Even the FED is Making Money Off Bogus Mortgage Loans

SEE LIVINGLIES LITIGATION SUPPORT AT LUMINAQ.COM

TRADING ACTIVITY CASTS DOUBT ON IDENTITY OF CREDITOR IN MORTGAGES

EDITOR’S NOTE: A “windfall for taxpayers” — REALLY? The hype doesn’t match the facts. While the Fed and large financial institutions trade paper instead of solving our problems they are giving credibility to the so-called mortgage bonds based upon bogus mortgages that would receive a grade of “F” in 1st year law school. They are substituting spin for law and PR for policy. This is no windfall for taxpayers, quite the opposite. They are REPORTING a profit on money they sent to Wall Street instead of injecting it into the economy where it was needed. Look around you. Do you see that money doing YOU or your community any good?

The reality is that as long as there is an incentive to pretend that the mortgages and mortgage bonds were truly valid instruments reflecting real transactions, our economy, our children, and our citizens will suffer for generations. The entire edifice was constructed on fraud and deceit. The mortgage documents did not recite the terms of the transaction nor identify the correct parties. The transaction was based upon false inflated appraisals that neither the investors nor the borrowers knew about. BOTH sides of the transaction lost big money and the taxpayers kicked in trillions of dollars on top of that.

Yes there is a windfall. Because the people who lost no money on bad mortgages collected huge fees in closing undocumented transactions and now they are ending up with the homes, while society, local, state and federal governments suffer the worst budget disaster since the Great Depression. And every time there is another “trade” and someone is jumping for joy over the profit they can report, the identity of the creditor becomes increasingly obscured. So in the courts, they pretend that the paperwork tells everything and the Judge should look only at what is proffered by the pretender lenders while the REAL action is happening behind the scene making everything represented in court a complete farce.

Fed Had Profit From Investments of $82 Billion Last Year

By BINYAMIN APPELBAUM

WASHINGTON — Profits at the Federal Reserve banks rose to a record $82 billion last year, a windfall for taxpayers that also underscores the depth of the Fed’s continued involvement in the nation’s financial markets.

The 12 regional banks that make up the Federal Reserve system held $2.4 trillion in government debt, mortgage-backed securities and other investments at the end of 2010, mostly amassed in an effort to backstop the financial system, according to a combined financial statement the Fed published Tuesday.

The banks transfer almost all of their profits to the Treasury Department. The $79 billion received by the government this year is a 66 percent increase over last year’s payment of $47.5 million, the previous high-water mark.

The Fed transferred an average of $25 billion a year in the decade before the crisis.

“It’s interest that the Treasury didn’t have to pay the Chinese,” the Federal Reserve chairman, Ben S. Bernanke, told Congress in January, after the central bank released a preliminary estimate of the annual transfer.

It is also the product of a series of unprecedented emergency aid programs initiated since the financial crisis in the fall of 2008.

The financial statements show that the Fed earned about $3.5 billion last year from the Maiden Lane subsidiaries it created to buy assets from the investment bank Bear Stearns and the insurance company, American International Group.

The Fed also made $45 billion from its portfolio of roughly $1 trillion in mortgage-backed securities, which it amassed to help maintain the availability of mortgage loans.

And it made $26 billion from its portfolio of $1.1 trillion in government debt, acquired as part of a continuing effort to stimulate economic growth.

Tags: BEAR STEARNS, Ben S. Bernanke, borrower, creditor, disclosure, Federal reserve, foreclosure, foreclosure defense, foreclosure offense, fraud, Lender Liability, mortgage meltdown, predatory lending, rescission, securitization
Posted in bubble, Corruption, Eviction, securities fraud |