Revolving Door? Shocking, Just Shocking . . .

Some wise folks have repeatedly told us that regulatory enforcement at the highest levels is compromised because of the constant flow of high-ranking government officials from positions of governmental power into the lofty, highly-paid perches of private employers who were once the subjects of regulation by those same folks.  

Look at all the criminal actions brought by the SEC against all of the wrongdoers in the subprime mortgage fiasco?  Right, not a single case.  Or wait, there are all those bankers who fraudulently issued fake paper, assignments, robosigned documents, all of it, to allow big banks to foreclose upon homeowners who defaulted upon their NINJA, option-arm, no doc loans, who are serving time after being prosecuted by the Department of Justice, right?  <sound of crickets . . .>

Well, there is MFing Global, and the Honorable Corzine, right, who stole a billion in customer accounts, and is rotting in jail?  Err, wait . . .

Okay, I got it!  Martha Stewart spent HARD TIME in prison for obstruction of justice for failing to correctly confess to insider trading some shares stock.  There, see, law enforcement WORKS!!

But then there is this story, that just demonstrates the utter absurdity that there is any semblance of the rule of law left in this dying country known now as USSA, where crony-capitalism controls everything.

Take a look here: 

"Then-Attorney General Mark Shurtleff interviewed for a job with a law firm that represents Bank of America just two months before he personally signed a settlement of a lawsuit against the financial giant over whether it was illegally foreclosing on homes in Utah.

He subsequently was hired for the post."

Look at WHO is being prosecuted!!  Where is the prosecution of the BANK for corruptly securing the favorable treatment from the supposed "public servant," the attorney general of Utah!?

Is it NOT OBVIOUS what is going on here?  The rule of law is DEAD.

It is, and has been for a long time now, a crony capitalism, fascist state.  We are overpowered by corruption at the highest levels.  This has all been made possible by fiat currency, as there is NO check on government power because the FED issues free money to the big banks, who dole it out to greedy politicians looking to get reelected.  Worse still, are those in positions of enforcing laws, who seek the golden parachute from pittance wage government salaried positions, to lofty, multi-million dollar per year private salaried positions at influential hedge funds, big law firms, big corporations, etc.  The enforcers are now bought and paid for shills, tools of the corrupt insiders.

For a detailed, but somewhat apologetic look at the sordid mess of securitization of home loans, look at this: 

Here is a tantalizing bit:

"In 1995, a group of financial institutions (including Fannie Mae, Freddie Mac
Bank of America and JP Morgan Chase) joined together to create the Mortgage Electronic Registration System, or MERS. The objective was to streamline the mortgage recording process by bypassing county offices that were slow to process legal documents regarding ownership of mortgages.  Rather than record the mortgage with the county clerk, it was instead registered in the name of MERS, which became the owner of record. MERS could transfer the mortgage at 
will as many times as desired to accommodate the speed of securitization that characterized the boom years. Transfers were to be recorded in the MERS database. Thus, MERS was a form of book entry for mortgages.

However, MERS relied on mortgage originators and securitization sponsors to record the mortgages as they were transferred through the system. Moreover, when 
mortgage delinquencies mounted, MERS did not have the resources required to track ultimate ownership of the claims, thereby delaying possible renegotiation and/or mortgage resolution.  Moreover, Hunt, Stanton and Wallace (2011) and Robinson (2011) show that the MERS structure violates legal requirements and may undermine the bankruptcy remoteness legal foundation crucial to the viability of mortgage securitization.

Moreover, the presence of MERS at the origination stage may have created moral hazard at each stage of securitization as underwriters, depositors and servicers substituted MERS’ purported book-entry system for their own back office record keeping.  In our analysis, we find that the presence of MERS significantly contributes to the incidence of limbo loans and constitutes operational risk."

So, let me sum up one of their points: a scheme, created by TBTF banks and government-sponsored entities, a public-private crony capitalistic structure, resulted in institutionalized, systemic fraud that has now lead the country into at least seven years of economic malaise?  This summation is FROM two academics and a BANKER no less!!  [Linda Allen, Zicklin School of Business, Baruch College, CUNY; Stavros Peristiani, Federal Reserve Bank of New York; and 
Yi Tang, Fordham University].

They conclude with this: 

"In this paper, we document the extent of the limbo loans problem for Florida.  We find the problem to be substantial in size, impacting around $25 billion, or almost 20% of subprime mortgages as of December 2010.  Importantly, we find results consistent with the operational risk hypothesis.  [E.g., FRAUD!!!!!]  The limbo loan phenomenon does not appear to emanate from either bank capital constraints or bank capacity bottlenecks (although we do find some evidence of servicer bottlenecks).  Instead, back office problems such as MERS participation and lost documentation [the fact is that documents proving the legitimacy of the loan and right to foreclose are NON-EXISTENT, but from this fact, these banksters draw the conclusion that the documents are "lost" rather than the equally likely, if not compelling conclusion that the ENTIRE SECURITIZATION SCHEME IS ONE BIG WALL-STREET FRAUD, MADE POSSIBLE BY FIAT PAPER!!], are shown to contribute both to the likelihood that a delinquent loan will remain in limbo, as well as to the length of time the loan remains in the limbo state."

So, what lessons can we glean from this bit of news and analysis?

Big banks corrupted the process, making debt slaves out of millions of Americans.  After legions of homeowners defaulted, paper holders cannot, absent some risk of criminal exposure, or some financial exposure to at least a drawn-out civil litigation battle and attendant costs and fees, simply scoop up the homes and be gone like a thief in the night.

The result: "limbo-loans."  As far as the eye can see, and for as long as banks get to keep these non performing loans on their books, in limbo.

What an utter farce.

Stack and prepare, or else.


and here:

As a closing comment, I do not know this attorney on the livinglies site.  He seems to know his stuff, is an expert on this whole mess, and anyone affected with the housing meltdown can and should get answers to their own unique situation.  

I am not licensed to practice law except in California, and as such, I have to politely decline the requests for specific legal advice.  To do otherwise would place me in jeopardy of dispensing advice without a proper license.  I do apologize in advance, but that is the way the system works.

If one looks around, one can find a qualified lawyer, just do the homework.  I have given you all some leads, and good luck!


sierra skier's picture


It has been awhile.

Dr Jerome's picture

could it be?

Long drive across the southwest. the drought seems to be easing in NM and TX. Raining hard right now. but people are talking about rain at all the stops we have made.

Now for the article

silverwood's picture

Liars loan

Thank you Cal Lawyer for your great posts. I was wondering if you might know if this is correct? My girlfriend took out a mortgage from then Countrywide in 2007, who was then taken over by Bank of America in 2008.
The mortgage was described by Honolulu attorney as a" Liar's loan" because Countrywide lied about my girlfriends finances and her ability to pay the monthly payment. In 2010 she hired that attorney, a Gary Dubin and provided a $16000 retainer. In November 2012 my girlfriend past away. I know her sisters who were the only heirs. I was recently informed that BoA is getting the home because the suit ended with my girlfriend's passing and the trust was not able to continue the fight. Does that sound right to you? The home is located in Hawaii. TIA

Spartacus Rex's picture

@ Cal

It's actually Two Utah Atty Generals being indicted and BTW the provided link is not working.

Re: Martha, amazing how seemingly intelligent enough to become a very successful business mogul, yet not smart enough to have simply exercised her 5th Amendment guaranteed Right to simply STHU, or simply utter "I Can't Recall"

LYING to the Federales is F*n CRIME, even if one isn't under Oath/Penalty of Perjury

Why "Moonbeam" sat on his thumb while Atty Gen. and allowed MERS to rape every County of the Recording Fees, and the State of the Income Tax Revenue Stream from the Interest being paid/earned all those years. (and still the derelict DB wound up getting elected as gov again in Calif?)

Even the Calif Supreme Ct is filled w/ derelict DBs. Why does anyone expect accountability?

Sua sponte when they are ALL dependent upon counterfeited ponzi coupons? I think not.

Edit: Found the link I had saved 

Two former Utah attorneys general charged with corruption

A combination photo shows Utah's former attorneys general Mark Shurtleff (L) and John Swallow in police booking photos in Salt Lake City July 15, 2014. REUTERS-Salt Lake County Sheriff's Office-Handout via Reuters 

Cheers, S. Rex

chetatkins's picture

Comment sought.

Thanks for your article, CA Lawyer.  Could you comment on the recent decision involving MERS in federal court?

Thanks again for your contributions.

Spartacus Rex's picture

Chris Martenson: Boom & Bust

Spartacus Rex's picture


Spartacus Rex's picture

Gman Sax Still Asleep...LOL

OH, Oh!

Live 24 hours gold chart [Kitco Inc.]

Spartacus Rex's picture

Koos Jansen:

JY896's picture

9 comments & no hat tip for CaliLaw

Tsk, tsk... :-)

The aforementioned issue was one of the factors contributing to my (now somewhat rued) reluctance to buy a house in 2010.

What is the current status and process for mortgage securitization (I can't imagine it having stopped)?

How does one go about confirming the validity of the seller's claim to a title? What, if anything, is being or could be done to resolve the status of of those property titles in limbo?

argentus maximus's picture

Great summation of the

Great summation of the situation CalLawyer.

What signs are there is a pushback to repair this coming from the inside of the system/regime - ie via the courts?

Are decisions beginning to go against the banks & MERS from the fringe in and lower courts up, or from the Fed courts out and down, or not at all?

DeaconBenjamin's picture

Indian gold, silver recover on global cues, jewellers buying

NEW DELHI: Gold prices recovered by Rs 175 to Rs 28,350 per ten gram in the national capital today, tracking a firming global trend amidst fresh buying by jewellers and retailers.

Silver also moved up by Rs 150 to Rs 45,000 per kg on increased offtake by industrial units and coin makers.

Traders said apart from fresh buying by jewellers and retailers, firm global trend amid signs of increased demand in China and India, the world's two largest consumers, influenced gold prices.

DeaconBenjamin's picture

Foreign holdings of US Treasury rise in May

WASHINGTON – Foreign buyers of U.S. Treasury securities increased their holdings in May to another record high.

The Treasury Department reported Wednesday that total foreign holdings rose 0.3 percent to $5.98 trillion, up from $5.96 trillion in April.

China, the top foreign buyer of U.S. Treasury debt, increased its holdings for the first time since January, raising them by 0.6 percent to $1.27 trillion. Japan, the second-biggest foreign buyer, increased its holdings by 0.9 percent to $1.22 trillion.

Russia reduced its Treasury holdings by 4.3 percent to $111.4 billion and well below the recent high of $149.9 billion last October

Foreign demand for Treasury debt is expected to stay strong this year, helped by a congressional agreement to avoid a fight over the U.S. debt ceiling until March 2015.

DeaconBenjamin's picture

Where's Pining for the Fjords?

50-Foot Dead Parrot Drops Into London to Promote Monty Python Reunion

Photo: David Parry/Press Association

What's a Monty Python reunion without a dead parrot? And why settle for a simple prop you can bang on the counter when you could have a monstrous, 50-foot-tall dead parrot?

To promote the live broadcast of the comedy troupe's July 20 performance, UKTV's Gold channel and sculptor Iain Prendergast created a massive fiberglass dead parrot, which was suspended from a crane and laid talons-up in London's Potters Field this week.

The bird is, of course, a reference to Monty Python's enduring "Dead Parrot Sketch," which you can watch below.

AlienEyes's picture

Excellent Article

You are not considering a swan dive from thirty floors up, are you? Hopefully, not.

Green Lantern's picture

Lerner Going to Jail?

R-Steve Stockman has invoked a little known privledge to force arrest of Louis Lerner by the Sargent of Arms.  The case has also been handed to the Justice department to find out how IRS could loose so many emails.

​In my estimation, the chance of anything sticky, near 0%.  Why would you want to embroil the money collectors in a controversy and hang the person who runs the agency that the Republic depends upon to continue it's illegal behaviors?  If they want to sacrifice her, the reasons escape me. 

ancientmoney's picture

No rule of law . . . just preps for NAU . . .

The North American Union is taking shape, with the current operation on the Mexican border.  Brother, can you spare me an Amero?

buzlightening's picture

California Lawyer

The rank rotting corruption which has suffocated the rule of law is so obvious as you have amply documented.  For years I've personally advocated 100% possession is the law among the lawless.  There is no recourse for the rank'n file US citizen in recovering lose from the corrupted system. Certain, as it was pointed out even in honest Abe Lincoln's administration there were those who would steal a "red hot stove," if they could avoid being burned.  Then the checks and balances worked and it was not uncommon for folks to rise up and do their own house cleaning in communities rife with internal corruption, when the law feel asleep or was bought and paid for.  Now it's an all consuming lawless monster, with an appetite to eat all the world of what is good.  Gerald Celente said there isn't any justice; Just-Us.  We the people will circle the wagons and defend what is ours but it will happen in an extreme wake up moment.  I've always enjoyed the the biblical saying of what it will be like when all the world goes corrupt.  "Where the carcass is, there will the eagles be gathered."   Truth sets us free and the body of the constitution will be defended regardless of how dead it appears.  The eagles are gathering and will rally round the standard bearer.  Those who have eyes to see and ears to hear will continue to gather and shall renew their strength, mounting up their wings as eagles, to run and not be weary; walk and not faint in defense of our liberty.     

Green Lantern's picture

 There is no recourse for the

 There is no recourse for the rank'n file US citizen in recovering lose from the corrupted system.

There is but the majority is not woken up enough and probably the majority of the minority would rather see a collapse than participate in a revolution.  And it could be a revolution without arms. 

How much of your material luxuries would you be willing to give up for liberty? 

The Doc's picture



It is finally happening in full view, in unmistakable manner, in a way that the awake, the aware, and the conscious can perceive in alarming stunning terms.
The central force of Europe, the industrial juggernaut, the stable core, has begun to pivot East.
The Germans have had enough, fed up with destructive US activities of all kinds.   For the last few months, they have been laying out their indictment, their justification, their reasons to abandon the corrupt US-UK crowd.   The bank wreckage, the market rigging, the endless wars, the sanctions which backfire, the sham monetary policy, the economic sabotage, the spying, the gold gimmicks, it has finally reached a critical level. 
Germany has begun to move East in full view.   Only the deaf dumb and blind cannot notice, and they will probably never notice. They are fodder. 
The awaited signals seen by the Jackass have finally arrived.
Berlin is outraged by clear USGovt spying, and in process of conducting a Gold audit among their population. Germany is building motives to split from the Euro Monetary Union (common Euro currency) by forging stronger open ties with Russia & China. The justification is becoming plainly laid out, in four perceived indictment charges. 
Germany will break from US/UK and its USDollar fiat currency regime over four primary thorny issues:

Pining 4 the Fjords's picture

Deacon Ben- nice article!

Where am I?  I'm in London for the Monty python reunion, of course!  (Well, not really but if I was... Tabberto and I could go for beers!).  Have been working my tail off on the old homestead, but check in here many times a day, as always. 

And CL-  outstanding work, as we've all come to expect!  Well done, sir. 

BagOfGold's picture

He's not dead...

he's just resting!!!...



Bag Of Gold

treefrog's picture

is the ppt dead or just resting?

gold, silver, hui, xau all moving up on a DOWn day.  is this going to be allowed?

Bollocks's picture

Cheers Pining!

Leave me out of your imaginary beer-up in London, why don't you? You and your pal Tabberto will be just fine together. Yeah, you go right ahead, I don't want to go to no stinking imaginary booze-up.

I'll be ok with my pal bugs ... bwaaaa!


agNau's picture

The buying....

is before the event/s.......

metalsbyamile's picture

From the pay wall side

As i pm'd to several posters that inquired yesterday, we are now all in.

Totally loaded folks.Stack is complete for this phase. PM stocks are loaded.

Captain Speaks

Prepare for take off!

Strongsidejedi's picture

Example of the outright political and legal corruption



There's this gem of a case - $500,000,000.00 of Workers Comp fraud...

Note Page 14-16 of the plea agreement.


So, we're talking like $600,000,000 or more of workers compensation system fraud being covered up by politicians and politicos.

Here's a great quote from the story

The affidavit also outlines the FBI’s view that $10,000 per month consulting fees from Drobot to Thomas Calderon were actually bribes to be facilitated to Ron Calderon. Additionally, the affidavit alleges $28,000 in payments to Ron Calderon’s son, who purportedly worked for Drobot during the summer, was actually bribery money.

Shortly before the last payment, Calderon sent Drobot two emails June 18, according to the affidavit. The first one said, “Hi Mike: Thanks again for the ride up and lunch! So this is a reminder for you to arrange … to divide pay into 2 payments. First one due July 19th and the second one due August 16th which will be his last day of work. Thanks.”

The second one said, “Mike. Just in case you forgot or didn’t know, the total amount is 10k,” the affidavit said.


The Calderons allegedly accepted the bribes from Drobot to support legislation that would delay or limit changes to California’s workers’ compensation laws, specifically those bills related to the amount of money medical providers are reimbursed for implantable devices during spinal surgeries.


The Calderons have not been charged or arrested. Ron Calderon represents southeastern cities in Los Angeles County, including Huntington Park, Bell, La Mirada and Whittier. Thomas Calderon served in the Assembly from 1998 to 2002.

end quote

OK someone fill me in here.  You have the email from the politician to the "donor" in which the politician tells the donor to split the contribution into two accounts into just one account.  You have the donor pleading guilty.  But, the politician "has not been charged"????

Strongsidejedi's picture

And, about that Parrot, he's not being seen

Monty Python How Not To Be Seen

agNau's picture

One event of many to come...

We know where blame will be placed.

* Would it not be wise for commercial carriers to overfly Ukraine?????

murphy's picture

another controlled media release

Not sure how I came across this release from March 2014.

Along with families who lost loved ones on Sept. 11, 2001, Representatives Walter Jones .(R-NC), Stephen F. Lynch (D-MA) and Thomas Massie (R-KY) urged the president to declassify 28 pages from the 9/11 congressional investigation report, providing more information to the general public.

The bill sponsors, Lynch and Jones, said they have recently reviewed those pages, which were kept almost entirely secret when the House and Senate Intelligence Committees released their final report in December 2002. Without disclosing specifics, the report said investigators found “information suggesting specific sources of foreign support for some of the September 11 hijackers while they were in the United States.”

Then for some reason I came by this tidbit from Corbert Report 9/8/11. Starting at about 4:45, but really 5:30 to 8:00. Where Kevin Ryan states that they will use the 28 pages as a  " get into  Saudi Arabia card".

So now we have started to see some congressional movement to start to release proof positive to the American people that Saudi Arabia was behind the 911 attack .

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