Forum Post: Lawsuit Shows More Fraud and Coverup from BearStearns Mortgage Team

Teri Buhl: Lawsuit shows more Fraud and Coverup from Bear’s Mortgage Team

http://www.teribuhl.com/2011/11/21/lawsuit-shows-more-fraud-and-coverup-from-bears-mortgage-team/

-Nov. 21 2011-

This summer I wrote a story... http://www.teribuhl.com/2011/08/24/report-says-bear-stearns-executives-sold-illegal-rmbs-and-covered-it-up/ ...for DealFlow’s The Distressed Debt Report warning more whistleblowers have come forward to spell out how Tom Marano’s mortgage team at Bear Stearns knowingly threw out any form of loan level due diligence while packaging and selling residential mortgage backed securities years before the 2008 financial crisis.

When investors complained about early defaults in the RMBS they’d bought from Marano’s traders, the Bear executives simply instructed their servicing and due diligence underlings to massage the numbers or mislead the trustee... http://distresseddebt.dealflow.com/reports/article.cfm?id=tjatydpfunopfmg ...of the securities about the real health of the loans.

Viewers of RT’s The Keiser Report heard me... http://www.youtube.com/watch?v=s-XVSnzEqPs ...warn this summer about upcoming litigation... http://maxkeiser.com/2011/08/09/kr171-keiser-report-false-flag-finance/ ...that would detail the alleged pre-planned scheme designed by Bear’s mortgage team to cheat their own clients in the name of sales and fee revenue – now those details have been made public in an amended complaint filed late Friday by monoline insurer Assured Guaranty against Bear Stearns, EMC, and it’s current owner J.P. Morgan.

“Bear don’t Care” was the mantra spread through out the halls of outside underwriter firms Bear hired to review the mortgage loans for its RMBS, says the Assured lawsuit. It spells out a callous disregard to create products that could perform and then shows how Bear allegedly executed a widespread fraud to cover it up when their investors started to question the legitimacy of the product they were sold...

Continue Reading this article HERE:

http://www.teribuhl.com/2011/11/21/lawsuit-shows-more-fraud-and-coverup-from-bears-mortgage-team/

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Germans going after JP Morgan

JPMorgan Sued by BayernLB Over Mortgage-Backed Securities

http://www.businessweek.com/news/2011-11-22/jpmorgan-sued-by-bayernlb-over-mortgage-backed-securities.html

Nov. 22 (Bloomberg) -- JPMorgan Chase & Co., the biggest U.S. bank by assets, was sued for fraud by German lender Bayerische Landesbank over losses on about $2.1 billion in mortgage-backed securities.

JPMorgan units concealed the truth about the poor quality of the loans underlying the securities and knew that credit ratings misrepresented their risk, BayernLB said in a lawsuit filed yesterday in New York State Supreme Court.

“This misconduct has resulted in astounding rates of default on the loans,” BayernLB said. Most of the securities have been downgraded to junk, it said.

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The United Banana Republic of America

http://truthingold.blogspot.com/2011/11/united-banana-republic-of-america.html

-November 22, 2011-

The outright corruption and thievery at the highest levels of business and Government have gotten to the point at which its hard to not think of our country as little more than a glorified banana republic. I remember that I had a friend in business school who's father was an ambassador to a Central American country. My buddy told me that Central American high level bureaucrats at official cocktail parties achieved honor, social status and bragging rights based on the relative amount of U.S. aid that each guy diverted into their own pocket. I get the feeling that the same thing happens now among the banking and business elite, as they achieve social status based on the amount of taxpayer and investor money that they walk away with.

Obviously this is predicated on their ability to plant key people into key spots in the Presidential administration. With the Bush administration it was defense companies, who had their de facto President sitting in the office of the Vice President (that would be Cheney).

In the current administration, it's Obama's chief of staff, a former JP Morgan director, the Treasury Secretary - who is in effect a big bank puppet - and the Chairman of the CFTC - a former Goldman Sachs partner and butt-buddy of Jon Corzine.

Continue Reading Here:

http://truthingold.blogspot.com/2011/11/united-banana-republic-of-america.html

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Futures Plunge As Fed Discloses New Stress Test: Fears US Banks Will Need To Raise Tens Of Billions In New Capital

http://www.zerohedge.com/news/futures-plunge-fed-discloses-new-stress-test-fears-us-banks-will-need-raise-tens-billions-new-c

Those banks are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.

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