Guest Post | Most banks are like Enron on crack

Most banks are like Enron on crack

By Jason Werner

Recent depositions have been helping eyes be opened to outright foreclosure fraud.

Most experts and people who pay attention (certain victims, some attorneys, some legislators, and a few judges) have known about the obvious foreclosure fraud by banks, but many more people are realizing the fraud by the banks and it is becoming more evident the banks are barely even practicing a real business; most FDIC-member banks and credit unions are flooded in deception, concealing documents, and just hiding.

One thing I have always questioned was their “numbers,” and how they came up with them. Look, I worked in the industry, so I saw numbers all day.

Summon Enron: What did Enron do and what made their fake business so suspicious?

Enron showed and disclosed to investors and the public a huge profit with high revenue. Oddly though, their cash flow was awkwardly low considering they were making so much money and ultimately such high profit.

Most banks are doing the same thing – with the obvious difference that they are getting nearly free money created through thin air to lend.

Most of the banks, on their lending side, use smoke and mirrors to hide their fraud through a company called Mortgage Electronic Registration System (MERS) and/or operate through established trusts called Pooling and Servicing Agreements (PSAs) for their loans from Real Estate Mortgage Investment Trusts (REMIC) pursuant to money they launder mostly from government-sponsored enterprises (GSEs) and the Federal Reserve System.

A big lie I’ve recently noticed is their fraudulent assignments with regard to financial reporting. Sure, most people know about how the banks fraudulently assign notes, but there is an aspect that is critical to understand here, that is being missed by most people, including experts. Banks are highly likely violating Internal Revenue Code Section 860, Subsection A through C, which has deals with deficiencies. In court, for example, banks are claiming that they transferred a note on one day, yet the information on file back at their corporate offices and even in court sometimes shows that the note was transferred or assigned to a different company on a different day. This all causes problems in tax reporting. How do we know they are being honest. Well, it is obvious they are not honest about it considering the documents do not match. And there is a clear reason for that. And when they do indeed sell a note (any kind of loan obligation), how do we know they are reporting that as revenue, especially considering their cash flow is so warped?

Another example is overdraft fees.

This is definitely an area where banks twist numbers and manipulate. I know because I worked in the industry; I argued for the bank against customers regarding overdraft fees; and I reviewed branches fees. Listen, a bank will report fees of a certain amount of dollars. They oftentimes refund fees. But they can report all of that differently or simply classify it as general administrative expenses, whereas the bank merely gave a customer money, when in reality the bank may have made a real error or simply charged the overdraft fees fraudulently in the prelude. Those fees would not have been given back to the customers if they were not charged fraudulently or in error in the prelude. True, the fees are small, but they do accumulate. Banks can bounce fees any way they want to manipulate numbers and screw the Internal Revenue Service or the government.

Banks must meet certain requirements just to stay in business, for example, or to qualify for a certain government program or even to obtain credit from a certain central bank. They need to show a certain amount of cash on hand. How do they manipulate this? One of the common practices I saw at a bank here in Cleveland was a bank floating customer’s escrow accounts in the deposits category to make it look like they were actually stronger than they were, and this is actually an admitted operation of business by Wells Fargo (WF), for example.

There are mortgage brokerages and stock brokerages out there, which are different. Those kinds of companies are completely different because they can only show what their real revenue is because they usually only make money one way: Commission from sales generated by fees to either the client or the third-party with which they are doing business. Quicken Loans is a large company, not necessarily acting like a bank and not a bank, but they do business like this. On the investment side, Edward Jones is a good example. These company cannot commit fraud in the same manner as the banks per their different systems.

Ask any convicted felon of federal crimes. Sam Antar is a good example, whereas he explains how he cooked the books when he was an executive at Crazy Eddie’s. I liken his situation to Enron and the banks, only Enron was on drugs, and most FDIC-member banks are on hard-core crack.

The banks (common examples include Chase, Bank of America, Wells Fargo, Citi) show and literally disclose huge profits and high revenue, but their cash flow is strangely indifferent and low for a company with a market cap like a bank. True, a company could make a ton of money with high profits without showing cash flow, but how is it possible in the business of servicing in financials (mainly a fee-based business for their profit).

That leads into what I have been learning and finally accepting. Most banks are not in business, period. Most of them are merely caught in a system of corruption and abuse to steal from anyone possible, including their customers, investors, the government.

Look at a more honest bank like Third Federal Savings & Loan (TFSL). Their market cap, obviously much lower than the too-big-to-fail thugs, is $2.67 billion. Their profit margin is only 6.29% with an operating margin of 23%. Their cash flow is $116.52 million. These guys are obviously hurting financilly right now, but they are certainly not cooking the books. Outrageously high rofit, indeed, but that is common in the financials industry because they are not selling any physical products, but those numbers are not cooked. They do not steal many houses, if any. And I know for a fact they do not change their name every few months, they do not hide in PSAs and MERS; the retain at the very minimum all their own paper. And this bank is so conservative – thank God – they do not even do variable rate annuities. Then, evaluate a non-FDIC-member credit union: Their numbers are even cleaner.

Aside from all the state laws the banks violate, the federal laws they violate, the myriad contracts on which they default, and their outright refusal to respect any law, regulation, or code of ethics, they typically always cook the books in violation of Internal Revenue Code Section 860, Subsection A through C, just like Enron.

But their love for crack makes them worse than Enron. They steal, steal, steal, and they are flooded with so much fraud. Why does Third Federal, for example, have the least amount of robberies in their geographical region? Duh, they simple do not attract criminals in their line of business because they have a real business.

Picture the profile of a thief.

What do you picture.

They are deceitfully quiet.

They are quick.

They do their crime at night (the Bible says the thief comes to steal at night)

They are sneaky.

They are always changing.

They change their names (often referred to as a.k.a. or f.k.a.)

(banks often, almost always change their names, especially in court; they do not want you to know who they are for a few reasons namely because they want to prevent themselves from being sued on the civil side and prosecuted on the criminal side.)

They are unstable (the Bible says a double-minded man is unstable in all his ways)

O, and there’s more to that profile, but that is a fair, general description.

So I described the bank down the street from you. They are not in business. They are merely goofing off like a bunch of gang members looking to cause fights while showing and acting like they are operating some kind of business. Of course, that business is disguised in so many different ways. Most FDIC-member banks operate to abuse, harass, intimidate, and control; they do not care about actual business.

I, Jason Werner, worked in that crooked banking industry. I smelled the fraud all day. It was disgusting. I thought I could be a good influence on their evil banking practices, but learned you cannot negotiate with terrorists and criminals. And I did business with those evil banks, but thank God got away from them. I urge everyone to simply depart from iniquity; you cannot change them or reform the system, even God cannot because those banks have no desire to repent.

Jason Werner can be contacted at jwerner79@yahoo.com

About Jason Werner
Jason Werner is a whistleblower.  He has worked at lower levels of banks throughout college (graduated Cleveland State University, 2003) and following, with operations on both the lending and investment sides.  He has been involved in lawsuits with banks. He is also a former candidate for Congress.

Comments
2 Responses to “Guest Post | Most banks are like Enron on crack”
  1. l vent says:

    Boehner the Nazi said America can’t default on it’s debt. Screw you Boehner. Then why don’t you crooks return all of OUR WEALTH THAT YOU STOLE in the BIGGEST PONZI SCHEME IN HISTORY? We The People will not be drinking any more of YOUR KOOL-AID. You are all stinking liars, cheats and thieves. Go ahead, raise the debt ceiling and create some more FAKE DEBT FOR AMERICANS. We will REF– USE TO PAY IT.

  2. l vent says:

    This is all the result of the intentional financial crisis by the cabal. The Government is lying and trying to cover it all up. This is a part of a huge plan for a life long debt imposition that they created that they are trying to enslave us all with. We need to default on all of the unsecure debt. This false debt can never be repaid by all of us because of the FIAT CURRENCY that they have created. We are NOT a BROKE nation. They stole all of our wealth through the biggest Ponzi scheme in history. They are no better than the Nazi’s. They are trying to eliminate all of us through class warfare and they are using Huge Bailouts, hyper-inflation,dollar deflation, and creating a huge tax and debt burden, along with the stripping of our Constitutional rights to enslave us so that they may control all of us. They want to try and convince us that we went from PROSPEROUS to POOR overnight. They are evil, insidious LIARS. Wake Up America, they are trying to kill the American Dream any way they can.

Leave a Reply