Full scoop here from Pam Martens via Counterpunch.org. Cue Britney Spears’ song “Toxic“. Perhaps I’ll have to make my own version of the video where she’s passing out junior tranches of CDO’s to pudgy businessmen as they pass out in their seats. So, when do we finally admit it’s a hideous sham, and not worth a dime? Two words: Debt jubilee.
“The financial tsunami unleashed by Wall Street’s esurient alchemy of spinning toxic home mortgages into triple-A bonds, a process known as securitization, has set off its second round of financial tremors.
After leaving mortgage investors, bank shareholders, and pension fiduciaries awash in losses and a large chunk of Wall Street feeding at the public trough, the full threat of this vast securitization machine and its unseen masters who push the levers behind a tightly drawn curtain is playing out in courtrooms across America. (more…)
Securitization is 100% illegal under US legislation
Thursday, March 11th, 2010Full story here from Christopher Story. This is but a snippet from my favorite London connection.
“…SECURITISATION ENTAILS GROSS VIOLATIONS OF R.I.C.O. STATUTES
In ‘true-sale’, ‘disguised loan’ and ‘assignment’ securitisations, there are fraudulent transactions which serve as ‘predicate acts’ under US Federal R.I.C.O. statutes.
The specific R.I.C.O. sections are: Section 1341 (mail fraud); Section 1343 (wire fraud); Section 1344 (financial institution fraud); Section 1957 (engaging in monetary transactions improperly derived from specified unlawful activity) [‘the money you make from the illegal exploitation of my money, is my money’]; and Section 1952 (racketeering).
Furthermore, securitisation constitutes violations of American antitrust statutes through market integration, syndicate collusion, price formation, vertical foreclosure, tying, price-fixing, predatory pricing, and the rigging of allocations.
(more…)
Tags: CDO, derivatives, Market Commentary, mortgage disaster, scam, securitization, Suspicious Circumstances
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