Friday, November 18, 2011

Nevada AG trying to restore trust and faith in government single handedly.

 Here is a portion of an article posted today on Naked Capitalism detailing the steps Nevada AG Catherine Cortez Masto has taken to try and hold the major banks accountable for their rampant practice of fraud and their explicit role in the housing crisis.  It is amazing that only one AG has figured out a way to bring fraud charges against anyone of the banks or their major players.  It is as if Masto is the only AG that is not in the bank pocket so to speak and who is not willing to let the banks get away with raping and pillaging the public.  Everyone one else from the White House to the entire Congress have been willing to turn a blind eye to the facts and to fail to protect the interests of the American people.  Masto should be commended for her courage and dedication to seeking the truth when all others were bought off.  The other politicians have acted in their own self interest with little regard for what has truly gone on in financing industry. 

Masto is showing true courage as a leader by taking on the establishment of old money and crony capitalism.  We can only hope that other AGs will find the fortitude to stand up and do what is right rather act so cheaply. 

Masto has been by far the most aggressive AG on the civil side, suing Bank of America for multiple violations of a consent order on mortgage servicing, and even making the dreaded nuclear chain of title claim on foreclosures. It’s no surprise she’s taking the lead on criminal matters. Given that her office basically has no native resources or sector expertise in mortgage backed securities, it does make me wonder just what every other AG in the country and DOJ official is doing now that she’s proved bringing charges for fraud is not in fact impossible.
At this point, Masto has gone further than any other official in terms of restoring some sort of social contract. And that’s saying something. Leadership can come from anywhere, especially when the corruption seems to be everywhere. And with California AG Kamala Harris putting immense pressure on Fannie/Freddie on foreclosures, it suggests the tide is turning on this issue somewhat.
Our essential economic problem is that our economy allocates resources through a mediating system of banks that are broken and/or corrupt. If you look at a chart of the recession, and then the recovery, you’ll notice that business investment perked up, but residential investment did not. The Fed lowered rates, bought Treasury bonds, and bought mortgage backed securities to lower rates for homeowners. But it’s not really working, because the monetary channel is corrupt. This indictment gets to that problem, it alleges tens of thousands of forged documents (or as a friend told me sarcastically, an afternoon’s worth of work for LPS). These documents represent foreclosures, economic loss, and clouded title. The indictments handed down, and the ones to come, show that corrupting our property laws and the basis of our economy is a crime.
READ the rest here

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