Congress will let banks committ fraud after election

Yves here. This development reveals how this battle is likely to play out. Now that judges in some states are starting to take these dubious, potentially fraudulent measures seriously, the next line of attack is to get the more bought and paid for Federal government to intercede on behalf of the banks. As the e-mail by the Ohio Secretary shows, this is a state versus Federal rights issue. And the problem is that these solutions will be depicted as “efficient,” just as securitizations and other “innovations” were.


Please go to Naked Capitalism and check out Yves commentary on banking fraud and foreclosures.  If you want to learn what really is happening at the banks and how they are abusing their authority or lack thereof, to steamroll through the repossesion process in order claim property without legal title. 
Yves nails it again in his blog when covering the subject of Mers, chain of title and deceptive bank practices as these institutions claim to be acting out of a need for efficency rather than follow the law. 
From Naked Capitalism
----"And while efficiency in theory is a good thing, it must always be kept secondary to the overall integrity of the system; otherwise, you run the risk of breakdown. Using dubious arguments to overturn well settled law to get the banking industry out of a monster mess it created is a Faustian bargain. It makes it abundantly clear what is really at stake here, which is the rule of law. Banks that were quick to defend unjustifiable pay deals by invoking “sanctity of contract” have no inhibition about ignoring their own contracts to pad their bottom line, and ultimately, the wallets of top executives. "
Rather than deal with the considerable consequences of these abuses, the banks are prepared to bulldoze well settled state laws to give them an easy way out. And I’m not basing my view on this story alone; I had a conversation yesterday with a Congressional staffer who matter-of-factly said (but with little understanding of the underlying issues) that Congress would intervene on behalf of the industry, via its authority over national banks.
          The result is that we institutionalize kleptocracy while keeping largely gutted forms of due process as theater. The powers that be hope that the broad public will remain unaware of what is really at work."--------   

This is what is going on in our country and has bee since the Tarp program or scam, whichever you prefer, was passed.  The banks created an enormous mess with the CDOs and MBS as they chopped up mortgages while the tried to figure out a way to make them trading vehicles to be exploited by the street.  It could have been helpful but not without some oversight or at least a proper chain of title so when these housing issues started banks could have taken action on the small number of loans in default.  Instead they didn't know who had the rights to the paper or if they did know they might have had 30 people claiming and invested interest and they had no idea what to do.  I truly think they still have no idea what to do and will soon be holding a gun to the head of congress as the demand to be helped out again.  I would not be surprised if they wanted more money or more assurances from the government to protect the banks against their own idiotic behavior that they will claim zero responsibility.  Maybe this time congress won't run away scared and whimpering as they did when they were completely gutted--(a better term might possible be reamed,) -----by the threatening banks.  The congress of cowards and bank lovers.   It is abundantly clear that politicians can still be bought with a few dollars.