Former Bear Stearns mortgage executives who now run the mortgage divisions of Goldman Sachs, Bank of America and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities that they created and sold while working at Bear Stearns.
According to emails and internal audits, JP Morgan knew about this fraud since early spring in 2008, but deliberately hid it from the public eye through legal maneuvering.
Last week a lawsuit filled in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JP Morgan was unsealed and is now in the public domain.
The lawsuit that contains supporting emails sent by Bear Stearns mortgage securities dealers, going back as far as 2005, clearly highlight that Bear Stearns traders were constantly telling their superiors that Bear Stearns was selling investors like Ambac worthless paper.
It seems that the Bear Stearns superiors knew that all of the mortgages in these mortgage back securities were fraudulent, bogus and likely to default, so they know that they were not worth the paper they were being written on.
After funnelling these misrepresented loans of to Ambac’s insurance they then, according to the lawsuit, implemented a trading strategy to profit from Ambac’s potential demise by shorting banks with large exposure to Ambac-insured securities.
Again all these trading shorting strategies are mentioned in the email correspondence sent and received by the Bear Stearns superiors, effectively pointing out that Bear Stearns implemented these strategies immediately after they had sold the fraudulent mortgage securities to investors and big banks.
This is all the more reason to Purchase Assets like Physical Silver and to tell the bankers to keep their worthless paper contracts that they are going to default on anyway.
"This is like having an employee take out company backed life insurance, where the company is the beneficiary, and then killing the employees."
– Max Keiser
In essence this entire fiasco is similar to the Goldman Sachs and AIG deal where Senator Carl Levin was questioning Goldman Sachs, including Lloyd Blankfein asking them about emails between the mortgage trades and the superiors at Goldman Sachs that had constantly mentioned the worthless deals they were knowingly selling to their clients.
As the story goes, even though the superior at Goldman Sachs knew about these deals the team a Goldman Sachs were never prosecuted and noting ever came of these scandalous, financial terrorism, fraudulent misrepresentations to their clients and investors.
At this time a public hearing is scheduled to be held in the New York State assembly regarding whether legal action should be brought against bank for misleading insurers about these mortgage related securities.
Really, are you kidding?
We all know that if we perpetuated such a security related fraud we would be in jail, so to even suggest that we need a public hearing to decide whether these criminal bankers should be held responsible and jailed is a joke.
Help to crash the criminal banking cartels and Buy Physical Silver!