Hundreds of demonstrators gathered outside JP Morgan Chase’s annual shareholders meeting demanding justice for what they called unfair foreclosure practices. And it looks like they might be getting what they want. Wow. That would be surprising.
We are finally seeing some signs of the government starting to crack down on banks that are playing a role in this mortgage crisis. The New York Times is reporting that the New York Attorney General Eric Schneiderman has requested information from Wall Street banks in recent weeks about their mortgage securities operations during the credit boom. He specifically requested meetings with representatives from Bank of America, Goldman Sachs, and Morgan Stanley.
Schneiderman is investigating into the secularization of loans, the pooling of thousands of home loans into securities subsequently sold to investors. He is attempting to determine if the banks knew that billions of dollars of these loans would fail when packaging them into securities.
Some say Scheiderman is grandstanding. I say, go get them, Eric. These guys knew they were passing this junk. We see all the emails.
And they were selling off to things like our pension funds. If they profited off that fraud, there should be an incredibly high price to pay, civil and criminal.
Also today the Huffington Post reported that a set of confidential Federal audits are accusing some of the nation’s largest mortgage companies of defrauding taxpayers in the handling of foreclosures on homes purchased with government backed loans. Apparently five separate investigations were conducted by the Department of Housing and Urban Development’s Office of the Inspector General. They specifically examined Bank of America, JP Morgan Chase, Wells Fargo, Citigroup, and Ally Financial.
Sound familiar? Yes, they are the same list of banksters. Allegedly the auditors found that the banks effectively cheated taxpayers by presenting the Federal Housing Administration with false claims. Last year in the robo-signing scandal, banks were found to have filed false court documents in foreclosure cases
Fraud, false claims, and more fraud. This is not a free market. This is the average guy getting ripped off, then getting thrown out of his home, and then the taxpayers paying the bill. And who are the only ones making money out of all of this? Of course, the big banks who regularly engage in this fraud. There has got to be an end to it.