Forum Post: FDIC and partners destroying small businesses and stealing land to take care of their Wall Street partners in crime.
Posted 2 years ago on May 11, 2012, 1:19 p.m. EST by LibertyNow
This content is user submitted and not an official statement
House Financial Services Hearing on FDIC Wed. May 16 In DC. House to hold a hearing on FDIC structured loan process and nationwide complaints. Witnesses include FDIC and Lennar as well as damaged borrowers.
Each recipient of this message who has been damaged by the FDIC structured loan process should write testimony or a statement to submit for the record.
You can modify any testimony you have already written and send it again. A simple letter that explains what happened to you is fine.
Please send a copy of your statement to American Land Rights at firstname.lastname@example.org or email@example.com.
If you have not been damaged but know someone who has, please forward this message to them and send their contact information to firstname.lastname@example.org.
You can mail your statement to:
House Financial Services Committee Oversight and Investigations Subcommittee U.S. House of Representatives Washington, DC. 20515
Attention: Hearing Wednesday, May 16th. 2:00 pm Eastern Time.
E-mail your testimony to or call: email@example.com (202) 302-6784 firstname.lastname@example.org (202) 225-7502
The Hearing is available streamed live at: www.financialservices.house.gov At the time of this e-mail the hearing had not been listed on the website. It should be listed by the end of the week. Go to About Us to find videos or call their general number for information at: (202) 225-7502
House Financial Services Oversight and Investigations Subcommittee
Republicans: Randy Neugebauer, TX, Chairman Michael G. Fitzpatrick, PA, Vice Chairman Peter T. King, NY Michele Bachmann, MN Stevan Pearce, NM Bill Posey, FL Nan A. S. Hayworth, NY James B. Renacci, OH Francisco "Quico" Canseco, TX Stephen Lee Fincher, TN
Democrats: Michael E. Capuano, MA, Ranking Member Stephen F. Lynch, MA Maxine Waters, CA Joe Baca, CA Brad Miller, NC Keith Ellison, MN James A. Himes, CT John C. Carney, Jr., DE
Problem: FDIC Bank Closure Process destroying small businessmen, killing jobs, undermining communities and slowing the economic recovery.
The FDIC and its Wall Street Hedge fund partners like Lennar, Rialto and Multibank and others are using billions of taxpayer dollars interest free to fund for profit real estate investments with all their legal bills paid by the FDIC.
This means that borrowers and landowners cannot compete with Lennar, Rialto, Multibank and others in the legal process. They are up against the deep pockets of the taxpayer competing in the courts.
It is important to understand the most small businessmen facing the attack by Lennar, Rialto and others on their personal assets were in good standing when their bank closed. Their only guilt was being in a bank closed by the FDIC.
The FDIC is continuing to close approximately 2 small local banks a week. They have closed over 100 small local banks each of the last two years. That means that thousands of additional small businessmen, landowners and borrowers are being destroyed putting a huge drag on the economy.
Hundreds of local communities are suffering as a result.
Congress must reign in the FDIC and subject them rigorous oversight. The structured loan process must be stopped or FDIC must insist that borrowers with loans at failed banks be allowed to work out reasonable settlements where they have the resources to do so.
ALRA can help provide specifics to facilitate a closer look at the FDIC, its main partner Lennar Corp and it’s Wall Street hedge fund subsidiaries such as Rialto and Multibank.
Bottom line, an agency of the federal government (FDIC) has and is forming numerous For Profit Entities [PPIP] to liquidate notes and related real estate collateral left over from failed banks. On its face, OK, what's the problem?
These new For Profit entities are not authorized, protected or empowered by FIRREA [the federal regulation that gives the FDIC super powers] and the loan transfer documents confirm it.
The FDIC then arranges interest free loans from the US Treasury to capitalize the new private for profit LLC FDIC partners created to own the notes and operate the liquidation process.
They use low-ball fair market value valuations and then borrow 100% of that amount from the Treasury Dept. FDIC corporate guarantees the debt. They then sell a 40% interest to a "winning bidder" for pennies on the dollar, typically to a publicly-traded company like Lennar, Rialto, Multibank etc., who also guarantees their pro-rata portion of the loan.
Now we have a Wall Street company (Lennar, Rialto, Multibank and others) as 40% owner of a For Profit LLC using public funds interest free and a 100% loan with all their legal bills paid by the FDIC to shake down and foreclose on damaged borrowers (damaged when their bank failed) for additional dollars before taking the property away from them to in turn make a profit for themselves and the FDIC.
If that wasn’t enough, Rialto and other Wall Street Hedgefunds are then going after the deficiencies of the borrowers. That means taking their homes, cars and anything else they own because the borrowers often pledged personal assets to the bank to get the original loan.
The FDIC has sicked predator organizations like Lennar, Rialto and Multibank on innocent private citizen borrowers destroying them financially and guaranteeing they cannot come back and hire people and help the economy recover.
Remember that in most cases the borrowers did nothing wrong. They just happened to be doing business with a bank that was closed by the FDIC.
Also keep in mind that most borrowers in the process were making their payments and in good standing before the FDIC closed their bank.
These PPIP's (Lennar, Multibank, Rialto etc) are borrowing billions in interest free dollars from the U.S. Treasury. To make matters worse, all their legal bills are paid by the FDIC. The small businessmen cannot compete in the courts and cannot afford to hire the lawyers to stay in the game.
The FDIC has created a situation where there is no opportunity for the borrower to gain equal access to justice.
To help stop this contact your Congressman to talk to the staff person who handles Banking, Financial Services and/or the FDIC. Get his or her e-mail and forward our material plus your own personal letters if you or someone you know was directly affected by this unconstitutional land grab. Be sure to send a copy of your personal letters regarding the FDIC, Rialto, Lennar and others to American Land Rights. Call any Congressman at (202) 225-3121. Also contact both your Senators to do the same as above. You may call any Senator at (202) 224-3121.
You can also contact the two coalitions working to stop this extreme FDIC abuse: FDIC Rialto Affected Borrowers Coalition (FRABCo), 10013 NE Hazel Dell Ave #237, Vancouver, WA 98685—FRABCo.email@example.com -- 503-972-4080. Check out the FRABCo website: http://reactioncommittee.com/
The FDIC Bank Closure and Foreclosure Coalition formed by the American Land Rights Association, PO Box 400, Battle Ground, WA 98604, (360) 687-3087. It is operating under American Land Rights and working cooperatively with FRABCo. Website: www.landrights.org Contact: Chuck Cushman at firstname.lastname@example.org.