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Thursday, October 14, 2010

Fraudclosure and Liars





The latest housing debacle, now known as "Fraudclosure," keeps growing and growing. Until this evening the hypocritical Charlie Munger and Warren Buffett, of Berkshire Hathaway fame, have denied any involvement in the Fraudclosure problems via their major ownership of Wells Fargo. Apparently, that is an in-your-face lie! Since our friends at ZeroHedge nailed this development, I have posted it below for your perusal.

The last bank, and arguably the one that has the most to lose, Wells Fargo, which up until now has fervently denied it engaged in robosigning and thus refused to halt foreclosures, has just been caught red-handed by the FT. In a sworn deposition, which will certainly lead to a foreclosure halt by Warren Buffett's pet bank, and confirmation that WFC was merely lying like everyone else on Wall Street, the Financial Times has obtained legal documents that prove Wells was merely one of many. Per the FT: "Legal documents obtained by the Financial Times suggest that Wells Fargo, the second-largest US mortgage servicer, also used a “robo signer”.

Unlike its rivals, Wells Fargo has not halted foreclosures. The San Francisco-based bank said on Tuesday it was reviewing some pending cases, but it has maintained that it has checks and balances designed to prevent serious procedural lapses." Now that Wells' checks and balances end up neither checking nor balancing, perhaps it is time for Charlie Munger to tell the shareholders of Wells to "suck it in", as the bank is about to be faced with a rather simple dilemma: beg for TARP 2 (and confirm that Munger, and his partner, are nothing but a bunch of pathetic senile hypocrites) and thus more taxpayer bailouts, or see a huge portion of its shareholder value (and thus Charlie Munger's precious, precious money) about to be wiped out.

In a sworn deposition on March 9 seen by the FT, Xee Moua, identified in court documents as a vice-president of loan documentation for Wells, said she signed as many as 500 foreclosure-related papers a day on behalf of the bank.

Ms Moua, who was deposed as part of a foreclosure lawsuit in Palm Beach County, Florida, said that the only information she verified was whether her name and title appeared correctly, according to the document.

Asked whether she checked the accuracy of the principal and interest that Wells claimed the borrower owed – a crucial step in banks’ legal actions to repossess homes – Ms Moua said: “I do not.”

Ms Moua nevertheless signed affidavits that said she had “personal knowledge of the facts regarding the sums of money which are due and owing to Wells Fargo”. The affidavits were used by the bank in foreclosure proceedings.

Ms Moua added that before reaching her desk, it was her understanding that the foreclosure documents had been reviewed by outside lawyers.

Wells declined to comment on the deposition but said its records show its “foreclosure affidavits are accurate”. The bank added: “When we find team members who do not follow procedure, we fix what is done incorrectly. Until this case is resolved, we should keep in mind that a deposition does not suggest a wrongful foreclosure.”

And with that, the foreclosure moratorium which TurboTaxing Tim so had hoped to avoid, becomes a self-imposed reality...Or is it: to our big surprise we read in the News-Press.com, that despite the banks' self-imposed moratorium, the foreclosures are, in fact, continuing:

But in Lee County, court records show both of those banks have continued to get court judgments allowing the sale of mortgages on foreclosed houses at public auction.

That’s despite statements from both banks that they stopped doing that about two weeks ago.

April Charney, a Jacksonville-area legal aid attorney who’s an expert on foreclosure issues, said she’s hearing similar reports from around the country.
She scoffed at the banks’ protests that they didn’t intend for the judgments to be issued.

“It’s a farce,” she said. “We’re all being played.”

JP Morgan spokesman Tom Kelly said Tuesday he didn’t know the bank’s attorneys were continuing to get judgments allowing them to go forward with auctions.

Twelve judgments have been issued in Lee for JPMorgan since Oct. 2, the latest on Tuesday, according to court records.

“We reached out to our local foreclosure counsel and asked them to ask the courts not to enter judgments,” Kelly said. “I don’t know what happened there.”

At this point we wonder: will Wall Street ever stop lying to the American public (no), and even when it pretends to do so, will it at least be true to its word for at least a few days? Ultimately, these two questions are far more imporant than whether or not a bunch of documents were filed properly and reside where needed. If 99% of the American population can not have any faith and trust in those who truly rule the country (Wall Street for those who may be confused) then America is one food crisis away (and thanks to Bernanke's liquidity-laxatives we give that a few months at most) from outright social unrest.


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Trade Date: 10/13/10
E-Mini S&P Trades*
(before fees and commissions):

1) No "Secrets" trades filled.
2) Algorithm positions (6)
3) “Reading the Tape” positions (6) combined Secret’s, Algo, & “Reading the Tape” total… +2.75
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