A Serious Problem: Banks’ Florida foreclosure tremors may be felt as far away as China, travels through the Fed Balance Sheet

The Fed (holders of near $2T of RMBS and CMBS) MUST BE saying you know what if the post at naked capitalism today is anywhere near true. LINK http://www.nakedcapitalism.com/2010/10/4closurefraud-posts-docx-mortgage-document-fabrication-price-sheet.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

Update October 11, Housing Wire Paul Jackson writes about the decades long rot on the vine in attorneys' race to earn work and remain a preferred vendor to Banks http://www.housingwire.com/2010/10/11/foreclosure-mess-exposes-the-rot-from-within

Update October 5, House Speaker Pelosi and members of the California Democratic Congressional delegation have formally requested the DOJ, the Federal Reserve and the OCC to look into among other things FORECLOSURE IRREGULARITIES http://media.washingtonpost.com/wp-srv/business/documents/california-letter.pdf?hpid=topnews

When China figures OUT that the FED does not have clear title to collateral of underlying mortgages in the trusts which are supposed to own and hold these instruments; the effect may be it seems DIS-electric; in other words UN - plugged.

Shortfalls in establishing chain of title dating to origination have surfaced, it appears for ALL major parties. Oh, it's just the mere trifling question of the TRUST which owns the notes to underlying collateral (title to real property) MAY BE DEFECTIVE, and that makes the Fed's holdings, not more valuable but the opposite, worth less than promised, less than expected, and so what effect will we see in the MBS and related derivatives markets manana?

BECAUSE AS THIS WRITER POINTED OUT IN FALL 2008, WHAT DUE DILIGENCE WAS PERFORMED BY THE FED B-E-F-O-R-E PAYING 100 CENTS OF US TAXPAYER C-A-S-H TO CERTAIN BANKS IN EXCHANGE FOR so - called A-A-A PAPER?

2nd Request; my apologies but remind me again why the Fed had to purchase the AAA rated paper from certain banks in the first place.

At 100 cents on the dollar?

Oh, silly me - the Fed NEVER explained WHY it had to take certain paper off the hands of certain banks.

Guessing that BB, being a few years south of retirement age, may have his eye NOT on the Fed's balance sheet but a juicy vice-chairmanship, head of strategy or the like at one of the supervisees. Bet he'll prefer payment NOT in China's Yuan whose near Trillion US dollars foreign currency reserves may wind up slightly less precious - so BB may prefer payment in wheat; at least you can eat it.

Link here October 9, 2008 Is a prudent fiduciary result at all possible? http://fiduciaryforensics.blogspot.com/2008/10/is-prudent-fiduciary-result-at-all.html

Link here September 28 , 2008 Where do I sign? Now that I'm a fiduciary to the US taxpayer.
http://fiduciaryforensics.blogspot.com/2008/09/where-do-i-sign-now-that-im-fiduciary.html

Link here to the very first blog post September 21, 2008 US Treasury Bailout for MBS? NO! http://fiduciaryforensics.blogspot.com/2008/09/us-treasury-bailout-for-mbs-no.html

What the Fed gonna do now? BB and TG better start learning how to say "Uh, aw shucks, good golly, geepers me - well we may have made a mistake, but don't worry it's only money" in MANDARIN presto.

Come on - give me a break. Ending the siesta on the Taxpayers' dime - one easy to read blog at a time.

NOT MY FIRST RODEO.
Since 2004, my office has issued annual, 1 page FiduciaryALERTS™. It’s not about me being right or lucky because I’m half Irish it's about this - recognizing the obvious. For instance, July 2008's “Denial of Twin-flation™ is not a prudent investment strategy” Copies available.

Chris aka McFid, since 2003 BFD expert.
Call McFid, the Fiduciary Expert. (BFD means breach of fiduciary duty.)
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