Revolving Door? Shocking, Just Shocking . . .

Thu, Jul 17, 2014 - 12:10am

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!

About the Author

Does Feb19 Comex gold close above $1250 on Friday?
Total votes: 139


Bollocks · Jul 17, 2014 - 12:56pm

He's not resting BOG...

he's completely rat-arsed surprise

bullion only · Jul 17, 2014 - 1:06pm

coincidence but still weird

I lifted this for zerohedge.

MH17 on July 17th
Boeing 777

My prayers to the families.


treefrog · Jul 17, 2014 - 1:07pm


ag and au are both forming very pretty short term pennants.

BagOfGold Bollocks · Jul 17, 2014 - 1:12pm


what the hell did you do to Pining?...

Bad Bollocks!...Bad Bollocks!!!...


Bag Of Gold

buzlightening · Jul 17, 2014 - 1:21pm

Green Latern

I fully expect a restoration to the constitution, liberty, and the rule of law. Right now as you point out there's too many who have not awakened; neither aroused their faculties, our majority having been lulled to sleep into a carnal security. For any who know true freedom and its price, the great persuader in changing human behavior will be absolutely self evident as we become a more teachable people. As is with all nations who become puffed up, great will be the fall and the debt gone wild; or the vanishing of ego mania writing checks for this nation never to be covered. The fall of any nation of the passed has been in the throwing out of common sense for the uncommon. We know what has been tried and tested through time. We haven't learned to quit setting aside what works and supposing we know of ourselves regardless of the human experience. It's all there, written in the passed, we just need to live it and not be so certain what has worked in time, is completely out dated. Especially in immutable laws which govern human behavior. You don't take a 20 mile an hour turn at mach 8 as you crash and burn. So our society has set aside what is prudent, wise, and ever lasting to travel at speeds which inevitably crash and burn out of control societies. There's plenty to anchor society in time and eternity, we have to be wise enough to choose it always. For now we crash and burn but we'll be better off on the other side of all the tribulation coming. After the tribulation come the blessings. Let us be wiser than our current society in preserving these coming blessings for enduring right living.

Nana · Jul 17, 2014 - 1:49pm

2 Choices

1) Stand up and take back your country 2)Sit down, shut up and get what you deserve for being a coward......

Bollocks · Jul 17, 2014 - 2:27pm
Grublux · Jul 17, 2014 - 2:34pm

Legard's speech

Boeing 777.

Flight MH17 - M = 18 H = 8. 1+8+8=17

So Flight 1717 = 1+7+1+7 = 16 = 1+6 = 7

Done on 7/17/14 @ 5:17 = 17:17

Lots of 7's hmmm

Oh and: 295 on board... 2+9+5 = 16 --- 1+6 = 7!

DragonFly · Jul 17, 2014 - 2:42pm
edvardd · Jul 17, 2014 - 2:46pm


According to a Ukrainian Interior Ministry adviser the plane was shot down with a ground-to-air missile, by pro-Russia rebels.

metalsbyamile · Jul 17, 2014 - 2:47pm


Although a disbeliever in these theories i must admit that is damn well interesting.

Grublux · Jul 17, 2014 - 2:57pm


yes, it is hard to believe. But maybe these number mean something to someone.

lnardozi · Jul 17, 2014 - 3:03pm

Don't believe it for a minute

We shot it down, to whip up hysteria against Russia. Trying feebly to stop the Euro zone from siding with Russia, but they know where their bread's buttered!

agNau · Jul 17, 2014 - 3:40pm
woofwoof · Jul 17, 2014 - 3:40pm
edvardd · Jul 17, 2014 - 3:43pm


A Passenger Plane was Shot down in the Donetsk Region by "Buk" Missile System

On July 17, a large passenger aircraft Boeing 777, performing a flight between Amsterdam and Kuala Lumpur, was shot down in the eastern part of Ukraine. According to the General Staff of Ukrainian Armed Forces, the airplane was crashed down by "Buk" missile system as the liner was flying at an altitude of 10,000 meters.

Ukraine has no long-range air defence missile systems in this area.

The plane was shot down, because the Russian air defence systems was affording protection to Russian mercenaries and terrorists in this area.

The leader of the terrorists Igor Girkin (Strelkov) immediately commented on the airplane catastrophe, believing that it was the Ukrainian jet that crashed down: “In Torez An-26 was shot down, its crashes are lying somewhere near the coal mine “Progress”. We have warned everyone: do not fly in our skies.”

Ukraine will present the evidence of Russian military involvement into the Boeing crash.

The President of Ukraine Petro Poroshenko called for the establishment of a National Commission with the involvement of the International Civil Aviation Organization and other international bodies to investigate the catastrophe. According to him, “those found responsible for this tragedy will be brought to justice.”

Spartacus Rex · Jul 17, 2014 - 3:43pm
agNau · Jul 17, 2014 - 3:55pm

But I still believe this may be the important keep eye on ......

ongoing event of the day....weeks..... They are against the wall...anything is possible now....hence the coming events IMO. All stops will be removed to place a mask over the face of the real culprit in the collapse.

TREACHEROUS CRETINS · Jul 17, 2014 - 4:04pm



Edit : No. !

Grublux · Jul 17, 2014 - 4:05pm

Z hedge

I was having probs too. Just keep refreshing.

Spartacus Rex · Jul 17, 2014 - 4:31pm
Verus nemo · Jul 17, 2014 - 4:36pm

I couldn't agree more, agNau

As tragic as today's events have been, that's where my focus has been as well. As this collateral shortage intensifies and the bond bubble swells, it's going to be something to watch. I still believe that this all has something to do as well with Monday morning's unscheduled FOMC meeting to discuss the Federal Funds Discount Rate and the fact that the LBMA hasn't published (delayed by a week, usually) the LIBOR and gold lease rates now for four days. 

The published LIBOR rates (1, 2, 3, 6, 12 month) have been in steady decline now for months and LIBOR rates reportedly stay about a tenth of a point above the FFDR. Is this relationship arbitraged and now LIBOR is becoming too low and close to FFDR to permit that? idk

It sure looks to me as though the FED is trapped, the FED knows they're trapped, the world is increasingly recognizing that they're trapped and they are becoming desperate. But what do I know?

Bollocks · Jul 17, 2014 - 4:38pm


I have no idea what I'm doing there. I blame the parrot.

Spartacus Rex · Jul 17, 2014 - 4:40pm

The Aviation Herald:

Crash: Malaysia B772 near Donetsk on Jul 17th 2014, aircraft was shot down

By Simon Hradecky, created Thursday, Jul 17th 2014 15:18Z, last updated Thursday, Jul 17th 2014 19:28Z

Spartacus Rex · Jul 17, 2014 - 4:51pm
Safety Dan · Jul 17, 2014 - 5:10pm

@ Spartacus Rex - Phone Numbers Of State Coordinators Helping

Here is a list of State Coordinators who are helping illegal immigrants find homes, jobs, legal counsel and benefits.

State Refugee Coordinator: Jana Curran 251-432-2727
State Refugee Coordinator: Karen Ferguson 907-222-7376
State Refugee Coordinator: Charles Shipman 602-542-6614
State Refugee Coordinator: Lorie Williams 501-682-8256
State Refugee Coordinator: Thuan Nguyen 916-654-4356
State Refugee Coordinator: Paul Stein 303-863-8217
State Refugee Coordinator: David Frascarelli 860-424-5387
State Refugee Coordinator: Thomas Hall 302-255-9605
District of Columbia
State Refugee Coordinator: Debra Crawford 202-299-2153
State Refugee Coordinator: Hiram A. Ruiz 786-257-5189 or 305-763-9040 (mobile)
State Refugee Coordinator: Michael Singleton 404-657-5118
State Refugee Coordinator: Lola Salimova 808-586-8699
State Refugee Coordinator: Jan A. Reeves 208-336-4222
State Refugee Coordinator: Edwin Silverman 312-793-7120 (*departing SRC) / Ngoan Le 312-793-7120
State Refugee Coordinator: Matthew Schomburg 260-599-0120
State Refugee Coordinator: John Wilken 515-283-7904
State Refugee Coordinator: Lewis A. Kimsey 785-296-0147
State Refugee Coordinator: Becky Jordan 502-873-2560 x250
State Refugee Coordinator: Julie Ward 225-242-0311
State Refugee Coordinator: Catherine S. Yomoah 207-797-2938
State Refugee Coordinator: Ann Flagg 410-767-2346
State Refugee Coordinator: Josiane Martinez 617-727-7888 x303
State Refugee Coordinator: Al Horn 517-241-7819
State Refugee Coordinator: Gus Avenido 651-431-3837

State Refugee Coordinator: Lorraine Hunter 601-359-4585

State Refugee Coordinator: Steve Milburn 573-751-6789
State Refugee Coordinator: Katherine Buckley-Patton 406-444-5288
State Refugee Coordinator: Karen Parde 402-471-9264
State Refugee Coordinator: Carisa Lopez-Ramirez 702-387-2266
New Hampshire
State Refugee Coordinator: Barbara Seebart 603-271-6361
New Jersey
State Refugee Coordinator: Annette Riordan 609-631-4534
New Mexico
State Refugee Coordinator: Kresta-Leigh Opperman 505-827-1328
New York
State Refugee Coordinator: Dodie Wheeler 518-402-3096
North Carolina
State Refugee Coordinator: Marlene Myers 919-527-6304
North Dakota
State Refugee Coordinator: Laetitia Mizero 701-235-7341
State Refugee Coordinator: Jennifer R- Johnson 614-644-1174
State Refugee Coordinator: Melanie Silva 405-521-4402
State Refugee Coordinator: Rhonda Prodzinski 503-945-6108
State Refugee Coordinator: Norm-Anne Rothermel 717-787-8608
Rhode Island
State Refugee Coordinator: Frederick Sneesby 401-462-1669
South Carolina
State Refugee Coordinator: Dorothy Addison 803-898-0989
South Dakota
State Refugee Coordinator: Tim Jurgens 605-731-2015
State Refugee Coordinator: Holly Johnson 615-352-9520 x222
State Refugee Coordinator: Caitriona Lyons 512-206-5076
State Refugee Coordinator: Gerald Brown 801-526-9787
State Refugee Coordinator: Denise Lamoureux 802-871-3162
State Refugee Coordinator: Kathy Cooper 804-726-7927
State Refugee Coordinator: Tom Medina 360-725-4636
West Virginia
State Refugee Coordinator: Suzanne Howard 304-356-4628
State Refugee Coordinator: Mette J. Brogden 608-267-9705
Wyoming, alone of the 50 states and the District of Columbia, does not have a State Refugee Coordinator.

Spartacus Rex · Jul 17, 2014 - 5:14pm
Spartacus Rex · Jul 17, 2014 - 5:14pm

@ Safety Dan

duplicate deleted

Spartacus Rex · Jul 17, 2014 - 5:16pm
Spartacus Rex · Jul 17, 2014 - 6:23pm
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Key Economic Events week of 12/17

12/17 8:30 ET Empire State Fed Manu.
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Key Economic Events week of 11/26

11/27 9:00 ET Case-Schiller home prices
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