L. Randall Wray | Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers

No Hollywood scriptwriter could plot a more implausible story. Here is the plotline sequencing:

  1. Bankers make NINJA loans, securitize them, and sell on to government GSEs
  2. Bankers destroy all the loan documents and begin random and fraudulent foreclosures, throwing millions of innocent victims out on the street
  3. GSEs sue bankers and force them to take back bad mortgages
  4. Bankers sell servicing rights for the same bad mortgages back to GSEs, who overpay
  5. GSEs resell servicing rights to companies run by former GSE officials
  6. Bankers slapped on wrist with puny foreclosure settlement in return for government promise it will never sue them for past foreclosure fraud
  7. Government stress test claims banks are healthy
  8. Bankers get sweet deal, counting mortgage mods for best borrowers toward the settlement
  9. HUD report released demonstrating massive foreclosure fraud that reached to highest levels of banks
  10. Vampire Squid Executive Director fires off resignation letter decrying bankster culture
  11. Banksters walk away scott-free as statute of limitations runs out for criminal behavior

This would have to be a fantasy because no one would ever believe it could have been true.



11 Responses to “L. Randall Wray | Secret Deals, Foreclosure Settlements, Stress Tests and Vampire Squid Whistleblowers”
  1. Igor says:


    Is MERS Wire fraud?
    18 U.S.C. § 1343 provides:
    Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.[3]

    • Igor says:

      Wire Fraud: 18 U.S.C. § 1343 provides:

      • Igor says:

        Financial crime
        OC groups generate large amounts of money by activities such as drug trafficking, arms smuggling and financial crime. This is of little use to them unless they can disguise it and convert it into funds that are available for investment into legitimate enterprise. The methods they use for converting its ‘dirty’ money into ‘clean’ assets encourages corruption. OC groups need to hide the money’s illegal origin. It allows for the expansion of OC groups, as the ‘laundry’ or ‘wash cycle’ operates to cover the money trail and convert proceeds of crime into usable assets. ML is bad for international and domestic trade, banking reputations and for effective governments and rule of law. Estimated figures of money laundering were between $200 – $600 billion per year throughout the 1990s (US Congress Office 1995; Robinson 1996). In 2002 this was estimated between $500 billion to $1 trillion per year (UN 2002). This would make organised crime the third largest business in world after foreign exchange and oil (Robinson 1996). The rapid growth of money laundering is due to: the scale of OC precluding it from being a cash business – groups have little option but to convert its proceeds into legitimate funds and do so by investment, by developing legitimate businesses and purchasing property;
        Globalization of communications and commerce – technology has made rapid transfer of funds across international borders much easier, with groups continuously changing techniques to avoid investigation; and,
        a lack of effective financial regulation in parts of the global economy.

  2. Igor says:

    I think this all revolves around mortgage fraud, in collusion with bank inside operatives who were part of the racket, like a bank teller who is in on the bank robbery. These bank ’employees’ subject to criminal and civil prosecution. Other then possibly a negligence personal injury case for failing to ‘screen’ bank employees for security risk in the pre employment process, the banks essentially not being part of the crime. It would seem that this would require operatives at all level of the process, all being subject to the same legal liabilities. IMHO. It is very disheartening to think these human puss have some how escaped prosecution

    • Igor says:

      I meant mortgage broker fraud, with a very well conceived scam of ‘plausible deniability’. that is to say, pointing the fingers at others, ‘banks’ These puss may put it like this: ‘The banks agreed to conform to the regs, so I did not have to review any one of 100,000 loan applications in many years. Yet I meet with these people and know them, they never told me they were defrauded my organization, and my country! I trusted them! with billions of dollars of tax payer money! I am a specialist in mortgage fraud, but what did I know?’ Why would I ever want to check up on the ‘banks’, or loan brokers, even with random application fraud checks.’ They signed an agreement to be honest!’

  3. Ali says:

    Are you kidding me? Thats would be laughable if it wasn’t our livlihoods at stake here! I just found out about all the fraud that has been permiating through our home loans since 2005. There was origination fraud right off the bat and it was consealed for years. Ours was a VA loan and the morgage broker took out two loans in 2005 and recorded neither with the County Recorders office until they did a doc dump in the recorders office sometime in 2008. The loans taken out totaled 609,337!!!!! We paid Washington mutual for over a year and then they transfed it over to Wells Fargo (same Loan #) Oh Did I mention we put 37k down? Then according to the the Recorders papers they had Wells Fargo release the loan, there was a satisfaction of mortgage, the mortgage, a certitificate saying the loan was paid in full, it also reflects on a credit report dated 4-22-08 ! We paid Washington Mutual for 16 months ,bal 0-paid Wells Fargo 16 months-balance 0. We even refinanced to build a fence and to repair the porch (our house is almost 100 yrs old and the price was an inflated @159.9. Wheres the rest of the money? It even says we have a balance of 183,759. . Country/BOA have put us through a living hell with their fraud, I have saved everything, including the fact that I reported them to the OCC and even had to appeal the OCC’s decision!!!!! No way I am going to deal with the OCC or BOA. There were a few times title insurance paid. How many time do they want to be paid for this house? I have evey single piece of paper, letter, names, obviuos fradulent documents. My clerks office doesn’t seen to care, they record anything at any time, and they don’t even let you know whats going on! Thats a big part of the problem. There’s idenity theft (Inever signed the papers @ origination) and someone noterized it! There hasn’t been a clear title since 1990, only “Warrenty Deeds”. I do have the “Affidavite of Title/Bill of Sale” signed in blue ink, and a Warrenty Deed. I don’t know what todo

  4. lvent says:

    “Nothing in Politics happens by accident, if it happens, you can bet it was planned that way.” F.DR.. Even the word Securitization is another scam and another fraud..as Neil Garfield talked about in one of his great articles. The word Securitization is another piece to the puzzle of this dangerous ideology. This plan can only be carried out if they can make you believe what they tell you is true.. none of it is …none of it at all…..”Government happens if you let it.”

  5. Igor says:

    I think that the statute of limitations does not run out in cases of concealment. I think that where there is an ongoing attempt to conceal fraud, the RICO statute states that the statute of limitations does not even begin to toll. Is this true? How do we apply the law to this delemna? If ‘bankers’ are exempted via aspects or consequences of this
    settlement, this does not exempt ‘mortgage brokers’ and corrupt federal employees, true? I think RICO took into account this type of attempt to conceal fraud, using fraud to conceal fraud, and thus that very concealment essentially makes RICO statue of limitations perpetual. Correct? Please explain.

    • Igor says:

      ‘…in that a defendant must show that a plaintiff knew or should have KNOWN OF THE EXISTENCE OF EACH ELEMENT OF THE RICO CLAIM, not simply injury.’
      As I see it, the would be ‘DEFENDANTS’ HAVE ACTIVELY WORKED TO MAKE THIS KNOWLEDGE IMPOSSIBLE, CREATING A RABBIT HOLE of CONCEALMENT, if not just by the use of intimidation. Lets face the scope and nature of this crime is intimidating!) Doesn’t this effectively create an open ended statute of limitations, like murder?

    • lies is all they tell says:

      hi igor funny you talk about the mortgage broker. when this is over which ever way it goes for me, i would like to sue the mortgage broker for any fraud the lawyer can think of. bring her down. let her go work somewhere else. pain , suffering anything. she totally lied through the whole proccess 2006. i told her waht my approx salary was but i also explained that it is not steady work but this is an average. that is how i expected to be approved on my average salary. not my hourly income x 40 x 50, thats what she did. and she called it a stated income loan i call it highway robbery. i just found a whole folders of homes in my area in 2006 that were much cheaper. verification of income should be a priority to protect homeowners from ruthless mortgage brokers who want commission over homowners security. i received a letter from wells fargo , they try to rectify why this was doen and it makes no sense. i had an hourly wage but it was not consistant. so and average would have been appropriate. they were using some formula to justify what the mortgage broker put down and said i signed it. thats questionable i only initialed it at closing. its a total lie. how can this have happened to the hard working people of the us this needs to stop

      • Igor says:

        Under RICO, a person who is a member of an enterprise that has committed any two of 35 crimes—27 federal crimes and 8 state crimes—within a 10-year period can be charged with racketeering. Those found guilty of racketeering can be fined up to $25,000 and sentenced to 20 years in prison per racketeering count. In addition, the racketeer must forfeit all ill-gotten gains and interest in any business gained through a pattern of “racketeering activity.”

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