Thread: Let the Lawsuits Begin: Banks Brace for a Storm of Litigatio

Let the Lawsuits Begin: Banks Brace for a Storm of Litigation

Ellen Brown, July 13th, 2008
http://www.webofdebt.com/articles/bracing-storm.php

In an article in The San Francisco Chronicle in December 2007, attorney Sean Olender suggested that the real reason for the subprime bailout schemes being proposed by the U.S. Treasury Department was not to keep strapped borrowers in their homes so much as to stave off a spate of lawsuits against the banks. The plan then on the table was an interest rate freeze on a limited number of subprime loans. Olender wrote:

“The sole goal of the freeze is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value – right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.

“. . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .

“What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.â€

Well we the taxpayer Bailed out McCain and Neal Bush with the "Silverrado Saving and Loan" debacle . The Ship is sinking fast . Lets be good Citizens and keep Bailing , and Bailing . We bail and Illegals keep their money to send back home . There is some very serious issues going on with this 2 faced Nation of Crooks and Leeches (Social Service crooks) We are Stupid beyond believe

Oh, the tangled web we weave when we break the rules (and laws)....