Zero Hedge | JP Morgan Sold Investors MBS Covered By “SACK OF SHIT” Loans… Then Shorted All Those With Exposure: A Goldman-AIG Redux
Today’s mortgage fraud stunner comes from Bloomberg’s Jody Shenn who reports on the ongoing lawsuit between Ambac and former Bear Stearns mortgage unit EMC, now part of JP Morgan. “JPMorgan Chase & Co. demanded that a lender repurchase bad mortgages even as it resisted calls to buy back the loans from bonds created by Bear Stearns. “That would be pretty bad” if true, said Joshua Rosner, an analyst at New York-based research firm Graham Fisher & Co. He said such allegations show why “investors and consumers have a right to be distrustful of the banks’ statements.” The bottom line is that JPM, which has so far been able to escape largely unscathed from the fraudclosure scandal, is about to take front and center. The reason: the very first line of the just released Exhibit 1 to the Ambac lawsuit: “In mid-2006, Bear Stearns induced investors to purchase, and Ambac as a financial guarantor to insure, securities that were backed by a pool of mortgage loans that – in the words of the Bear Stearns deal manager – was a “SACK OF SHIT.” But the stunner, and nothing short of a full-blown scandal if proven true, is that Bear Stearns (aka JPM) after funneling misrepresented loans with Ambac’s insurance, “implemented a trading strategy to profit from Ambac’s potential demise by “shorting” banks with large exposure to Ambac-insured securities.” This needs its own congressional hearing right now, followed by a few wristslaps. After all such wholesale fraud can never possibly be prosecuted in the world’s most advanced country.
Be sure to check out the in depth analysis here…
Amended complaint below…
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4closureFraud.org
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Ambac Assurance Corporation v EMC Mortgage Corporation, Bear Stearns & Co et al
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
Oh please..NO more CONgressional hearings…big waste of time and money…nothing done with no results except to say ‘ Oh ya, fraud was done..but it is so hard to say ‘who’ did the fraud’. Case in point..WaMu. To place a fine of penalty proves crap. Metal hand-cuffs is more like what should be done. Is there no such thing as prosecutions anymore? Complete failure of government to enforce the laws of the land…banks do not make laws..is this government even aware of this? Bailing out fraudster banks, no indictments, clearly shows co-conspirators are involved in the largest bank fraud and criminal activity in the history of this country.
As banks failed..the same fraudsters went on to join with the other big banks to enforce the fraud further. Bear-Sterns fraudsters as an example. JP Morgan reeks with involvement of fraud…it took over and purchased fraud banks to add to it’s ‘portfolio’ of investor’s securities and mortgage loans all dripping with fraud..adding to their own collection of fraud. Fraud was a silent partner with all the big banks, a money maker many times over..but it is not silent now. This is plain out criminal activity that has been allowed by this government sweeping it under the carpet…enough is enough…is this a stall tactic or what? And they wonder why there is so much anger in this country? We have been lied to from all involved with the banking industry…they know who they are………
These investors surely got more than their fair share of the Ponzi Scheme pie. They are just greedy and mad that the gravy train stopped. The Banksters were only following orders from their Nazi masters and still are by being made to try and FRAUDCLOSE or IMPOSE FALSE DEBT MORTGAGE IMPOSITIONS ON THE PEOPLE VIA LOAN MODS FOR A DEBT THAT NEVER EXISTED or via a Deed in Lieu, which is the easiest way for them to illegally steal your home that THEY DO NOT OWN. It is time to call a spade a spade. The banksters were only carrying out orders as well as the wall street gangsters for the cabal. The Zeitgist controlled media has even ratted on them a few times. The jig is up. The people know the truth so stop the charades. We won’t be fooled again and that is what we can take to the bank.
If the investors do not care about the backing of their securities then we the people can do nothing. Let them take their losses with no bail outs. Or let them line up and start suing the insurance companies of these sacks of #2. I am getting to the point I have no sympathy any more for investors.