Did Bear Stearns Know Its Mortgage Securities Were a House of Cards?
This week, a lawsuit filed against Bank of America detailed the worst mortgage practices at Countrywide — which BofA acquired in 2008. The suit charged that Countrywide had, as a policy, disregarded borrowers’ ability to repay their loans because fraudulently securitizing the mortgages was the bank’s sole purpose in making them. But Bank of America (BAC) isn’t the only major financial institution now facing a legal battle over the past behavior of a company acquired during the financial meltdown.
A lawsuit filed by Wells Fargo against JPMorgan Chase (JPM) unit EMC Mortgage Corp. last week should force Chase to reveal if the conduct of the bank it purchased — Bear Stearns — was as bad as or worse than Countrywide’s, as another lawsuit alleges. Based on the filings, Bear and its EMC subsidiary behaved remarkably like Countrywide, ignoring the quality of loans in order to create an ever-larger quantity of toxic mortgaged-backed securities.
See full article from DailyFinance: http://srph.it/htEQXj
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Let’s face it. The blue print was laid out for all in the financial industry to follow the pattern of fraud in all directions. This just was not certain banks..it was all the banks…the story just changes the names. They all knew the loans were toxic…but they didn’t care as long as the money kept flowing into their pockets..which it did. If the plan ever came to light, they would all stick together and bluff their way out…. after all..their word, rules and laws were the gospel set in stone by the banksters themselves. One big gang of racketeers using bribery with Washington to turn heads the other way. And it worked. Now that the country of millions of citizens are showing anger to what has been done to them..and demand action and answers to the biggest crime to ever…the banks now are like a bad case of yeast attacking their own body..they are suing each other for the exact crime they all were involved in from the start. Now they are in a vicious circle ready to attack each other. Shall we sell tickets to watch the boxing matches?
But don’t let these boxing matches fool you… press on…keep the fight up…cause we plan to win this match. We were knocked down once..maybe twice..but the next blow will by the citizens and it will be a hard blow..we will be the winners. WAKE UP AMERICA