The Wall Street Journal reported on January 19th that the Obama Administration was pushing heavily to get the 50 state attorneys general to agree to a settlement with five major banks in the “robo-signing” scandal. The scandal involves employees signing names not their own, under titles they did not really have, attesting to the veracity of documents they had not really reviewed. Investigation reveals that it did not just happen occasionally but was an industry-wide practice, dating back to the late 1990s; and that it may have clouded the titles of millions of homes. If the settlement is agreed to, it will let Wall Street bankers off the hook for crimes that would land the rest of us in jail – fraud, forgery, securities violations and tax evasion.

To the President’s credit, however, he seems to have shifted his position on the settlement in response to protests before his State of the Union address. In his speech on January 24th, President Obama did not mention the settlement but announced instead that he would be creating a mortgage crisis unit to investigate wrongdoing related to real estate lending. “This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans,” he said.

The Deeper Question Is Why

Whether massive robo-signing occurred is no longer in issue. The question that needs to be investigated is why it was being done. The alleged justification—that the bankers were so busy that they cut corners—hardly seems credible given the extent of the practice.

The robo-signing largely involved assignments of mortgage notes to mortgage servicers or trusts representing the investors who put up the loan money. Assignment was necessary to give the trusts legal title to the loans. But assignment was delayed until it was necessary to foreclose on the homes, when it had to be done through the forgery and fraud of robo-signing. Why had it been delayed? Why did the banks not assign the mortgages to the trusts when and as required by law?

Here is a working hypothesis, suggested by Martin Andelman: securitized mortgages are the “pawns” used in the pawn shop known as the “repo market.” “Repos” are overnight sales and repurchases of collateral. Yale economist Gary Gorton explains that repos are the “deposit insurance” for the shadow banking system, which is now larger than the conventional banking system and is necessary for the conventional system to operate. The problem is that repos require “sales,” which means the mortgage notes have to remain free to be bought and sold. The mortgages are left unendorsed so they can be used in this repo market.

Check this one out in full here…



  1. lvent says:


  2. lvent says:

    The shadow bank is all electronic…that is how they get away with it..Max Keiser said they really conduct all of their fraud business on the weekends on Wall Street and behind the scenes….What you see on Tv is a front..the NYSE in reality is ON LINE…!

    • lvent says:

      Algarithms are the work of the devil…! An attorney told me as long as WALL STREET and the banks can use Algarithms …THEIR ELECTRONIC SCAM…and get away with it…NO ONE IS SAFE!!!! That is their SHADOW BANK..NO TRANSPERENCY…JUST FRAUD.MANIPULATION AND DECEPTIVE PRACTICES ! THE SHADOW BANK IS WHAT NEEDS TO GO…THE WALL STREET ON LINE GAMBLING CASINO…!!!

  3. Daniel Fury says:

    From the article:

    “The banks are not really creating credit and advancing it to us, counting on our future productivity to pay it off, the way they once did. Instead, they are vacuuming up our money and lending it back to us at higher rates.

    “Instead of lending into the economy,” says British money reformer Ann Pettifor, “bankers are borrowing from the real economy.””


  4. ChrisYAHanWatcher4YAH says:

    To DESTROY the American Economy to: Militarily DEPLOY, a Global Internation New World Currency to STEAL the WEATH of the WORLD by a ARTifice of Fraud crafted Legal SCHEME of Global Proportions!

    “The WORLD is NOT enough;” for SATAN!

    • lvent says:

      Chris..we need our own currency..U.S. BANKNOTES backed by a natural resource..like Natural Gas..WE CAN BREAK FREE from the NWO TOTALITARIAN TYRANNY! With the jobs and revenue from our greatest natural resource..natural gas…the fake debt imposition would virtually disapear…The Plutocrats and the Oligatchs don’t own our natural gas supply…like the fake debt…they are invested in it but, do not own it..American protectioniism at its finest…like all property…the U.S. GOV HOLDS THE TRUMP CARD ON ALL LAND WITH EMINANT DOMAIN…IT TRUMPS THE FEE SIMPLE DEED…!

      • lvent says:

        People have to shake off the attack we are all under…and realize we are Americans.. we can do better than this…!..Time we made the changes……we know we paid for our homes exponentionally via the hundreds of trilloons in fraud they committed in our names…and our tax money.! .Are we going to lay down for the theft of our homes and businesses and let these crooks who don’t own shit…TURN AMERICA INTO A NATION OF RENTERS OF WHAT WE ALREADY OWN?? COME ON PEOPLE….!. THIS IS THE BIGGEST CON IN HISTORY….!!!

      • To Tell The Truth says:

        I Vent…that was why Abe Lincoln was killed, he wanted to print his own money to pay for the war but the international banksters would not allow it and why Kennedy was killed, he was about to sign off to rid us of the Feds Reserves.

      • lvent says:

        To Tell the Truth..Right on!

      • lvent says:

        Yes..I believe that God is in control..! God has a plan..! That is why the truth is being revealed to all who really want to find it!

    • To Tell The Truth says:

      Fear not, satan willl choke himself to death on it all…we know the end of the story.

  5. Pamela Edwards says:

    It’s being done because it’s been allowed to happen with no repercussions for years 20+ years to the best of my knowledge.Probably alot longer but thats when I started paying attention.If you tried to take them to task you were simply told thats the way it is handled right, wrong or otherwise.If you had no working knowledge of the industry you simply went along with the program.Entitled and enabled this simply grew into monster size crisis that we all face now.Too many years of having our heads up in the clouds and going with the idea it could never happen to us always someone else.Well folks here we are.

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