CNBC editor predicts Congress will retroactively legalize the foreclosure fraud

Posted by on April 20, 2011

Congress will pass a bill to "forgive" banks' potentially criminal errors made in foreclosure proceedings, a senior CNBC editor predicts.

Mr. Carney says:

Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act....

The [foreclosure] crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.

Carney predicts that the lame-duck session of Congress following this November's elections will pass the law. "Every member of Congress ... who has been voted out of office will cast a vote for the bill. And the President will sign it."

The mortgage departments of financial institutions were hiring "hair stylists, Walmart floor workers and people who had worked on assembly lines". Did these institutions care about their qualifications? No. Did these institutions pay the "going-rate" for these positions? I highly doubt it. Ultimately these institutions must be forced to be responsible for their employees' actions and ultimately their actions. They knowingly hired these unqualified workers to push the paperwork through regardless of proper procedure.

The AP has reported the banks will need forgiveness or suffer major loses. Thus thwarting the efforts by the bailout. When do corporations bear the burden of responsibility? Is this a government of, by and for corporates or the people? If it looks like a duck, smells like a duck and quacks like a duck then ...

I can only pray Mr. Carney's predictions do not come to fruition. If they do, we will have yet another feather in our cap as proof for whom the "elected" officials of our government truly "work" for. And I don't know about you, but my hat is becoming full and it's starting to look like an Indian headdress.

Reference:

http://www.rawstory.com/rs/2010/10/cnbc-legalize-foreclosure-fraud/


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