Thursday, March 14, 2013
Shame ,Shame,Shame,On You, JP Morgan Chase
February 08, 2013 by Simon Campbell on JP Morgan Chase Foreclosures
Protesters Outside the Chase Bank Tower
Have you ever sent an email that in hindsight you regret sending? We are not talking about the kind of emails that are often written out of frustration where we say things we do not mean. In this situation, we are talking about work emails in which you say things that honestly probably should not be documented.
Well, this is exactly how JP Morgan Chase is probably feeling about now.
Emails Reveals JP Morgan Chase's Fraudulent Behaviors
When someone engages in fraudulent behaviors, they are intentionally deceiving another in an attempt to profit off the deception in some way.
What, exactly, did JP Morgan Chase do and is it fraud?
JP Morgan Chase supposedly had a pool of mortgage loans – somewhere between 20% and 80% – that did not meet underwriting requirements. Simply put, these mortgages were incomplete. To cover up the situation, JP Morgan Chase sold these defective loans to investors, leaving the unknowing investors to deal with the repercussions.
Unfortunately, it does not stop there. Then, JP Morgan Chase took the remainder of the bad loans and bundled them up into mortgage-backed securities and sold them off to investors. When these loans depreciated in value, the investors lost the money and JP Morgan Chase was able to escape with minimal damages.
Recent emails reveal that JP Morgan Chase knew about the quality of these loans and deceived investors for personal gain (not having to suffer loss due to these bad mortgages). If JP Morgan Chase knew about these bad loans and deceived investors – as the emails claim – then they definitely engaged in fraudulent behaviors.
Understandably so, these investors are livid and are actively seeking retribution. FSA Asset Management LLC is among the list of investors who purchased these mortgage-backed securities and suffered significant loss as a result. The parent company, Dexia, filed a lawsuit against JP Morgan Chase and recently presented these emails as evidence in a Manhattan courtroom.
This news comes at the same time that Bank of America is being accused of continuing unethical practices, even after the acquisition of Countrywide Financial.
Lender Actions Led to the Real Estate Market Crash
All of this information shines light on the fact that these major lenders were not only responsible for faulty mortgages, but also failed to be transparent about these issues and instead sought to cover up their actions and allow investors to lose money – all in an effort to buffer themselves (the lenders) from the fallout.
In conclusion, JP Morgan Chase and Bank of America have both recently been accused of intentional and unethical practices revolving around the mortgage crisis. As the evidence of the unethical actions of major lenders like JP Morgan Chase continues to roll in, we could very well see the same information being brought up against other key lenders like Wells Fargo and Citigroup.
DB Structured Products Inc. and ACE Securities Corp. The bond insurer, backed by billionaire Wilbur Ross, is also seeking reimbursement for the claims paid and for future losses. This is major. THIS IS A JOKE .. DBSP KNOWS HOW TO DO NOTHING BUT LIE AND PAYS THEIR EMPLOYEES TO LIE .
When asked by the press, a spokesman for Deutsche Bank in New York declined to comment.
“The entire pools of loans that Deutsche Bank securitized and to a large degree originated in the transactions are plagued by rampant fraud and misrepresentations and an abdication of sound origination and underwriting practices,” Assured stated in its New York court filing. They declared, “more than 83 percent of 1,306 defaulted loans examined in one of the transactions…breached Deutsche Bank’s representations and warranties.” In other plain language, they claim Deutsche Bank lied. In the second deal, Home Equity Loan Trust, 86 percent of the 1,774 loans breached the agreements, Assured said.
For the lawsuit, see Assured Guaranty Corp. v. DB Structured Products Inc., et ano. (Index #651824/2010, NY Supreme Court - New York County (Manhattan); go here for related court docket).
I WILL ADD MORE TO THIS FOR THOSE LOOKING FOR MISSING NOTES THAT WERE HIDDEN BY DEUTSCHE BANK