I am wondering when bank stocks will take a BIG hit. I do know that one (a San Francisco hedge fund) is betting against Bank of Americas shares. With foreclosuregate, many of these too big to fail banks will have to buy back these toxic mortgages.
And they should.
I am sure that many of these well educated banksters knew exactly what they were selling, especially as they packaged these mortgages into bundles and swapped them as quickly as they could urging the world to buy up as much of these mortgage backed securities. Quick swaps were made and trillions of dollars were pocketed and the victim had no idea what he just bought until recently. These banksters and sellers acted like dirty old used car sales men and made off with billions like Berny Madoff. When the tax payer had to bail out these gangsters and all these victims around the world were left penniless, is it not about time to hold these gangsters accountable for their premeditated fraud.
Do not give me this too big to fail crap. That is a smokescreen to cover up true intentions.
Pensions will suffer all around the world as a result of the subprime mess as well as peoples retirement accounts. Meanwhile our too big to fail banks are paying out trillions in bonuses, stock options, lofty vacations, and private residents and jets to their CEOs. Is it any wonder why there is SUCH a massive disparity between the rich and the poor. It is because the poor are essentially taxed into oblivion to support these fraudsters and support their greed.
Yes! You bet!
These sellers of these toxic securities ARE obligated to repurchase these mortgages BECAUSE of misrepresentations such as overstatements of borrowers income and inflated appraisals. But interestingly, some investors have been stymied in their efforts to examine individual loan files by mortgage-bond trustees, which administer the securities.
A sampling of 6,533 loans in 12 securitizations by Countrywide found 97% failed to conform to underwriting guidelines, according to a lawsuit filed September 29 by Ambac Assurance Corp. in New York state Supreme Court.
What a mess!
These big banks MUST be held accountable!