More on $8.5 Billion BofA Settlement Conflicts: 2/3 of Trustee’s RMBS Business is From BofA « naked capitalism#comment-421510#comment-421510#comment-421510

More on $8.5 Billion BofA Settlement Conflicts: 2/3 of Trustee’s RMBS Business is From BofA « naked capitalism#comment-421510#comment-421510#comment-421510 Is it ever going to end ? The banks are still trying to hide the facts about their back door dealings that continually serve their self interest. We have seen a complete collapse of government oversight, complete failure of our politicians to protect the public and the middle class hard working Americans left to hold the bag. The government is failing the people like never before and no one seems to really care. Our country has become a bank owned state. Politicians are as good as on the bank payroll.

Washington Mutual/ Chase Bank attempting more acts of fraud

Here is an excellent article from Foreclosure Defense NationWide that gets to the heart of the issue regarding certain that are evidence of bank fraud.  This article specifically deals with the Washington Mutual/Chase take over.  Chase is acting as is the successor to all the WaMU loans but the court in California denied this claim based on president set in an east coast case.  It appears banks are willing to push the envelope as long and as far as possible until the court orders them to stop. 

These such cases could not provide more evidence of bank fraud and bank willingness to manipulate the system to their benefit.  Otherwise we have to assume that the highly esteemed and highly paid lawyers working for the bank have little knowledge of the law.  It is ridiculous to think that so many highly paid lawyers would not know that banks are committing such acts that are outside the boundaries of the law.  It seems like this should be pasted on the front page of every mainstream media outlet in the country.   More evidence of the MSM biased for the corporatacracy. 

June 22, 2011

In an 11-page Order dated June 2, 2011, the United States District Court for the Central District of California has denied JPMorgan Chase Bank’s Motions to dismiss a borrower’s claims for violations of CA Civ. Code 2923.5, Wrongful Foreclosure, Quiet Title, Quasi Contract, Declaratory Relief, and Injunctive Relief in the matter of Javaheri v. JPMorgan Chase Bank, Case No. CV10-08185 ODW. The decision cites case law from the United States Supreme Court, the United States Court of Appeals for the 9th Circuit, and California state courts.

The borrower filed a Second Amended Complaint for numerous causes of action including those identified above. The loan had been originated by Washington Mutual Bank (WaMu), with the loan thereafter being securitized. JPM relied upon the Purchase and Assumption Agreement between JPM and the FDIC as Receiver for WaMu, contending that it had succeeded to all of WaMu’s assets, including the borrower’s note. (Significantly, and although not mentioned in the Javaheri Order, JPM has affirmatively represented to the United States District Court for the District of Columbia in separate Federal litigation that it is NOT the “successor in interest” to WaMu, and that it only purchased certain assets of WaMu from the FDIC.)

The borrower claimed that between November 13 and 30, 2007, WaMu transferred his Note to Washington Mutual Mortgage Securities Corporation and that the Note was sold to an investment trust and became part of a loan pool, PSA, CDO, mortgage-backed security or pass-through certificate, credit default swap, investment trust, and/or a special purpose vehicle. The loan was identified with a CUSIP number and the pool number. The court found that “Coupled with Plaintiff’s allegation that JPMorgan never properly recorded its claim of ownership in the subject property, the above mentioned facts regarding the transfer of Plaintiff’s Note prior to JPMorgan’s acquisition of WaMu’s assets raise Plaintiff’s right to relief above a speculative level”, warranting denial of JPM’s Motions to Dismiss as to the claims set forth above.

One of the more interesting theories raised was the “Quasi Contract” claim, where the borrower alleged that JPM was unjustly enriched by any payments made by the borrower to JPM which were not paid to the lender or beneficiary. The Court concluded, for purposes of pleading, that “if indeed JPMorgan did not own the Note yet received payments therefrom, those payments may have been received unjustly”. We believe that if in fact JPM fraudulently represented to the borrower that it did own or have rights to collect monies under the Note when in fact it did not, this would support a fraud-based claim as well.

The Court specifically found that “in the face of these specific factual allegations (by the borrower as to the securitization of the loan) JPMorgan’s assertion that the P&A Agreement suffices to establish their ownership of the Note is no longer viable. Indeed, the P&A Agreement does not specifically identify Plaintiff’s Note.”

That quote exemplifies a central issue we have been confronted with in the numerous Chase/WaMu cases we have in litigation in various states: Chase claims to be the “successor in interest” to WaMu by virtue of its “acquisition” of the “assets” of WaMu, when in fact no such wholesale “acquisition” of mortgage loans across the board ever occurred, as evidenced in Javaheri and in the Federal litigation in the District of Columbia. Honestly, does JPM think that it can get away with taking one position in its contract and in “East Coast” Federal litigation and take a completely contradictory position in California Federal court?

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Free market capitalism is fantasy

Naked CapitalismI was reading this article at Naked Capitalism and checking out some of the comments and read a few that had me thinking we were a long way from ever having a free market or fair market system. 

Everyone seems to think a free market is all that is needed to created a robust economy.  However, there is no such thing as a free market.  What we have created is moving farther and farther away from being a free market system then ever. 

The corporations have teamed up with government to create a system that provides relief and resources to the largest corporations.  Politicians have gladly handed over the keys to the financial system and allowed policy to be shaped by the large corporate interest.  It is now a corporate run economy with government stamp of approval.  There is no way the average American citizen can freely participate in the economy without being at risk. 

Some people are suggestion complete government withdrawal from the economy and even cut off the issuance of bank deposit insurance.  It sounds like a logical move to a free market but the typical depositor will get crushed.  There is no way Americans to know what the banks are really doing with the deposits and clearly banks are always putting far too much money at risk in order to remain solvent in the aftermath of a crisis.  It seems clear enough that the banks have lost their credibility after this most recent crisis.  Evidently bank fraud and abuses are caused by government policy.  How absurd?  If this was the case then we would not have seen a crisis fueled by corporate fraud, criminality and greed. 

The interest of the individual citizen who drives the US economy has no one as its champion.  The politicians have caved to corporate bribes and pay offs (even if they are "legal" they still are bribes and payoffs).  The current generation has no one fighting for their opportunity.  The little guy is being squashed all while being brainwashed that Free Market Capitalism is the best way to level the playing field. 

We have been fed propaganda for years that America is the land of opportunity and that everyone has an equal shot at reaching the American Dream.  We are witnessing the pillaging of the public by corporate and government interest as they steal away what precious little opportunity was left for the individual. 

All of this is clear but the most troubling aspect of the entire current meltdown is just how blind people are to the reality of our economic system.  I have heard the phrase "zombie banks" for the current situation for many of the government propped institutions that are just empty shells but I am starting to think the majority of the population is sleep walking into the next era of economics for the country. 

We can not look to the Mainstream Media for guidance because they are bought and paid for by the banks and the government so people need to start thinking for themselves become free thinkers in order to see how badly our "free market system" has been vaporized by the bank/corporate tag team.








http://www.nakedcapitalism.com/2011/07/government-the-dominant-player-in-us-credit-markets.html









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