The Banker That Used Bailout to Buy a Condo

Just a short note on this. Think about it. Why would he have taken the money and used it for a condo when he had to cover bank losses on mortgage loans that were in default?

Answer: the bank had no losses, so there was nothing to account for.

This money wasn’t income. It couldn’t be booked as capital contribution, but his use of it to buy a condo didn’t harm the bank one bit. Their balance sheet is unchanged.

My guess is that if he asked an attorney familiar with accounting for banks, he would have suggested that the bank use the money to buy something that can be capitalized on the balance sheet.

Otherwise the financial statements look cooked by the receipt of “bailout” money when there were no losses to bailout. There were no losses to bailout because his bank never assumed the risk of loss on the subject securitized loans.

His bank never advanced any funds for the loans. His bank never used its credit to fund the loans. His bank was most probably an originator who was paid for services rendered. What services? The service of acting as though they were the lender when they were not. My guess is that unless they get him on some technicality his prosecution and sentence, if any, will be light.

Banker Used Bailout Money To Buy Luxury Condo
http://breakingnewsusa.com/2013/08/banker-bailout-money-buy-luxury-condo/

13 Responses

  1. US Bank and SN Servicing has submitted Forged documents in our federal bankruptcy case too and we will never stop perusing them in court for damages. We are also asking our Federal judge to prosecute their current attorney out of Jacksonville Florida who continued to defend this case knowing that forged document are before a federal court. All the offending parties at SN Servicing and their attorneys are committing a serious crime against our country. We have filed a formal complaint with the FBI and the US attorney general and many great Judges all across this nation are finally stopping them from this kind of fraud on American families. US Bank and SN servicing and their attorneys are also violating a serious consent order that was to protect the people from these crimes but they could care less. Please feel free to have your clients join a class action suit so that we can end their behavior with a multi billion dollar punitive damage suit. Join us, call Ray Shelton in Florida at 352 274 8467

  2. Neil is so smart! Here is a bankrupt bank:

    Assets………………………. …..$100
    Liabilities …………………………………….$200

    Liabilitiies/Assets = 2:1

    Here is a bank doing so so :

    Assets …………………..$1,000,100
    Liabilities ……………………………$1,000,200

    Same bank: with a sham $1,000,000 transaction.

    Liabilities/Assets = 1.00009999/1 which rounded off is: 1:1

    Abraham Briloff (CUNY/Baruch) wrote about this years ago in his book “Unaccountable Accounting”.

    http://goo.gl/1yNqUl

  3. https://livinglies.wordpress.com/?s=countrywide

    (second link in seperate reply to avoid “two hot links” automatic “moderation”)

  4. AWL “America’s Wholesale Lender” was a dba/tradename but it was used as the lender name on the notes(???) ,, having the note payable to a non-existant company is obviously invalid.

    Bank of America never acquired the notes properly …

    https://livinglies.wordpress.com/2011/06/05/smoking-gun-on-bofa-securitization-fraud/

  5. neidermeyer – there is so much info here and elsewhere to absorb that even with notes, it’s hard if not impossible to retain everything. When you have time, would you please give us a recap of the CW / B of A debacle and hit on AWL (wasn’t it an alleged dba of CW?). I would really appreciate it as no doubt would others. Thanks

  6. NG, since you mentioned it, can / will you tell us how banks have accounted for TARP funds?

  7. @kevinmkeyes ,

    Simple , the banks and the government … regulated and regulator … are one and the same ,, they work for each others interests … and you just don’t count in their game… I just found a property in my subdivision ,, I had looked at it 2-3 years ago when I saw a Bank of America short sale notice on it… at the time I didn’t look into it deeply .. it still appeared occupied and although it would be a good home for my mother I passed on it … I saw it again this week and saw it was vacant (and has been for 2 years) … I looked up the foreclosure … it wasn’t truly a BAC ,, it was BAC for Countrywide … The owner moved out and shortly thereafter BAC dismissed their own case because of the known problems with their countrywide portfolio…

    The moment I get a few thousand in my hand I’m going to find the owner and offer him a cash for keys … The debt is unsecured ,, now and for all eternity … just need a QT case and to wait it out and then it’s free and clear. The waiting period doesn’t matter for me at all as I intend to keep it “forever”. Just needs new floors paint and a better A/C system.

    Bank of America should have been forced by the government to notify every Countrywide loan they service that the debt is uncollectible … or more likely notify them that Bank of America ,,, will NEVER be able to offer them clear title after they payoff the loan … and neither will anyone else.

  8. Great observation, Neil: “Answer: the bank had no losses, so there was nothing to account for.”

    Same goes for all the banks. The bailout was candy, sugar on top to them. That’s why they all got bonuses. They didn’t need the money–they needed to demonstrate their power over the government (remember that the bailout didn’t pass at first).

  9. I would say one year and $100,000 is very light !!!!

  10. Recently it seems as if the tides maybe starting to turn in AZ. I’m not sure why anyone hasn’t been talking about this yet? Maybe they have and I missed it. Check out the recent Stauffer v first american title and also Huff v. Flagstar. Check out both cases here. Dealing with false recordings in AZ. http://findsenlaw.wordpress.com/

  11. Taxpayer money…..Let’s not abuse the banks though…..Oh wait, none of them have gone to jail…..I know as sure as im sitting here that this was not the only condo or home bought with the bailout money. Meanwhile in states all across the US the money that was in the settlement to help homeowners has been used by the state for OTHER things…..

    Sent from Samsung tablet

  12. http://t.co/CfwTaBXD2n indict Wilbur Ross on RICO. Stop this crime wave!

  13. I just wonder if it is so corrupt, how can anyone be foreclosed on?

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