Gross Mismanagement; Kill the banks!

[loosecannon]

Send Lawyers, Guns and Money; the shit has hit the fan!

When you consider the gravity of what is at stake, the certainty that your home, that you pay for, is your home, and so too for all 300 million of your fellow Americans...This saga of gross mismanagement and negligence has to be one for the ages:

At JPMorgan Chase & Company, they were derided as “Burger King kids” — walk-in hires who were so inexperienced they barely knew what a mortgage was.

At Citigroup and GMAC, dotting the i’s and crossing the t’s on home foreclosures was outsourced to frazzled workers who sometimes tossed the paperwork into the garbage.

And at Litton Loan Servicing, an arm of Goldman Sachs, employees processed foreclosure documents so quickly that they barely had time to see what they were signing.

“I don’t know the ins and outs of the loan,” a Litton employee said in a deposition last year. “I’m not a loan officer.”

...JPMorgan Chase acknowledged that it had not used the nation’s largest electronic mortgage tracking system, MERS, since 2008.

That system has been faulted for losing documents and other sloppy practices. ...

About 11.5 percent of borrowers are in default today, up from 5.7 percent from two years earlier.....

To make matters worse, the banks had few financial incentives to invest in their servicing operations, several former executives said. A mortgage generates an annual fee equal to only about 0.25 percent of the loan’s total value, or about $500 a year on a typical $200,000 mortgage. That revenue evaporates once a loan becomes delinquent, while the cost of a foreclosure can easily reach $2,500 and devour the meager profits generated from handling healthy loans.

“Investment in people, training, and technology — all that costs them a lot of money, and they have no incentive to staff up,”....

And even when banks did begin hiring to deal with the avalanche of defaults, they often turned to workers with minimal qualifications or work experience, employees a former JPMorgan executive characterized as the “Burger King kids.” In many cases, the banks outsourced their foreclosure operations to law firms like that of David J. Stern, of Florida, which served clients like Citigroup, GMAC and others. Mr. Stern hired outsourcing firms in Guam and the Philippines to help.

The result was chaos...“The girls would come out on the floor not knowing what they were doing,”

In some cases, even steps that were supposed to ease the situation, like the federal program aimed at helping homeowners modify their mortgages to reduce what they owed, had actually contributed to the mess. Loan servicing companies complain that bureaucratic requirements are constantly changed by Washington, forcing them to overhaul an already byzantine process that involves nearly 250 steps.

http://www.nytimes.com/2010/10/14/business/14mortgage.html?src=busln

Fuck the idiotic mantra that saving the banks saved us all from catastrophe. The Banks ARE the catastrophe!

Just kill the banks and start over. You will thank me, be certain of that.

Kill the banks before they destroy us all!

 

[william the wie]

Naw, just kill the Fed. Once clawbacks and criminal indictments start being issued most everybody will rollover on the Fed and the GSEs. With 51 AGs forming their own taskforce there is about a 1% probability that a literal rolling of heads will be proposed, a microscopic probability that such a proposal will be passed and no probability of the courts letting such a remedy be put into effect but this is likely to be the biggest internal US crisis since the end of reconstruction even so.

 

[KissMy]

I am hearing the owners name space on titles/deeds were left blank by banks because they did not know who would end up owning the note or properties. This means the original owner who sold the home to the borrower may still own the home even though they have been paying on this worthless loan for years. This is a huge cluster fuck.

This means many mortgage notes are completely worthless. This will cause inflation & home prices to rise because of fewer foreclosures. It will also mean many people will not have to continue to pay their mortgage & will have a lot of discretionary money to spend. Many main-street businesses & employment will be left hurting badly because of slumping home sales, but big box retail, utilities, & durable goods will rise driving their stocks. Stay away from bank stocks.

 

[loosecannon]

Biggest FUBAR in American history. That Wall Street engineered this demands only one response:

LINE THEM ALL UP AGAINST THE WALL!

 

[MikeK]

Banks and predatory corporations are a worse threat to the security of this Nation than any of our actual or potential military enemies are or have been. So it logically and reasonably follows that they be dealt with appropriately.

Government should seize control of the banks and convert them to credit unions and all corporations with more than 20 employees should be converted to profit-sharing enterprises with percentage limits imposed on their executive salaries and bonuses.

Those who regard such proposals as extreme should understand that they are not nearly as extreme as the inevitable consequences of allowing the exploitative and ruinous nature of the existing system to continue without constraint. The banks, the finance industry and monopolistic, predatory corporations are clearly the most insidiously dangerous enemies of America.

 

[Tom Clancy]

Are you actually implying the Government should own Corporations that have more than 20 employees?

Yeah because GM is doing just that well. While on the other hand, Ford is doing better than GM and Chrysler, perhaps combined?

 

[KissMy]

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

 

[william the wie]

This story keeps getting bigger and bigger.

 

[CrusaderFrank]

Whats the fucking difference? They had a willing patsy to who pre-ordered all the loans in Fannie and Freddie, a monkey could have filled out the papers

 

[loosecannon]

democracy now covered this a few days ago:

Why Are Bailed-Out Banks Breaking into Struggling Borrowers' Homes?

They have extended video and a whole lot more info.

I wasn't impressed because it was a single event, but I was a little taken back by the fact that while several months behind on payments she wasn't yet in default.

And the fact that it was actual GS employees who tried to change her locks in the middle of the night was special!

This kind of story doesn't matter unless it represents a trend.

Speaking of trends, Sept broke the record for US foreclosures as a month with over 100,000! Or nearly .1% of all homes in the nation! In a month and growing....

 

[loosecannon]

Whats the fucking difference? They had a willing patsy to who pre-ordered all the loans in Fannie and Freddie, a monkey could have filled out the papers

and that would have been fraudulent. A felony according to US law. That's the problem, robo-signing is a felony.

 

[MikeK]

Are you actually implying the Government should own Corporations that have more than 20 employees?

[...]

No. I'm suggesting that government force all corporations with more than twenty employees to adopt profit-sharing as an alternative to having their CEOs "earn" upwards of 350 times what the average worker is paid.

Spread the wealth around more equitably and keep America healthy. Keep the spirit of democracy alive.

 

[California Girl]

Are you actually implying the Government should own Corporations that have more than 20 employees?

[...]

No. I'm suggesting that government force all corporations with more than twenty employees to adopt profit-sharing as an alternative to having their CEOs "earn" upwards of 350 times what the average worker is paid.

Spread the wealth around more equitably and keep America healthy. Keep the spirit of democracy alive.

The breathtaking stupidity of this post is impressive.