

This, of course, would include whether the physical notes bearing endorsements were ever delivered to the trustee in the first place!

It would be a grand day indeed were we to finally get a ruling that when you claim to be something (e.g. "Trustee") that you really have to act like one!

This fight isn't over, needless to say, and probably won't be in the immediate future -- but it does bear watching.

http://market-ticker.org/akcs-www?post=214926

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With respect to total assets under management, Washington Mutual Bank's closure and receivership is the largest bank failure in American financial history.[3][4] Before the receivership action, it was the sixth-largest bank in the United States.[13] According to Washington Mutual Inc.'s 2007 SEC filing, the holding company held assets valued at $327.9 billion.[14]

On March 20, 2009, Washington Mutual Inc. filed suit against the FDIC in the United States District Court for the District of Columbia, seeking damages of approximately $13 billion for what they claim to be an unjustified seizure and an extremely low sale price to JPMorgan Chase. JPMorgan Chase promptly filed a counterclaim in the Federal Bankruptcy Court in Delaware, where the Washington Mutual bankruptcy proceedings had been continuing since the Office of Thrift Supervision's seizure of the holding company's bank subsidiaries.[15][16]

   Alan H. Fishman, CEO  

And Jew Dimon got word from the US govt.-Fed Jews that a bailout was planned....  

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Subprime losses
Washington Mutual's last headquarters, WaMu Center (center left) and its headquarters prior, Washington Mutual Tower (center right) in Seattle.

In December 2007, the subsidiary Washington Mutual Bank reorganized its home-loan division, closing 160 of its 336 home-loan offices and removing 2,600 positions in its home-loan staff (a 22% reduction).[25]

In March 2008, on the same weekend that JPMorgan Chase Chairman and CEO Jamie Dimon negotiated the takeover of Bear Stearns, he secretly dispatched members of his team to Seattle to meet with WaMu executives, urging them to consider a quick deal. However, WaMu Chairman and CEO Kerry Killinger rejected JPMorgan Chase's offer that valued WaMu at $8 a share, mostly in stock.[6][24]

In April 2008, the holding company, responding to losses and difficulties sustained as a result of the 2007-2008 subprime mortgage crisis, announced that 3,000 people companywide would lose their jobs, and the company stated its intent to close its approximately 186 remaining stand-alone, home-loan offices, including 23 in Washington State and a loan-processing center in Bellevue, Washington. It stopped buying loans from outside mortgage brokers — known in the trade as "wholesale lending." WaMu also announced a $7 billion infusion of new capital by new outside investors led by TPG Capital. TPG agreed to pump $2 billion into the Washington Mutual holding company; other investors, including some of WaMu's current institutional holders, agreed to buy an additional $5 billion in newly issued stock. This angered many investors, as TPG's investment would dilute the holdings of existing shareholders, and as WaMu executives excluded mortgage losses from computing bonuses.[26]

http://en.wikipedia.org/wiki/Washington_Mutual


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Still another GD J-Triber:

Richard F. Syron is a former chairman and chief executive officer of the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. He previously served as chairman and CEO of Thermo Electron Corp., and as CEO of the American Stock Exchange.  

Syron graduated from Boston College with a bachelor's degree and earned advanced degrees in economics from Tufts University.

He served as assistant to Paul Volcker, then the chairman of the Federal Reserve Board, in 1981 and 1982, and previously served as deputy assistant secretary of the United States Treasury. In that with responsibility for developing the department's position on all domestic economic policy issues, and extensive interaction with other executive branch agencies, Congress and the public.

Syron held a senior post at the Federal Reserve Bank of Boston from 1989 through 1994, and was a member of the Federal Reserve Board's Open Market Committee, which sets monetary policy.

He joined the American Stock Exchange as CEO in 1994 held that post for five years, which included its merger in 1998 into the National Association of Securities Dealers.

Syron joined Thermo Electron as CEO in 1999, and moved to his post at Freddie Mac in 2003.

In 2004, David Andrukonis, the chief risk officer of Freddie Mac, warned Syron of increasing risk in Freddie Mac's portfolio. Syron declined to act.[1]

In December 2007, Syron told financial analysts that he expected Freddie Mac would incur heavy losses because of the weakening housing market and rising mortgage defaults. [1] Despite these forecasts, and concerns over the fiscal stability of Freddie Mac due to larger-than-expected write-offs, Syron reportedly took home over $19 million in cash, stocks, and other executive compensation in 2007. [2] Mr. Syron was terminated September 6, 2008, under a Federal Housing Finance Agency plan for conservatorship of Freddie Mac. [3][4] It is unknown as of yet if he will receive a severance package.[5]

On December 9, 2008, he testified before the United States House Committee on Oversight and Government Reform on Capitol Hill regarding Fannie Mae, Freddie Mac, and financial market instability.[2][3][4]

His official biography at the Freddie Mac website is no longer available since his termination in September 2008.

http://en.wikipedia.org/wiki/Richard_F._Syron

The classic list below:

Time magazine's Top 25 people responsible for the meltdown
1) Alan Greenspan - JEW
2) Robert Rubin - JEW
3) Bill Clinton
3) Barney Frank - JEW
3) Angelo Mozilo
4) David Loeb - JEW
5) Alan Fishman - JEW
6) Jimmy Cayne
7) Alan Schwartz - JEW
Dick Fuld - JEW
9) George W Bush
9) Hank Paulson - JEW
10) Ben Bernanke - JEW
11) Christopher Dodd - Father was Holohoax Prosecutor
12) Christopher Cox
13) Raymond W. McDaniel
14) Kathleen Corbet
15) Herb and Marion Sandler - JEW
16) Michael Strauss- JEW
17) Daniel Mudd
18) Richard Syron - JEW
19) Jerry L. Starkey
20) Jeffrey T. Mezger
21) Stuart Miller
22) Kevork S. Hovnanian
23) Maurice R. Greenberg - JEW
24) Phil Graham
25) Robert Genader - JEW

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WaMu Clawbacks

These mere shareholder lawsuits and claw-backs don't begin to punish these greedy executives. I had two personal encounters with WaMu. (under Jew influence... )

When they purchased Fleet Mortgage, they had "lost" our loan, so we couldn't get our escrow back. Representatives would note that "if your mortgage is with Fleet, go call Fleet, dont call WaMu." Great strategy -- keep the customer liabilities, lose the customer assets. It took over a year of letter writing and calling to finally get the escrow payment back.

When they purchased Dime Savings Bank, they turned account beneficiaries into account title owners! And while the new title owners weren't on the statement, they were noted to the state tax bureaus. So I was working and had several thousand dollars and my brother (who was a beneficiary) suddenly loses his financial aid because "according to the tax authorities, he has too much money." WaMu refused to help correct the mistake, acknowledge the mistake, and wouldn't even write a letter noting my brother didn't have money with WaMu.

Why did these things happen? Because WaMu went on an acquisition spree and didn't care to properly execute their post merger integrations. Must have been some mass Excel upload with columns swapped, because there were so many snafus. I suppose it doesnt matter...the customer gets stuck holding the bag.

These executives deserve to go to jail for all the people whose lives they have ruined, people who lost college aid, people who lost subsidized medical care, innocent victims of runaway corporate M&A.