Dexia Holding v Countrywide and the Sub-prime Crisis – the Scope of the Fraud May Begin to Unfold
Los Angeles, January 27 – upon review of the complaint in Dexia Holdings Inc et al v Countrywide Financial Corp et al,[[i]] it appears that the scope of the fraud on the People, on the US Congress, and on the international community, which is at the foundation of the financial crisis, may finally begin to unfold. The complaint exposes the essence of the criminality by large financial institutions such as Countrywide and BofA, and the scope of cover-up and deception by US government officers and agencies over the past decade.
The complaint was filed in the State of New York Court in Manhattan. The courts of the northeastern states, Massachusetts, New York, appear as a ray of hope. Removal of the complaint to the US District Court in Manhattan is likely to lead to conduct, similar to that which was seen last year in litigation of SEC v BAC under Judge Jed Rakoff, alleged as Fraud on the Court. [[ii]] The public must perform its civic duty and closely monitor the conduct of the litigation.
Core allegations of ‘massive fraud’
The complaint focuses on two aspects of the “massive fraud” and recklessness in the Los Angeles County, California, based Countrywide Financial Corporation:
? Fraud on the US treasury through a decade-long reckless underwriting of government-backed sub-prime loans;
? Fraud in funding the US-backed loans while failing to secure real property titles as collaterals;
? Fraud on other financial institutions through securitization of the resulting mortgages as high-grade investments.
Parts of the ‘massive fraud’ in underwriting and securitization are left out of the complaint
The complaint leaves out some key aspects of the fraud in underwriting and securitization:
a. At least since 2004, Countrywide engaged not only in the reckless underwriting of sub-prime loans, but also in the funding of sub-prime loans with no underwriting at all. US law enforcement and Banking Regulators were fully cognizant, but routinely refused to enforce the law. Later they told the US Congress and the People that there was no evidence of criminality at Countrywide.
b. The evidence shows large-scale fraud in the implementation of invalid electronic underwriting and document archiving systems at Countrywide and later at BofA. Therefore, the holders of the securities are left with no valid records, and the US with no valid data for risk assessment and risk reduction.
Continue reading on Examiner.com: Dexia Holding v Countrywide and the Sub-prime Crisis – the Scope of the Fraud May Begin to Unfold – Los Angeles Business Headlines | Examiner.com
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who is the judge in New York Supreme in Dexia Holdings v. Countrywide?
No matter how many posts or articles I read concerning these fraudulent activities I continued to be amazed at the utter ‘entitlement’ the banks and their ‘leaders’ seem to think they deserve. In addition I am baffled at how far the fraud was allowed to perpetrate considering we have government agencies that allegedly are looking out for our interests (the American people) so that THIS does NOT occur.
In essence there is no other way to ‘look at’ what has happened in the banking and financial industry…there is no other way to ‘look at’ what has happened to the average middle class American and the American Dream…other than…sadly and sickeningly…
Those with the power to STOP doing what they were doing when they knew what they were doing was massively fraudulent…DID NOT! (BIG BANKS, BIG BUSINESS, BIG HEDGE FUNDS and their CEO’s…remember they are still saying they are too big to fail (and they are NOT failing…thanks to our government’s BAIL-OUTS.)
Those with the power to STOP the fraudulent acts…DID NOT! (Our government agencies; SEC, Congress…all elected officials who fear that they will lose the benefits bestowed on them by the lobbyists and TOO BIG TO FAIL CEO’s who (sadly and sickeningly) own THEM!
When will Fannie Mae and Freddie Mac admit that they bought stated income and no doc loans too? Never.
let the law suits roll, it may time but some one will listen to our plight and rule strongly on it