Where Has All the Money Gone – Short Time Passing

The Reno Class Action attorneys and others, including Elizabeth Warren, Chairwomen of the Congressional Oversight Committee, want to know where this money went, whether it satisfied obligations, and whether the obligations satisfied inure to the benefit of homeowners who purchased loan products from a Ponzi securitization scheme or otherwise. $13 trillion in mortgages were issued during the mortgage meltdown period, and $11.3 trillion was paid in by the public sector. During the same period, trillions of dollars in payments, prepayments, payoffs through sales and refi’s also went into the system. These numbers are readily available through dozens of sources on the internet.

Simple addition reveals that more money went into the system in cash and commitments than went out in loans. It would seem that an appropriate question to ask is “were these mortgage debts paid by third parties and what rights does the taxpayer have to recover the payoff to Wall Street firms?” Is the taxpayer a holder in due course or possessed of some claim to collect on the obligations created when homeowners purchased these loan products? If homeowners have claims for fraud, TILA violations, predatory and deceptive lending, usury, etc., whom do they sue? When the homeowner sends a Qualified Written Request or Debt Validation Letter, to whom should the letter be addressed?

Most Lawyers, Layman, Judges, Legislators, and Executive Directors of Administrative Agencies are just simply frightened by the staggering numbers that have been reported. And deep down inside they suspect it only part of the story. They are right. And the astonishing gap between the profits Wall Street is now reporting and the rest of the economy merely underscore the severity of the problem confronting us and the high probability it will happen again. Where did these profit come from when economic activity is obviously sagging. Wall Street makes money when money moves or at least that is the way it is supposed to work. This time it is different. Wall Street made money regardless of movement, and is still doing it. Take a look at the following compilation of the total reported money ($11.3 Trillion) that moved into Wall Street from the U.S. taxpayers and the Federal Reserve.

1. AIG — $183 Billion
2. Guarantees on Bank Debt – $789 Billion
3. FDIC Insuring banks and other large companies – unknown
4. Guarantees on deposit accounts – $736 Billion authorized
5. Citigroup – $249 Billion
6. Bank of America – $98 Billion reported
7. Loans to Financial Firms – $1.34 Trillion
8. TALF (Term Asset Backed Loan facility) – Cheap financing to investors to buy derivatives – $1 Trillion authorized
9. PPIP (Public Private Investment Program) – to buy “non-performing” securities – $1 Trillion authorized
10. Small Business Lending – $15 billion
11. FNMA and Feddie – $5 Trillion
12. Debt and Mortgage Backed Securities Purchase Programs – $1.45 Trillion
13. Incentives to “lenders” to modify and settle – $50 billion
14. Support for Money Markets: $3 Trillion

Tags: bailout, borrower, disclosure, Federal reserve, foreclosure defense, foreclosure offense, fraud, Lender Liability, lost note, mortgage meltdown, predatory lending, rescission, RESPA, RICO, securitization, TILA, trustee
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