All 50 States Launch Investigation In Foreclosuregate, Wall Street Nightmare Becomes Real

On Wednesday, All State Attorney Generals have joined to launch an investigation into Foreclousuregate

This spells big trouble for the housing finance industry.
Imagine hoards of borrowors suing the banks demanding their money be given back?
For all back mortage payments?

Hello Massive Unprecedented Meltdown!

Yes, Wall Street deserves it.
Yes the mortage holders have the right, and should only protect themselves.
But this is a tsumani rising...this one is going to cost the taxpayers millions and billions.
Because this is the way it is, here in the U.S. with the Federal Reserve.
Wall Street messes up, and we the taxpayers are with hands tied by Congress forced to bail them out!

I am also wondering about the timing of this, it is afterall October. This is not really new news, the Feds have know about this but wait until now to investigate?
Hello October Suprise!

Every U.S. state except one launched a joint investigation into the mortgage industry Wednesday, a move some experts fear will cause uncertainty and threaten the recovery of the housing market.

The 49 state attorneys general are investigating allegations some banks used shoddy paperwork to kick struggling borrowers out of their homes during a foreclosure crisis that is one of the most visible wounds of the 2007-2009 recession.

The mortgage is still owed, but there's going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you're stealing my money. You're going to then have trusts that don't have any assets that have been issuing securities that say they're backed by a whole bunch of assets, and you're going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they're going to do, and you're going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.

If this were to come to pass -- and plaintiffs lawyers will certainly be eager to show that their clients were paying the wrong mortgage holders -- the value of all instruments (including the performing ones) could plummet.

Read more: www.businessinsider.com...

Alabama was the only one of the 50 states not to join the investigation.

www.msnbc.msn.com...

UPDATE: Alabama has joined in...All 50 States Launch War Into Forclousegate!
www.businessinsider.com...

Thank you Captianbitter, and blankduck 18

www.abovetopsecret.com...&addstar=1&on=9729962#pid9729962

edit on 13-10-2010 by burntheships because: Update Thread

This is long overdue and the greedy bankers should have been investigated a long time ago, however I believe that this is just election year trickery and it will all either be swept under the rug (after the voting ends) or it will all just be a huge show to begin with. Either way, I believe that justice will once agains be subverted and perverted both.

--airspoon

Come on people, do you really think anything will come from this?!?
The Government is corrupt and in bed with the Banks, Corporations, Lobbyists.. they got their bailouts for their criminal bad loans, so why would the Government hold them accountable now !!!

reply to post by airspoon


It is very suspect, the timing. You perhaps could be right about dirt under the rug and all.
Only time will tell. One thing though that is in the back of my mind, is its intentional in timing and
desired result. Many major banks have already halted the foreclosure process.

If this proceeds as out of the gate, all fincancial instruments including performing ones will take a huge hit.
And that could possible blow a hole so big it will break the dam.

Hopefully this will be the shove that is needed to push the fraudulent and corrupt banking system in the USA off the edge, and be the instigator of total economic reform.

As was said in another related thread, I hope that this investigation results in a lot of those bankers ending up in orange jumpsuits.

reply to post by GammaRayBurst


Yes, why now? America has been living a lie. Of course they had a lot of help from Uncle Ben, Uncle Sam.
Anyone who thinks everything is going to turn out to be ok is kidding themselves

Beware the Third of November? The Fed meets on November 1, and will announce the QE2 on November 3rd.
The FOMC statement is released after the two day meeting.

www.forextv.com...

We have a world wide currency crisis.

The job markets are dead.

The stock market is a wild confabulation production by The Federal Reserve.

The housing market has taken a huge hit, downturn.

There is going to be an event, and it will bring for intended or unintended consequences that will bring it all down.
What will be the trigger for that event?

This could be it.

reply to post by GammaRayBurst
A lot of people know the gig is up,that's why they are spending money like there is no tomorrow.

There are very few tomorrows left for a lot of legal fictions and real people.

But it doesn't matter anyway.

I wonder why the attorney general of Alabama didn't choose to join the other 49 states in an investigation ....

reply to post by burntheships

HunkaHunka has a similar thread. It is very confusing

Mods can you combine threads?

reply to post by crimvelvet


No, his is in Breaking News. Its ok, different forums.
I starred your post, its great! Your info this great, all should read it.

link to your post


reply to post by Monts


Orange, yeah. Nice color for October is it not?
This is going to be interesting for sure.

When I first caught this as breaking news, it was just one blurb my MSNBC. Now an hour later there are pages and pages of Google.

reply to post by chiponbothshoulders


What you say is true. Its unfortunate, but that is the way some see it. I suppose its time for it to all crash anyways.

Originally posted by IamCorrect
I wonder why the attorney general of Alabama didn't choose to join the other 49 states in an investigation ....

Same thing here, I really wondered about that as well.

ALABAMA ATTORNEY GENERAL'S OFFICE

www.ago.state.al.us...

What makes me believe that this can all be possible is that it is not the Feds doing the investigation, it is the state governments. Still corrupt, but far less corrupt compared to our good 'old Congress.

Burntheships, could this lead to a Stock Market crash in October if the investigation actually starts and it is not some game? What would be the direct results on our economy? I'm not an Economist so I am relying on a little help to figure this one out.

reply to post by Misoir


I think the answer is it could be a trigger. Like a Black Swan Event.
I do agree; its the States launching the investigation, each one through the AG Office. So that in my mind lends weight to the whole scenario. It makes sense, as they will all need to share the facts gathered so as to complete the investigation.

So, this is most likely not going to go away overnight. No way...
Two years ago Treasury Secretary Hank Paulson warned Congressional leaders we were days away from a complete “meltdown of our financial system, with all the implications here at home and globally.” I think we will be getting to that point again and soon.

Jim Sinclair thinks this is the final shot.

Securitized Mortgage Debt: The Shot That Will Kill Many Financial Entities

I am asking for your attention again because of the depth of the fraud and now the size of the securitized mortgage debt OTC derivative pile of garbage that is in the trillions. This entire mountain of weapons of mass financial and social destruction is now in question. I have been telling you this for more than 2 years since the manufacturers and distributors of this crap were called by the NY Fed due to the loss of control over the paperwork.

..........
Securitized mortgage debt is going to be the final shot that kills all kinds of financial entities in the Western world. The biggest holder of this putrid junk is pension funds.

jsmineset.com...

Sad thing is...
No one's going to get their homes back...

if anything more people will lose out once this is all settled...
why I say that is a home owner is the little guy and just cant hire all the high priced lawyers a big bank can...
even if the states win a Stay... how long can a homeowner hold out when a bank has cut off your accounts, frozen your assets and ruined your credit???

reply to post by DaddyBare


Yes, it almost seems unfair to those who have already lost their home. Thats very true, and sad.
Mnemeth1 has a great thread on that aspect of the issue, www.abovetopsecret.com...

It offers a lot of insight into the problems facing the mortage holder. I highly reccomend it to all!

So this is basically Lenders (Banks) vs. Mortgage Brokers vs. Mortgage Trusts (JP Morgan, GMAC/Ally) vs. Mortgage Insurers pointing fingers at each other in a free-for-all match to see who can get money from whom, and who is left holding the bag.

When Bankers duke it out against Insurers and Brokers duke it out against the Trusts, you would be a fool to think that anyone who isn't one of the above is going to get anything out of this.

Yes, JP Morgan and GMAC/Ally were caught red-handed forging documents and heads will roll, but neither will cease as a company. A scapegoat will be offered to the public, money will change hands from the Trusts to either the Lenders (Banks), Brokers or Insurers, and the public will foot the bill as creative accounting from JP Morgan and GMAC/Ally will show they don't have the assets to cover it themselves. When it comes to investors and the public suing, these companies will be offered the same securities fraud protection that was recently extended to Fannie Mae and BoA.

So, the rich get rich and the poor get poor and one or two rich schmucks will be offered up as scapegoats before Congress and will join Bernie Madoff and company in the Federal Pen.

Still, the Shadow Bank will go on. The rules of the game may change due to federally imposed regulations that will be penned in the wake of this, but none of it to the benefit of the consumer, but rather to benefit to those who stand to profit no matter who ends up with the chump change after this investigation/suit. The rest of the players in the Market will adapt to the new rules and still play dirty pool with their cut-throat philosophy and 25 years from now it will be the same old story, just with different players caught doing similar misdeeds.

reply to post by burntheships


Oh great, wipe out the pension funds!

Thank you for bringing this article to my attention, all articles you provided, did you see the second chart on THIS THREAD?

It was shocking because it was virtually the same and we are at a point where we are about to fall off a cliff. I believe this could be the final push we need to force all the major banks into bankruptcy like they should have done in 2008. No more money for TARP this time, we are all dried up, unless they want to print us into hyperinflation.

So here come the soup lines, 30% unemployment and America defaulting. The final straw to break the camel’s back.

If I was running for office and just now learned about this and the implications I would say something really stupid so no one would elect me. I would hate to be in the next Congress.

reply to post by Misoir


Oh yeah, they are coming for the pension funds too.
I did a thread about that, they actually have met already. I need to update the thread
www.abovetopsecret.com...

Yep saw the thread on gold. Gold is going to skyrocket. Silver also. I cant give advice, but ...ahem...but take heed, Gold has have over a dozen straigh gains in a row.

Well if your want into politics, seems a good time. My idea, VOTE THEM ALL OUT.

Unless an incumbant has done a superb job, I am giving them all the boot!

I hate to say this but
I don't think TPTB will allow this to happen.
There will be some nation altering false flag event
that will happen so they will not have to be held
accountable for their actions.
Their time is running short so I would say
the event is close at hand.
Be prepared for anything
is the smart play.

My house was foreclosed in April this year
so it's gone with no chance of getting it back.
But I do love the notion that I can sue the crap
out of the lender and get my money back.
That might allow me to get a new house.
But I ain't holdin my breath. The system
has NEVER worked for the lil guy.
Why should it start now?

Originally posted by fraterormus
When it comes to investors and the public suing, these companies will be offered the same securities fraud protection that was recently extended to Fannie Mae and BoA.

Yes, ultimately like the FDIC, and that will need to be bailed out also.