Bank of America Gets Creamed - Issues Surrounding the Housing Debacle

“Crime is contagious. If the government becomes a law-breaker, it breeds contempt for the law.” – Justice Louis D. Brandeis

From the ninth gate of hell -

The New York Federal Reserve Bank is part of a consortium of eight large institutional investment firms that is demanding that Bank of America repurchase loans included in mortgage securities.

Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds.

The markets responded accordingly, slaughtering BOA's stock by 4.38% for the day.

The Real Effect
There are so many issues, where do we even start?

• Issue #1 - The banks fraudulently loaned money to parties they knew could not repay. (Subprime crisis)
• Issue #2 - They committed fraud against the deed recording agencies by knowingly transferring deeds against many state law in a complex shell game called MERS. This was to avoid paying taxes on these transfers which would have sucked out the profits on the transactions.(These are the supposed "clerical errors")
• The institutions committed loan title fraud to hide this fact by shredding documents to keep things easy and clear.
• Issue #3 - They then split the mortgages into tranches and then fraudulently sold these investment instruments to individuals and companies that used these in part for leverage to the tune of quadrillions of dollars.
• Mutual and pension funds invested in these assets believing they were solvent.
• The sellers of the securities lied repeatedly.

"It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies."
- Bank of America, U.S. Bankruptcy Court, Jacksonville, CASE NO. 3:09-bk-07047-JAF

• Issue #4 - The banks went before the Congress screaming that "The sky is falling!" and demanded the taxpayers "bail them out" via TARP. These institutions would not exist otherwise. 
• These jerks even threatened that tanks would roll down the streets if they are not rescued from their own myopic stupidity.
• The very next day, Treasury Secretary Paulson stated that he would not use these funds for that purpose. In short, he lied.
• These people are refusing to tell us where the money we are spending is going. 
• Issue #5 - The Government (FBI) knew about these abuses years ahead of time.
• Issue #6 - Individuals did not pay their mortgages in a housing price inflated environment driven in part by the fraud and further bankrupted by a Depression created by the banks?

And we as a country are up in arms about issue #6? There is an environment of rampant criminality in America being committed from the top down and we're worried about people, some of which are being destroyed by these institutions?! What many of these institutions deserve is cake handed to them with a guillotine!

Bank of America might have to eat $47 billion which will blow it up? Good!  Let's face it, they have technically been insolvent for years already. We as a country are just pretending they are solvent and forcing these issue into the open will end the charades.

Banks tanking, fraud, rampant losses. Now where have we seen all this before...