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The Countrywide Mortgage “Hustlers” Just Got Nailed

77 | By Shah Gilani

Sorry, you’re going to have to wait until Monday to get the lowdown from me on what’s really happening behind the scenes in the U.S. Treasury bills, notes, and bond markets. I’m pushing that release until Monday.

Don’t get me wrong – that is maybe the biggest news of the year. It has global implications, will change capital markets forever, and create tradable events with tremendous profits for investors to grab.

It’s just that we’ve got something even more incredible to talk about today… (and it’s good news, for once).

Yesterday’s jury finding in a Manhattan court that a bank and a bank executive are liable for fraud is a true watershed. This is something that hasn’t happened since investigations and settlements over what led to the financial crisis have been coming and going.

In a civil suit, Preet Bharara, the U.S. attorney for the Southern District of New York, scored a massive victory over Bank of America and one of its former executives. The defendants, instead of settling, were found guilty of fraud by a jury of four men and six women.

I almost couldn’t believe my eyes when I saw this…

The hard-charging U.S. attorney brilliantly used the 1989 Financial Institutions Reform, Recovery and Enforcement Act to target fraud that originated in 2007 and 2008. The Act was enacted as a result of the savings & loan crisis. It extends the statute of limitations in fraud cases involving financial firms accused of ripping off federally insured financial institutions (those where taxpayers ultimately hold the bag) from five years to 10 years – putting those fraudulent acts back within the realm of legal culpability.

Bank of America, which bought Countrywide in 2008, and Rebecca Mairone (a Countrywide executive at the time) were found guilty of fraud over a program overseen by Ms. Mairone.

The program rushed poorly originated prime mortgages along what was called the “Fast Swim Lane” into packages to be sold to Fannie Mae and Freddie Mac, to get the crappy mortgages off their own books just as the mortgage market was collapsing… and profit handsomely from them.

The program at Countrywide was known as “The Hustle”

Well, apparently the jury agreed it was all a big hustle.

Next up, the judge in the case, the often pissed-off Judge Jed Rakoff, will determine the civil penalties.

We’ve talked about this judge before (here). He’s got guts. He has famously held up some settlements demanding that they be meted out with accompanying admissions of guilt, rather than the usual “neither admit or deny” free ride settling parties skate off with. We can only hope Judge Rakoff will throw the holy book at them.

Not that this is over by any means. There will more than likely be years of appeals. But at least it is a start.

Where’s Ms. Mairone now? Oh, she’s an executive over at JPMorgan Chase.

Speaking of JPMorgan, they’re now working out the finer details of a supposed $13 billion settlement with the Justice Department – the same Department run by Eric Holder. The same Eric Holder who sells guns to drug cartels, condones the NSA’s wiretapping of anyone in America and a few world leaders (just ask Angela Merkel of Germany, to name just the latest pissed-off head of state our Orwellian oligarchs are spying on), and has taken it upon himself to look like a taxpayer advocate and bank basher by raking in billions from America’s big banks.

To be clear, I do like the fact that the banks have to pay for their crimes.

What I don’t like is that Holder has let all the big campaign-donor bank executives skate with unlimited get-out-of-jail-free cards.

JPMorgan set aside $9 billion last quarter for legal costs. It now has amassed a pile of $23 billion (on top of the tens of billions they’ve already paid in settlements and lawyers fees) for future “legal costs.”

And Jamie Dimon? He’s still running the bank. Still stealing from the bank’s shareholders to pay the ungodly legal bills and settlement fines that continue to pile up.

The latest $13 billion settlement deal he’s working on, well, it really isn’t $13 billion. It’s $9 billion, which is what they set aside a few weeks ago. It’s $9 billion because $4 billion of the talked-about money to be paid won’t ever be paid. That sum is supposed to help underwater homeowners and delinquent borrowers and widows and orphans. That money will never be paid out. There won’t ever be any real accountability for it. It’s just part of the “we’re making them pay” rubbish Holder & Co. are claiming they extracted.

Is there more litigation ahead for JPMorgan? Of course there is. I can count almost $10 billion more that is on the horizon, and that could easily double.

And how are the banks doing, in spite of paying all these fines and now being found guilty of fraud? Quite well, thank you. No, thank the Federal Reserve.

Because the big banks need to make billions to pay for their war against the U.S. economy crimes, the Fed engineered quantitative easing. QE is not about the economy and trickle-down economics. It’s about fattening up the banks so they can keep on keeping on.

When will the QE taper start? As soon as the bulk of these cases are behind the banks, that’s when.

When will that be?

It will probably be on the 12th of Never or in February in the future. Why a February? Because it will be a cold day in Hell before the lucrative ownership of America by the banks ever ends.

Shah

P.S. Don’t miss my email Monday. I’ll reveal what’s quietly happening in the Treasury market. It’s huge.

This isn’t something that’s obvious, otherwise you’d have heard about it. But we, meaning my hedge fund friends and institutional money manager friends and a couple of bank executives who run Treasury trading operations, are talking about it. Major changes in capital markets are afoot – and there will be tremendous opportunities to trade what’s coming.

77 Responses to The Countrywide Mortgage “Hustlers” Just Got Nailed

  1. marc hoy says:

    Mr. Shah – You’ve got balls, buddy ! I applaud you – but calling a spade a spade these days – well, you know what happens to people that speak the truth plainly to power ! They end up emigrating to “free” countries, like Russia ! lol.

    • fallingman says:

      Ha. Good one Marc. Well said.

      Kudos to Mr. G once again for his courage and forthrightness.

      Don’tcha love that Rebecca Mairone now works at JPM? Birds of a feather…

    • Mike says:

      Wow!! Does everyone of these exec’s have a scape goat ?–Angelo Mozillo CEO of Countrywide Home Loans ,was after the colapse of Countrwide Home Loans , the new CEO of Countrywide Financial ,Who lobbied members of congress to give out sweet deal loans or VIP loans to 12+ diferent members of Congress ,these loans were all marked FOA on their paperwork W/ very low interest & no filling fee.s FOA stood for “Friends OF Angelo” including 3- loans to According to research on this “Chris Dodd” head of the Senate Banking Commission along W/ retired “Blarny Barney Frank”at the time Cogressman Dodd got 3- of these sweetheart deal loans totalling over a million & a half dollars. These were to refinance properties he owned in Conn.& also in Washington DC.The House Ethics Commitee decided not to pursue this scandal,because they said it was “out of their juristidiction “Although they did say it was a serios matter, many of the members or transgressors,are now retired or were bounced from Congress Thats how long it took Congress to act on this matter,And whose fault is that?It took Them 4-years to look into it but do nothing about it .What a wonderful country we live in ,According to the House Oversight Commitee report on June 17 2008 the same day that Dodd ackknowledged for the 1st time that he was a VIP. countrywide customer He announced on the senate floor a housing bailout for the struggling countrywide and other subprime lenders.Pg.#9 of The Judicial Watch Verdict March 2013 issue #3 Vol. 19

  2. eric taylor says:

    Elizabeth Warren is a new face on the scene, that could even replace Hillary Clinton on a presidential ticket, or complement her, that is big on financial reform; I don’t yet know how widely versed in politics she is, but let’s keep watching, and supporting her!

    • Robert Bence says:

      Warren is another tool that does not need promoting as the respondent above said. She is another one who got out of there with money, so do not even try and put her on a pedistal as a saint. what a tool that guy is.

      • Sticky says:

        If it wasn’t for the federal government and the liberal democrats who forced the banks to loan money to those who couldn’t afford it so everyone can have the American dream, the banks wouldn’t have loaned it in the first place. Screw eric Holden hostage and his hate America boss

        • Peggy Kirk says:

          That was George W. Bush who said “everyone is going to own a home”. I remember it well. Did you know John McCain was also, at one time caught up in a mess with deregulating mortgages? I saw a brief clip of him in a hearing.

      • Gord says:

        Robert, apparently you are the tool, ignorant of the fact that Warren famously attempted 10 years before the scandal surfaced to warn her bosses at the SEC that the rating agencies were rating suspect mortgages triple A, and they took her off the file. Get informed.

    • Chris says:

      Elizabeth Warren is a leftist, progressive hack and a confirmed liar. The lie involved her claiming to be native American(she is not) while at Harvard to get gov’t subsidies. She is as left of center as they come, and has no business being near any business. For president? You must be out of your gourd!!!

      • Gord says:

        Elizabeth Warren does, in fact, have some native American ancestry, well publicized by independent sources during her election campaign, and the Republican slur that she made the claim falsely was itself just another of the baseless lies that they seem determined to propogate.

  3. P Coe says:

    This is a good start like 400 politicians at the bottom of the ocean. When will the real culprits in the house and senate who made this happen and then jokingly investigated it pay!!

    • Ms Buddy says:

      Try Senator Levin–he held Senate hearings–witnesses confessed right there –he thanked them for coming:: Thought he would at least house arrest them!!

  4. glenn says:

    AHHH… the power of being in a high power position in a firm, freedom is likely through the appeals process and a finger pointing for a long time to come.
    meanwhile, an average joe caught for anything would end up losing his job, professional license and be broke in a life changing event. where’s the common sense of justice and small to big corporate administrative decision making.
    Sounds like JPM needs to do some investigating of their own. It would be cheaper than legal fee’s past onto their clients and businesses.

  5. gerald hirsch says:

    There are still plenty of slimy fish swimming–will they be netted? And sadly there are some federal prosecutors who did in some “little guy’s” who were
    innocent but easy targets who prosecutors thought would help end the
    mortgage fiasco that government agencies failed to stop because they were inept or,just possibly, corrupt. Hard to imagine anyone in government being corrupt. This whole fascinating period…banks, brokerage houses,brokers and
    government agencies (paid to watch over it all) remains under analyzed and
    some “big names” still walk and sail this earth. Stay well.

  6. Ron says:

    When the crooked bankers incur these large fines they simply budget for them and go on about their business.There are places in the world where they would be shot. Maybe we should join them.

    • towbill says:

      Agreed,when the public starts taking action against(Hanging) these well connected over paid thieves this country will see less corruption.We as the voter need a complete vote against all incumbents,not until the people who are supposed to represent the citizens of this nation have fear of us will we see change!

  7. kevin says:

    Now that the Civil case has been brought and won, does this provide the opportunity for similar actions against fraudulent “Banksters” and extend the statute of limitations for such actions?

  8. Casey Koehler says:

    If this happened to a few more of those execs then it would stop the bastards. There are some
    at HSBC that were guilty of money laundering and HSBC just paid the fine…how about a few
    years in jail for these guys…..you’d see a better behaved group….of course some would just go
    marching on because of the big bonuses available if they cheat….!

    • Wayne says:

      Casey, when a criminal robs a bank and is caught, he goes to jail. When a bank executive robs the taxpayers and consumers, the bank (and their shareholders) pay the fines and the bank executives get bonuses.

    • Sticky says:

      You left wing class warfare losers love to bash success. I guess it makes you feel good to see a rich guy get slammed because hey your lazy ass never bothered to make anything out of your life, now are you gonna hate the border jumpers because they recognize opportunity when they see it and will take your damn lousy job. Support them democrats so they keep you down with their foot on your neck!!0

      • Peggy Kirk says:

        Let’s send you across the border and you can suffer a stiff neck looking back. People do work hard for their money and even if they do not make “so much” out of their lives, they are living their lives and trusting the system that is paid to help them get ahead.

        That trust is breached and you blame them? Shame on you.

  9. Felix Mosso says:

    I actually emailed this question on another such court action some years ago…………..

    WHY when a company gets CAUGHT and FINED, does the company pay with stockholders
    money? We didn’t do ‘whatever’, the Co Board of Directors authorized it making THEM the
    responsible people and THEY should be the ones FINED or JAILED or whatever.

    Thanks,

  10. James says:

    Why aren’t BAC and JPM shareholders and the Boards of Directors in revolt against all these bank executives/criminals?

  11. Doug says:

    Look up Wendy McElroy for ; Know your Class Enemy, Know your Class Ally. Find her @ wendymcelroy.com

    Simply explains a lot we need to understand.

  12. tony wiggins says:

    Warren and Hillary both need to be put into a small boat and pulled to the center of the ocean and let go. They are Democrats, the party who benefits from campaign donations made by these sleezy banks. But then I think every politician in Washington should be replaced by good honest business people that wanted to save our country

    • Wayne says:

      Tony, look up the contribution figures of these banks. They contribute far more money to the GOP candidates (the ones who shut down the government) than they do the Democrats.

      • William says:

        Hey Tony,

        When are you frickin demwits going to realize that voting for the democratic sleaze bag, scum sucking democrats is the problem with the country’s debt problem. Every time a democrat is voted for they go to Washington with one thing on their mind. 1. Push for more government spending ( which creates the debt problem) . 2. Vote immoral bills through the house legislature,(example, abortion passage, Homosexual same sex marriage rights, Removing God and his laws from society. (Seperation of church and state, while allowing islam and other stupid fanatical cults to flourish), 3. More self dependent welfare programs ( which the blacks and immigrants jump on) etc. It’s time for you dem’nuts to get a clue about what the Democrats are all about.

      • William says:

        That is what this country really needs !! Lets oust all the incumbent members and replace them with honest hard working honest types that don’t have a Law degree or, Business degree. Vote for people that have just an Associates degree that run a successful restaurant , book store, coffee house, mom and pop quick store or an electrical business.
        The problems seem to get severely infected every time we put one of these higher educated idiots in positions of leadership. Time we weaned our self from these “Higher Educated Idiots”.

  13. Kip Volkstadt says:

    I have the same question as Scott Hayden….Countrywide’s mortgage in 2007 to my late husband and myself wound up being sold in a short sale. BAC then took their sweet time approving an offer some six years, 8 offers and some $200K less later!
    Now my credit is in the toilet and, as a widow and retired, getting any credit is out of the question.
    The first offer was for the exact amount of the mortgage, but Countrywide couldn’t be bothered and later neither could BAC.
    I’m totally disgusted with all those crooks.

    • clifton dan says:

      My wife and I had no idea how close we came to financial disaster, as Kip, with
      Countrywide Mortgage ! We were among the few who did not get screwed and
      tattooed We thought the mortgage was simply sold to B of A, with no other
      change of terms ! WOW ! Were we ever lucky ! My tenant in my rental house
      was not so fortunate, and lost her house to B of A. Her only luck was that
      my house was available , just one block away, for her family to rent. But now
      she pays rent instead of mortgage, and hundreds of thousands of dollars of
      equity were wiped out.
      Thank goodness our government, BOTH sides of the aisle, takes such good care
      of its citizens ! Despite all the fines, these banks continue to flourish !
      The curious part ? We still live in the best country in the world ! WOW !

    • jdross says:

      Sadly, you are one of many that were victims of these circumstances. Bankers do not understand the real estate market, only “their” balance sheets, and are afraid to make a logical decision that wouold benefit all parties or harm all parties the least.

  14. Brad Ellis says:

    This is actually minor, in reality. Looks big but pales in comparison to those who were doing all the swaps on the portfolios. The derivatives are and we’re many times the portfolio size. It was a casino, and I see no “casino” operators going to jail or even being charged.
    Tempest in a teapot. Wait until the derivatives have to be unwound.
    Brad

    • jdross says:

      As Warren Buffet said, “derivatives are weapons of mass destrcution…” Most bankers have no idea of the vlaue or lack of value of derivatives in which they invest, and how market fluctuations can wildly change the value.

  15. Robert in Canada says:

    It would be good to see the ring leaders behind the financial fraud that caused turmoil and misery around the world get prosecuted and thrown in jail.

    That would be Bill Clinton and his gang – they got rid of Glass-Steagall, changed some regulations, and forced banks to give no money down mortgages.

    All of that was to enable people with no income and couldn’t qualify for a $100 bank loan before to buy a house (and show their gratitude by voting Democrat forever).

    • Wayne says:

      Robert, again I say get your facts straight. Clinton did not get rid of the Glass-Steagall Act, in fact he vetoed the bill passed by Congress that got rid of it. Then Congress overrid his veto with a 2/3 majority. It was not Clinton’s fault (as most GOP misinformed want to say) but Congress’s fault. And I believe they were GOP dominated although some Dems helped to make it happen.

      • Nadir says:

        In 1999, Democrats led by President Bill Clinton and Republicans led by Sen. Phil Gramm joined forces to repeal Glass-Steagall at the behest of the big banks. What happened over the next eight years was an almost exact replay of the Roaring Twenties. Once again, banks originated fraudulent loans and once again they sold them to their customers in the form of securities. The bubble peaked in 2007 and collapsed in 2008. The hard-earned knowledge of 1933 had been lost in the arrogance of 1999.

        US News & .,.

      • Lars Bagman says:

        Don’t know where you get your “facts” but Saint Bill did not veto a Glass-Steagall repeal bill. The Senate passed their version of a repeal bill in May’99 by a 54 to 44 margin (R 53-0, D 1-44) and 2 months later the House passed their version by a 343 to 86 margin (R 205-16, D 138-69, I 0-1). The two versions were reconciled over the next 4 months and with Rs agreeing to Ds demands for strengthening the “Community Reinvestment Act” the final vote was 90-8 in the Senate, and 362-57 in the House. Saint Bill signed the act 8 days later, saying, “… the Glass-Steagall law is no longer appropriate…” In 2008 after the financial crisis, Saint Bill said that he thought the repeal of Glass-Steagall actually helped make the financial crisis less severe. Doesn’t sound like he was opposed to the repeal.

        Perhaps you were confused by the early Senate vote on their version without the CRA sweetener, which passed largely along party lines.

        House member John Dingell (D fm Mich) got it right arguing against repeal, saying it would lead to “too big to fail” banks and massive taxpayer bailouts. If you want to nominate anyone for sainthood on this issue it should be Dingell.

  16. Jimmy Z says:

    Here’s hoping that there’s a domino effect in indictments and convictions. ‘The people’ are really sick of this crappola.

      • clifton dan says:

        James ! Nobody was FORCED to borrow money ! Unqualified buyers were ALLOWED to borrow money ! As a real estate broker, with 40 years experience,
        I did not allow people to sign a mortgage application, for a house they could
        not afford. If they bought the house anyhow, it was with another broker
        who ALLOWED the transaction to go thru, but nobody was FORCED to
        borrow !

    • Joe Spenner says:

      Defeat of the Glass-Steagall Act is another solid reason to GET RID OF EVERY CONGRESSMAN WHO VOTED TO DEFEAT THAT ACT!

      Why are so many Congressmen voting against laws that help We the People?
      Sure is time to clean out the louses in the white House!

  17. James says:

    How does it make sense to nail the B of A investors when it was countrywide who committed the sins. . The investors will pay the fine not the execs.

  18. Rob says:

    RE: some of these comments about getting rid of every Congress person, and replacing them with “Honest people like us”. That is how the tea party people got in, even though they all took money (“indirectly”, of course) from the richest people in Corporate America…Candidates who don’t get that backing don’t seem to get too far without TV attack ads to reply to those pitched against them.

    We must demand a new Constitutional Convention that will rid us of the Electoral College (thereby letting third parties evolve); set spending limits for all classes of donors and candidates; and shorten the “Campaign Season” to a few months.

    I would also like to see a new voting system (maybe the “Google Vote”), that would allow us to vote by directly registering the votes for every candidate and ballot measure with a permanent record…we have satellites that could count votes from anywhere in the country, and anyone could count them… if you did not see your own vote, there would be some “spanin” to do…if you don’t want people to know who you are, look down and wear a hat, otherwise, look up and see yourself voting…Such a system could work well if voting times were set for many (I say 30) days. Turnout would be significantly increased…of course, there are many people who are actively working to limit participation; but IF these ideas were really debated and instituted, we would have a much more responsive Government..

    As it stands now, nothing has change since Mark Twain Wrote “The Gilded Age”…well worth reading and spot on in today’s Washington….

    • Pappy says:

      I don’t think we need a third party, Rob. Our country is already divided into Republicans and Democrats and a third party would further divide us. By keeping our country divided and fighting among one another it is easy for the people who pull the strings to keep us confused and ignorant of what is really being done to them. I’m reasonable sure that no one really knows what life without political parties would be like. Perhaps it would be much worse than what we are currently living with. I would be interested in what other readers opinions on the matter. To be sure, the divide and conquer strategy is working and alive and well in our country. I also believe that our country would be much better off without lobbyist from special interest groups. Thanks again, Shah for what you do.

      • Peggy Kirk says:

        Once they are elected they need to drop the politics with each other, which is their business and get down to the “people’s” business.

        There ought to be a way or law that forbids the separation of the two parties. That could be three or four parties involved.

        Maybe we need a non political group to intervene on decision making. Young people would be good. They would have to be neutral and informed. They could build to be future political leaders. Besides, this is their world more than their elders because with so many changes coming and so many existing concerns, the young people need a huge say. The future is theirs and we are doing all we can to destroy it. What are we saying? Don’t trust the politicians, the banks, the elders in general?

        This is just off the wall.

    • marilyn says:

      This hits the nail on the head. Managing the polling places and vote counting, and machine handling are almost all in the hands of one party at present. Not good.

  19. Jim Parker says:

    Shah, I have wondered who talked BofA into buying Countrywide. They have been beaten up, kicked around, maligned by the aftermath. It has been surprising to me who it is that takes the blame for the failures of others. And lurking at the bottom of everything is the Fed that has orchestrated every crash in the Real estate market since the 1960′s and our politicians. The blame for the problems, however, are always at the origination level which is unrealistic. Having spent more than 50 years in the mortgage business, I feel I know how it works. The system worked well when the s&L’s were the primary source of funds, and were backed up by FNMA and later FHLMC. The Financial Institutions Reform Act of 1978 set the savings and loan business on a track for failure which happened to many during the high rate era of the late 1970′s & early 1980′s. Those that survived were taken out in 1991 with mark to market requirements set up by the Fed and our Congress. The only source of funds remaining were thru Fannie and Freddie from then on. Automated underwriting took over in the mid 1990′s and underwriting standards were dropped throughout the 1990′s and into the 2000′s.
    Underwriters could only require documentation in accordance with the automated systems requirements. While prices went up and rates went down so did those requirements. When the shit hit the fan, who took the blame? The originator and the Appraiser. The loans were placed through any one of dozens of companies such as Countrywide by third party originators. In their zeal to compete with FHA and vA, Fannie and Freddie introduced products that were ultimately designed to fail when the Fed started raising interest rates. The ultimate result was to hand us Dodd-Frank and nearly absolute control of all mortgage lending by the Fed. What the game is, I am unsure, but it has not worked in the best interest of the public. I have left much out, so read between the lines…

  20. David George says:

    This is a truly wonderful column and free from political side-taking and instead do it for us little folks. John Lanchester has done a fine job taking on the banks in Great Britain but you really cut to the chase withh names and addresses to boot. Bravo.

  21. Jeremy says:

    Let’s not call name such as Democrat or Republican. The issue is the Banks and their CFOs so why not hold them accountable for their actions. You should know by now that you and I have been sold several times (~9 times) whenever a Note that we signed at the bank to purchase home and car. The issue is that they are not suppose to sell your original Note. So can anyone out there try to find out where the wet ink paper that we signed is. We know in the past ~ in 70′s & 80′s all loans are in the banks we drawn our signatures for home and cars we purchased.

  22. Ian Shearer says:

    I take an interest in politics in the UK and USA.

    It is odd that the American constitution – which is a lot better than the unwritten constitution that we have in England – should have lead to two parties dominating the map for as century with no alternative party spriniging up at times like now when both the Democrats and Republicans are so unpopular.

    Whereas in England with its first past the post system it would appear more difficult for a new party to get going. However right now a new party that did not exist 10 years ago – UKIP will cut a swathe through the country at the next election.

    A small change could make it work in the USA, a bottom box on each ballot paper for a vote for NONE OF THE ABOVE. If that is the majority vote the all the candidates are disqualified from standing again and a fresh ballot is held.

    • Peggy Kirk says:

      Lets add Putin to the next election with his new “Individualists for the good of all” campaign! He was quite popular for stopping WWIII, even though Obama wants to take credit for it. Oh, or are they partners? He even has his own oil. He is also good at catching thieves, I have read.

  23. Richard Dubeau says:

    Shah, I couldn’t be more behind you on this one. These criminals need to be brought to justice in a very big way. They need to feel what the people they’ve robbed feel but they need it in the aggregate. It’s too bad they don’t hang people for monetary crimes these days. It might set a great precedent if they did and might even slow down the robbers and the politicians who feed them everyone else’s money.

  24. Robert says:

    An open question.
    Do you think that Angelo Mozillo will ever be hauled into court for founding Countrywide in the first place?
    He sure knew when the house of cards that he created was falling apart when he sold the whole stinking sorted mess to that bunch of greedy uninformed monkeys over at B of A.
    Remember when the insiders at Countrywide used to graft the political oligarchic’s with below marked real estate loans? The code word they used was FOA; for “Friends of Angelo”?

  25. johnathan says:

    Jamie Dimon and Barack are fab friends, it was Jamie who paid the cost of bringing him from small Senator status to Wishy, Washy, Hopey, Changy, President of illusion land, who talks the talk but forgets to walk the walk and send pal Jamie to jail, meanwhile the American dream has become the American nightmare for the ordinary people, but not so for Cabal members, when your biggest tool is money printing $ cash and Cyberspace money created by pressing ”click ”on Fed computer, for distribution to it’s group of owners, via their cabal of American and overseas TBTF banks who step up to the discount window daily to collect the cash.

  26. Kris says:

    I’d always hoped Angelo Mozilo would do time in jail. Why not? A fine??? What use is that? It was ‘big’ but was peanuts compared to what he made off folks –>using predatory loan practices (I used to read about how their sales agents were directed to call people and steer them into more & more dangerous loans –>as part of their JOB…)…I just checked Wikipedia’s write up on Mozilo…shocking how Congressmen (including Dodd and lots of Fanny/Freddy folks) got special VIP loans from Countrywide… how do these people live with themselves?? Crimes should mean JAIL TIME not FINES to businesses…OR, I like to say, ‘put them in the stocks and let people throw bread at them for a few days’…then put them in jail. OR, and I’m not a violent person at all, how about this:
    For white collar crimes (aka, not ones where you are stealing to feed your family), punishment = the GUILLOTINE? I think that MIGHT actually DETER such premeditated crimes … does seem like something that might actually DETER a greedy person just thinking about the potential consequence, eh? Think of the pain THEY have caused……and yet, e.g., B. Madoff is in a nice prison where he gets to do lawn bowling and more…Really??

  27. richard says:

    i think david pryor was the last honest man in washington. i suspect he resigned early out of the embarresment (sp) by clinton we sure could use some 1950s types.

  28. richard says:

    i am going to give you a secret
    EVERYTHING MAKES SENSE IF YOU HAVE ENOUGH INFORMATION

    well ,i dont have any information as to why our government is leading us down the road to ruin.

    but it is ALWAYS about the money!!!!! so who is going to benefit? help me

    • Peggy Kirk says:

      I’m obviously not your financial expert but it has been said that many investors, such as political people, have certain hedge, etc. funds that make fortunes for them, the more the US dollar plunges. There may be something there. Did you notice how the investment brokers were scrambling to sell, sell, sell when the government was shut down?

      There has to be something to the disruptions in Iraq and the promise of the waiting dinar. We can’t have Irag progress, and keep our financial solidity. Our petro dollars are threatened. Well, no I don’t know a lot about that but it stands to reason, everything happens for a reason.

      Just look to see who gains. NWO?

  29. Leslie Belden says:

    Let’s see…who was it that held my mortgage when I lost the house in a short sale in 2008? Countrywide! And how many months did they keep on deducting mortgage payments from my bank account AFTER the sale? Try eight. I got it back, but it took many calls that went something like this:

    Me: Could you please tell my why you are still deducting my mortgage payments now that I don’t own the house?

    Countrywide agent: Not really, no.

    Me: Why would that be?

    Countrywide agent: Because they’ve fired everybody who had access to the two data bases I need to take care of your problem.

    Me: Huh?

    Countrywide agent: Yeah. They fired middle management and a bunch of other people, and promoted me to about half their salaries to field questions like yours.

    Me: Is this where you tell me you’re going to shoot it upstairs to find somebody who can help?

    Countrywide agent: Yep.

    Me: I guess I can just be glad I don’t have to work for them.

    Am I laughing now, Shah? It still hurts, but oh yeah! Thank you.

  30. Jorge E. Calvo says:

    Reading all these reports about US banks leads me to conclude that America is the most corrupt nation in the world.To think that the banana republic (Costa Rica) that I came from was the most corrupt state in the world!!!!!The problem with most nations is that they are run a self serving elite who will stop at nothing to further their selfish interests.This elite gets their training from Harvard, Yale et al.It is disgusting.

  31. Duncan Mackintosh says:

    Shah is correct when he signals the Federal Reserve….but the Fed gets its marching orders from a cabal so powerful that the very idea that a lowly bank official is responsible for anything is laughable. Don’t get me wrong, greed has many different levels. But until the likes of Hank Paulson and a President or two stand before the mast, the Holder charade will only mask the power that has remained behind the curtain since 1913.

  32. Peggy Kirk says:

    I really like this comment section because I learn some things. However, I look at it and see too many people playing politics. Maybe the answer is to stop playing politics, quit hero worshipping and stop the witch hunt. What is really needed is well thought out ideas. Where are your solutions? Banging people’s heads on the wall isn’t an answer.

    If you don’t like the current dilemmas then find a fix. You be the answer. How are you going to make the American Dream a reality again? Say that.

  33. Peggy Kirk says:

    I have to ask a question. If you know that banks are paying their penalties and fees from shareholders funds, then why are you shareholders?

  34. Joe Spenner says:

    About 2 Partys: Listen to George Washington’s advise. He said if we get a 2 party system, foreign interest would turn them against each other and get them fighting over items of little importance, rather than holding firm to a
    solid topic. How many Congressmen are either Rhodes Scholars, like Clinton or other gets a way with murder.

    HE CAUSE DEATH OF THOUSANDS BY SELLING AIDS AND HEPITITIS CONTAMINATED BLOOD, FROM JAIL PRISONERS, TO BLOOD BANKS ALL OVER THE WORLD!

    Type in search box. “Clinton and Killer Blood,” and worst of all, the present traitor Obama, who is not even a qualified United States Citizen!
    WAKE UP!

  35. don says:

    I suggest you check out Zeitgeist.com for a thorough discussion of whats wrong and how to fix it. the rot and corruption you see are the symptoms of a deeper problem with our system that will not change until we as individuals take charge of providing for our own needs. the technology is there if we choose to use it. until then the problems we have now will only get worse. don

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