How did the banks get away with it? Bribery takes many forms. It doesn't need to be a direct payment, but merely something of value to the regulator or law enforcement officer. In this case it is the hiring of children of banking regulators in China. There is no reason why we should think that couldn't happen here. It did. The revolving door of regulators, law enforcement and the banks has long been known.
Even if it isn't a bribe, the bank is hiring people and then designating them for important positions in government regulation. Jamie Dimon sits on the Board at the New York Federal Reserve. Being immersed in the bank culture, the people involved come to believe the myths repeated every day. It becomes part of their culture.
The reason why the decisions on banking have been so chaotic is that there is a direct conflict between the real world and the illusions created by the banks. Put another way, the difference is between truth and fiction.
The fact remains that practically no mortgage can be satisfied or released because the ownership is completely deranged. The correction can only come from the courts when they realize and learn that the origination of the loan was a sham transaction, not just a table funded loan, and that the intent was fraud on the investors and homeowners (who were also "investors"). The scheme unraveled precisely in concert with investors ceasing to buy the "mortgage bonds" issued by entities in "street name." That is the red flag that alerts authorities that the securitization chain was in fact a fraudulent PONZI scheme. The issuers were designated asset pools that had nothing in them, and in most cases were not funded, directly or indirectly. So the mortgage bonds were worthless.
And now that the facts are being slowly revealed, the depth of malfeasance by the banks is being recognized for what it is --- but the government is sticking with its policy of "no prosecution." Until the government steps up to the mike and says outright that the scheme was a fraudulent scheme in which the borrowers were used as pawn to steal money from investors, most people are not going to believe it. Until respectable economists and legal scholars step up and say that the loan transaction described in the note never existed and was a strawman transaction that should have been revealed to the borrower, this tragedy will stop.
Study the Assignment and Assumption Agreements executed before the first loan application was ever accepted for review. Track the money from strangers showing up at closing as though it was the money of the designated payee on the note and mortgage. The rest will be easy. But until regulators see the public as their boss instead of the banks, don't expect any help from outside the courtroom.
UNFORTUNATELY THE HELP FROM INSIDE THE COURTS ARE LIMITED AS WELL.