ROFL! Buffett Calls Banks “Victims” of Evicted Homeowners

The Market Ticker – ROFL! Buffett Calls Banks “Victims”

Now this is one of those smiley moments….

“Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said Feb. 25 in his annual letter.“In these cases, the evicted homeowner was the winner, and the victim was the lender.”

So let me see if I get this right. The bank, which is always in possession of superior information (they have not only your entire credit history but also the performance of millions of other people’s loans, plus the benefit of dozens if not hundreds of analysts and other resources you could never dream of obtaining yourself) was forced to give you a bad loan that you then spent?

Utter and complete crap. The truth is here:

Charles Ortel, managing director of Newport Value Partners, said lenders failed to do sufficient underwriting because they counted on selling the mortgages to investors.

“So nobody had any skin in the game, except we the taxpayers, as it turned out,” Ortel said. “Banks didn’t do the required credit work.”

Ok, I take it back — that’s half the truth. I’ll go further — banks intentionally packaged up and sold crap they knew was garbage to investors.

It was not an accident, and it wasn’t that the banks didn’t do the required credit work — they most certainly did do it, knew what the answers were and intentionally hid them from buyers.

How do we know this?

Because at least one of them — Citi’s former chief risk officer — testified under oath before the FCIC to exactly that, producing written documentation showing that he alerted the firm’s board to the facts as well!

There’s no “speculation” as to what happened in this regard — we know exactly what happened and how. We can debate the “why” but that appears rather obvious too — more than 20 years of evidence suggests that the banks were quite smug in the knowledge that they would not be prosecuted even if their intentional hiding of this information from investors was to later be discovered.

Thus far that has proved to be an entirely-accurate expectation.

Yet still, to this very day, we have not seen the mainstream media call “bullcrap!” on the repeated assertions that the banks were either “sloppy” or “duped” by homeowners.

That assertion is utter and complete crap and we will never have an honest financial system until this practice stops. There can be no honesty in finance nor any hope of a recovery in the general economic case until and unless we start with the truth about what happened and how it occurred. We are, at this point, simply making efforts to continue the scam.

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4closureFraud.org

Comments
20 Responses to “ROFL! Buffett Calls Banks “Victims” of Evicted Homeowners”
  1. Dawn says:

    Old Warren has always advocated raising taxes, which he profits from.
    As one of the largest investors in tax bonds and
    when the sellers of those very profitable businesses he buys because without selling the family business they can’t pay the inheritance taxes.

    Everything Obama has done do far to help foreclosure victims has been one PR pony show after another – why do you think the bankers donate so much money to his campaigns –

    Actions speak louder than words –
    Obama and his Alinsky buddies name for all of those who believe his BS is “Useful Idiots”
    Thinking Obama will act differently if reelected is pure fantasy
    The same banksters are supporting Obama, Biden, Barney Frank and Bondi and Romney.
    These are all Bankster Whores!
    If Obama doesn’t have what it takes to stand up to them now,
    What makes you think he will stand up to them after his presidency when they will be paying him Millions $$$ for attending their parties?

  2. Ali says:

    Barney Frank blatenly lied right in front of the camaras about how safe and sound the housing market was!!!! We never would have gotten involved in it had we known the truth. We were just sick and tired of the rotten landlords in Chicago, never lived in one place less the 5-6 years. One place had three different owners during the time we were there. We never got a security deposit back either. That was in Daley’s old neighborhood. Mobsters were getting shot when they walked out of their hse’s. It was always about “who you knew”.

  3. Ali says:

    So fucking what if people tapped into their (fake) equity in their homes. We put plenty of money down on an over inflated price only to find out that the VA was in on it too, see Unsealed complaint in GA involving the VA.
    So not only were they scewing the HOMEOWNER they were scewing each other every chance they got. I can’t even think of anything bad enought to say about that old nasty basturd, only this WE’RE COMING………maybe he and that asshole Charlie Gasperino can get together and figure out how to scew us some more. Fox news is a propaganda machine. Did anyone seethe story on a one Mr. Petters on “American Greed”? very interesting, same thing giant ponzi scheme, contributed to Polente’s campaign too. Name of Co. Petter’s Worldwide, a few lowlings went to jail for a couple of years, Petters got 20, for a 3 and half billion ponzi scheme. Involved alot of cutting and pasting, sound familier? Fraudulent docs. again. The financial system will never recover, and Wall St. won’t either. There is nobody you can trust with your $$$$$$. His excuse was he wasn’t thnking right because of the death of oneof his kids in Italy. Soooo sad. They all better remember what goes around comes around. I am a deep believer in KARMA.

  4. jaclyn says:

    Uhhhhh…NOT !! Where do these guys come up with this a stuff ?? I’ve lost 300,000 in hard earned equity…30 years of work…gone…Let’s not paint every homeowner with that corporate brush eh ?

  5. Fury says:

    the banks have to be running pretty scared
    if they hauled buffet out to make such an outrageous statement.

    remember, warren buffet disinherited his granddaughter (by marriage).
    pretty creepy.

  6. Wake Up America! says:

    He looks like a friendly grandpa
    The “Orifice of Omaha”
    He just says “aww, shucks”
    as the country gets fucked
    “Buy Bank of America!”

  7. filotea says:

    Blame it on us! Not the regulators who have made tons of money! When will the economy recover, when will the housing market rebound? Not in my lifetime! There is a solution, but of course, people like Buffett are not willing to cut down their profits. Shame on you!

  8. Grampa Jack says:

    Lets make it even-all Californis foreclosures can be stopped-NOW- we have done it for five years or more. Forget the soothsayers and harsh words–just do something. about the problem–and avoid getting the 1099′s required by IRS Pamphlet 4681 that are going to come as a huge surprise to all who do Short Sales and Foreclosure “Walk Aways”. Knowledge is still “KING” no matter what the 1% do.

    • Imanda Waldon says:

      Grandpa Jack, We live in NW Florida and have been fighting / defending our rights since 2005. Our mortgage company is Citi. They took our payments and blacked them out and put our home in default. We have been fighting to save our home and live as we USED to know life. We only owe $62,000.00 on the mortgage we bought 18 years ago. We are not underwater and have equity, however we still owe more than we borrowed. Our fight is for the moral aspect that everyone and business should carry. Our fight is not to be 1099′d (they tired to force us to short sell our home for $73,000.00. How is that a short sale?) And if you walk away, you will get a judgement and/or lein on the defiencency. We cant even rent a place without paying 3 months in advance because of all of this. It effects your insurance rates and everything that uses your credit score. We had mediation in February 2012 and Citi did not even provide a payoff, assisgment of mortgage or nothing our attorney requested. Nothing settled but cost us $3,000.00 more for that day. We have another mediation scheduled for March 02, 2012, and I will post outcome. It is horrible what is going on and if we lose our home of 18 years, I will never borrow from another bank. This experience has made us do all business in cash.

  9. To Tell The Truth says:

    If those homeowners recaptured some of their equity investments via refinancing after already paying obscene interests on their homes and down payments…good for them…but remember that most of them took out loans for the first time for their American Dream also and put down deposits and closing costs and sacrificed to own a home in America…that is why staying in your home that you owned for some years and they try to foreclose it gives you an opportunity to recapture some of your equity…

  10. After the election Obama will be an Ex-President

    Buffett is making intentional statements, because he took a fairly large chunk of Berkshire Hathaway and sunk it into the titanic known as BofA, after already having sigificant exposure through ownership of the substantial Wells Fargo Stake.

    This is a feeble old man’s attempt to manipulate the thinking towars his banks…

    Sorry Buffy baby…this cat’s so far out of the bag, that YOUR “oracle”, the Wizard of Oz, Wicked Witch of the West, Toto, the Tin Man, and the band of Flying Monkeys cant get it back in.

    He realizes that this thing is about to cave, which is another reason for his sudden naming of an undisclosed successor

    I’d almost feel sorry for this ENFEEBLED OLD MAN if it wasn’t for the fact that 10′s of thousands of US Citizens were duped into refi-ing their homes, KNOWING THAT THE LOANS WERE NOTHING MORE THAN A STEAMING PILE, in order for types like this to pad the bottom line of BK Hathaway

    Worm has turned Buffy, and get ready for pay back my old man, because you aint no vampire slayer

    G

    • Katheryn says:

      I love it!

    • lvent says:

      Glen Russell, you are much kinder to that sneaky little old lying crook Buffet than I could EVER be…!!! Maybe because I saw his interview this morning on CNBC…and the ARROGANCE of this DIRTY OLD SCUMBAG CROOKS… is even more blatant and evil than most of these crooks….I would even go as far to say that Buffet is a DIRTY OLD CREEP… and I DONT BELIEVE BUFFET used ONE THIN DIME OF BERKSHIRE HATHAWAY ILL GOTTEN GAINS AND INVESTED IT IN THAT FLAILING CRIMINAL INSTITUTION AKA…AS BOFA…I BELIEVE THAT THE OBAMA ADMINSTRATION USED THIS DIRTY OLD MAN AS A PROXY TO GIVE BOFA MORE U.S TAXPAYER MONEY..UNDER THE RADAR…AND AGAIN IF I AM WRONG, I WOULD LIKE TO SEE THE PAPER TRAIL IN REGARDS TO THAT SO CALLED “INVESTMENT’ BY BUFFET…THEY ARE ALL SNEAKY, SECRETIVE AND DECEPTIVE LIARS AND CRIMINAL FRAUDSTERS…!!!!

  11. Gene says:

    Let’s not forget two points;  brk bought a huge stake in BoA at (I believe) $7.00 per share. Right after he bought, bank stocks got pummeled but have since recovered because of reports of low inflation and positive economic growth. The government doesn’t make that stuff up, do they?  Point is brk has an interest in trying to mitigate/eliminate bank liability for the crises. 

    Second point:  it was reported in the past few days that brk lost $2B as it bet on increased prices for natural gas. The contracts are set to expire and brk will lose its entire investment. The key is brk needs to make up for the loss and believes he can do so on the backs of foreclosure victims. 

    I must agree that some homeowners did tap their home’s equity, with the full blessing of the financial industry, during the tine leading up to the bubble. But anyone that characterizes people that have been foreclosed are beneficiaries of a windfall is spinning the truth, something this article addresses. For a while there, I thought Mr. Buffett was on our side…

  12. To Tell The Truth says:

    Poor Rich Mr Buffett…an oxymoron am sure…however, he is whining cause he is not making the kind of profits he used to make and he has invested heavily in purchasing real estate franchises keeping them in the existing names and so he has to do what he can to salvage…how he wishes he could retire like Mr Bill Gates…see the article below for what it is worth…what would Mr Obama do without Mr Buffett…and who will hire Mr.Obama when he no longer lives in the White House…is the White House free and clear with no mortgages does anyone know?

    Buffett says he was ‘dead wrong’ on housing market

    OMAHA, Neb. – Feb. 27, 2012 – Billionaire investor Warren Buffett says he was “dead wrong” with a prediction that the U.S. housing market would begin to recover by now, but he remains optimistic about the nation’s economy.

    In his annual letter to Berkshire Hathaway shareholders, Buffett said he is sure housing will recover eventually and help bring down the nation’s unemployment rate. But he did not predict when that would happen.

    Investors eagerly await the letter from Buffett, 81, called the Oracle of Omaha, who built a $44 billion fortune by following a steadfast, no-nonsense investing strategy.

    Buffett said housing “remains in a depression of its own,” but he predicted, in typical plainspoken style, that the housing market will come back because some human factors can’t be denied. “People may postpone hitching up during uncertain times, but eventually hormones take over,” he wrote. “And while ‘doubling-up’ may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure.”

    Berkshire Hathaway owns more than 80 subsidiaries, including the Geico insurance company and See’s Candy, and five of them rely heavily on construction activity. Those businesses, which include Acme Brick, Clayton Homes and Shaw carpet, generated pretax profit of $513 million last year. That’s well off their $1.8 billion contribution in 2006.

    Berkshire’s insurance companies took $1.7 billion in catastrophe losses last year, including from the earthquake and tsunami in Japan. Berkshire reported only $154 million in underwriting profit, down from $1.3 billion the previous year.

    But several of its larger non-insurance businesses – Burlington Northern Santa Fe railroad, MidAmerican Energy, Marmon Group, Lubrizol and Iscar – generated record earnings in 2011.

    That helped Berkshire generate $10.3 billion in net income, or $6,215 a class A share, last year, down from nearly $13 billion, or $7,928, in 2010.

    Buffett reassured Berkshire shareholders that the company has someone in mind to replace him but did not name the successor. He emphasized that he has no plans to leave.

    Glenn Tongue, a managing partner at T2 Partners investment firm, said he was struck by the fact that Buffett chose to deal with the succession topic as one of the first items in his letter. “I think this was a forceful and stronger attempt to put this issue to bed,” Tongue said.

    Buffett said the Berkshire board is enthusiastic about the executive it has picked and said there are two good back-up candidates. “When a transfer of responsibility is required, it will be seamless, and Berkshire’s prospects will remain bright,” Buffett said.
    AP Logo © Copyright 2012 USA TODAY, a division of Gannett Co. Inc., Josh Fund, The Associated Press.

  13. Louise says:

    Buffett knows what he is talking about–that is what is so scary. He is saying this krap, because they have to keep the scam going. I am most interested in what Obama is going to do after the election. Will he fire Holder and get going on regulating the banks and going after the thieves who stole the world economy.

  14. Mo says:

    Buffett is getting old, time for him to go.

    • JJ says:

      Buffet has refused to release the name of his successor .. he said that his successor doesn’t even know that he is Buffet’s successor .. He’s just talking all kinds of loopy talk these days .. Sad ..

      • mike says:

        Change the narrative that the banks are the lenders
        The banks are just servicers skimming off of investors money
        The investors are the only ones with skin in the game
        Do you think the banks with all of their experience would have made those loans with bank money?
        Ha
        No way eve they aren’t foolish
        Quit calling the banks the lenders
        Its investors money retirees pension funds police fire teachers
        You should google John kasich gov of Ohio and his work at Lehman
        He helped lehman loot 500 million from the staes pensions
        Remember the bank would would never from the start put their skin in the game
        The investment banks with the help of politicians like kasich looted the pension funds to fund those bad loans

      • yrsumpeosoclueless says:

        I thought he was a little more intelligent than that … I guess I gave him too much credit.

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