$1.2 Trillion in Secret Additional Bailout for Banks with No Collateral and No Commitments

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see VIDEO $1.2 Trillion in EXTRA BAILOUT MONEY FROM FED SECRETLY GIVEN TO DOMESTIC AND FOREIGN BANKS

Of course the figure is much higher, but the secrecy surrounding the money given by the Fed to the banks is something to enrage any tea party advocate and for that matter any taxpayer. The Federal Reserve window was opened to banks who actually sold their mortgage bonds — worth nothing — to the Federal Reserve under the guise of a loan that would never be repaid. The program correctly explained in this video was one of many totaling more money than the principal on all the defaulted loans put together. The kicker is that the mortgage bonds they sold probably didn’t belong to them! (But they were acting as agents for investor/lenders whether they like to think of it that way or not.

Add to that the proceeds they received from insurance, credit default swaps, cross collateralization, overcollateralization and servicer payments (made to creditors with reports stating the loans were performing), and you have real boondoggle fueled by ideology instead of arithmetic. If the banks received more money than they loaned, then how are those loans in default? If your Aunt Tilly pays off your mortgage, your non-payment after she pays it off is not a default because there is no payment due! In this case it was Uncle Sam who paid it off and a bunch of third parties who were all making money, having sold the loans multiple times under the guise of exotic derivatives and synthetic derivatives.

SO the Banks made a ton of money in “off balance sheet” transactions which remain off balance sheet because they are hiding profits and not paying taxes. THEN they claimed losses because the money they made was “off balance sheet” and received a “bailout” they didn’t need equal to all the money that was loaned.

The question of the day is “If the creditors are not pursuing homeowners for payments on the obligations that arose when the loan was funded, and if the creditor received payment from the U.S. Government, and the creditor received other third party payments, all of which were more than any alleged borrower defaults and even more than the borrower balances, why do we have a foreclosure crisis?” It seems to me that there shouldn’t be any foreclosures under that scenario. 

24 Responses

  1. Gaddafi-cation is probably much better…http://www.youtube.com/watch?v=EEmt5Uo_MFM&feature=related

  2. The Fed’s Only Treason cure is UPSIDE-DOWN CRUCIFIXIONS, as in:

  3. U.S. BANKRIMES date back to 1760. TESTIMONY:
    http://100777.com/myron

  4. Gerry Spence, Top Trial Lawyer on U.S. Fascists

  5. The Federal Reserve criminals are committing genocide again:
    American Holocaust Video

  6. Federal Reserve & its members R Crime Masters of Universe:

  7. Officials testify to the Fed’s, and banks’ counterfeiting operations:

  8. TESTIMONY-Federal Reserve launders drug money …

  9. […] $1.2 Trillion in Secret Additional Bailout for Banks with No Collateral and No Commitments MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE see VIDEO $1.2 Trillion in EXTRA BAILOUT MONEY FROM FED SECRETLY GIVEN TO DOMESTIC AND FOREIGN BANKS Of course the figure is much higher, but the secrecy surrounding the money given by the Fed to the banks is something to enrage any tea […] […]

  10. […] 26 Aug MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE see VIDEO $1.2 Trillion in EXTRA BAILOUT MONEY FROM FED SECRETLY GIVEN TO DOMESTIC AND FOREIGN BANKS Of course the figure is much higher, but the secrecy surrounding the money given by the Fed to the banks is something to enrage any tea party advocate and for that matter any taxpayer. The Federal Reserve window was opened to banks who actually sold their mortgage bonds … Read More […]

  11. Servicer collects money to pay back trust the loan cosigned by Non-Depository Trust Company NonMember.

  12. Carrie the term would be ‘trusts’

  13. Makes perfect sense that President Obama wanted $4 TRILLION and only got $1.2TRILLON. Hello IMPEACH anyone?

    Impeach a President: Trial Article 2 – The Executive Branch
    Section 4 – Disqualification

    The President, Vice President and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors. Allowing money laundering thru Mortgage Servicers c/o Institutional Investors’s Underwriters – Non-Depository Trust Company! Hello! All but for the good reason Mortgage Servicers and all affiliates related to national banks and federal associations are ‘Exempt from recording the documentation regarding money laundering. Hello anybody listening?

    Ron Paul Names Pro-Impeachment Lawyer Bruce Fein as Legal Adviser August 24, 2011 · Comments 1 -Ben Johnson – The White House Watch

    The Ron Paul 2012 campaign announced yesterday that “constitutional and international law expert Bruce Fein will join the campaign as senior advisor on legal matters.”

    Fein, a former high-ranking official in the Reagan Justice Department, wrote the first article of impeachment against Bill Clinton years before drawing up formal articles of impeachment against Barack Obama over the unauthorized war in Libya.

    When asked by The Daily Caller whether Ron Paul agreed with Fein and Congressman Dennis Kucinich, Paul spokeswoman Rachel Mills e-mailed, “Yes, he thinks it is an impeachable offense.” The Texas Congressman later told Mike Huckabee he had not “even been thinking about it.”

    Jed Lewison covered the Fein appointment at The DailyKos. Brother Jed is unhappy (What else is new?), writing, “it’s hard to see his selection by Paul as anything more than a pretty loud dog whistle to far right activists.”

    But as the article he links noted, Bruce Fein supported Ron Paul in 2008 and spoke at his Rally for the Republic, where he was introduced by Tucker Carlson. Perhaps this is a dog whistle that Ron Paul supports Constitutional grounds for impeachment and bow ties.

    Either way, the promotion of someone seriously committed to impeaching a president for violating the Constitution is a most welcome sign.

  14. I’ve been reading some financial blogs and was outraged at the 1.2 trillion. Here’s something more depressing, several commenters who had read the FOIA’d documents stated it was more like 16 trillion.

  15. Money?What”money”????????

    FRN’s are not lawful money…

  16. Investigate today not tomorrow all the members of the Executive Committe, coaliation, seeking civil settlement by 9/1 for President Obama.

    Megaservicers ‘money launders’ Exempt under Patriot Act, protected by OCC Visitorial Powers ‘umbrella’ protecting WFHM div Wells Fargo Bank NA, WFC, Norwest, GMAC, Chase, Freddie Mac, Fannie Mae, JPM, Citi …

    New York AG Eric Schneiderman gets booted by Attorney General Tom Miller. I’ve been wondering about Tom Miller and the ‘Executive Committe’ of the Civil Settlement. Who vested powers to group? Oh I know, OCC for any ‘affiliates’ of a national bank or national association may be protected from enforcement by NY AG Eric Schneiderman

    Executive Committee headed by AG IA Tom Miller shoul dbe investigated for ALLOWING COALITION TO ‘SETTLE’ AND ALLOW BANKS ‘GET OUT OF JAIL FREE CARD’

    Wednesday, August 24, 2011

    By Paul Muolo Iowa Attorney General Tom Miller late Tuesday removed New York AG Eric Schneiderman from the executive committee of a coalition seeking a civil settlement with the nation’s megaservicers, saying he had “actively” undermined the group’s efforts over the past few months.

    Miller, who heads the 50-state AG group negotiating with servicers over the robosigning scandal, said in a statement that Schneiderman has been “intimately involved in every aspect of this investigation and possible settlement” since last October.

    According to combined reports, the New York AG feels the negotiating panel is going too easy on the servicers regarding their release from future legal claims tied to their shoddy residential servicing practices.

    In his statement Miller adds that New York “has actively worked to undermine the very same multistate group that it had spent the previous nine months working very closely with.”

    In a statement a spokesman for Schneiderman said the AG is “committed to a comprehensive resolution” to all mortgage abuses, adding that “ongoing investigations by attorneys general cannot be shut down by efforts to settle quickly.”

    The AG coalition is seeking roughly $25 billion in financial commitments from servicers, but it’s unclear how that money will be spent. Some firms might pay outright damages to homeowners while other funds might be geared toward loan modifications and restructurings.

    If you are not a subscriber to National Mortgage News signup for free trial.

  17. Homeowner is never in default. The PSA state that the “servicer” will pay the taxes, insurance and mortgage payment should there be any “delay/nonpayment of mortgage payments. The so-called loans have been paid for by insurance, CDO’s, TARP funds, other bail-out funds and more and more insurance. All fraudulent!

  18. Seems to me we just talked about this very thing on another site. And now here it is again and no one seems to be outraged. I do not understand it. Is this the same 1.2 trillion used to buy back the Fannie and Freddie securities, which we never saw how it was booked, but the feds are now appearing to say it went as an additional bailout to the banks without any committments. Like I said in 2009, and 2010, how were they going to book the 1.2 trillion that no one approved to be funded. I guess I am just confused and that is what they are attempting to do. Keep us confused with no proper accounting.

    On several talk shows the comment was made that 1.2 trillion was spent to buy back mortgage backed securities that F and F had responsibility for. Woe is me. Somebody must surely know how this went down. It does explain why and how they came up with the rdiciulous HAMP PROGRAM AND WHY F AND F WERE LEADING THE PACK TO MODIFICATION. BECAUSE NOW WE OWNED EM AND THAT IS LIKE IN HOUSE OWNERSHIP IS IT NOT?

  19. Got me about everything in this post. But if it’s true, it seems a form of
    blackmail against the gov. The gov, stuck in the mode of tbtf, keeps forking over money repeatedly. According to this post, profits are continuing to be made with no report of a gain to put some of those funds back in circulation by way of taxes on the profit. Something like that. The gov perceives nasty consequences to national if not global economy if they don’t fork over the funds, apparently. Wonder what would happen if the gov took those same secret funds and spread it around in another fashion. Such an influx of cash for spending/loaning to people / entities other than the tbtf gang might do some good. 1.2 trillion is a lot of money, especially to toss down a black hole if you can’t see the bottom. TARP was one thing, giving the gov the benefit of the doubt that it was in fact a crisis managment move and hasty decisions had to be made. It seems like throwing good money after bad and I hope it’s not true. Is our government still managing by crisis? Are we bereft of talent needed to turn this around – really? I still love this country, but it IS depressing and oppressive to be of the nation which turned out the
    criminal masterminds of this mess. I keep thinking of that one executive(Paul someone?) who personally snarfed 4 billion dollars on the backs of his fellow countrymen and sadly from the looks of it, our children and our children’s children. Congratulations, slick.

  20. COME ON, NEIL—WHEN ARE YOU GOING TO STOP CALLING THEM “LOANS”???

    “…What we need to focus on is that borrower’s subprime refinance was unsecured — a false and fraudulent mortgage — and nothing more than debt collection on a fraudulent transfer of collection rights to a false default debt. Everyone (in subprime refinance) was in (false) default before they even refinanced.

    The banks (as debt buyers) accomplished this by falsely placing borrower in current default (and never telling them) — and then the servicer purchases the collection rights from either Freddie or Fannie. Then the servicer “reinstates” the false default debt with a fraudulent refinance. And, if there is a subsequent refinance, that is just another transfer of collection rights. Servicer reports original F/F mortgage as “paid” — but it is “Paid-OUT” — by servicer purchase — and not “Paid-OFF” by the borrower as it should have been by the (fraudulent) subprime refinance. . Thus, borrower remains in default on F/F loan – despite a subprime refinance — and borrower can never refinance with an F/F again — They are doomed if they miss even one payment on the false collection rights — and will never recover because always held in default — on both the F/F loan and the collection rights. BUT BORROWERS should not be paying on fraud!!!! They have a right withhold payments on fraudulent debt.

    All fraudulent, all in violation of consumer protection laws — and, because the “creditor” of collection right never validates the “debt” — by disclosing the actual creditor to the false default debt — in violation of FDCPA and May 2009 TILA Amendment. Meaning borrowers should not be paying anything — because of fraud and violation of federal statutes.”

  21. Mortgage Servicers ‘exempt’ from reporting to FinCEN money passed through agencies paid by Non-Deposit Trust Co non-members for pre-funding and advance funding of REO property.

    Futher, Servicers agree to pay ‘annunity’ 30 year annunities in which ‘trustee’ collects promise to pay.

  22. The video is broken.

  23. […] See the article here: $1.2 Trillion in Secret Additional Bailout for Banks with No Collateral and No Commitments […]

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