http://www.bloomberg.com/apps/news?p...aEE&refer=home
Fed Aided Bear Stearns as Firm Faced Chapter 11, Bernanke Says
April 2 (Bloomberg) -- The Federal Reserve was forced to rescue Bear Stearns Cos. last month because the securities firm faced bankruptcy and its failure could have led to a ``chaotic unwinding'' of investments throughout the U.S. economy, Fed Chairman Ben S. Bernanke said.
chapter 11 = us version of insolvency/ uk = bankruptcy
national rock = nationalised= saved from bankruptcy by govt, over 30bn, they had to save it, in order to stop collapse of stock market/banking confidence/bank runs.
credit crunch = lack of credit, credit is capital/money, lack of money is insolvency, hence bankruptcy.
there is a low level of capital/credit, banks have blown the vast majority on speculation, on cdo's (collatrised debt obligations), these cdos are packages of mortgages bundled together to make a security/investment, the banks ploughed billions into buying these, like they do shares, bonds etc.
mortgage/property collapse in usa, means mortgages default-foreclosure/bankruptcy-reposessed, thus their investments/cdos are worthless, hence the deustche bank case.
deustch bank tried to claim houses, as the mortages defaulted, but because they sold the mortgages as cdo's, they couldn't find who actually owned the cdos/mortgage, thus they did not own the title to the asset/house, its one huge mess.
this is no accident, its all by design.
http://www.telegraph.co.uk/money/mai...deutsch116.xml
Deutsche Bank in ownership court row
By James Quinn, Wall Street Correspondent
Last Updated: 12:02am GMT 18/11/2007
An American judge has prevented Deutsche Bank from repossessing 14 homes because the bank could not prove it owned the defaulting mortgages involved. The ruling by Ohio district court judge Christopher Boyko could have serious repercussions for banks and mortgage lenders, for whom the pooling of mortgage securities is a $6,500bn (£3,200bn) industry.
Pooling involves taking hundreds if not thousands of mortgages, putting them in one unit, and then selling parts of that unit to others. As a result, it can often be unclear which bank actually owns the individual mortgages.
Judge Boyko had ordered lawyers acting for Deutsche Bank National Trust Company to prove the lender was the ultimate owner of the mortgages. When it could not do so, he dismissed the cases
He said: "The institutions seem to adopt the attitude that since they have been doing this for so long, unchallenged, this practice equates with legal compliance.
"Finally put to the test, their weak legal arguments compel the court to stop them at the gate."
Deutsche can still refile the foreclosure cases in a higher court, but the precedent set in this case is now being seized on by those about to lose their homes.
The current morgage mess
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The current morgage mess
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Draw from your past....... but don't let your past draw from you
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http://iamfacingforeclosure.com/blog...y-own-nothing/
Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court - “They Own Nothing!�
November 12th, 2007 · 10 Comments
by Moe Bedard and Aaron Krowne
Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.
Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the date the Complaint was filed, or the court would enter a dismissal.
The Court’s amended General Order No. 2006-16 requires Plaintiff (Deutsche Bank) to submit an affidavit along with the complaint, which identifies Plaintiff as the original mortgage holder, or as an assignee, trustee or successor-interest.
Apparently Deutsche bank submitted several affidavits that claim that Deutsche was in fact the owner of the mortgage note, but none of these affidavits mention assignment or trust or successor interest.
Thus, the Judge ruled that in every instance, these submissions create a “conflict� and they “do not satisfy� the burden of demonstrating at the time of filing the complaint, that Deutsche Bank was in fact the “legal� note holder.
While the decision is great for homeowners in distress (due to providing a new escape hatch out of foreclosure), it is a big blow to the cause of sorting out the high-finance side of the mortgage mess.
Jacksonville Area Legal Aid Attorney, April Charney, broke this news to us via email and made these comments in regards to the Ohio Federal Court ruling (emphasis ours):
This court order is what I have been saying in my cases. This is rampant fraud on every court in America or nonjudicial foreclosure fraud where the securitized trusts are filing foreclosures when they never own/hold the mortgage loan at the commencement of the foreclosure.
That means that the loans are clearly in default at the time of any eventual transfer of the ownership of the mortgage loans to the trusts. This means that the loans are being held by the originating lenders after the alleged “sale� to the trust despite what it says per the pooling and servicing agreements and despite what the securities laws require.
This also means that many securitized trusts don’t really, legally own these bad loans.
In my cases, many of the trusts try to argue equitable assignment that predates the filing of the foreclosure, but a securitized trust cannot take an equitable assignment of a mortgage loan. It also means that the securitized trusts own nothing.
So with this decision, it appears confirmed that investors in the mortgage debacle may in fact own nothing—not even the bad loans they funded!
It seems their right to the cash flow from the underlying properties does not extend to ownership of the properties themselves; thus clouding the recovery picture considerably.
Charney further remarked to us:
This opinion, once circulated and adopted by state and Federal courts across the country, will stop the progress of foreclosures, at first in judicial foreclosure states, across America, dead in their tracks.
We agree with additional remarks Charney made pointing out that this decision has major adverse implications for the prospects of an amicable financial workout for the various investor contingents in mortgage-backed securities (MBSes). Doubt is cast on where the full write-downs will eventually land, and this uncertainty can only be expected to further harm the market value of MBS and MBS-based synthetic securities, already in shambles purely due to rising underlying delinquencies.
Investors in these securities might have assumed—wrongly, it turns out—that they actually owned some “real estate� in these deals.
To paraphrase Jim Cramer, “They own nothing!�
thanks to synergy777
Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court - “They Own Nothing!�
November 12th, 2007 · 10 Comments
by Moe Bedard and Aaron Krowne
Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed.
Judge Boyko issued an order requiring the Plaintiffs in a number of pending foreclosure cases to file a copy of the executed Assignment demonstrating Plaintiff (Deutsche Bank) was the holder and owner of the Note and Mortgage as of the date the Complaint was filed, or the court would enter a dismissal.
The Court’s amended General Order No. 2006-16 requires Plaintiff (Deutsche Bank) to submit an affidavit along with the complaint, which identifies Plaintiff as the original mortgage holder, or as an assignee, trustee or successor-interest.
Apparently Deutsche bank submitted several affidavits that claim that Deutsche was in fact the owner of the mortgage note, but none of these affidavits mention assignment or trust or successor interest.
Thus, the Judge ruled that in every instance, these submissions create a “conflict� and they “do not satisfy� the burden of demonstrating at the time of filing the complaint, that Deutsche Bank was in fact the “legal� note holder.
While the decision is great for homeowners in distress (due to providing a new escape hatch out of foreclosure), it is a big blow to the cause of sorting out the high-finance side of the mortgage mess.
Jacksonville Area Legal Aid Attorney, April Charney, broke this news to us via email and made these comments in regards to the Ohio Federal Court ruling (emphasis ours):
This court order is what I have been saying in my cases. This is rampant fraud on every court in America or nonjudicial foreclosure fraud where the securitized trusts are filing foreclosures when they never own/hold the mortgage loan at the commencement of the foreclosure.
That means that the loans are clearly in default at the time of any eventual transfer of the ownership of the mortgage loans to the trusts. This means that the loans are being held by the originating lenders after the alleged “sale� to the trust despite what it says per the pooling and servicing agreements and despite what the securities laws require.
This also means that many securitized trusts don’t really, legally own these bad loans.
In my cases, many of the trusts try to argue equitable assignment that predates the filing of the foreclosure, but a securitized trust cannot take an equitable assignment of a mortgage loan. It also means that the securitized trusts own nothing.
So with this decision, it appears confirmed that investors in the mortgage debacle may in fact own nothing—not even the bad loans they funded!
It seems their right to the cash flow from the underlying properties does not extend to ownership of the properties themselves; thus clouding the recovery picture considerably.
Charney further remarked to us:
This opinion, once circulated and adopted by state and Federal courts across the country, will stop the progress of foreclosures, at first in judicial foreclosure states, across America, dead in their tracks.
We agree with additional remarks Charney made pointing out that this decision has major adverse implications for the prospects of an amicable financial workout for the various investor contingents in mortgage-backed securities (MBSes). Doubt is cast on where the full write-downs will eventually land, and this uncertainty can only be expected to further harm the market value of MBS and MBS-based synthetic securities, already in shambles purely due to rising underlying delinquencies.
Investors in these securities might have assumed—wrongly, it turns out—that they actually owned some “real estate� in these deals.
To paraphrase Jim Cramer, “They own nothing!�
thanks to synergy777
To resist the influence of others, knowledge of one's self is most important.
Draw from your past....... but don't let your past draw from you
Yama, The world is changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was..... is lost. For none now live who remember it.
For all your Computer needs www.btlogic.co.uk
Draw from your past....... but don't let your past draw from you
Yama, The world is changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was..... is lost. For none now live who remember it.
For all your Computer needs www.btlogic.co.uk