E-mails Suggest Bear Stearns Cheated Clients Out of Billions
Lawsuit alleges the bank took extreme measures to defraud investors, and now JPMorgan may be on the hook
Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit’s supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a “sack of shit.”
News of internal whistleblowers coming forward from Bear’s mortgage servicing division, EMC, was first reported by The Atlantic in May of last year. Ex-EMC analysts admitted they were sometimes told to falsify loan-level performance data provided to the ratings agencies who blessed Bear’s billion-dollar deals. But according to depositions and documents in the Ambac lawsuit, Bear’s misdeeds went even deeper. They say senior traders under Tom Marano, who was a Senior Managing Director and Global Head of Mortgages for Bear and is now CEO of Ally’s mortgage operations, were pocketing cash that should have gone to securities holders after Bear had already sold them bonds and moved the loans off its books.
Mike Nierenberg, who ran the adjustable-rate mortgage trading desk at Bear and is now the head of mortgages and securitization for Bank of America, was a key player ensuring the defaulting loans Bear was buying would move off their books right after they bought them, with little concern for the firm’s due diligence standards. He was joined in this scheme by Jeff Verschleiser, his peer and Senior Managing Director on the mortgage and asset-backed securities trading desk and head of whole loan trading. He is now an executive in Goldman Sachs’ mortgage division.
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This article say’s it all…look at the path or trail of all the fraudsters going from bank to bank with fraud written all over their face. No fear of getting caught…everyone is in on the scheme and no one watching as they stuff the money into deep pockets. This proves that all the financial industry of banks, federal reserve and wall street know that CONgress and a whole lot of others in Washington are in on the undercover scheme. Not hard to miss that fact…what have they done for the homeowners? NOTHING…period. So concidering they have sided with the banks and their greed of fraud to gain millions…there is no way any one of them could not have seen this thru the crisis…is that not harboring a criminal? And to give them millions upon millions when in fact they gave themselves millions in a bonus..they got and took all in the same breath. So where does the fraud list start…and where does it end? But not forgetting the fraud…we must also think of the underlining plan that was and is used to further gains in more deeper issues that have not surfaced…Taking all from the average American to weaken the people only means there are other goals in the plans. WAKE UP AMERICA….
We definitely have to support the House Bill coming out of the State of Virginia to which Dena Roudybush has done a fantastic job fighting the big banks and mortgage services to which she used to work for. Now Miss Roudybush, a practicing Attorney in State of Virginia and Maryland is now fighting for the citizens. Check out the site at: themortgagecrisisupdate.com
Virginia House Bill HB1506
To the “whiners” on Wall St
http://www.ourfuture.org/blog-entry/2010051803/letter-and-challenge-anonymous-wall-street-whiner
*If Jamie Dimon were a real man he’d come talk to me about this “sack of shit” title I have to my property!
Hey Jamie – drop me a line: stop_govt_waste@hotmail.com
There are alot of charades going on to try and deceive us all. That is how they rule by deception. That is the barrier that we are all breaking down that separates their version of the story as fictional versus verifiable LAW ABIDING truth. The Banksters/Servicers/Wall Street are just a front for what they are really trying to accomplish here. They are trying to distract us with alot of drama like the banksters are sueing each other when in actuality they are sueing themselves and are putting on a big show to cause a distraction from the truth about who were really the Nazi masterminds behind this whole Ponzi Scheme, Fake Financial Crisis, Fraudclosuregate scandal. This is their own form of sick theater. While distracting us they are continuing to steal our wealth via the FED and QE2(MONOPOLY MONEY with no value they are using to prop up the banks) and the S&P 500(401k’s), by trying to impose a false debt burden via a loan modification for a mortgage debt that NEVER EXISTED. If a mortgage did exist they would have recorded and assigned the notes and mortgages to our paid off deeds. Besides they all made TRILLIONS off of OUR COLLATERAL IN THE PONZI SCHEME and still are. The Banks knew they could not give a loan modification on a MORTGAGE DEBT THAT NEVER EXISTED or they would have given the damned loan modifications in the first place. This has now become about nothing more than GREED. They want to either impose a FALSE DEBT via a FAKE LOAN MOD OR STEAL YOUR HO– USE THAT THEY DO NOT OWN. They want all of us to own nothing but FAKE DEBT.
Tell Truth Shame The Devil !! You or Peeling or Piercing the Veil ! Teach ! Teach ! Teach !