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CBS 60 Minutes "Prosecuting Wall Street"

Discussion in 'General Discussion' started by The Wrong Guy, Dec 4, 2011.

  1. The Wrong Guy Member

    Prosecuting_Wall_Street_620_620x350.jpg

    Two segments of the Sunday, December 4, 2011 episode of 60 Minutes were devoted to "Prosecuting Wall Street", which is online at these links:

    Part one: http://www.cbsnews.com/video/watch/?id=7390540n

    Part two: http://www.cbsnews.com/video/watch/?id=7390542n

    There's also a follow-up video titled The business model: Risky Loans: http://www.cbsnews.com/video/watch/?id=7390532n

    There's an accompanying eight-page article at http://www.cbsnews.com/8301-18560_162-57336042/prosecuting-wall-street/

    I found this to be worth watching and recommend it.
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  2. The Wrong Guy Member

    Quoted from http://www.loansafe.org/details-of-massachusetts-ag-coakleys-lawsuit-against-5-of-the-largest-banks

    Details of Massachusetts AG Coakley’s Lawsuit Against Five of the Largest Banks

    by Evan Bedard on December 5, 2011

    Massachusetts Attorney General Martha Coakley engaged in a lawsuit Thursday with five of the nations leading banks over deceptive home loan practices and pursuing illegal foreclosure among its customers. Some of these illegal practices are things we see here everyday on Loansafe where mortgage servicers are constantly misleading homeowners who are pursuing a loan modification.

    Coakley claims that JPMorgan Chase, Wells Fargo, Bank of America, Citigroup, and GMAC used fraudulent information during foreclosure proceedings, initiated foreclosure without holding the actual mortgage, and failing to uphold on loan modification promises. A common complaint heard in our forum.

    This issue is a result of an ongoing occurrence for over a year that these five banks have been using fraudulent documents to seize homes. “Coakley is seeking civil penalties, restitution for borrowers and compensation for registration fees that were avoided, as well permanent injunctive relief to find a solution to prior unlawful foreclosures. She said she hoped to move the case “as quickly as possible,” but that it would be up to the courts to set a timetable.”

    Unlawful foreclosure

    The suit acknowledges that these five institutions initiated unlawful foreclosure due to the fact they were not the actual mortgage holders. Only the current mortgage holder can begin foreclosure proceedings on a property. Coakley says the banks ignored this law and begun foreclose on homes in which they did not hold the mortgage, and therefore had no right right to conduct their actions.

    Deceptive loan modification practices

    According to Coakley, these entities mislead homeowners pursuing a mortgage modification about the process, requirements, and availability of this government mandated program. She claims the banks failed to achieve timely modifications and strung borrowers along for months on temporary trial periods just to be turned down for permanent assistance. We have seen homeowners stuck on the trial period for 6-10 months that were ultimately rejected.

    Robo-signing foreclosure

    “The banks used false documentation in the foreclosure process, including so-called “robo-signing”, whereby bank personnel signed affidavits that were untrue, or not based on the signor’s actual knowledge. An entity wishing to foreclose on a property must demonstrate it has filed an affidavit in compliance with Massachusetts law.” said Coakley. “Evidence also suggests these practices were not confined to the foreclosure process, but also used in the assignment, transfer and modification of mortgages secured by property in Massachusetts.”

    Undermining MERS

    Lastly, the lawsuit details that the five entities have undermined our public land record system through the use of MERS. These banks adopted the use of this electronic registry system to help find a way around land registration and recording requirements, including fees for recording and registration, and to simple the process of home loan sales. She claims this system has a lack of transparency as to which banks have authority to enforce foreclosure and unfairly hides the true owner of the mortgage.

    “The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis,” said AG Coakley. “Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law. Our action today seeks real accountability for the banks illegal behavior and real relief for homeowners.”
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  3. The Wrong Guy Member

    WLLegal Trevor Timm
    But [it was] OK [for him] to comment on Manning. RT @ggreenwald Obama: would be wrong of me to comment on the lack of Wall St prosecutions is.gd/kXsnho
    30 seconds ago

    Obama: "I can’t comment on Wall Street prosecutions" - Salon.com

    President Obama was interviewed by 60 Minutes‘ Steve Kroft last night. Kroft mentioned a new poll showing that 42% of Americans believe Obama’s policies most favor Wall Street rather than average Americans (only 35% believe the opposite). Kroft speculated that this was due in part to the fact that, as he put it, “there’s not been any criminal prosecutions of people on Wall Street,” and then asked Obama whether he was “disappointed” with that development. Obama replied:

    I can’t, as President of the United States, comment on the decisions about particular prosecutions. That’s the job of the Justice Department, and we keep those separate so that there’s no political influence on decisions made by professional prosecutors.

    If only that were what President Obama really believed and how he actually comported himself.

    More at http://www.salon.com/2011/12/12/obama_i_cant_comment_on_wall_street_prosecutions/singleton/
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