$1T in sour notes Banks being squeezed by mortgage investors
It’s the flip side of foreclosure fraud: Not only is the city fireman in danger of losing his home, he also might wind up with smaller retirement checks because his pension invested in home-mortgage-backed bonds that were bundled and sold off by banks during the real-estate bubble.
Pension funds, insurance companies, university endowments, charities, community banks and other investors are believed to be out hundreds of billions of dollars because of the mess big banks made of the housing market.
Although lawsuits against banks are mounting, the disputes over the almost $1 trillion in mortgage securities may take years to resolve — and most investors are likely to wind up with only cents on the dollar.
“It comes out of our pockets,” says Peter Henning, a Wayne State University law professor and securities-law expert. “No one reached into your wallet and took out cash, but it impacts all of us. If you’re a mutual-fund holder with a bond fund, you’ve probably taken a hit. Insurance companies have losses, and that cost has to get passed on.”
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And again, if you think this does not effect you, you are wrong…
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Squeeze harder, help everyone who has been harmed. Keep things simple, the bailouts were unconstitutional.
Jack….Bailouts were not even necessary and unconstitutional also….they grabbed and ran…..used taxpayers money to pay the criminals who were stealing the homes from the tax payers …..homes they never lent any money for…..is that not aiding and abetting the thieves.? Sounds like ‘ criminal intent ‘ if you ask me……….