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Pimco, New York Fed, part of a consortium of eight Suing Bank of America
All that wrangling done by the Fed and Treasury in 2008, making One Bank take on another bank's liabilities and business, is now coming to roost. They tried covering up various illegal practices by having mergers of failing firms. Bank of America took on Country Wide Mortgage during that time, both being MERS Corp Banks. So Bank of America got double to triple their exposure to the mortgage Service Foreclosure Fraud of MERS by taking them on.
With all the Mortgage Foreclosure Fraud now coming out, with investors of mortgage securities now DEMANDING their investments BACK from the banks due to the fraud of the underwriting and the foreclosure Fraud! Remember the Fraud STARTS at the Underwriting and continues from there - that is why there are "paper irregularities"! The banks may keep foreclosing on people, but at some point it will have to STOP, when enough Judges Rule AGAINST their Right to Foreclose!
I find it very interesting the New York Fed is involved in suing Bank of America for their investments. When I became aware of the FRAUD about 2 years ago, and researched it, I figured the government and the Fed would not allow the full extent of fraud to come out, due to them having so much exposure of the fraud!
So, it seems to me with the New York Fed joining in on the suit, they may not be able to Stop it after all! Especially with the whistleblowers coming out, saying each mortgage security was sold about 20 times - not just once! The banks have Trillions from one property being sold multiple times, thus they Need to Foreclose for the Write Offs and then they don't have to Pay the investors on their investment - because they would have to Pay 20 funds off!
Foreclosure is the ONLY Way they can Cover their Tracks! They Can Write Off the property - tell the investors "sorry" then resell it and it is ALL Profit! That is WHY they are Foreclosing on Everyone they can through the MERS and they WILL NOT modify!
They may be able to convince judges to rule in their favor, But when it comes to the underwriting FRAUD there is no changing what they did. The New York Fed and Pimco, MUST KNOW that and that is why they want OUT NOW! A class action happening in Florida includes the shareholders of MERS Corp Banks - that means everyone who has a share in any of the big banks are also being sued!
Portion of Article Linked:
The New York Federal Reserve Bank is part of a consortium of eight large institutional investment firms that is demanding that Bank of America repurchase loans included in mortgage securities.
Bloomberg reported earlier Tuesday that the New York Fed had joined with the Pacific Investment Management Company, better known as Pimco, and investment management firm BlackRock in an attempt to force BofA to buy back $47 billion in mortgage bonds
Oct. 20, 2010