GMAC/Ally crisis

[william the wie]

Loosecannon don't check with me because I am not a lawyer and certainly not a CA Real Estate lawyer but on the face of it the actions of the originators, securitizers and federal agencies may have triggered both RICO and the Takings clause. If so, then about $40T is going to vanish mostly in the hands of foreign banks and repo investors with the repo investors getting most of the money. Just about every title insurance company in the land that has insured more than two repos is going to file. The political effect of Obama retaining Bush's meltdown team is going to be major.

 

[loosecannon]

Willie, think about it...

who sprung this story? 3 major banks who suddenly, out of the blue, changed their mortgage foreclosure policies voluntarily? A few states attorneys challenging these banks?

This has the look and feel of an October surprise/ambush foiled by imperfect timing. Had this story taken merely one week longer to be raised to the public's attention Obama might have just signed the bill passed secretly and unanimously by both houses and left himself WIDE open for a political assassination nearly on the eve of the midterm.

On the other hand you just know that the prime directive inside the oval office is to capitalize on this within a week for political advantage, Holder's convictions be damned.

There is just no way in hell that this can be allowed to foment into a $40 trillion shakeup of the world's financial institutions after all that effort was spent saving the banks! It is unthinkable.

Back on Earth the CountryWide class action suit alleges extremely serious fraud. Like Madoff level fraud! And worth a trillion easy if all of it is true.

Obama is gonna sweep this away like he did every other problem that beset the financial sector since his inauguration, with the sheer force of unitary exec fiat. That is how he got to be president, by being loyal to TPTB.

But it is possible that he is politically impotent until after the election. For obvious reasons.

But that doesn't stop MoonBeam from causing his own trouble. After all a defunct CountryWide is a perfect sacrificial lamb.

 

[william the wie]

Obama has angered the bankers and now they are coming back at him. No matter what happens the bill becomes his problem.

 

[loosecannon]

"Obama has angered the bankers and now they are coming back at him"

No shit!

 

[william the wie]

"Obama has angered the bankers and now they are coming back at him"

No shit!

Well I said so in a longer way much earlier in the thread. What I failed to say earlier is:

The federal government owns or has guaranteed almost all of the bad paper out there.

The banks will do better the faster housing hits bottom. That will clean up synthetic CDO risk right smartly.

 

[KissMy]

Obama has angered the bankers and now they are coming back at him. No matter what happens the bill becomes his problem.

I don't think that is the case.

Goldman Sachs helped buy Obama the Presidency

The Big Banks were Obama's Top Contributors

Goldman Sachs is still contributing more to Democrats than Republicans.

Citigroup is still contributing more to Democrats than Republicans.

JPMorgan Chase is still contributing more to Democrats than Republicans.

Bank of America is one of the few backing more Republicans

This stunt Obama is pulling is nothing but smoke & mirrors.

 

[loosecannon]

Kissmy, you do realize that your own links proved that those banks are contributing exactly as much money to Dems as to repubs?

+/- 9001 dollars anyway.

 

[KissMy]

The Big Banks are pulling for the Dems and I stand by my comment. "This stunt Obama is pulling is nothing but smoke & mirrors." As his press secretary said "we have entered the political silly season" and it is full of sound, fury, intrigue & absurdity.

 

[loosecannon]

Obama administration does not support U.S. moratorium on foreclosures

washingtonpost.com

 

[william the wie]

Obama administration does not support U.S. moratorium on foreclosures

washingtonpost.com

He's SOL on that. BOA is likely to face RICO charges here in FL for fraudulent foreclosures on people who did not have loans with them.

 

[KissMy]

[ame="http://www.youtube.com/watch?v=k5GZcVGWc8o"]FORECLOSUREGATE REMIC and MERS[/ame]