Bankster Clusterf**k

[marmar]

Oct. 14 (Bloomberg) -- Bank of America Corp., Citigroup Inc. and H&R Block Inc. plunged, leading a drop in financial stocks, on escalating concerns that faulty handling of home loans and foreclosures will fuel costs.

H&R Block dropped $1.23, or 9 percent, to $12.46 at 2:22 p.m. in New York, the third-biggest decline among stocks in the S&P 500 Index. Bank of America slid 5.8 percent, Wells Fargo & Co. dropped 4.8 percent, and Citigroup dropped 5.5 percent. Charlotte, North Carolina-based Bank of America and New York- based JPMorgan Chase & Co., which fell 4.1 percent, were today’s worst performers in the 30-member Dow Jones Industrial Average.

“You have a new cloud forming on the horizon which could be anything from something minor to something that really slows down the process” of foreclosures, said Benjamin Wallace, an analyst at Grimes & Co. in Westborough, Massachusetts, which manages about $900 million and owns stock in JPMorgan and Wells Fargo. “There was some certainty coming back but this mortgage stuff has just reversed that.”

The declines reflect uncertainty about costs that banks might bear on so-called mortgage put-backs from investors or insurers who challenge the loans as well as uncertainty about the potential costs of legal challenges to foreclosures, analysts said. Bank of America Chief Executive Officer Brian T. Moynihan, speaking at a conference in Boston, said the market’s volatility is unprecedented. .............(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=a1pgKicnKB9k&pos=4

[alstephenson]

1. "but this mortgage stuff" reversed the certainty...

You mean that fraud and corruption stuff???

[gratuitous]

2. How do you sell a property that doesn't have a clear title?

It is really in the banksters' interest to untangle this mess, which may mean having to undo a whole lot of transactions in which mortgages were bundled and sold, flying around the investment sector like so many monkeys in the Wizard of Oz. At the very least, it means that all the paperwork that was neglected while everyone was grabbing commissions and transaction fees with both greedy hands for years needs to get caught up.

These fuckers got paid up front, several times over in some cases, and now that the music has stopped and all the chairs are occupied, they're looking for one more little indulgence. Well fuck that. Time to spend some of that lovely, lovely money on making sure that all these trades and deals were on the up and up. "He who sells what isn't his'n, buys it back or goes to prison." That was true in the Gilded Age of the Robber Barons, and it's still true today.

[dixiegrrrrl]

4. "How do you sell a property that doesn't have a clear title?"

Same way you sell mortgage bonds into a bond trust without the legally mandated mortgage notes.

You lie, and you forge paperwork that says you have the title.

Better question is:

How fast can a bank cover its ass when the greatest Ponzi of them all ( so far) starts unraveling in front of
ALL its victims?

[arbusto_baboso]

3. We're supposed to trust the corps with the nation's well-being, and can't even figure out THEIR OWN!

So much for the libertarian ideal, eh?

[girl gone mad]

5. It's looking likely that at least two of these banks will need to be put into receivership..

which we could have done 2 years ago and saved tens or hundreds of billions of dollars.

[glitch]

8. But then certain banksters wouldn't have gotten their massive, historical bonuses.

A little something to tide them over in rough times... courtesy of We the People because they're such patriots and we thank them for their service.

:sarcasm:

[DCKit]

6. Wow! Who could've seen THAT coming? n/t

[onethatcares]

7. and the problem is the "slowing down the process of foreclosures"

not finding out who,what, why and where the banks decided they didn't have to follow legal structure and what should their penalty be. No, it's about trying to get around the fiasco and screwing a bunch more folks.

themarketsvolatilityisunprecedented. no shit sherlock.

[WillyT]

9. Big K & R !!!

:kick: