COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S NOTE: The effort to choke off payments to WikiLeaks is being defended by some as an act of patriotism, protecting the state secrets of our government. BOA wold no doubt say that it is merely cooperating with the government. But my guess is that the information coming out about BOA and the other megabanks has nothing to do with state secrets. My guess is that it will show government complicity in the continuing fraud created, enabled and promoted by the megabanks against homeowners, taxpayers and investors.

The sale of the bogus mortgage bonds was fraudulent because there was nothing to back them up and even if there were actual loans in the pool they did not conform to the conditions promised to the investors.

The servicing of the the alleged mortgages or stream of receivables was performed with the sole intent to grab as much of the money from the stream of payments from homeowners and third party insurers and guarantors without accounting to either the investors or the homeowners. The servicers faked events, fees, and costs to do it and they are succeeding even as this article is being written.

The modification and settlement schemes were sham operations creating the appearance of an attempt to help homeowners and right the wrongs committed by Wall Street and the securitization co-venturers. The “negotiations” were conducted by servicers lacking any authority or economic interest int eh loan, the property or the mortgage bond. Their only interest was to take all the money from payments, take all the money from sales of property and keep it.

The original obligations were in most cases fraudulently created with misrepresentations about the nature of the transaction, the value of the property and the viability of the the complex mortgage transaction they thought they were getting. In fact, it was more like an unregistered security whose purchase would produced promised passive returns arising from a continually rising housing market that “never goes down.”

The original notes signed by the homeowners were fatally defective because they neither identified the creditor nor disclosed the true nature of the transaction.

The original mortgages or deeds of trust were fatally defective because they were used a security for a fatally defective promissory note and did not secure the obligation, which was between the investors and the homeowners.

The foreclosure proceedings were fraudulent based upon fabricated, false and forged documents.

The auction sales were all fraudulent because non-creditors were allowed to “bid” on property without putting up one dime. Instead they submitted “credit bids” which were accepted illegally and wrongfully by the auctioneers, resulting in the issuance of title that corrupted the entire title system throughout the the country.

How much of this will be disclosed by WikiLeaks? I don’t know. But my guess is that at least some of the disclosures will show full knowledge by the government and complicity in the acts described above all done in the name of saving the finance system. It seems that nobody was minding the store when it came to considering saving our society. There is more than one way to right a wrong. Yes lying more will get you down the road a bit, but telling the truth will move you toward a fair and just resolution.

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Bank of America Suspends Payments to WikiLeaks

By NELSON D. SCHWARTZ

In a sign of the increasing tensions between WikiLeaks and the corporate world, Bank of America has said it will no longer help process payments for the organization, which released a huge cache of secret State Department cables in late November and has threatened to “take down” a major United States bank with another data dump.

“Bank of America joins in the actions previously announced by MasterCard, PayPal, Visa Europe and others and will not process transactions of any type that we have reason to believe are intended for WikiLeaks,” the bank said in a statement issued on Friday. “This decision is based upon our reasonable belief that WikiLeaks may be engaged in activities that are, among other things, inconsistent with our internal policies for processing payments.”

In a Twitter post put up soon after Bank of America’s announcement, WikiLeaks called on supporters to boycott the bank, urging that “all people who love freedom close out their accounts at Bank of America.”

After MasterCard and PayPal, which is owned by eBay, announced they would no longer handle payments for WikiLeaks, the companies were attacked by online hackers who supported WikiLeaks.

Investors have worried that the founder of WikiLeaks, Julian Assange, was referring to Bank of America when he said in an interview with Forbes last month that he possessed a large cache of potentially embarrassing documents from a large American bank. In an interview with Computerworld in 2009, Mr. Assange said WikiLeaks held five gigabytes worth of information from the hard drive of a Bank of America executive.

Mr. Assange is free on bail in Britain in connection with accusations of sexual offenses he faces in Sweden. Swedish authorities are now seeking to extradite Mr. Assange, a request Mr. Assange has vowed to fight.

Mr. Assange has called the accusations of sexual misconduct a ”smear campaign.”

Tags: Bank of America, BOA, BofA, wikileaks
Posted in bubble, Corruption, Eviction, securities fraud |