Alright Wall Street. It’s time to prove that you guys were all innocent brokers of toxic subprime mortgages. It’s time to play dumb and act like you had no idea that what you were slicing, dicing and distributing all over the world was not part of a sick grand ponzi scheme to make you all stinking, filthy rich.
As you wash your hands clean of toxic residue and continue to the trading floor, like nothing happened.
All the while these investment firms made billions as they now cry wolf and decry that the government has no right to butt into their “contracts” on mortgage backed securities.
Cuomo is on your a$$e$ like white on rice, Wall Street, and you may want to change your tune because those contracts and how you made billions off of junk is now about to be placed under the AG’s law microscope.
My guess is that these firms are “now” staining their designer made drawers and the super duper paper shredder machines are on operation overload, ALL OVER THE WORLD!
I can literally hear the paper shredding as I write this…shhhhh, do you hear it?
From Bloomberg.com;
The office of New York Attorney General Andrew Cuomo has sent subpoenas to request information from several Wall Street firms, including Merrill Lynch & Co., Bear Stearns Cos. , and Deutsche Bank AG.
Prosecutors in a broader investigation of the mortgage business are looking into how well the banks examined the quality of mortgages before packaging them into products sold to investors, the report said. The probe also focuses on how the debt was pooled into securities, including banks’ arrangements with credit-rating firms, the newspaper reported.
The New York AG’s probe appears to be focusing on the relationships between mortgage companies, third-party due-diligence firms, securities companies and credit-ratings companies, The Wall Street Journal reported.
Financials and banking stocks were broadly higher in midday trading Wednesday.
Cuomo is accusing lenders and brokers of inflating the value of properties to secure larger loans and said that he has “e-mail evidence” of banks seeking out “friendly appraisers” who would overestimate property values.
“People will lose their homes, and that could create a lifetime of debt problems,” Cuomo said last month. “We do need new laws” to keep the subprime market liquid while protecting borrowers, he said.
The saga continues as the subprime world turns…………….
{ 1 trackback }
{ 8 comments… read them below or add one }
All I can say is it is about time that someone answers to this. The problems are at the top and bottom, the brokers who submitted the fraudulent loans, and the larger business fractions that altered guidelines and ratings so anyone could get a mortgage loan.
This created a “glut” of purchasers and a “shortage” of properties artificially inflating the home prices.
I just hope everyone that was not ethical gets caught and punished.
The people that worked inbetween, either could be fraudulent themselves, look the other way or fight it.. I preferred the latter, had more trouble keeping jobs, but at least I can go to bed with a clear conscious. I knew the guidelines were too loose.
Lets hope dignity returns to this vital industry.
It appears that the special interest group, The American Securitization Forum, wrote the rate freeze presented to the public by the President of the United States of America.
The document with all the details isn\’e2\’80\’99t on the Treasury Departments site.
I found it on americansecuritization.com.
It would appear that some of the firms involved in the bailout, are members of the industry group that authored the plan, including Countrywide Home Loans, Ameriquest Mortgage Company, Capital One, Citi Global Markets Inc., Fannie Mae, Freddie Mac, GMAC, JPMorgan Chase, Thornburg Mortgage, Inc., Washington Mutual Bank, MetLife
DBRS, Fitch Ratings, Moody\’e2\’80\’99s Investors Service, and Standard & Poor\’e2\’80\’99s
ABN AMRO, Inc., Banc of America Securities LLC, Barclays Capital Inc., Bear, Stearns & Co. Inc., Countrywide Securities, Credit Suisse, Deutsche Bank Securities Inc., Goldman, Sachs & Co., HSBC Securities (USA) Inc., Lehman Brothers Inc., Merrill Lynch & Co., Morgan Stanley, UBS Investment Bank, PIMCO etc\’e2\’80\’a6
Should Secretary Paulson have disclosed the conflict of interest?
How much did that $400 million dollar Prescription plan cost?
Who is going to profit from the rate freeze modifications?
Who is going to look good if it works, but very bad if it doesn’t?
It looks like the executive summary of Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans, says they\’e2\’80\’99re not going to check homeowner income, and will be allowed to modify loans even if they don’t make contact with the homeowner.
wow
Who\’e2\’80\’99s stocks went up after the announcement?
Notables
CHAIR Greg MedcrafT, Managing Director, Global Head of Securitization,
Societe Generale Corporate & Investment Banking DEputy CHAIR DianE W old, Managing Director, HEAD OF Investment Banking, GMAC-ResCap
SECRETARY Sanjeev Handa, Head of global public markets, TIAA -CREF
TREASURER nelson soares, managing director, HEAD OF U.S. SECURITIZATION BANKIN G GROUP, LEHMAN BROTHERS
EXECUTIVE VICE PRESIDENT JASON H.P. KRAVITT , SENIOR PARTNER , SECURITIZATION PRACTICE , MAYER BROWN, ROWE & MAY LP
EXECUT IVE VICE PRESIDENT LAWRENCE RUBENSTEIN , GENERAL COUNSEL , WELLS FAR GO ASSET SECURITIES CORPORATION
That must be a big BED for all of those players to be in bed together!!!
So what are the people with neg am loans who are current on their payment, just can not afford to pay the fully amortized amount (if our broker/realtor fully EXPLAINED the loan believe me we would have never bought the house( supposed to do. Now our home is not worth what we bought it for. We want to live in our home for a very long time, we did not buy the home as a get rich quick act. We have a family and want to keep them rooted in the home they love.
Confused and VERY sad
It is very fustrating. My husband and I re-financed our home 3 yrs ago with Wells Fargo, (before 2005), we have been in our home for 10 years. We had hoped we could re-finance our home before our loan adjusted which it did adjust on 11-3-2007. We could never re-finance because somehow our home would not appraise for what we owed. Go figure, how Wells got it to appraise for so much I will never know. We have been in Loss mitigation for 5 months now with no results. Our payment now is more than we can pay and still have living expenses (and I am talking about things like utilities and groceries). The only thing that qualifies us for this plan set forth is our credit score which has been trashed by all this. All we asked Wells to do was give us a fixed rate and add some years to mortgage which they refused to do. We could have kept house and they would still get their money. Mind you we are not stupid people who bit off more than we could chew. We really thought we could re-finance before the adjustment. We had almost perfect credit before all this drama. Maybe we should have just filed bancruptcy 3 years ago instead of re-fincing house to consolidate bills. I think we would be better off today, and that is a shame. Oh yea , our loan also re-sets every six months now. I am about to hand over the keys. I am sick of it.
My case is that we got approved for the Modification, but every week when I call back, I am told that the day before I call they got approval form management and it was sent to document control to be sent to me. Each time the monthly payment goes up and each time they tell me to call back in a week. I was also told by 2 different account personal that I didn’t need to make my last payment because it was rolled into the new loan. Just to find out the next time I call that I should have made the payment and that I am now late and I am being hit with a late payment fee.
I had also tried to refinange, and after getting the home appriased, and forking out the cash to do so, they said “Sorry, our mistake we can’t refiance, and BTW you don’w get your money back”
I think I will give them a week and then contact the Att. General for my state………
UGH
I am sorry to hear your issues, but as you may know, this is common. You may be stuck in the system and you need to get aggressive and get someone who can get you answers and find out what the deal is with your loan modification.
I wish you luck.
what a joke the rate freeze is. 660 fico is extremely low. What about those that have 800+ but have rates that will reset sky high? Haven’t been late, etc. Where do we fit in?