bobbobwhite

Wall Street Breakfast: Must-Know News

A congresswoman from Ohio is urging foreclosed homeowners to not move and give up their homes to bank foreclosure. She urges them to stay put and get legal counsel to make the banks prove they possess the loan note allowing them to foreclose on an unpaid obligation.

So many home loans have been sold and resold so many times over that the bank presently "owning" them has nothing more than a piece of paper saying they own the note, but does not have not the note itself in its possession. The congresswoman is telling homeowners to make the banks prove the note to the court before any foreclosure can proceed.

At least this buys the homeowner some more time before moving as I think most if not all will lose their cases. What it really does is provide a lot more business for Ohio lawyers, of which she is one, of course. There is always at least two sides to every story, with at least one side pretty well cloaked, especially when from a lawyer

Wall Street Breakfast: Must-Know News

I guess I stupidly thought that the Enron debacle ended all those devious accounting "off record" or off book" accounting devices intended to hide or delete damaging or toxic, let us say, "entries". As you state, why have the accounting firms for all our failed banks escaped dire gov't scrutiny and repercussions so far? And, will that deserved scrutiny ever happen, or do these firms have some form of gov't allowed immunity, either tacit or actual?


On Jan 29 08:25 AM Thoreau wrote:

> The Fed is insolvent on a static basis and the whole financial system
> is bankrupt. Why don’t the accounting firms who audit the bankrupt
> financial institutions listen to Roubini? Roubini has been right
> about this whole mess going back to 2005 and made public his analysis,
> this is not a case of not being able to know the unknown. How can
> accounting firms like KPMG continue to issue fraudulent financials
> for Banks like Citi, the math is there for all to see.
> …………………………………………………………...
> Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new
> estimates for expected loan losses and writedowns on U.S. originated
> securitizations:
> • Loan losses on a total of $12.37 trillion unsecuritized loans are
> expected to reach $1.6 trillion. Of these, U.S. banks and brokers
> are expected to incur $1.1 trillion.
> • Mark-to-market writedowns based on derivatives prices and cash
> bond indices on a further $10.84 trillion in securities reached about
> $2 trillion ($1.92 trillion.) About 40% of these securities (and
> losses) are held abroad according to flow-of-funds data. U.S. banks
> and broker dealers are assumed to incur a share of 30-35%, or $600-700
> billion in securities writedowns.
> • Total loan losses and securities writedowns on U.S. originated
> assets are expected to reach about $3.6 trillion. The U.S. banking
> sector is exposed to half of this figure, or $1.8 trillion (i.e.
> $1.1 trillion loan losses + $700bn writedowns.)
> • FDIC-insured banks’ capitalization is $1.3 trillion as of Q3 2008;
> investment banks had $110bn in equity capital as of Q3 2008. Past
> recapitalization via TARP 1 funds of $230bn and private capital of
> $200bn still leaves the U.S. banking system borderline insolvent
> if our loss estimates materialize.
> …………………………………………………………...
>
> If Professor Roubini is correct and I fear he is, why don’t any of
> the accounting firms listen to him? What about starting with the
> accounting firms and perhaps, one of the worst offenders KPMG. <br/>
>
> KPMG audits Citi, how can anyone trust their financial statements?
> Why does anyone even care what KPMG has to say? Why does anyone want
> to work at KPMG? KPMG audits a disproportionate percentage of financials
> yet totally missed the banking collapse. Exactly what is KPMG expert
> at and why would anyone listen to them after all their failed audits
> of failed institutions? Many as early as 2005 predicted the financial
> meltdown and the unsustainable lending pattern of the financials
> including Dr. Roubini of the Stern School of economics, why didn’t
> KPMG listen. If I were a partner or employee at KPMG I would be extremely
> concerned about all the pending lawsuits and potential criminal liability
> of KPMG. You know for a fact that Tim Flynn the CEO and Joe Loonan
> the head lawyer will not stand behind the partners as evidenced by
> the tax partners KPMG threw under the bus when the DOJ came a calling.
> In fact, Flynn, completely reneged on the former O’Kelley’s promise
> to support the tax partners (after he got brain cancer) and lied
> to the tax partners by pulling the carpet out from under the them
> by hiring Bennett and Holmes to not only lie about the tax partners
> to the DOJ but deny them legal fees for defense at the DOJ’s request.
> Loonan, Holmes and Flynn, totally screwed the tax partners and an
> email exists wherein Loonan specifically states that in the KPMG
> tax settlement with the DOJ he has no idea if any of the facts are
> correct but KPMG better sign or the DOJ will put them out of business
> and ends the email by saying: “freedom is just another word for nothing
> left to lose”. The point of course is those that run KPMG have no
> honor, are lying scum and if you are employed by KPMG and something
> bad happens, KPMG will do everything it can to ensure it survives
> at your expense. Of course something bad has happened, the banking
> collapse was a no brainer, predicted by many and most of the KPMG
> audits of the financials are riddled with fraud. The lawsuits and
> criminal investigations are coming, no doubt. All KPMG partners and
> employees should be very concerned as KPMG has no problem throwing
> them under the bus for a life of ass raping if it will save KPMG
> a nickel. Why any clients would accept advice or rely on KPMG for
> anything shows a total lack of due diligence and perhaps, negligence
> by those clients choosing to use KPMG. Of course, the last sentence
> does not apply to those clients that are actually consensually engaging
> in fraud with KPMG. The firm of KPMG has no honor or expertise in
> any matter just self interested thieves like Flynn, Holmes and Loonan
> attempting to make as much money as possible for themselves before
> the firm implodes. Many emails exist concerning KPMG’s malevolence
> and will be disseminated over time. Thoreau has a great quote, “no
> one can associate themselves with the U.S. Government without disgrace”,
> the same applies to KPMG, no one can associate themselves with KPMG
> without disgrace.
>
>
>