The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
In creating mortgage backed securities, the geniuses of the financial world didn't bother with pesky formalities like proper transfer of the note (the debt document). That wasn't a problem as long as people were paying their loans, but in the course of foreclosure proceedings it has become increasingly apparent that many of the foreclosing companies do not actually hold the note, and thus cannot foreclose - indeed, in many cases it seems to be impossible to legally establish who owns it; the fraud comes in because these companies started inventing paper to cover up the fact.
Now if the MBSs don't actually, legally hold the notes on which they are based, they are worth, in the worst case, about the price of a pair of stinky socks. (3 sentences!)
To my mind, the fraud business could well be simply the water-running-out phase of the tsunami cycle.
The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by DoDo - May 1 19 comments
by Frank Schnittger - Apr 30 3 comments
by gmoke - Apr 28 7 comments
by Bernard - Apr 24 27 comments
by Frank Schnittger - Apr 27 12 comments
by Frank Schnittger - Apr 27 25 comments
by Frank Schnittger - May 4
by DoDo - May 119 comments
by Frank Schnittger - Apr 303 comments
by gmoke - Apr 287 comments
by Frank Schnittger - Apr 2712 comments
by Frank Schnittger - Apr 2725 comments
by Bernard - Apr 2427 comments
by gmoke - Apr 11
by Bernard - Apr 65 comments