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Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze, Warns Of Systemic Bank Failure Risk

Posted By admin On October 8, 2010 @ 3:58 am In Money Watch | Comments Disabled

Tyler Durden
Zero Hedge
Oct 8, 2010

Alan Grayson is back on the scene, having sent a letter to Financial Stability Oversight Council which includes pretty much all of Wall Street’s pawns, including Bernanke, Geithner, Bair, Gensler, Walsh, and DeMarco, in which he asks the FSOC to “suspend foreclosures until this problem is understood and its ramifications dealt with.”

And the ramifications, per Grayson, Zero Hedge and everyone else, will be dire for the banking sector: “So far, banks are claiming that the many forged documents uncovered by courts and attorneys represent a simple ‘technical problem’ with foreclosure processes. 

This is not true.  What is happening is fraud to cover up fraud… The banks didn’t keep good records, and there is good reason to believe in many if not virtually all cases during this period, failed to transfer the notes, which is the borrower IOUs in accordance with the requirements of their own pooling and servicing agreements.

As a result, the notes may be put out of eligibility for the trust under New York law, which governs these securitizations. Potential cures for the note may, according to certain legal experts, be contrary to IRS rules governing REMICs.

As a result, loan servicers and trusts simply lack standing to foreclose. The remedy has been foreclosure fraud, including the widespread fabrication of documents.  There are now trillions of dollars of securitizations of these loans in the hands of investors.

The trusts holding these loans are in a legal gray area, as the mortgage titles were never officially transferred to the trusts… The liability here for the major banks is potentially enormous, and can lead to a systemic risk.”

So now that Obama has declined to halt the foreclosure halt process, TARP 2 anyone?

Full letter attached (pdf [1])

Having A Supply Of Healthy Foods That Last Just Makes Sense (AD) [2]

Grayson Sends Letter To Geithner, Bernanke Demanding Foreclosure Freeze, Warns Of Systemic Bank Failure Risk 140910banner5 [3]


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URLs in this post:

[1] pdf: http://www.zerohedge.com/sites/default/files/Letter%20to%20FSOC%20Calling%20for%20Foreclosure%20Halt.pdf

[2] Having A Supply Of Healthy Foods That Last Just Makes Sense (AD): http://www.efoodsdirect.com//index.html?aid=14&adid=43

[3] Image: http://www.homegain.com/homevalues

[4] Grayson Sends Letter Demanding Halt Of Illegal Foreclosures: http://www.prisonplanet.com/grayson-sends-letter-demanding-halt-of-illegal-foreclosures-calls-out-largest-seizure-of-private-property-ever-attempted-by-banks-and-government.html

[5] Congressman Grayson: “Breaking and Entering Does Not Become Legal Just Because a Big Bank Does It. The Rule of Law Must Apply Equally to Everyone”: http://www.prisonplanet.com/congressman-grayson-breaking-and-entering-does-not-become-legal-just-because-a-big-bank-does-it-the-rule-of-law-must-apply-equally-to-everyone.html

[6] Millions At Risk Of Foreclosure Fraud: http://www.prisonplanet.com/millions-at-risk-of-foreclosure-fraud.html

[7] Bank of America halts foreclosure sales in all states: http://www.prisonplanet.com/bank-of-america-halts-foreclosure-sales-in-all-states.html

[8] Congressmen Grayson and Paul Ask Senate Banking to Delay Confirmation of Bernanke Until Fed Releases Information on Secret Bailouts: http://www.prisonplanet.com/congressmen-grayson-and-paul-ask-senate-banking-to-delay-confirmation-of-bernanke-until-fed-releases-information-on-secret-bailouts.html

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