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From:
Jim

Monday, November 18, 2019 5:23 AM
To: Undisclosed Recipients
Size: 626.5 KB

GettyImages-883267414-640x480
(Getty Images – 883267414-640×480)

Trump’s “Art of the Deal” – Bluffs to Succeed in International Poker
(Apparently, most people didn’t read the article below in the previous email, and didn’t get the realities of what he’s done.)

Trump wants to stop getting the US into wars, and wants to pull out of Syria and Afghanistan, even NATO,
but the Deep State / Neocons won’t let him.

So Trump Bluffs high-intensity threats to get world opinion against the threats,
then the US can’t destroy the country like they did Libya, Iraq, Afghanistan, etc.

N.Korea: “Rocket Man” then threats to blow it off the map, World Opinion aghast and says no, then Trump makes friends with Kim Jong Un.
Venezuela: threats to invade, World Opinion aghast and says no, then US doesn’t invade because world opinion against it.
Syria: Trump says we are leaving, but Deep State/CIA/Rothschilds say NO, so he blatanly says “We’re going to keep the Oil” – international opinion will force us out!
Bolivia: CIA did a coup to steal the Lithium there, but Trump can’t control the CIA, so he just flows with it to not be assassinated.
Israel: Trump recognized Jerusalem as Capital, and recognized Syria’s Golan Heights as theirs, then Gaza => Arab Hate against Israel festers
As stated in the article below:
“The controversial President has a much clearer agenda than anyone can imagine
on both foreign policy and internal affairs,
but since he has to stay in power or even stay alive to achieve his objectives,
his strategy is so refined and subtle that next to no one can see it.
His overall objective is so ambitious that he has to follow random elliptic courses to get from point A to point B,
using patterns that throw people off on their comprehension of the man.”
[so the media labels him as crazy – like a fox!!!]

“Once you understand what Trump is about,
you’ll be able to appreciate the extraordinary presidency he’s conducting,
like no predecessor ever came close to match.”

“he’s the first and only American President to ever address humanity’s worst collective flaw, its total ignorance of reality. Because medias and education are both controlled by the handful of billionaires that are running the planet, we don’t know anything about our history that’s been twisted dry by the winners, and we don’t have a clue about our present world. As he stepped in the political arena, Donald popularized the expression «fake news» to convince the American citizens, and the world population as well, that medias always lie to you. The expression has now become commonplace, but do you realize how deeply shocking is the fact that nearly everything you think you know is totally fake?”

“Media lies don’t just cover history and politics, but they have shaped your false perception on topics like economy, food, climate, health, on everything. What if I told you that we know exactly who shot JFK from the grassy knoll, that the foreknowledge of Pearl Harbor was proven in court, that the CO2 greenhouse effect is scientifically absurd, that our money is created through loans by banks who don’t even have the funds, or that science proves with a 100% certainty that 911 was an inside job? Ever heard of a mainstream journalist, PBS documentary or university teacher telling you about any of this? 44 Presidents came and went without even raising one word about this huge problem, before the 45th came along. Trump knows that freeing the people out of this unfathomable ignorance is the first step to overall freedom, so he started calling mainstream journalists and their news outlets for what they are: pathological liars.”

“Let’s make one thing clear: to the establishment, Trump isn’t mentally challenged, but he’s definitely seen as a possible nemesis of their world. Ever since he moved in the White House, Trump has been depicted as a narcissist, a racist, a sexist and a climate-skeptic, loaded with shady past stories and mental issues. Even though an approximate 60% of the American people don’t trust medias anymore, many have bought the story that Trump might be slightly crazy or unfit to rule, and the statistic climbs even higher when you get out of the USA. Of course, Donald isn’t doing anything special to change the deeply negative perception that so many journalists and people alike have about him. He’s openly outrageous and provocative on Twitter, he sounds impulsive and dumb most of the time, acts irrationally, lies on a daily basis, and throws out sanctions and threats as if they were candy canes out of an elf’s side bag in a mall in December. Right away, we can destroy one persistent media myth: the image Trump is projecting is self-destructive and it’s the exact opposite of how pathological narcissists act, since they thrive to be loved and admired by everyone. Donald simply doesn’t care if you like him or not, which makes him the ultimate anti-narcissist, by its psychological definition. And that’s not even up for opinion, it’s a quite simple and undeniable fact.”

My input:
(By Jim)
Trump is a businessman that wants to make America Great Again, and he doesn’t care to work on PR about himself.
Trump has to pick his battles, and I hate that he has caved to the Pharmaceuticals about Vaccines,
and is allowing 5G to grow, and is allowing big Corporations to encroach on our health and freedom.
But, as I see it, he is doing more to make America Great Again than any previous President, even Reagan,
but he has to be selective, or he will go the way of JFK, or get shot like Reagan, or things will happen to his kids.
I look at what he IS DOING INTERNATIONALLY, and hope he can correct some other things later.

If you don’t believe me, look at what they did to Democrat Tulsi Gabbard after she said we need to stop the Wars.
Trump has to allow himself to be a puppet of the Deep State/Neocons in general, to avoid assassination,
but when he rouses international opposition in the direction he wants, he gets what he really wants = out of the wars.

——– Forwarded Original Message ——–
Subject: Trump plans to enlighten and free the US from Deep State
Date: Sat, 16 Nov 2019 19:58:58 -0800
From: Jim

Trump plans to enlighten and free the US from Deep State
(As I said, Trump didn’t fake the oil-plunder in Syria. He didn’t fake that it was to “make the world safe for Democracy”.
Instead, he said “we will keep the oil”, to make the world mad at our blatant theft of Syria’s oil.
Trump has tried to get us out of Syria, but the Neocons won’t let him, so he broadcasts the theft instead of covering it up.)

Trump’s “Art of the Deal” is to keep from getting Assassinated, yet inform the People of “Fake News” and try to stop Imperialism, etc.
https://www.zerohedge.com/political/everything-you-need-know-about-trump-were-afraid-admit-you-wondered

His general plan exhales from one of his favorite mottos: «We will give power back to the people», because the United States and its imperialist web woven over the world have been in the hands of a few globalist bankers, military industrials and multinationals for more than a century. To achieve his plan, he has to end wars abroad, bring back the kids, dismantle NATO and CIA, get control over the Federal Reserve, cut every link with foreign allies, abolish the Swift financial system, demolish the propaganda power of the medias, drain the swamp of the deep state that’s running the spying agencies and disable the shadow government that’s lurking in the Council on foreign relations and Trilateral Commission’s offices. In short, he has to destroy the New World Order and its globalist ideology. The task is huge and dangerous to say the least. Thankfully, he’s not alone.

The timing is right for everyone to understand what Donald Trump is doing, and try to decrypt the ambiguity of how he is is doing it. The controversial President has a much clearer agenda than anyone can imagine on both foreign policy and internal affairs, but since he has to stay in power or even stay alive to achieve his objectives, his strategy is so refined and subtle that next to no one can see it. His overall objective is so ambitious that he has to follow random elliptic courses to get from point A to point B, using patterns that throw people off on their comprehension of the man. That includes most independent journalists and so-called alternative analysts, as much as Western mainstream fake-news publishers and a large majority of the population.

To start off, let’s clear the one aspect of his mission that is straightforward and terribly direct: he’s the first and only American President to ever address humanity’s worst collective flaw, its total ignorance of reality. Because medias and education are both controlled by the handful of billionaires that are running the planet, we don’t know anything about our history that’s been twisted dry by the winners, and we don’t have a clue about our present world. As he stepped in the political arena, Donald popularized the expression «fake news» to convince the American citizens, and the world population as well, that medias always lie to you. The expression has now become commonplace, but do you realize how deeply shocking is the fact that nearly everything you think you know is totally fake?

Media lies don’t just cover history and politics, but they have shaped your false perception on topics like economy, food, climate, health, on everything. What if I told you that we know exactly who shot JFK from the grassy knoll, that the foreknowledge of Pearl Harbor was proven in court, that the CO2 greenhouse effect is scientifically absurd, that our money is created through loans by banks who don’t even have the funds, or that science proves with a 100% certainty that 911 was an inside job? Ever heard of a mainstream journalist, PBS documentary or university teacher telling you about any of this? 44 Presidents came and went without even raising one word about this huge problem, before the 45th came along. Trump knows that freeing the people out of this unfathomable ignorance is the first step to overall freedom, so he started calling mainstream journalists and their news outlets for what they are: pathological liars.

He’s openly outrageous and provocative on Twitter, he sounds impulsive and dumb most of the time, acts irrationally, lies on a daily basis, and throws out sanctions and threats as if they were candy canes out of an elf’s side bag in a mall in December. Right away, we can destroy one persistent media myth: the image Trump is projecting is self-destructive and it’s the exact opposite of how pathological narcissists act, since they thrive to be loved and admired by everyone. Donald simply doesn’t care if you like him or not, which makes him the ultimate anti-narcissist, by its psychological definition. And that’s not even up for opinion, it’s a quite simple and undeniable fact.
Mighty Russia

Since Peter the Great, the whole history of Russia is a permanent demonstration of its will to maintain its political and economical independence from international banks and imperialism, pushing this great nation to help many smaller countries fighting to keep their own independence. Twice Russia helped the United States against the British/Rothschild Empire; first by openly supporting them in the Independence War, and again in the Civil War, when Rothschild’s were funding the Confederates to politically break down the nation to bring it back in the British colonial Empire’s coop. Russia also destroyed Napoleon and the Nazis, whom were both funded by international banks as tools to crush economically independent nations. Independence is in their DNA. After almost a decade of Western oligarchy taking over Russia’s economy after the fall of USSR in 1991, Putin took power and drained the Russian swamp. Since then, each and every move that he has made aims to destroy the American Empire, or the entity that replaced the British Empire in 1944, which is the non-conspiracy theory name of the New World Order. The new empire is basically the same central banking scheme, with just a slightly different set of owners that switched the British army for NATO, as their world Gestapo.

Until Trump came along, Putin was single handedly fighting the New World Order who’s century-old obsession is the control of the world oil market, since oil is the blood running through the veins of the world economy. Oil is a thousand times more valuable than gold. Cargo ships, airplanes and armies don’t run on batteries. Therefore, to counter the globalists, Putin developed the best offensive and defensive missile systems, with the result that Russia can now protect every independent oil producer such as Syria, Venezuela and Iran. Central bankers and the US shadow government are still hanging on to their dying plan, because without a victory in Syria, there’s no enlarging Israel, thus ending the century-old fantasy of uniting the Middle East oil production in the hands of the New World Order. Ask Lord Balfour if you have any doubt. That’s the real stake of the Syrian war, it’s nothing short of do or die.
A century of lies

Now, because a shadow government is giving direct orders to the CIA and NATO in the name of banks and industries, Trump has no control over the military. The deep state is a rosary of permanent officials ruling Washington and the Pentagon, that only respond to their orders. If you still believe that the «Commander in chief» is in charge, explain why every time Trump ordered to pull out of Syria and Afghanistan, more troops came in? As I’m writing this text, US and NATO troops pulled out of the Kurdish zones, went to Iraq, and came back with heavier equipment around the oil reserves of Syria. Donald has a lot more of swamp draining to do before the Pentagon actually listens to anything he says. Trump should be outraged and denunciate out loud that the military command doesn’t bother about what he thinks, but this would ignite an unimaginable chaos, and perhaps even a civil war in the US, if the citizens who own roughly 393 million weapons in their homes were to learn that private interests are in charge of the military. It would also lead to a very simple but dramatic question: «What is exactly the purpose of democracy?» These weapons are the titanium fences guarding the population from a totalitarian Big Brother.

One has to realize how much trouble the US army and spying agencies have been going through in creating false-flag operations for more than a century, so that their interventions always looked righteous, in the name of democracy promotion, human rights and justice around the planet. They blew up the Maine ship in 1898 to enter the Hispanic-American war, then the Lusitania in 1915 to enter WW1. They pushed Japan to attack Pearl Harbor in 1941, knew about the attack 10 days in advance and said nothing to the Hawaiian base. They made up a North Vietnamese torpedo aggression on their ships in the Tonkin Bay to justify sending boots on the Vietnamese ground. They made up a story of Iraqi soldiers destroying nurseries to invade Kuwait in 1991. They invented mass destruction weapons to attack Iraq again in 2003, and organized 911 to shred the 1789 Constitution, attack Afghanistan and launch a War on terror. This totally fake mask of virtue has to be preserved for controlling the opinion of the American citizens and their domestic arsenal, who have to believe that they wear the white cowboy hats of democracy.

So how did Trump react when he learned that American troops were re-entering Syria? He repeated again and again in every interview and declaration that «we have secured the oil fields of Syria», and even added «I’m thinking about sending Exxon in the region to take care of the Syrian oil». Neocons, Zionists and banks were thrilled, but everyone else is outraged, because the vast majority doesn’t understand that Trump is swallowing this pill solely for its after-effects. On this single bottle is written in fine print that «the use of this drug might force American-NATO troops out of Syria under the pressure of the united world community and flabbergasted American population.» Trump made the situation unsustainable for NATO to stay in Syria, and how he’s been repeating this deeply shocking, politically incorrect position clearly shows his real intention. He destroyed over a century of fake virtue in a single sentence.
Trump is a historical anomaly

Trump is only the fourth president in US history to actually fight for the people, unlike all 41 others, who mainly channeled the people’s money in a pipeline of dollars that ends up in private banks. First there was Andrew Jackson who was shot after he destroyed the Second National Bank that he openly accused of being controlled by the Rothschild and The City in London. Then there was Abraham Lincoln, who was murdered after printing his «greenbacks», national money that the state issued to pay the soldiers because Lincoln had refused to borrow money from Rothschild at 24% interest. Then there was JFK, who was killed for a dozen reasons that mostly went against the banks and military industries profits, and now is Donald Trump, who shouted that he would «Give America back to the people».

Like most businessmen, Trump hates banks, for the formidable power that they have over the economy. Just take a peek at Henry Ford’s only book, «The International Jew» to find out how deep was his distrust and hatred of international banks. Trump’s businesses have suffered a lot because of these institutions that basically sell you an umbrella, only to take it back as soon as it rains. Private banking’s control over money creation and interest rates, through every Central Bank of almost every country is a permanent power over nations, far above the ephemeral cycle of politicians. By the year 2000, these nation looters were only a few steps away from their planetary totalitarian dream, but a couple of details stood still: Vladimir Putin and 393 million American weapons. Then came along orange-faced Donald, the last piece in the puzzle that we the people, needed to terminate 250 years of the banking empire.
Techniques and tactics

Early in his mandate, Trump naively tried the direct approach, by surrounding himself with establishment rebels like Michael Flynn and Steve Bannon, then by annoying each and everyone of his foreign allies, shredding their free-trade treaties, imposing taxes on imports and insulting them in their face in the G7 meetings of 2017 and 2018. The reaction was strong and everyone doubled-down on the Russiagate absurdity, as it looked like the only option to stop the man on his path of globalism destruction. Predictably, the direct approach went nowhere; Flynn and Bannon had to go, and Trump was entangled in a handful of inquiries that made him realize that he wouldn’t get anything accomplished with transparency. He had to find a way to annihilate the most dangerous people on the planet, but at the same time, stay in power and alive. He had to smarten up.

That’s when his genius exploded on the world. He completely changed his strategy and approach, and started taking absurd decisions and tweeting outrageous declarations. As threatening and dangerous as some of these first looked, Trump didn’t use them for their first degree meaning, but was aiming at the genuine second degree effects that his moves would have. And he didn’t care about what people thought of him as he did, for only results count in the end. He would even play buffoon over Twitter, look naive, lunatic or downright idiotic, perhaps in the hope to impregnate the belief that he didn’t know what he’s doing, and that he couldn’t be that dangerous. He’s willfully being politically incorrect to show the ugly face that the United States are hiding behind their mask.

The first test on his new approach was to try to stop the growing danger of an attack and invasion of North Korea by NATO. Trump insulted Kim Jung-Un through Twitter, called him Rocket Man, and threatened to nuke North Korea to the ground. His raging political incorrectness went on for weeks until it sank in everyone’s minds that those were not good reasons to attack a country. He paralyzed NATO. Trump then met Rocket Man, and they walked in the park with the start of a beautiful friendship, laughing together, while accomplishing absolutely nothing in their negotiations, since they have nothing to negotiate about. Many were talking about the Nobel price for peace, because many don’t know that it’s usually handed to whitewash war criminals like Obama or Kissinger.

Then came Venezuela. Trump pushed his tactic a step further, to make sure that no one could support an attack on the free country. He put the worst neo-cons available on the case: Elliott Abrams, formerly convicted of conspiracy in the Iran-Contras deal in the ’80s and John Bolton, famous first-degree warmonger. Trump then confirmed Juan Guaido as his choice for president of Venezuela; an empty puppet so dumb that he can’t even see how much he’s being used. Again, Trump threatened to burn the country to rubbles, while the world community watched in awe the total lack of subtlety and diplomacy in Trump’s behavior, with the result that Brazil and Colombia backed away and said they wanted nothing to do with an attack on Venezuela. Trump’s medicine left only 40 satellite countries worldwide, with Presidents and Prime Ministers brain dead enough to shyly support Guaido the Jester. Donald checked the box beside Venezuela on his list and kept scrolling down.

Then came the two gifts to Israel: Jerusalem as a capital, and the Syrian Golan Heights as its confirmed possession. Netanyahu whom isn’t the sharpest pencil in the box jumped of joy, and everyone yelled that Trump was a Zionist. The real after-effect result was that the whole of the Middle East united against Israel, which no one can support anymore. Even their historical accomplice Saudi Arabia had to openly disapprove this huge slap in the face of Islam. The two Trump gifts were in fact back stabs in the Israel state, whose future doesn’t look too bright nowadays, since NATO will have to move out of the region. Check again.
As reality sinks in

But there’s more! With his lack of control over NATO and the army, Trump is very limited in his actions. At first glance, the outstanding multiplication of economical sanctions on countries like Russia, Turkey, China, Iran, Venezuela and other nations look tough and merciless, but the reality of these sanctions pushed those countries out of the Swift financial system designed to keep enslaving nations through the dollar hegemony, and they’re all slipping away from the international banks’ grip. It forced Russia, China and India to create an alternative system of trade payments based on national currencies, instead of the almighty dollar. The bipolar reality of the world is now official, and with his upcoming next sanctions, Trump will push more countries out of the Swift system to join the other side, while important banks are starting to fall in Europe.

Even in the political hurricane Trump is in, he still finds time to display his almost childish arrogant humor. Look at his grandiose mockery of Hillary Clinton and Barrack Obama, as he sat down with the most straight-faced generals he could find, to take a picture in a so-called «situation room» as they faked the monitoring of the death of Baghdadi somewhere he couldn’t be, exactly like his criminal predecessors did a long time ago with the fake Bin Laden killing. He even pushed the farce to adding the details of a dog recognizing Daesch’s fake caliph by sniffing his underwear. Now that you understand what Trump is really about, you will also be able to appreciate the show, in all of its splendor and true meaning.

«We have secured the oil fields of Syria». Indeed, with this short sentence, Trump joined his voice to that of General Smedley Butler who rocked the world 80 years ago with a tiny book called «War is a racket». Looting and stealing oil is definitely not as virtuous as promoting democracy and justice. What amazes me is those numerous «alternative» journalists and analysts, who know on the tip of their fingers every technical problem about 911, or scientific reality on the absurd global warming story, but still don’t have a clue about what Trump is doing, 3 years in his mandate, because they bought the mainstream media that convinced everyone that Trump is mentally challenged.

or those who still entertain doubts about Trump’s agenda, do you really believe that the obvious implosion of American Imperialism over the planet is a coincidence? Do you still believe that its because of the Russian influence on the 2016 election that the CIA, the FBI, every media, the American Congress, the Federal Reserve, the Democratic party and the warmongering half of the Republicans are working against him and are even trying to impeach him? Like most stuff that comes out of medias, reality is the exact opposite of what you’re being told: Trump might be the most dedicated man to ever set foot in the Oval office. And certainly the most ambitious and politically incorrect.
Conclusion

The world will change drastically between 2020 and 2024. Trump’s second and last mandate coincides with Putin’s last mandate as President of Russia. There may never be another coincidence like this for a long time, and both know that it’s now or perhaps never. Together, they have to end NATO, Swift, and the European Union should crumble. Terrorism and anthropogenic global warming will jump in the vortex and disappear with their creators. Trump will have to drain the swamp in the CIA and Pentagon, and he has to nationalize the Federal Reserve. Along with Xi and Modi, they could put a final end to private banking in public affairs, by refusing to pay a single penny of their debts, and reset the world economy by shifting to national currencies produced by governments, as private banks will fall like dominos, with no more Obama-like servant to bail them out at your expense. Once this is done, unbearable peace and prosperity could roam the planet, as our taxes pay for the development of our countries instead of buying useless military gear and paying interests on loans by bankers who didn’t even have the money in the first place.

If you still don’t understand Donald Trump after reading the above, you’re hopeless. Or you’re might be Trudeau, Macron, Guaido, or any other useful idiot, unaware that the carpet under your feet has already slipped away.

——————————————————————

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trump-white-house
(Image: The hierarchy of deep state escalation that will end in the attempted assassination of President Trump and engineered terrorism across America)

The hierarchy of deep state escalation that will end in the attempted assassination of President Trump and engineered terrorism across America
Tuesday, October 01, 2019 by: Mike Adams
https://www.naturalnews.com/2019-10-01-hierarchy-of-deep-state-escalation-attempted-assassination-of-president-trump.html

(Natural News) The deep state is at war with America. The CIA is running an attempted coup, and all the CIA’s puppet “journalists” (actually nothing more than CIA-run media hacks) are all-in. The Democrats are betting everything that they can remove Trump from office and somehow avoid a popular uprising that would likely see millions of armed citizens taking action to defend this republic against the lawless deep state and its authoritarian rule.

You are witnessing the final chapter. The Democrats, CIA and media hacks are throwing everything at Trump in a last-ditch effort to remove him from office before the 2020 election, which the Dems know they cannot win (because Democrat ideas suck, and they have no ideas other than communism and handing out free stuff to everyone). Just today, lunatic Democrat congresswoman Maxine Waters called for President Trump to be “imprisoned and placed in solitary confinement,” probably so the deep state can pull a Jeffrey Epstein on him, where magically all the security cameras simultaneously malfunction while the prisoner is executed.

The fake news corporate media has abandoned any last shred of credibility and is now literally faking every “bombshell” about Trump, Ukraine, Russia and the so-called “whistleblower” (who is really nothing more than a CIA spy). In reality, all media hacks have become crisis actors who have been handed scripts by the CIA, and they are role playing those scripts to pretend like Trump has been caught carrying out heinous crimes… the very same crimes that Joe Biden actually committed.

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Crazed Democrats are obsessed with Trump, but they ignore the real issues facing Americans

This face off ends with just one party left standing. The Democrats cannot survive this if they do not decisively take out Trump, because in escalating this brazen, fabricated assault on our president, Democrats have demonstrated to all Americans that they don’t care about any real issues Americans are facing such as health care costs, the collapse of liberal cities and the growing power and corruption of the pharmaceutical industrial complex. Instead, Democrats are willing to watch America burn and collapse as long as they think they might be able to get Trump in the process.

Democrats have become terrorists, criminals and lunatics, and they have reached the point of insanity where they quite literally want to see this country burned to the ground rather than witness Trump win a second term.

Understand that this current “soft coup” against President Trump is just the beginning of what they have planned. If this soft coup fails, they have a plan of escalation that will ultimately reach the point where deep state criminals like John Brennan and Barack Obama attempt to carry out plans that include the assassination of President Trump. But that’s not even where this ends. If that fails, they have more moves in store for America, and all these attempts will result in the loss of innocent life. Bluntly stated, if Trump doesn’t order the arrest and prosecution of all these deep state traitors and CIA operatives — across Congress, the fake news media fiction factories and even the judiciary — they will unleash deadly terror and lawlessness across America in a desperate effort to reclaim authoritarian rule (while, of course, ordering the executions of all Trump loyalists).

“It may appear that the Democratic Party, furious over Hillary Clinton’s 2016 loss, is the driving force behind this ongoing attempt to remove Donald Trump from office, but at every turn we see the fingerprints of the CIA and its allies in the US deep state,” writes Ron Paul. “Brennan and his deep state counterparts James Comey at the FBI and former Director of National Intelligence James Clapper launched an operation, using what we now know is the fake Steele dossier, to spy on the Trump presidential campaign and even attempt to entrap Trump campaign employees.”

The deep state must be stopped, and that clearly includes Big Tech, the fake news “media” propagandists, and the corrupt sectors of the intelligence community (FBI, CIA, DOJ, State Dept.). If Trump doesn’t stop them, here is the escalation of tactics that will unfold as the radical Left unleashes war on U.S. soil:

Level 1: “Soft coup” attempt
https://www.brighteon.com/926124b7-bc2a-435a-8389-28f98cc21653

At this level, which you are witnessing right now, deep state spies and operatives inside the bureaucracy fabricate fake accusations against Trump while media crisis actors pretend they’ve found a smoking gun that doesn’t actually exist. By whipping up mass hysteria via the CIA-run media, Democrats hope they can trick America into going along with the impeachment of Trump by accusing him of carrying out the corruption crimes that Joe Biden actually executed.

Level 2: Criminal framing attempt using crisis actors

If the soft coup fails, the same deep state operatives and crisis actors (Brennan, Comey, McCabe, Obama, Clinton, etc.) will fabricate fake financial documents and pretend that Trump committed a vast array of financial crimes. The documents will be as fake as Barack Hussein Obama’s birth certificate which, of course, was Photoshopped into a 17-layer digital file with bits and pieces switched together from various scans of old documents.

The Obama deep state has extensive experience fabricating fake documents, and they will put those skills to use in trying to frame Trump for criminal behavior that he didn’t commit. Remember, trust nothing reported by the media. They lie about everything. They are just “following orders,” after all, handed to them by the CIA.

Level 3: Area effect “terrorism” that attempts to injure or murder Trump

When the criminal framing attempts fall flat, the deep state Democrats will ratchet up their plans to a “hot” phase of the civil war. In this phase, operatives run by the FBI — all of whom have extensive experience planning and carrying out acts of terrorism across the United States — will go live with “area effect” attacks that attempt to kill President Trump with nuclear, biological or chemical attacks.

Notably, this level of desperation by the deep state equals that of the staged 9/11 attacks which were of course planned and carried out with the authorization of the very same deep state that’s now trying to destroy Trump. That’s why building 7 was rigged with explosives months in advance, as is now admitted by a senior analyst at CNBC.

It’s also why the Pentagon launched a cruise missile at the Pentagon building, then the media tried to gaslight the entire nation to falsely claim the Pentagon was struck by a commercial passenger jet. Yet amazingly, there was no wreckage from a passenger jet found at the scene. Not even a seat cushion or a scrap of metal from a wing. That’s because the Pentagon wasn’t hit by a passenger jet. It was the FBI that confiscated all the hundreds of surveillance videos from across the region, burying all video evidence of the cruise missile that actually struck the building, just as planned.

This is important to note because if there’s a rogue faction inside the Pentagon that’s still controlled by Obama loyalists, they could literally launch a cruise missile at the White House then gaslight the entire nation to claim it was an act of terrorism from “white nationalists” or something similar. They can make up anything and push it out as “authoritative news,” even if it’s complete fiction.

The most likely area effect weapon, however, is a dirty bomb using cesium-137, a radioisotope that’s deadly in very small quantities. It’s a blue powder, and because the half life of Cs-137 is so short (about 29 years), it gives off an enormous amount of ionizing radiation every second. The Democrat deep state is already well versed at carrying out assassinations and executions of political enemies (Seth Rich, anyone? Andrew Breitbart?), so they already know how to mix Cs-137 into other products to make, for example, car bumpers out of it. Or a painting, or a dinner plate, etc. For this reason, Trump’s security team had better be carrying out portable radiation meters to make sure they can whisk the president out of the way should ionizing radiation be released by the deep state.

For the record, I am the patent holder of an invention called Cesium Eliminator, which is a formula that removes radioisotopes of cesium from the digestive tract. My ISO-accredited mass spec laboratory also runs ICP-MS equipment which can detect Cesium-137 and, frankly, almost any isotope of any radioactive substance. The sensitivity of the instrument is so high that we still see echoes of uranium isotopes released during above-ground nuclear testing carried out by the United States and other nations. If anyone from the Trump administration needs private testing of food, water, clothing, hair or other substances, we can carry that out with total privacy, with rapid turnaround (just a few hours after receiving the sample). We are also experts in food and water contamination, and we run a mass spec time-of-flight instrument that can detect unknown chemicals via accurate mass determination, which is useful if you suspect something has been poisoned but you don’t know which poison was used. From ICP-MS-TOF scans, we can derive chemical equations of poisons and other contaminants, even if we have no idea what molecular masses to look for at the start.

Getting back to the war against President Trump: Deep state terrorists may also attempt chemical attacks or biological attacks. Biological attacks are far more complex in terms of sourcing the weaponized strains, so the more likely weapon delivery system is a chemical attack or a dirty bomb nuclear attack. Chemical attacks could include drone-delivered aerosolized fentanyl, for example, which is nearly impossible to defend against in you’re out in the open. One breath and you’re dead. It’s worth noting that a lot of the methods of weapon delivery in the future of warfare — including deep state warfare against America — will be conducted via drones. This could include small-scale dirty bomb packages delivered by drone and detonated in open spaces to rain down highly radioactive material onto the target zone. Think Chernobyl, but smaller.

Note than in all these scenarios, thousands or even tens of thousands of Americans will be killed in the process. But as we learned with 9/11, this has never stopped the deep state before. If they have to nuke a U.S. city to take out Trump in the process, they will not hesitate to do so (as long as they can blame Trump and gun owners, of course).

It’s worth repeating this so that you get it. The Democrats and their deep state handlers are truly at war with America. There’s nothing they won’t do. The FBI is, as we have exhaustively documented, is a straight-up terrorist organization, and the FBI ran the murders of JFK, RFK and MLK, Jr., as well as running the Oklahoma City bombing and taking part in the 9/11 cover-up. Nearly all the acts of mass destruction and terrorism that you learned about in U.S. history were actually carried out by the deep state itself, always for political purposes. Oklahoma City, for example, was run under President Clinton to try to take out Rush Limbaugh and censor conservative talk radio. 9/11 was carried out to expand the very same domestic surveillance powers which Obama and Clinton weaponized against Trump. JFK was taken out because he threatened to end the Federal Reserve and bring the money supply back under the control of the U.S. Congress. Dr. King was assassinated because he preached racial peace and unity instead of violence and hatred. The list goes on…

It’s not just present-day events that are being staged and faked by crisis actors, in other words; it’s the entire post World War II history of the United States. The deep state has been running this show for 75 years, and they won’t give up power without waging war on the outsider (Trump) who threatens them.

Level 4: Direct assassination attempt to murder Trump

When all the other attempts fail, a direct assassination attempt will be leveled against Trump, but it will of course be made to look like a death by natural causes in order to suppress a patriot uprising. If Trump is killed via a shooting or some similarly violent attack, that will be the tipping point for American patriots to self-activate and rise up against the corrupt, criminal deep state and the Democrat traitors across the country. So the deep state will attempt to make the assassination look like an accident or a natural death, and of course the autopsy will be covered up, the body will be cremated and all evidence will be swept under the rug as quickly as possible.

After all, they took out JFK and got away with it. And RFK, too. The deep state can murder presidents and get away scot-free because the media will gaslight the American public and follow the CIA propaganda scripts. The only thing different today is the existence of the independent media, which is precisely why InfoWars, for example, is under extreme lawfare assault and demonetization attacks. The only way the deep state can achieve success with its gaslighting operations is if the independent media is taken offline. That’s why they are infuriated that the indy media has been so resilient, to the point where we are launching our own platforms to compete with YouTube, for example. Just as I have launched Brighteon.com, Alex Jones now has Banned.video. Both platforms dare to allow people to tell the truth about world events, despite the censorship attempts by the establishment.

Level 5: Unleashing planned invasion of America with Chinese and UN troops

Finally, if the direct assassination attempt fails, the deep state will unleash an international war that will invite Communist Chinese and U.N. troops to invade and occupy the United States through California and the Southern border, respectively.

Calif. Governor Newsom has already sold out to the Chinese and will no doubt welcome a communist Chinese invasion of California, granting millions of Chinese troops a beachhead on California soil. The lunatic left-wing Democrats in California will cheer at first, at least until the Chinese troops begin raping, pillaging and mass murdering the residents of Los Angeles as they sweep eastward. (Note to California libtards: Communism sounds awesome until it arrives at your door. Then it’s murderous.)

Should this scenario happen, patriots in rural California, Oregon, Nevada and Arizona will not only engage and disrupt Chinese military operations; they will also seek out and remove all the collaborators (i.e. Democrats who went along with the invasion). Dave Hodges at TheCommonsenseShow.com covers this scenario in great detail in his excellent reporting which is based on sources in the intelligence community. Read The Russian Scissors Strategy Part 1 and Part 2 for an overview of the multinational invasion of the USA that’s being planned with the help of Obama and other traitors.

https://www.brighteon.com/e81906b5-4068-4440-bcd6-b6f68d639bb8

Along the U.S. Southern border, U.N. troops will invade Texas, New Mexico, Arizona and California, deploying all those U.N. armored personnel carriers you’ve seen shipped across the country on trains. The goal will be the complete occupation and control of pro-Trump regions of the country, which include Middle America and most western states. Should such an invasion occur, patriots in Texas and elsewhere will engage these United Nations invading forces with extremely effective disruption / guerilla tactics that they learned in the United States military. Texas alone has over a million retired veterans who are highly capable, deeply determined and extremely well-equipped.

Even a few hundred thousand blue helmets far from home, spread out along difficult supply lines and unfamiliar territory, are no match for retired U.S. Marines, special forces, Army and police SWAT. Add to that the massive firearms and ammunition supplies that have been stockpiled by citizens across millions of private homes and businesses across the western states, and you have an unwinnable war for UN forces, who will be confronted by long range engagements by patriots who grew up hunting deer and other game at long distances. For a Texan, engaging an enemy UN soldier at 500 yards doesn’t even require any effort. And Texas residents already own large caliber weapons used for hunting purposes, such as 300 WM, or 338 LM, or even 50 cal platforms such as the Barrett, which can disable UN vehicles with a single shot. (Because 660 grains of hot lead slices right through engine blocks…)

https://www.naturalnews.com/2019-10-01-hierarchy-of-deep-state-escalation-attempted-assassination-of-president-trump.html

Prepare for massive, nationwide disruptions: Grid down, fuel shortages, food lines, left-wing riots
You’ll notice that in several of the scenarios described above, there will be extensive disruptions of the basic infrastructure of modern society. Even if you don’t live in cities where riots and lawlessness will occur (i.e. liberal-run cities), you are likely to experience the ripple effects of infrastructure disruptions. Those may include temporary disruptions in the power grid.

JohnyMac at AmericanPartisan.org has published an excellent new article that discusses the importance of realizing that your comms will go down when the grid goes down. This means you won’t be able to communicate by phone, or internet or any common carrier. What will continue to work? Radio frequencies, of course, which is why HAM radio operators and technicians will rule the recovery.

As JohnyMac asks:

Once your electrical substation goes down communication along with other things that electricity provides will be gone too. What is your plan to generate enough electricity to keep your furnace going, freezers freezing, and communications happening? Certainly, if you have a generator and plenty of fuel you and your family can survive but, all the power in the world at your home will not allow you to communicate blocks away let away states away if the cell towers have no power. What is your communication plan post a grid down situation and the backup generators at the cell towers run out of fuel?

If you don’t have communications gear, you’re basically screwed in this type of situation. To get up to speed quickly, go take one of the Brushbeater courses, held in North Carolina.

I also mentioned in a previous article that if you don’t have night vision gear, you’re screwed again, since night time is when all the troublemakers come out to try to steal your supplies or just flat-out kill you so they can occupy your home. ReadyMadeResources.com has a solid selection of night vision devices and is run by patriotic Americans.

If you’re looking for food supplies, we’ve got our ever-popular Ranger Buckets at the Health Ranger Store. (Which are currently sold out, but we’re ramping up another production run.) These are certified organic, lab-tested, long-term storage food staples that can be made into hundreds of different recipes. You’ll want to stockpile some olive oil, lard or coconut oil in addition to what’s in the buckets, by the way.

I also noticed that Defense Distributed Ghost Gunner machines are sold out until 2020. This means Americans are buying them like crazy and making their own homemade firearms to get ready for a foreign invasion, authoritarian rule or Antifa-ignited civil war. This also means Americans have no plans to surrender their firearms. If anything, they’re making more.

It’s pretty clear the American people are fed up with being ruled by an authoritarian deep state cabal of treasonous actors. Americans are tired of media lies and blatant propaganda being spewed forth by CNN and NBC (Nothing But Communism). The American people are going to see this through, and they’ve decided that defeating the Democrats is the only way to preserve this nation.

Be prepared for anything, because it’s false flag season in the minds of deep state Democrats. Watch for mass shootings, explosives, chemical attacks, dirty bombs, engineered social chaos, fake news crisis actors, extreme censorship and possibly even a Democrat-run foreign invasion of U.S. territory. There’s nothing they won’t try to topple Trump. Which means you need to be ready for anything to occur.

Ultimately, the only way to save America is to tear down the FBI, CIA, DOJ and State Department, then start over with strict government budget limits that force the federal government to shrink by 95%. Only then will the American people ever be safe from tyranny. It’s time to drain the swamp, and Trump is the only person in Washington D.C. who seems to be willing to pull the drain plug.

Stay informed. Keep reading this website for details as these events unfold. If we are taken offline, it means the deep state is actively moving forward with its assassination and invasion plans. Stay on high alert at all times, and watch your six.

Stand by for stand by.

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Hollywood Ramps Up Anti-Gun Propaganda
https://www.usconcealedcarry.com/hollywood-ramps-up-anti-gun-propaganda/
By John Caile // 11/16/2018

By now, no reasonable person can deny the overwhelming bias in our mainstream news sources. When some shooting occurs, the first questions directed to law enforcement officials at the news conference are seldom about the perpetrator. Instead, it’s, “What kind of gun did they use? Where did they get the gun? Was it an ‘assault rifle?’” In other words, it’s all about the gun.

Conversely, when it comes to cases when armed civilians successfully defend themselves or others, guns are either left out of the story or their role is downplayed dramatically.

However, the media is only the tip of the propaganda iceberg — and not even the most influential in shaping public opinion. In reality, entertainment programming, whether TV, movies or even “original content” streamed on your various devices, has become the primary vehicle for anti-gun propaganda. And it is very effective.

For example, think about the number of times you see fully automatic weapons used in shows based on law enforcement. Whether the protagonists are street cops, FBI or undercover narcotics agents, the bad guys are invariably armed with full-auto AKs, ARs and even high-end guns like FN SCARs and H&K MP5 submachine guns.

But ask any working police officers (even those in major cities) how many times they actually run into such weapons. The answers run from “Never in my 20 years on the force” to “Once, back in the ‘80s, during the Florida cocaine wars” to “The L.A. bank robbery in ’97.” Other than that, full-autos are almost non-existent in street crime.

Unfortunately, reality matters little. Images of bad guys blazing away in show after show become embedded in the brains of everyone watching. Over time, the perception attains a life of its own. Thus, when anti-gun politicians mention “assault weapons” bans, a disturbing number of otherwise logical people think they’re talking about “you know, those machine guns.” Both politicians and the media continue to encourage this misunderstanding.

Note that these are not attempts to entertain but to persuade.

In a recent episode of one of those “doctor” shows, the main character is being interviewed by a reporter on the shooting by police of two young boys.

The “doc” somberly states that he “knows what hollow-point bullets can do,” which, according to him, is “expand to THREE TIMES their diameter” and “turn muscle tissue into jelly” (I’m not making this up), then “shatter bones like matchsticks.” And he doesn’t stop there. He goes on to claim that the reason that the two boys were shot with a single bullet was that these same hollow-points were able to “easily rip through both victims.”

Such exaggerated nonsense is just that to most of us — nonsense. But you and I are not the intended target — the gullible public is.

Make no mistake, Hollywood’s war on guns is only going to get worse. The anti-gun money poured into this latest election should serve as a warning. In 2020, Bloomberg, Soros and the rest of the usual suspects will be spending even more.

We all need to be aware of the incredible surge in anti-Second-Amendment propaganda masquerading as “entertainment.” And be prepared to challenge politicians who attempt to capitalize on an ignorant and misinformed public.

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RBS bankers joked about destroying the US housing market
By Editor August 16, 2018
http://www.theeventchronicle.com/finanace/rbs-bankers-joked-about-destroying-the-us-housing-market/


A boarded up building in Cleveland, Ohio, in January 2008. In the build up to the crisis mortgage lenders were incentivised to make as many loans as possible. Photograph: Timothy A. Clary/AFP/Getty Images
Transcripts of pre-financial crisis conversations show senior bankers’ disregard for customers

By Rob Davies

RBS bankers joked about destroying the US housing market after making millions by trading loans that staff described as “total fucking garbage”, according to transcripts released as part of a $4.9bn (£3.8bn) settlement with US prosecutors.

Details of internal conversations at the bank emerged just weeks before the 10-year anniversary of the financial crisis, which saw RBS rescued with a £45bn bailout from the UK government.

The US Department of Justice (DoJ) criticised RBS over its trade in residential mortgage backed securities (RMBS) – financial instruments underwritten by risky home loans that are cited as pivotal in the global banking crash.

It said the bank made “false and misleading representations” to investors in order to sell more of the RMBS, which are forecast to result in losses of $55bn to investors.

Transcripts published alongside the settlement reveal the attitude among senior bankers at RBS towards some of the products they sold.

The bank’s chief credit officer in the US referred to selling investors products backed by “total fucking garbage” loans with “fraud [that]was so rampant … [and]all random”.

He added that “the loans are all disguised to, you know, look okay kind of … in a data file.”

The DoJ said senior RBS executives “showed little regard for their misconduct and, internally, made light of it”.

In one exchange, as the extent of the contagion in the banking industry was becoming clear, RBS’ head trader received a call from a friend who said: “[I’m] sure your parents never imagine[d]they’d raise a son who [would]destroy the housing market in the richest nation on the planet.”

He responded: “I take exception to the word ‘destroy.’ I am more comfortable with ‘severely damage.’”

Another senior banker explained to a colleague that risky loans were the result of a broken mortgage industry that meant lenders were “raking in the money” and were incentivised to make as many loans as possible.

Employees who might raise the alarm about the riskiness of such lending “don’t give a shit because they’re not getting paid”, he said.

The bank made “hundreds of millions of dollars” from selling RMBS, the DoJ said, while disguising the risk they posed to investors, which included a group of nuns who lost 96% of their investment.

By October 2007, as signs of stress began to show in the banking system, RBS’ chief credit officer wrote to colleagues expressing his true feelings about the burgeoning volume of subprime loans in the housing market.

He said loans were being pushed by “every possible … style of scumbag”, adding that it was “like quasi-organised crime”.

“Nobody seems to care,” he added.
Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

The DoJ criticised RBS’ failure to do due diligence on the loans it was packaging, saying the bank feared it would lose out to rivals if it performed stricter tests.

One analyst at the lender referred to the bank’s due diligence procedures as “just a bunch of bullshit”, according to the transcripts.

When the bank became concerned about the poor quality of loans and started imposing tighter due diligence, one senior banker complained, saying: “Oh, God. Does anyone want to make money around here any more?”

RBS expected to make $20m from one deal that involved trading particularly risky loans, but faced resistance from the bank’s chief credit officer.

A senior executive responded to the concerns by telling the bank’s head trader: “Please don’t fuckin’ blow this one. We need every dollar we can get our hands on.”

Internal conversations between bankers also offer some insight into their growing realisation of the poor quality of the loans the bank owned and sold.

In September 2007, one trader referred to an appraisal of loans as giving “pretty shitty results”.

The transcripts were released by the DoJ as it confirmed the details of the settlement with the bank over its trading in RMBS.

RBS said: “Under the terms of the settlement, RBS disputes the allegations but will not set out a legal defence, while the settlement does not constitute a judicial finding.”

Certainty over the scale of the settlement will allow the bank to pay its first dividend in a decade this year.

The dividend is worth £240m and the Treasury will receive £149m as RBS is still 62%-owned by the government.

Ross McEwan, RBS chief executive, said: “This settlement dates back to the period between 2005 and 2007. There is no place for the sort of unacceptable behaviour alleged by the DoJ at the bank we are building today.”

He added that the bank could now “focus our energy on serving our customers better”.

But league tables published by the Competition and Markets Authority on Wednesday placed RBS joint bottom for customer service, with fewer than half of customers saying they would recommend the bank to a friend.

RBS will have to publish the results in branches, on its website and mobile app from today.

This article (RBS bankers joked about destroying the US housing market) was originally published on The Guardian and syndicated by The Event Chronicle.

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https://wordpress.com/read/blogs/29589295/posts/15035
jmdenison
MaryGSykes.com

From GG: the good ship MERS may be going down…for you folks facing those robo signing/false accountings foreclosure cases, read on
23h ago
http://mandelman.ml-implode.com/2011/02/new-bankruptcy-court-decision-sounds-the-alarm-%E2%80%93-the-uss-mers-is-going-down/

This is a pretty funny article about MERS and how it is mostly a full of it mortgage/note handling process that bilks county recorder out of millions in recording mortgage docts per year, plus it can often create havoc in foreclosure/assignment/purchase cases.
read on.
New Bankruptcy Court Decision Sounds the Alarm – The USS MERS is Going Down

Preface…

Before I jump into this decision by a U.S. Bankruptcy Court Judge in New York, I just want to acknowledge that I very rarely write about MERS. And it’s not an accident; I’ve chosen not to do so… until now, anyway.

Perhaps I’ve been wrong not to cover the MERS debacle in greater detail, but the reason I haven’t is that I view some of the issues related to MERS as kind of… well, pedestrian… not to put too fine a point on it.

Other than a few good decisions by courts that have barred MERS from foreclosing, it just seemed to me that the problems presented by MERS could be fixed, and therefore I didn’t want homeowners who read my column to put too much stock in their loan being a MERS loan, as doing much for them if they find themselves at risk of foreclosure.

This decision has done a lot to change my view of MERS and the role it plays in foreclosures. The judge in this case presents a damn strong, if non-binding case why MERS may in fact be a much larger problem than I thought it was.

According to consumer bankruptcy attorney and nationally known foreclosure defense guru, Max Gardner…

“This case may well be the final dagger in the deep dark heart of the MERS business model. MERS has fired its President, R.K. Arnold, and may well terminate its Secretary, William Hultman, but MERS cannot fix the systematic and fundamentally flawed legal issues clearly and succinctly identified by the Court in Agard.”
And so… without further delay, I present to you… the “Agard Decision”.

~~~

The State: New York

The Case: In re: Ferrel L. Agard, Debtor, Chapter 7

The Court: United States Bankruptcy Court, Eastern District of New York

The Judge: The Honorable Robert E. Grossman

The Set Up: U.S. Bank, as the trustee for one First Franklin Mortgage Loan Trust 2006-FF12, Mortgage Pass-Through Certificates, Series 2006-FF12… which all just means that we’re talking about a REMIC trust containing a securitized pool of mortgages… moves to obtain relief from the automatic stay created by a Chapter 7 bankruptcy filing, in order to complete the foreclosure of Ferrel Agard’s home. New York State courts had already ruled and a foreclosure judgment was issued, so now U.S. Bank as trustee just needed to finish things out by obtaining relief from the automatic stay so they can proceed with selling the home.

Records show that the bankruptcy trustee expected a routine, no assets case… file report, collect fee, end of case. U.S. Bank, represented by its loan servicer, Select Portfolio Servicing (“SPS”), who was in turn represented by Buffalo’s most infamous foreclosure mill, Steven J. Baum PC, must have thought about the same… a straight forward foreclosure case, lets get rid of the deadbeats and be home by dinner.

But, in today’s fast changing world of Fraudclosuregate, things are not always as they appear, and crap that flew yesterday may not fly again tomorrow.

The Opposition: On October 27, 2010, the borrower’s attorney filed a single page document on which the type was double-spaced. It was a “partial opposition to the motion for relief from stay” that U.S. Bank had filed, and it suggested to the judge that perhaps there might be some sort of small problem with the MERS assignment. It also, in so many words, posited: Who the heck was Select Portfolio Services and why did they have any role in the case anyway?

After that, one might say… the fit hit the shan.

The Hearing: At a hearing held on November 15, 2010, the judge must have more than just hinted that he was going to look very carefully at this whole MERS thing, because he suggested that the parties might want to consider filing some real legal briefs on the subject, and he made it clear that he would be holding a real hearing on the issues on December 15, 2010, just one month down the road.

The Response: All of a sudden nothing was at it seemed just days before… SPS asks the court for more time and rushes out for reinforcements, bringing in a “tall building” law firm from New York City to replace the relative pikers at Baum’s Mill. The newly retained big city lawyers file a major brief in support of the U.S. Bank/SPS position on December 8th.

Then, on December 9th, MERS shows up, metaphorically at least with lights flashing and sirens blaring, to file an “emergency motion to intervene,” crying in sheer panic that their entire national business model is being attacked and that the result can be nothing less than the end of the world as we all know it.

They bring in a sworn declaration from MERS Treasurer and Corporate Secretary, William Hultman on December 10th, that explains what an entirely fabulous and utterly wonderful invention MERS actually is, and then… I suppose afraid that the one Hultman declaration just might not carry the day they show up with yet another declaration from MERS Treasurer and Corporate Secretary, William Hultman on December 23rd.

In an effort to keep things straight as related to the declarations, we’ll call that one: “Why Everyone Should Love MERS More Than Life Itself… The Sequel.”

The judge then begins to dig into the matter. Perhaps he was waiting for a case such as this one, or perhaps some other forces were in play, but regardless… for MERS… this was the wrong judge on the wrong day.

The Decision: Judge Grossman devotes the first half of his opinion to discussing whether he even has the legal authority to look into how U.S. Bank obtained this mortgage in the first place, since it already had obtained a foreclosure judgment in state court, and because there is an irritating (to Federal judges) and arcane Rooker-Feldman doctrine that prohibits federal courts from interfering with state court judgments.

Alas, our intrepid judge concludes on page 18 of his decision that Rooker-Feldman does in fact preclude him from looking further into the issues that underlie the U.S. Bank foreclosure judgment. And, as a result, Judge Grossman decides that he must grant U.S. Bank’s motion for relief from the bankruptcy automatic stay so that the trustee can complete the foreclosure.

Now, were we talking about most judges, that would represent the end of this proverbial road… the opinion would be dated and signed and I would not be writing about the case now. But we’re not talking about most judges… we’re talking about the Honorable Judge Robert E. Grossman of the U.S. Bankruptcy Court, and he’s apparently not a judge with which one should trifle.

He’s got MERS in his crosshairs, apparently exactly where he wants them, and in the 18 pages that follow his decision to grant the relief from the automatic stay he goes after MERS mercilessly. Attorney Thomas Cox of Portland, Maine, who you may remember from the “GMAC uses robo-signers deposition” that brought foreclosures to a standstill last fall, says that in his opinion…

“He (Judge Grossman) does the most thorough and competent analysis of the MERS charade that I have seen, basically concluding that the entire MERS business model does not comply with our laws, and that he will no longer accept MERS mortgage assignments in his court room.”
It’s a decision that was a delight to see.”</em>
Now, clearly this is a decision that’s worth reading for one’s self… Judge Grossman is one heck of a writer and not one to play patty-cake with MERS or those of the banking persuasion, but I thought I’d at least provide the overview of the decision with “training wheels” for those who aren’t of the mind to wade through the entire text of the decision themselves, or who find these things next to impossible to read and understand.

Here’s the overview of the Memorandum Decision in its entirety… with my clarifications added for those who find them valuable. If you’re a lawyer or just an uber-smartee, just scroll on down to the imbedded document for a copy of Judge Grossman’s decision in its entirety.

The movant is Select Portfolio Servicing, Inc. (“Select Portfolio” or “Movant”), as servicer for U.S. Bank National Association, as Trustee for First Franklin Mortgage Loan Trust 2006-FF12, Mortgage Pass-Through Certificates, Series 2006-FF12 (“U.S. Bank”)

Okay, for now just remember that the servicer is the “Movant.” The rest I already covered above at the very beginning. U.S. Bank N.A. is the trustee for the First Franklin Mortgage Loan Trust… blah, blah, blah… got it? Good, let’s move on…

The Debtor filed limited opposition to the Motion contesting the Movant’s standing to seek relief from stay. The Debtor argues that the only interest U.S. Bank holds in the underlying mortgage was received by way of an assignment from the Mortgage Electronic Registration System a/k/a MERS, as a “nominee” for the original lender.

The Debtor’s argument raises a fundamental question as to whether MERS had the legal authority to assign a valid and enforceable interest in the subject mortgage. Because U.S. Bank’s rights can be no greater than the rights as transferred by its assignor – MERS – the Debtor argues that the Movant, acting on behalf of U.S. Bank, has failed to establish that it holds an enforceable right against the Property.1.

This references the single page, double-spaced document I described that was filed by the borrower’s attorney, called a “partial opposition to the motion top relief from stay”. It raised some questions that the judge would later seek to answer.

The Movant’s initial response to the Debtor’s opposition was that MERS’s authority to assign the mortgage to U.S. Bank is derived from the mortgage itself, which allegedly grants to MERS its status as both “nominee” of the mortgagee and “mortgagee of record.”

Judge Grossman is going to attack this line of reasoning head on in the last 18 pages of his decision. Among many other things, you’ll see him say… “Aside from the inappropriate reliance upon the statutory definition of “mortgagee,” MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.” And there’s a whole lot more where that came from… read on…

The Movant later supplemented its papers taking the position that U.S. Bank is a creditor with standing to seek relief from stay by virtue of a judgment of foreclosure and sale entered in its favor by the state court prior to the filing of the bankruptcy.

The Movant argues that the judgment of foreclosure is a final adjudication as to U.S. Bank’s status as a secured creditor and therefore the Rooker-Feldman doctrine prohibits this Court from looking behind the judgment and questioning whether U.S. Bank has proper standing before this Court by virtue of a valid assignment of the mortgage from MERS.

This is the part that caused Judge Grossman to back down in this particular instance and allow the relief from automatic stay, thus allowing the foreclosure to proceed. Basically, he concludes that he’s not allowed to question the facts that underlie the foreclosure judgment that was previously granted by the state court.

There is also an important footnote (“1”) on the second page that reads as follows:

The Debtor also questions whether Select Portfolio has the authority and the standing to seek relief from the automatic stay. The Movant argues that Select Portfolio has standing to bring the Motion based upon its status as “servicer” of the Mortgage, and attaches an affidavit of a vice president of Select Portfolio attesting to that servicing relationship.

Case law has established that a mortgage servicer has standing to seek relief from the automatic stay as a party in interest. See, e.g., Greer v. O’Dell, 305 F.3d 1297 (11th Cir. 2002); In re Woodberry, 383 B.R. 373 (Bankr. D.S.C. 2008).

This presumes, however, that the lender for whom the servicer acts validly holds the subject note and mortgage. Thus, this Decision will focus on whether U.S. Bank validly holds the subject note and mortgage.

I think the judge is saying that servicers do have standing to seek relief from an automatic stay that results from a borrower filing bankruptcy, but that such standing presumes that the lender being represented by the servicer validly holds the note and mortgage, and that the decision will address that issue.

Okay, you’ve got that part pretty much down, right? Then the decision goes on to say…

The Court received extensive briefing and oral argument from MERS, as an intervenor in these proceedings, which go beyond the arguments presented by the Movant.
This just says that MERS showed up with all guns blazing, arguing that MERS represents all that is right, good and just in the world. The judge isn’t buying though…

In addition to the rights created by the mortgage documents themselves MERS argues that the terms of its membership agreement with the original lender and its successors in interest, as well as New York state agency laws, give MERS the authority to assign the mortgage.

MERS argues that it holds legal title to mortgages for its member/lenders as both “nominee” and “mortgagee of record.” As such, it argues that any member/lender, which holds a note secured by real property, that assigns that note to another member by way of entry into the MERS database, need not also assign the mortgage because legal title to the mortgage remains in the name of MERS, as agent for any member/lender, which holds the corresponding note.

MERS’s position is that if a MERS member directs it to provide a written assignment of the mortgage, MERS has the legal authority, as an agent for each of its members, to assign mortgages to the member/lender currently holding the note as reflected in the MERS database.

Judge Grossman is going to examine all of these arguments and then some in his decision. But before he does that, he’s going to agree that he’s precluded from digging into the facts pertaining to the foreclosure judgment previously obtained in state court, and so he’s going to grant relief from the automatic stay and allow this foreclosure to proceed. And in that regard the judge writes…
For the reasons that follow, the Debtor’s objection to the Motion is overruled and the Motion is granted. The Debtor’s objection is overruled by application of either the Rooker-Feldman doctrine, or res judicata. Under those doctrines, this Court must accept the state court judgment of foreclosure as evidence of U.S. Bank’s status as a creditor secured by the Property. Such status is sufficient to establish the Movant’s standing to seek relief from the automatic stay. The Motion is granted on the merits because the Movant has shown, and the Debtor has not disputed, sufficient basis to lift the stay under Section 362(d).

Next the judge explains that, even though this court is constrained by Rooker-Feldman and the previously obtained state court decision, because there are numerous other cases before this court that present identical issues, and for which there have been no prior dispositive state court decisions, he’s going to look beyond this case’s limitations and publish a decision that addresses the issue of whether the “Movant” has established standing in this case because of the precedential effect it will have on other cases pending before the court. And so he writes…

Although the Court is constrained in this case to give full force and effect to the state court judgment of foreclosure, there are numerous other cases before this Court, which present identical issues with respect to MERS and in which there have been no prior dispositive state court decisions.

This Court has deferred rulings on dozens of other motions for relief from stay pending the resolution of the issue of whether an entity which acquires its interests in a mortgage by way of assignment from MERS, as nominee, is a valid secured creditor with standing to seek relief from the automatic stay.

It is for this reason that the Court’s decision in this matter will address the issue of whether the Movant has established standing in this case notwithstanding the existence of the foreclosure judgment. The Court believes this analysis is necessary for the precedential effect it will have on other cases pending before this Court.

The next paragraph of the judge’s decision is particularly telling. It is Judge Grossman completely disregarding perhaps MERS’ favorite argument, which is that MERS has to be okay because half the mortgages in this country are registered with MERS and if it’s not okay, the whole world will come to an end.

Judge Grossman states his view of this argument in no uncertain terms…

The Court recognizes that an adverse ruling regarding MERS’s authority to assign mortgages or act on behalf of its member/lenders could have a significant impact on MERS and upon the lenders, which do business with MERS throughout the United States.

However, the Court must resolve the instant matter by applying the laws as they exist today. It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage recording process. This Court does not accept the argument that because MERS may be involved with 50% of all residential mortgages in the country, that is reason enough for this Court to turn a blind eye to the fact that this process does not comply with the law.
Wow, so you see what he’s saying there, right? It’s worth repeating…

MERS and its partners made the decision to create and operate under a business model that was designed in large part to avoid the requirements of the traditional mortgage recording process. This Court does not accept the argument that because MERS may be involved with 50% of all residential mortgages in the country, that is reason enough for this Court to turn a blind eye to the fact that this process does not comply with the law.
Did you hear that sound? That was the sound of the MERS ship hitting an iceberg and starting to sink. To the lifeboats, banker-people, your ship is sinking, and the water’s damn cold.

And on that note, it’s once again time to Sing-Along with Mandelman! You remember the song from our youth about “How they built the ship Titanic to sail the ocean blue? And they thought they had a ship that the water would never leak through. But the Lord’s almighty hand, knew that ship would never stand… it was sad when the great ship went down. It was sad, so sad… it was sad, so sad…” You remember that one right?

Alrighty then… so, sing it like you mean it… with feeling… and if you don’t want to sing, maybe you should be reading about this stuff on Naked Capitalism, or Firedog Lake… Yves Smith is smarter than all get out, but when was the last time she led you in song?

V1:

Oh they built the good ship MERS, so foreclosures could sail through,

And they thought they had a plan that the courts would never see through,

But some lawyers’ learned hands, showed that MERS just didn’t stand,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad,

We were glad, so glad,

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

V2:

Oh, they went into the courts, hoping judges were inclined,

To not care exactly how, someone’s loan had been assigned.

Yes, the banks would rue the day, when they wrote that PSA,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad,

We were glad, so glad,

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

V3:

MERS said it had the right, to do things as it pleased,

But the courts did not agree, and soon homes could not be seized.

Seems laws had important words, and MERS assertions were absurd,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad

We were glad, so glad

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

V4:

Soon the bankers will all see, that fraud is not what prevails,

And they’ll realize their hot air will not fill this nation’s sails,

But the price will have been paid, for their mortgage-backed charade,

We were glad when the MERS ship went down.

~~~

CHORUS:

Oh we were glad, so glad

We were glad, so glad

We were glad when the MERS ship went down, to the bottom of the sea…

Many lost homes, but to those who lacked their loans,

We were glad when the MERS ship went down.

~~~

Okay, so I know there are at least a few people out there singing along with that little ditty from days spent at summer camp or on the school bus while on the way home from a field trip. Maybe next time I’ll work from Bingo Was His Name-O, or 100 bottles of Beer on the Wall.

Meanwhile, you’ve got plenty to do reading Judge Grossman’s decision as provided below. But, before you do, here are a few highlights, once again for those who want the Reader’s Digest Version.

First, from the MERS side of the argument…

In addition to adopting the arguments asserted by the Movant, MERS strenuously defends its authority to act as mortgagee pursuant to the procedures for processing this and other mortgages under the MERS “system.”

First, MERS points out that the Mortgage itself designates MERS as the “nominee” for the original lender, First Franklin, and its successors and assigns.

In addition, the lender designates, and the Debtor agrees to recognize, MERS “as the mortgagee of record and as nominee for ‘Lender and Lender’s successors and assigns’” and as such the Debtor “expressly agreed without qualification that MERS had the right to foreclose upon the premises as well as exercise any and all rights as nominee for the Lender.” (MERS Memorandum of Law at 7).

These designations as “nominee,” and “mortgagee of record,” and the Debtor’s recognition thereof, it argues, leads to the conclusion that MERS was authorized as a matter of law to assign the Mortgage to U.S. Bank.

Although MERS believes that the mortgage documents alone provide it with authority to effectuate the assignment at issue, they also urge the Court to broaden its analysis and read the documents in the context of the overall “MERS System.” According to MERS, each participating bank/lender agrees to be bound by the terms of a membership agreement pursuant to which the member appoints MERS to act as its authorized agent with authority to, among other things, hold legal title to mortgages and as a result, MERS is empowered to execute assignments of mortgage on behalf of all its member banks.

In this particular case, MERS maintains that as a member of MERS and pursuant to the MERS membership agreement, the loan originator in this case, First Franklin, appointed MERS “to act as its agent to hold the Mortgage as nominee on First Franklin’s behalf, and on behalf of First Franklin’s successors and assigns.”

MERS explains that subsequent to the mortgage’s inception, First Franklin assigned the Note to Aurora Bank FSB f/k/a Lehman Brothers Bank (“Aurora”), another MERS member. According to MERS, note assignments among MERS members are tracked via self-effectuated and self-monitored computer entries into the MERS database. As a MERS member, by operation of the MERS membership rules, Aurora is deemed to have appointed MERS to act as its agent to hold the Mortgage as nominee.

Aurora subsequently assigned the Note to U.S. Bank, also a MERS member. By operation of the MERS membership agreement, U.S. Bank is deemed to have appointed MERS to act as its agent to hold the Mortgage as nominee. Then, according to MERS, “U.S. Bank, as the holder of the note, under the MERS Membership Rules, chose to instruct MERS to assign the Mortgage to U.S. Bank prior to commencing the foreclosure proceedings by U.S. Bank.” (Affirmation of William C. Hultman, ¶12).

MERS argues that the express terms of the mortgage coupled with the provisions of the MERS membership agreement, is “more than sufficient to create an agency relationship between MERS and lender and the lender’s successors in interest” under New York law and as a result establish MERS’s authority to assign the Mortgage.

Okay, so that’s much of what MERS has to say about why it’s practices are fine and dandy, now let’s take a quick look at what the judge in this case has to say about the assignment of the note, among other things…

Noteholder Status

In the Motion, the Movant asserts U.S. Bank’s status as the “holder” of the Mortgage.

However, in order to have standing to seek relief from stay, Movant, which acts as the representative of U.S. Bank, must show that U.S. Bank holds both the Mortgage and the Note. Mims, 438 B.R. at 56. Although the Motion does not explicitly state that U.S. Bank is the holder of the Note, it is implicit in the Motion and the arguments presented by the Movant at the hearing.

However, the record demonstrates that the Movant has produced no evidence, documentary or otherwise, that U.S. Bank is the rightful holder of the Note.

Movant’s reliance on the fact that U.S. Bank’s noteholder status has not been challenged thus far does not alter or diminish the Movant’s burden to show that it is the holder of the Note as well as the Mortgage.

Under New York law, Movant can prove that U.S. Bank is the holder of the Note by providing the Court with proof of a written assignment of the Note, or by demonstrating that U.S. Bank has physical possession of the Note endorsed over to it. See, eg., LaSalle Bank N.A. v. Lamy, 824 N.Y.S.2d 769, 2006 WL 2251721, at *1 (N.Y. Sup. Ct. Aug. 7, 2006).

The only written assignment presented to the Court is not an assignment of the Note but rather an “Assignment of Mortgage” which contains a vague reference to the Note.

Tagged to the end of the provisions which purport to assign the Mortgage, there is language in the Assignment stating “To Have and to Hold the said Mortgage and Note, and also the said property until the said Assignee forever, subject to the terms contained in said Mortgage and Note.” (Assignment of Mortgage (emphasis added)).

Not only is the language vague and insufficient to prove an intent to assign the Note, but MERS is not a party to the Note and the record is barren of any representation that MERS, the purported assignee, had any authority to take any action with respect to the Note. Therefore, the Court finds that the Assignment of Mortgage is not sufficient to establish an effective assignment of the Note.

By MERS’s own account, it took no part in the assignment of the Note in this case, but merely provided a database, which allowed its members to electronically self-report transfers of the Note.

MERS does not confirm that the Note was properly transferred or in fact whether anyone including agents of MERS had or have physical possession of the Note. What remains undisputed is that MERS did not have any rights with respect to the Note and other than as described above, MERS played no role in the transfer of the Note.

Absent a showing of a valid assignment of the Note, Movant can demonstrate that U.S. Bank is the holder of the Note if it can show that U.S. Bank has physical possession of the Note endorsed to its name. See In re Mims, 423 B.R. at 56-57.

According to the evidence presented in this matter the manner in which the MERS system is structured provides that, “when the beneficial interest in a loan is sold, the promissory note is transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note. . . .” (MERS Supplemental Memorandum of Law at 6).

However, there is nothing in the record to prove that the Note in this case was transferred according to the processes described above other than MERS’s representation that its computer database reflects that the Note was transferred to U.S. Bank.

The Court has no evidentiary basis to find that the Note was endorsed to U.S. Bank or that U.S. Bank has physical possession of the Note. Therefore, the Court finds that Movant has not satisfied its burden of showing that U.S. Bank, the party on whose behalf Movant seeks relief from stay, is the holder of the Note.

So, the judge is saying things that are very similar to what we’ve all heard before, most recently in the Ibanez Decision by the Massachusetts Supreme Court, and in the New Jersey court decision, Kemp v. Countrywide, among numerous others of late. How was the note assigned, was it endorsed properly, can the trustee even produce any evidence that the trust is the holder of the note?

What it would seem to come down to is quite simple, I think…

Does the trust that thinks that it owns the loan, actually own the loan, and can the trustee produce any evidence that it does own the loan?

If the loan was not properly transferred into the trust, and if there is no evidence that the trust owns the loan in question, then it would seem that the investor bought a mortgage-backed security without the mortgage-backed part, and my guess would be that the investors at this point don’t care about the mortgages… they will want their pound of flesh from the bankers whose massive securities fraud has robbed them of untold billions and destroyed the global financial system.

I’m not a lawyer, but with the first investor lawsuit against Bank of America – Countrywide having been filed just a couple weeks ago, and saying basically that the investor was delivered mortgage-backed securities without the mortgages, that’s how I’m seeing it start to stack up.

Now let’s look at what the judge says about the mortgage itself… you see… it’s supposed to follow the note, but when MERS is in the game, it simply doesn’t.

Mortgagee Status

The Movant’s failure to show that U.S. Bank holds the Note should be fatal to the Movant’s standing.

However, even if the Movant could show that U.S. Bank is the holder of the Note, it still would have to establish that it holds the Mortgage in order to prove that it is a secured creditor with standing to bring this Motion before this Court.

The Movant urges the Court to adhere to the adage that a mortgage necessarily follows the same path as the note for which it stands as collateral. See Wells Fargo Bank, N.A. v. Perry, 875 N.Y.S.2d 853, 856 (N.Y. Sup. Ct. 2009).

In simple terms the Movant relies on the argument that a note and mortgage are inseparable. See Carpenter v. Longan, 83 U.S. 271, 274 (1872).

While it is generally true that a mortgage travels a parallel path with its corresponding debt obligation, the parties in this case have adopted a process, which by its very terms alters this practice where mortgages are held by MERS as “mortgagee of record.”

By MERS’s own account, the Note in this case was transferred among its members, while the Mortgage remained in MERS’s name.

MERS admits that the very foundation of its business model as described herein requires that the Note and Mortgage travel on divergent paths. Because the Note and Mortgage did not travel together, Movant must prove not only that it is acting on behalf of a valid assignee of the Note, but also that it is acting on behalf of the valid assignee of the Mortgage5.

Footnote 5 – MERS argues that notes and mortgages processed through the MERS System are never “separated” because beneficial ownership of the notes and mortgages are always held by the same entity.

The Court will not address that issue in this Decision, but leaves open the issue as to whether mortgages processed through the MERS system are properly perfected and valid liens. See Carpenter v. Longan, 83 U.S. at 274 (finding that an assignment of the mortgage without the note is a nullity); Landmark Nat’l Bank v. Kesler, 216 P.3d 158, 166-67 (Kan. 2009)

(“In the event that a mortgage loan somehow separates interests of the note and the deed of trust, with the deed of trust lying with some independent entity, the mortgage may become unenforceable”).
Yes, you read that last part right. The mortgage may become unenforceable. That’s really the 800-pound Gorilla in the room, isn’t it? Do they own it or not, and if they broke the laws, who wins?

Many people get all upset about the idea that a homeowner could not have to pay their mortgage because the laws were broken related to the transfer of the note and mortgage, but I’m starting to think they’re just a bunch of crybabies. The law is the law and if it says that someone doesn’t owe their mortgage, well… good for them.

We’re a nation built on laws and forged by lawyers, and there have been a lot of unpopular decisions that rightly stood because they upheld our nation’s laws… Brown v. The Board of Education comes immediately to mind, but there are many.

We need our plaintiff’s lawyers, our judges and our courts, if we’re going to live through what’s ahead of us. We certainly can’t depend on our legislature or our executive branches… they have, for the most part, been bought and paid for… our system is corrupt with the money of lobbyists. Only our laws and our courts can see us through this, and I’m willing to abide by whatever they say follows the law.

Okay, so here’s just a bit more from Judge Grossman’s analysis and conclusion…

MERS asserts that its right to assign the Mortgage to U.S. Bank in this case, and in what it estimates to be literally millions of other cases, stems from three sources: the Mortgage documents; the MERS membership agreement; and state law.

In order to provide some context to this discussion, the Court will begin its analysis with an overview of mortgage and loan processing within the MERS network of lenders as set forth in the record of this case.

In the most common residential lending scenario, there are two parties to a real property mortgage – a mortgagee, i.e., a lender, and a mortgagor, i.e., a borrower. With some nuances and allowances for the needs of modern finance this model has been followed for hundreds of years.

The MERS business plan, as envisioned and implemented by lenders and others involved in what has become known as the mortgage finance industry, is based in large part on amending this traditional model and introducing a third party into the equation.

MERS is, in fact, neither a borrower nor a lender, but rather purports to be both “mortgagee of record” and a “nominee” for the mortgagee.

MERS was created to alleviate problems created by, what was determined by the financial community to be, slow and burdensome recording processes adopted by virtually every state and locality. In effect the MERS system was designed to circumvent these procedures. MERS, as envisioned by its originators, operates as a replacement for our traditional system of public recordation of mortgages.

MERS argues that it had full authority to validly execute the Assignment of Mortgage to U.S. Bank on February 1, 2008, and that as of the date the foreclosure proceeding was commenced U.S. Bank held both the Note and the Mortgage.

However, without more, this Court finds that MERS’s “nominee” status and the rights bestowed upon MERS within the Mortgage itself are insufficient to empower MERS to effectuate a valid assignment of mortgage.

There are several published New York state trial level decisions holding that the status of “nominee” or “mortgagee of record” bestowed upon MERS in the mortgage documents, by itself, does not empower MERS to effectuate an assignment of the mortgage.

However, the rules lack any specific mention of an agency relationship, and do not bestow upon MERS any authority to act. Rather, the rules are ambiguous as to MERS’s authority to take affirmative actions with respect to mortgages registered on its system.
That’s pretty clear, I think. MERS, you’re going down.

In addition to casting itself as nominee/agent, MERS seems to argue that its role as “mortgagee of record” gives it the rights of a mortgagee in its own right.

MERS relies on the definition of “mortgagee” in the New York Real Property Actions and Proceedings Law Section 1921, which states that a “mortgagee” when used in the context of Section 1921, means the “current holder of the mortgage of record . . . or their agents, successors or assigns.” N.Y. Real Prop. Acts. L. § 1921 (McKinney 2011).

The provisions of Section 1921 relate solely to the discharge of mortgages and the Court will not apply that definition beyond the provisions of that section in order to find that MERS is a “mortgagee” with full authority to perform the duties of mortgagee in its own right.

Aside from the inappropriate reliance upon the statutory definition of “mortgagee,” MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best.

Okay, so some of that gets a little technical, I agree, but the last sentence is about as straightforward as it gets… MERS’s position that it can be both the mortgagee and an agent of the mortgagee is absurd, at best. And wait… there’s just a little bit more…

Adding to this absurdity, it is notable in this case that the Assignment of Mortgage was by MERS, as nominee for First Franklin, the original lender.

By the Movant’s and MERS’s own admission, at the time the assignment was effectuated, First Franklin no longer held any interest in the Note.

Both the Movant and MERS have represented to the Court that subsequent to the origination of the loan, the Note was assigned, through the MERS tracking system, from First Franklin to Aurora, and then from Aurora to U.S. Bank. Accordingly, at the time that MERS, as nominee of First Franklin, assigned the interest in the Mortgage to U.S. Bank, U.S. Bank allegedly already held the Note and it was at U.S. Bank’s direction, not First Franklin’s, that the Mortgage was assigned to U.S. Bank.

Said another way, when MERS assigned the Mortgage to U.S. Bank on First Franklin’s behalf, it took its direction from U.S. Bank, not First Franklin, to provide documentation of an assignment from an entity that no longer had any rights to the Note or the Mortgage.

The documentation provided to the Court in this case (and the Court has no reason to believe that any further documentation exists), is stunningly inconsistent with what the parties define as the facts of this case.

However, even if MERS had assigned the Mortgage acting on behalf of the entity which held the Note at the time of the assignment, this Court finds that MERS did not have authority, as “nominee” or agent, to assign the Mortgage absent a showing that it was given specific written directions by its principal.

This Court finds that MERS’s theory that it can act as a “common agent” for undisclosed principals is not support by the law.

The relationship between MERS and its lenders and its distortion of its alleged “nominee” status was appropriately described by the Supreme Court of Kansas as follows: “The parties appear to have defined the word [nominee] in much the same way that the blind men of Indian legend described an elephant – their description depended on which part they were touching at any given time.”

For all of the foregoing reasons, the Court finds that the Motion in this case should be granted. However, in all future cases, which involve MERS, the moving party must show that it validly holds both the mortgage and the underlying note in order to prove standing before this Court.

February 10, 2011

Hon. Robert E. Grossman United States Bankruptcy Judge
~~~

It’s very important to realize that the judge’s findings related to MERS in this case are NOT BINDING ON ANY COURT.

As foreclosure defense attorney Thomas Cox explains:

“Judge Grossman’s findings about MERS are not binding on anyone, because they did not resolve any issue in the case where Rooker-Feldman blocked that inquiry.”
Cox says he won’t be surprised if the MERS/securitization/foreclosure industry spin mentions this point since the law prohibited the judge from going behind the judgment to see how U.S. Bank got the mortgage, then it also prohibited making binding findings about the MERS issue.

Cox further points out…

“On the other hand, with that being so, I am highly doubtful that U.S. Bank and Select Portfolio Servicing could appeal from those MERS holdings because their position in the case was not affected by them. While the judge did allow them to intervene, since the judge’s opinions about MERS are not binding on any court, I do not see how MERS could effectively argue that it suffered a legally cognizable harm. If and when Judge Grossman, or some other judge, in some other case uses the rationale laid out by Judge Grossman to nullify a MERS mortgage assignment, only then will a trustee and/or MERS have any ability to appeal the issue.”
Okay, so that about covers it, I’d say. Below you’ll find the Judge Grossman’s decision in its entirety, and hat tip to attorney Thomas Cox of Portland, Maine for bringing this decision to my attention, helping me to understand it, and continuing to go after the bastards with the strength and tenacity of a Mainer.

Mandelman out.

In re: Ferrel L. Agard, Debtor
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http://www.thelibertybeacon.com/2013/01/22/the-radiation-warnings-you-wont-get-from-the-mainstream-propaganda-machine/

The Radiation Warnings You Won’t Get from the Mainstream Propaganda Machine

Published January 22, 2013, filed under ENVIRONMENT, HEALTH

The mainstream media and the federal government will soon have the blood of the world on it’s hands.

Radiation from the Fukushima Nuclear Plant disaster in Japan is now actively in the ecosystem all along the North American west coast… even the sea weed is now radiated.  The Vancouver Sun reported one year ago that the seaweed tested from waters off the coast of British Columbia were 4 times the amount considered safe.  No further test results were released after the initial report.

The governments of the United States and Canada are not conducting tests for radioactivity – at least not to the knowledge of the public.  Secretary of State Hillary Clinton has agreed to continue purchasing seafood from Japan, despite the fact that the food is not being tested for radioactive contamination.  Last November, independent testing in Japan showed 65 per cent of the catches tested positive for cesium (a radioactive material).  Instead of refusing to purchase the poisoned fish, food safety agencies in both the United States and Canada have simply raised the “acceptable level of radiation.”  We can’t go offending the Japanese after promising to buy their tainted goods, now can we?

After the North American governments refused to fund testing, oceanographer Ken Buesseler, a senior scientist at the non-profit Woods Hole Oceanographic Institution in Woods Hole, Mass, along with Nicholas Fisher, a marine sciences professor at the State University of New York at Stony Brook, and other concerned scientists, managed to secure private funding for a Pacific research voyage.  The results?

Cesium levels in the Pacific had initially gone up an astonishing 45 million times above pre-accident levels. The levels then declined rapidly for a while, but after that, they unexpectedly levelled off.

In July, cesium levels stopped declining and remained stuck at 10,000 times above pre-accident levels.

This means the ocean isn’t diluting the radiation as expected. If it had been, cesium levels would have kept falling.

The finding suggests that radiation is still being released into the ocean long after the accident in March, 2011.

Less than two weeks after the tsunami and subsequent nuclear disaster, Michael Kane, an investigative journalist, reported, “In the wake of the continuing nuclear tragedy in Japan, the United States government is still moving quickly to increase the amounts of radiation the population can “safely” absorb by raising the safe zone for exposure to levels designed to protect the government and nuclear industry more than human life.”

The radiation has absolutely reached the shores of North America.  Water samples from across the continent have tested positive for unsafe levels of radioactivity.  The levels exceeded federal drinking water thresholds, known as maximum contaminant levels, or MCL, by as much as 181 times.”This means that the complete ecosystem of the Pacific Ocean is now poisoned with radiation and we aren’t being warned.

Samples of milk taken across the United States have shown radiation at levels 2000 percent higher than EPA maximums.  The reason that milk is so significant is that it it representative of the entire food supply.  According to an article published on Natural News, “Cows consume grass and are exposed to the same elements as food crops and water supplies. In other words, when cows’ milk starts testing positive for high levels of radioactive elements, this is indicative of radioactive contamination of the entire food supply.”

The GMO Food and Drug Pushers Administration and the EnvironmentalDeception Protection Agency, instead of refusing to prohibit the sale of tainted foods and mandatory testing of foods produced and harvested from the Pacific Coast, have simply raised the “acceptable levels”  of radioactive material in foods.

Clearly, the “it’s-all-for-your-own-good” government will not protect us, or even inform us of the dangers so we can protect ourselves, because it might dip into the pockets of the global elite, the nuclear energy industry, and the food industries.  There is big money behind this cover-up. Refusing to purchase and consume their tainted goods is the best way to fight back, while keeping our families safe and healthy.

How can we protect ourselves? First, be aware of what items are likely to be highly tainted.

1.)  SEAFOOD:  Question the origin of ALL seafood.  Fish and crustaceans from the Pacific Ocean should all be considered to be poisoned with radiation.

2.)  WATER:  The rainfall and snowfall are all radiated.  Do not drink any water that has not been filtered.   The tap water that flows from your faucet has NOT been treated to rid it of radioactive particles. A recent report from the NY Times stated, “A rooftop water monitoring program managed by UC Berkeley’s Department of Nuclear Engineering detected substantial spikes in rain-borne iodine-131 during torrential downpours …

3.) DAIRY PRODUCTS:  Milk and milk products from the West Coast states currently have the highest levels of radiation in North America.

4.)  PRODUCE:  Leafy Vegetables, Wines, Tomatoes, Strawberries….all produce from California or any other West Coast State are also likely to be tainted.

5.)  MEAT:  If a animal eats any leafy vegetable all along the West Coast, that animal has consumed radiation, and is poisoned.  This is any animal from cows, pigs, goats, sheep to wild deer and other game.

If you eat the above foods from areas with high radiation levels, you are eating radiation and feeding it to your children. Slowly the radiation levels within your body will build up.  This is PERMANENT.

Infant mortality rates across the United States have increased by more than 35% since the nuclear disaster, according to a court statement by Dr. with independent scientist Leuren Moret, MA, PhD.  A study published in The International Journal of Medicine indicates that more than 20,000 deaths right here in North America can be directly attributed to the release of radioactive material from Fukushima.

Radioactive isotopes of the type released from Fukushima have a half life of 30,000 years.  This means that we must permanently change the way we prepare our food.

  • Wash your food with soap and rinse it in filtered water. 
  • Be aware of the origins of your vegetables, fish, game and seafood.
  • Keep abreast of radiation levels to help monitor where your food is acquired.
  • Use only filtered water for drinking, cooking and ice.

Read original here: http://www.shtfplan.com/headline-news/the-radiation-warnings-you-wont-get-from-the-mainstream-propaganda-machine_04022012

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Pacific “Horror Show”, From Mexico To Alaska: Millions/Tons Creatures Dying

Thursday, May 29, 2014 13:45
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(Before It’s News)

Scientists are making progress trying to figure out what is causing the mass die-off of sea stars along the entire West Coast of North America. Research suggests an infection is partly responsible for the sickness.

Pacific “Horror Show”, From Mexico To Alaska:  Millions/Tons Creatures Dying

Dear world

The horror show of death continues from approx 2011 onwards… it’s not the death that is horrific… while it very unfortunate…it’s the lack of response from billions of people… who feel they can not do anything…

It is time for each of us, to do more.. to envision a clean planet… your visions of a clean planet, are more important than envisioning a dirty planet… we already achieved that… now we use our ability to envision, to clean up this joint!  Are you powerful enough to envision something that the majority are unable to envision?

Watch the mainstream media come up with syndrome and causes…. anything BUT FUKUSHIMA RADIATION.

Use the violet flame!

How Does the Violet Flame Work?


Saint Germain explains that the violet flame has the ability to change physical conditions because, of all the flames, the violet is closest in vibratory action to the components of matter. “The violet flame can combine with any molecule or molecular structure, any particle of matter known or unknown, and any wave of light, electron or electricity,” he says. Wherever people gather together to give violet-flame prayers, “there you notice immediately an improvement in physical conditions.”

more…. and worth knowing I might add… http://thegoldenlightchannel.com/the-violet-flame-power-of-transmutation

Remember… together we are victorious!

Indian in the machine

 

 

California

Marina Del Rey’s “Horror Show”: Pelican and Anchovy Dieoff

Los Angeles Local News | FOX 11 LA KTTV

 

Bizarre creature’ turned 50 miles of California coast into graveyard in summer 2011 — Gov’t Biologist: Die-off like this never seen here — “Abalone massacre… carcasses of urchins, starfish, other mollusks” — Experts find “alterations in 30 genes, some unknown to science” — “Suddenly proliferating… killing wildlife” (PHOTO)

http://enenews.com/bizarre-creature-turned-50-mile-stretch-of-california-coast-into-graveyard-in-summer-2011-govt-biologist-die-offs-like-this-very-rare-weve-never-seen-it-here-abalone

BC-Mexico: Sea stars,  BC: Oysters and scallops

VANCOUVER – Scientists are making some headway in figuring out what is killing millions of sea stars in the waters off the Pacific coast, from British Columbia to Mexico.

http://www.huffingtonpost.ca/2014/05/04/sea-star-wasting-syndrome-pathogen_n_5261880.html​

 

Globe and Mail, Feb. 27, 2014: Mystery surrounds massive die-off of oysters and scallops off B.C. coast […] Something is killing oysters and scallops in dramatic numbers […] The cause is unknown, but ocean acidification is the main suspect. […] last year, nearby Pendrell Sound had a massive die-off of wild oysters. […] [Rob Saunders, CEO of Island Scallops] has lost 10 million scallops over the past two years, and smaller companies have had similar problems. Mr. Saunders is pushing for a research project to find out what’s happening. […] one of BC’s biggest suppliers of fresh seafood, said the scallop die-off has rung alarm bells.

CBC, Feb. 25, 2014: The deteriorating health of B.C.’s oceans […] Millions of shellfish are dying off before they can be harvested at Island Scallops […] researchers will try to determine if acidification is to blame or if other factors are at play.

http://enenews.com/alarm-bells-massive-die-off-of-oysters-and-scallops-in-pacific-northwest-millions-of-shellfish-are-dying-by-july-mortality-hit-95-to-100-per-cent-deformed-shells-smaller-in-si

 

Alaska – Seals and Walrus

‘Mystery disease’ on Pacific coast of Alaska — Livers ‘crumble’… Hearts enlarged, pale… Yellow lymph nodes… Blood-filled lungs (PHOTOS) — Professor: Worrying there’s no answers, big public health concern — Testing carcasses for Fukushima radioactivity (AUDIO)

 

KNOM, May 14, 2014: Mysterious illness that’s been plaguing seals [first hit] the Bering Strait and the North Slope starting in the summer of 2011. Up to 300 seals were found suffering from hair loss, skin sores, and unusually lethargic behavior. Dozens of walruses were also found with similar sores [causing] marine mammal regulators to declare an Unusual Mortality Event […] walrus have been taken off the UME […] Seals [are still] displaying hair loss […] University of Alaska Fairbanks have begun testing infected seal carcasses for [Fukushima] radiation […] Results should be released in July.

Gay Sheffield, University of Alaska Fairbanks: The lack of answers is worrying. “This has been a big food security, public health concern.”

NOAA (pdf), May 12, 2014: UME will remain open for ice seals (ringed seals, ribbon seals, bearded seals, spotted seals) — based on continued reports of […] disease symptoms

Alaska Dispatch, May 13, 2014: An investigation into a mysterious disease that caused skin lesions and hair loss among Alaska and Russian walruses has been closed without identifying the root cause […] The potential causes looked into […] infections and endocrine disruptions. Also investigated was the possibility of contamination from the Fukushima nuclear plant […] A preliminary investigation in 2012 concluded that radioactive contamination was not the likely cause. Investigators are now looking at the possibility of multiple causes [according to NOAA,] “the theory is that a number of factors contributed to the illness.”

http://enenews.com/govt-diseased-seals-along-pacific-coast-of-alaska-experts-livers-crumble-hearts-enlarged-and-pale-yellow-lymph-nodes-blood-filled-lungs-photos-professor-worrying-ther

 

Is the radiation high enough or should we continue to party?

Japan Times: Fukushima fallout in N. America at 400,000,000,000,000 Bq of Cesium-137 — Study: Hazardous on a ‘continental scale’ — Physicist: “Cancer a certainty” if one radioactive particle ingested — CBS: Inaccurate internet reports stoked fear radiation had somehow come our way (VIDEO)

http://enenews.com/japan-times-fukushima-fallout-america-estimated-400000000000000-bq-cesium-137-experts-hazardous-consequences-continental-scale-physicist-cancer-certainty-one-radioactive-particle-inhaled-ingeste

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Judge rules secret FBI national security letters unconstitutional

fbiwarantless12z.jpg

Feb. 10, 2009: The main headquarters of the FBI, the J. Edgar Hoover Building, in Washington, DC.AP

A federal judge has struck down a set of laws allowing the FBI to issue so-called national security letters to banks, phone companies and other businesses demanding customer information.

U.S. District Judge Susan Illston said the laws violate the First Amendment and the separation of powers principles and ordered the government to stop issuing the secretive letters or enforcing their gag orders, The Wall Street Journal reported.

The FBI almost always bars recipients of the letters from disclosing to anyone — including customers — that they have even received the demands, Illston said in the ruling released Friday.

The government has failed to show that the letters and the blanket non-disclosure policy “serve the compelling need of national security,” and the gag order creates “too large a danger that speech is being unnecessarily restricted,” the San Francisco-based Illston wrote.

A Department of Justice spokesman told the Journal the department was “reviewing the order.”

FBI counter-terrorism agents began issuing the letters, which don’t require a judge’s approval, after Congress passed the USA Patriot Act in the wake of the Sept. 11, 2001, attacks.

The case arises from a lawsuit that lawyers with the Electronic Frontier Foundation filed in 2011 on behalf of an unnamed telecommunications company that received an FBI demand for customer information.

“We are very pleased that the court recognized the fatal constitutional shortcomings of the NSL statute,” EFF lawyer Matt Zimmerman said. “The government’s gags have truncated the public debate on these controversial surveillance tools. Our client looks forward to the day when it can publicly discuss its experience.”

Illston wrote that she was also troubled by the limited powers judges have to lift the gag orders.

Judges can eliminate the gag order only if they have “no reason to believe that disclosure may endanger the national security of the United States, interfere with a criminal counter-terrorism, or counterintelligence investigation, interfere with diplomatic relations, or endanger the life or physical safety of any person.”

That provision also violated the Constitution because it blocks meaningful judicial review.

Illston ordered the FBI to cease issuing the letters, but put her order on hold for 90 days so the U.S. Department of Justice can appeal to the 9th U.S. Circuit Court of Appeals.

Illston isn’t the first federal judge to find the letters troubling. The 2nd U.S. Circuit Court of Appeals in New York also found the gag order unconstitutional, but allowed the FBI to continue issuing them if it made changes to its system such as notifying recipients they can ask federal judges to review the letters.

Illston ruled Friday that it’s up to Congress, and not the courts, to tinker with the letters.

In 2007, the Justice Department’s inspector general found widespread violations in the FBI’s use of the letters, including demands without proper authorization and information obtained in non-emergency circumstances. The FBI has tightened oversight of the system.

The FBI made 16,511 national security letter requests for information regarding 7,201 people in 2011, the latest data available. The FBI uses the letters to collect unlimited kinds of sensitive, private information like financial and phone records.

The Associated Press contributed to this report.

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New study reveals deaths and mutations ”increased sharply’ from exposure to Fukushima contamination, “especially at low doses” — ‘Small’ levels of cesium may be ‘significantly toxic’ — Smithsonian: “In other words, things don’t look good for the animals living around Fukushima”

 
Published: May 15th, 2014 at 3:14 pm ET 
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Smithsonian Magazine, May 14, 2014: Even Tiny Amounts of Radioactive Food Made Caterpillars Become Abnormal Butterflies […] Researchers in Japan […] discovered, even a small amount of radiation is too much. […] The scientists collected plant material from around Fukushima and fed it to pale grass blue butterfly caterpillars. When the caterpillars turned into butterflies, they suffered from mutations and were more likely to die early [… even if they] had only eaten a small amount of artificial caesium […] In other words, things don’t look good for the animals living around Fukushima.

Nature — Scientific Reports (pdf), Published May 15, 2014: [We] examined possible relationships between the dose of ingested cesium per larva and the mortality and abnormality rates. Both the mortality and abnormality rates increased sharply, especially at low doses […] the mortality and abnormality rates increased sharply, especially at low doses. Additionally, there seemed to be no threshold level below which no biological response could be detected. […] the dose-response data suggests that the relatively small level of artificial cesium from the Fukushima Dai-ichi NPP may be significantly toxic to some individuals in butterfly populations […] the half lethal [i.e. LD50, amount that will kill 50% of a test subjects] dose [is 1.9 Bq per larva] and the half abnormal dose [is 0.76 Bq per larva] […] relatively small [levels] of artificial cesium from the Fukushima Dai-ichi NPP may be significantly toxic to some individuals in butterfly populations […] we assert that the half lethal and abnormal doses we obtained were quite high. […] it should be noted that we sampled contaminated leaves from Fukushima City, which many people inhabit as though nothing had happened […] Implications of the half lethal and abnormal doses we obtained in the present study will impact future discussions on the effects of radioactive exposure on other organisms, including humans. […] In conclusion, it is important to recognize the risk of internal radiation exposure due to ingested radioactive cesium, at least for the pale grass blue butterfly, and likely for certain other organisms living in the polluted area, possibly including humans. […]

View the study published by Nature here (pdf)

Published: May 15th, 2014 at 3:14 pm ET
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NBC: Record level of sick or injured California seals and sea lions turning up — “The numbers are extraordinary” — “Scientists worried… The worst kind of perfect storm” — Pups should be weighing 2 or 3 times as much, “severely malnourished” (VIDEO)

Published: April 18th, 2014 at 11:10 pm ET
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NBC Bay Area, Apr. 18, 2014: Seals and sea lions in California are turning up sick or injured at a record pace this year. Sausalito’s Marine Mammal Center has more animals in its care right now than ever before in its 39-year history. There are three factors at play: First of all, this is the time of year when pups get stranded or separated from their mothers for an unknown reason. Also last year’s sea lion epidemic sent malnourished, sick pups onto California shores at record levels. On top of that, a Monterey Bay algae bloom is making a lot of animals sick. Experts say it’s creating the worst kind of perfect storm.

NBC Southern California, Apr. 17, 2014: Scientists Worry Sea Lion Epidemic May Return […] Marine scientists are worried about the increasing number of sick, often severely malnourished, sea lions showing up at a San Pedro care facility. […] An increase in the number of stranded sea lion pups in Southern California has scientists and marine mammal experts asking the question, “Could it be happening again?” […] The center was caring for more than 200 mammals Thursday, most of them California sea lion pups. […] During a normal year, in comparison, the center takes in about 250 animals total. […] Experts hope what they were dealing with last year was an anomaly rather than a new normal for California’s sea lion pup population.

Kaitlin Rixon, National Marine Mammal Foundation volunteer: “Right now, when we are doing intake, we are seeing the sea lion pups to be around 20 pounds. They should be around 50 pounds, so they are severely malnourished.”

David Bard, director of Marine Mammal Care Center in San Pedro: “It was definitely linked to food availability or the distribution of their normal food source last year.[…] Is it related to human activity along the coastline […] or is it something of a natural source?”

Jeff Boehm, Marine Mammal Center in Sausalito: The numbers are extraordinary […] “Out of the gates this year, it’s a record-setting pace. We don’t know what May is going to bring us yet. We don’t what June is going to bring us yet. We’ve had peaks of activity as late as October.”

See also: L.A. Times: Alarming West Coast sardine crash likely radiating through ecosystem — Experts warn marine mammals and seabirds are starving, may suffer for years to come

Watch NBC’s Bay Area broadcast here and Southern California broadcast here

 

CBS San Francisco: Record number of sick seals & sea lions — Doctor: A lot with “large pockets of green and yellow puss all over their body” (PHOTO & VIDEOS)

Published: April 20th, 2014 at 4:49 pm ET
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CBS San Francisco, Apr. 16, 2014: Marine Mammal Center Says More Animals In Need Than Ever Before […] Walking among the pens of California sea lions, elephant seals and harbor seals, Marine Mammal Center spokeswoman Laura Sherr said they expect to have 200 mammals by the end of the week, which will be a per-day record.

CBS Video Title: A record number of seals and sea lions have become sick and are being treated at the Marine Mammal Center in Sausalito >> Full broadcast here

KCBS Radio, Apr. 16, 2014 — Marine Mammal Center spokeswoman Laura Sherr: “Right now we have in hand, live animals, 194.” […] The previous per day record for patients at the facility was 179. >> Full broadcast here

USC Impact, Kaysie Ellingson, Mar. 27, 2014: An environmental problem threatens the lives of sea lions on the California coast

At 8:30 in

Rescue and rehabilitation wasn’t the [California Wildlife Center’s] only responsibility. Much of their work dealt with the pups that had died.

Duane Tom, veterinarian at the California Wildlife Center: “We were doing a lot of necropsy for them. We found a lot with abscesses — there were just large pockets of green and yellow puss all over their body — whether it’s in their lungs, in their liver. It looks like they got sick systemically.”

 

 

Alarm as record numbers of seals & sea lions ‘starving to death’ along California coast — “It’s just spiked… calls started coming nonstop” — “So many unhealthy… washing ashore” — “Extremely complex issue… multitude of factors in play” — “Definitely a mystery, we’re hoping it’s not the new norm”

Published: May 4th, 2014 at 6:28 pm ET
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Orange County Register, May 2, 2014: Sea lions are […] washing ashore, many of them pups dehydrated, malnourished and on the brink of death. The year started off quieter than last year, and the Pacific Marine Mammal Center’s director of development, Melissa Sciacca, thought they were in the clear – until about a month ago, when the calls started coming in nonstop. […] “We thought it was going to be a nice calm year; in the last month it’s just spiked,” she said. “The rescues just keep coming in at a steady pace.” It’s the second year stranded sea lions have been reported in alarming numbers. […] Last year, scientists tested for radioactivity, and it was determined that wasn’t the cause, and infectious disease was also ruled out.

San Francisco Chronicle, May 3, 2014: Young seals, sea lions starving in record numbers — Rescuers are scrambling to save a record number of young sea lions and seals along California’s northern and central coast while scientists work to understand why the animals are beaching themselves […] The emaciated and dehydrated pups are turning up along the 600 miles of coastline from Mendocino to San Luis Obispo monitored by the Marine Mammal Center. Many are too weak to move after washing ashore […] As of Wednesday, the center had brought in 429 California sea lions, elephant seals, harbor seals and fur seals this year. That’s well above the 291 animals admitted by the same date last year […] Southern California witnessed an almost 70 percent die-off of young sea lions – those born in summer 2012 – near the Channel Islands, where most American sea lions breed.

Sharon Melin, NOAA biologist: “In 2013, it was only the young animals that tried to do it on their own […] this year there’s lots of stranding going on, but those are a different age-class of pups.”

Dr. Shawn Johnson, Marine Mammal Center: “The ones we are seeing are basically starving to death […] It’s definitely a mystery. We’re hoping it’s not the new norm.”

Coastline Pilot, May 1, 2014: “In the last month we’ve seen the rescues spike,” [Pacific Marine Mammal Center’s Keith Matassa] said. […] Researchers are still trying to determine why so many unhealthy sea lions are washing ashore. “The reasons behind the animal strandings are an extremely complex issue,” Matassa said. “Although there is a leading theory that their food source is playing a significant role, there are a multitude of factors that come in to play.”

“Starving to death”? From last week: SF Chronicle: “Unbelievable hordes” of fish near California coast; Most birds, sea lions, dolphins, whales anywhere — Expert: ‘Off the charts’ pelican population “highly unusual… could reflect breeding failures elsewhere”; “Abnormal ocean conditions” to blame?

 

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“Prestigious group of international scientists” interested in risk to West Coast from Fukushima radioactive plume — “Major concern for public health of coastal communities” — Bioaccumulation potential in region must be understood »
SF Chronicle: “Unbelievable hordes” of fish near California coast; Most birds, sea lions, dolphins, whales anywhere — Expert: ‘Off the charts’ pelican population “highly unusual… could reflect breeding failures elsewhere”; “Abnormal ocean conditions” to blame?
Published: May 1st, 2014 at 9:34 am ET
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San Francisco Chronicle, Apr. 26, 2014: In the past year, Monterey Bay has become the richest marine region on the Pacific Coast. In the past three weeks, it has reached a new peak with unbelievable hordes of anchovies, along with other baitfish, and with it, the highest numbers of salmon, marine birds, sea lions, gray whales, humpback whales and orcas anywhere. The bay ignited with life […] upwelling in the underwater canyon and jump-started the marine food chain. […] A week ago Monday, the humpbacks and killer whales arrived. Tony Lorenz on the Sea Wolf sent me an alert, that he saw 50 humpback whales […] A school of Pacific white-sided dolphin, numbering over a thousand, has also been sighted […] the orcas found a mother gray whale with a calf […] dragged the baby whale below the surface and drowned it […] In the past few days, Lorenz reported another attack, where the orcas dragged a carcass of a baby whale around for hours, and then when a sea lion showed up to see what was going on, it got nailed, too.

Point Reyes Light, May 1, 2014: Large schools of baitfish off the coast of Point Reyes, presenting a feast for birds and sea mammals and a strange sight for locals […] An avian ecologist with Petaluma-based Point Blue said that “off the charts” numbers of pelicans in the area last month might also point to abnormal ocean conditions and a coming El Niño […] Bolinas resident Burr Heneman wrote […] he had only seen such a massive baitfish [sardines] event in Bolinas a few times in the past 40 years, and never in the spring—only in July or August, and only with anchovies. […] Large sardines […] might not typically reach this area until June, said Russ Vetter, a senior scientist at NOAA […] Reports early this year described a decline of the sardine fishery off the southern California coast […] crews reportedly struggled to find sardines and typically picked up larger and more mature ones when they caught any at all. Sardines don’t typically come so close to the coast when they pass through the area because of the inhospitable cold waters […] upwelling began in March—within the normal range […] avian ecologist with Point Blue, Dave Shuford, wrote to the Light that the number of pelicans seen at Bolinas Lagoon was highly unusual for this time of year. That could reflect breeding failures elsewhere, he said […]

Dave Shuford, avian ecologist: “Although occurrence of pelicans in the (hundreds) is not unprecedented in the Point Reyes area in April, the numbers seen the other day appear to be […] about 2,600 pelicans at Bolinas Lagoon on Sunday, which is off charts, I think, for April.”

See also: Experts: “Really an off year” — Pelicans starving in Pacific Northwest since 2011, killing baby birds for food — Breeding success “really poor” since 2011 — “I believe pelicans are responding to large scale changes” — “Sardine crash” persists in Pacific since decline in 2011

And: CNN: The Pacific has seen its fair share of weird recently — Bay in California “now a massive soup bowl” — “Miles of anchovies, mountains deep” — It’s like none ever recorded… Old timers have never seen anything like this — “We may be experiencing ‘global weirding'” (VIDEO)

Published: May 1st, 2014 at 9:34 am ET
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NY Times in Fukushima: “It’s all lies” from gov’t about radiation — They are forcing us to come back and live 10 miles from leaking nuclear plant — “This is inhumane” — “I want to run away, but… we have no more money” — Radiation still 300% previous levels

Published: April 28th, 2014 at 10:08 am ET
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New York Times, Apr. 27, 2014: Ever since they were forced to evacuate during […] Kim Eunja and her husband have refused to return […] for fear of radiation. But now they say they may have no choice. […] government and national news media have trumpeted the reopening of Miyakoji as a happy milestone […] many residents tell a darker story. […] [Fukushima Daiichi] is still leaking radiation […] The government has declared that the stipends […] will end next March, when temporary housing will also begin to be closed. Villagers who move back before then will receive a $9,000 bonus from Tepco […] Experts […] say the evacuees will feel increasing pressure to go back from a government that wants […] to limit criticism of the powerful nuclear industry. […] Tepco refused to comment, beyond saying that it had so far paid out $36 billion […] the government says that Miyakoji is safe. […] On a recent trip here, radiation measured up to 0.23 microsieverts per hour, about three times preaccident levels […] Experts admit that they know little about the health effects of long-term exposure to low-dose radiation.***

Yukei Tomitsuka, mayor of Tamura (administers Miyakoji): “Tepco is being so stupidly unfair […] We are the victims. Should we have to go hat in hand to Tepco to ask for more money?”

Teruhisa Maruyama, lawyer, Support Group for Victims of the Nuclear Accident: “This’s inhumane and irresponsible […] The national government knows that full compensation could add up to big money, enough to raise public doubts about the wisdom of using nuclear power in Japan.”

Kim Eunja, operator of area restaurant: “The government and the media say the radiation has been cleaned up, but it’s all lies […] I want to run away, but I cannot. We have no more money.”

Satoshi Mizuochi, who helps his wife Kim at restaurant: “They want to say that everything is back to normal so they can keep their nuclear plants […] Failing to compensate us for our losses is a way of pressuring us to go back.”

Yoshikuni Munakata, retired Daiichi worker: “Compensation payments force us to come back.”

***The Times repeats the often heard statement that experts “know little about the health effects of long-term exposure to low-dose radiation”. Yet, independent experts say otherwise:

Published: April 28th, 2014 at 10:08 am ET
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Former US Official: War in Ukraine could cause disaster worse than Chernobyl and Fukushima — Situation “calls for far greater global concern” — Multiple scenarios result in meltdown — Foreign Minister: “Potential threat to many nuclear facilities”

Published: April 15th, 2014 at 5:55 pm ET
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Bennett Ramberg, U.S. State Department policy analyst in the Bureau of Politico-Military Affairs under President George H.W. Bush, Apr. 14, 2014: […] Ukraine confronts a nuclear specter of a different kind [than Chernobyl,] the possibility that the country’s reactors could become military targets in the event of a Russian invasion. […] Ukraine’s parliament [called] for international monitors to help protect the plants […] the angst is real. […] With the exception of the 1990’s Balkan conflict, wars have not been fought against or within countries with nuclear reactors […] military jets overflew Slovenia’s Krško nuclear power plant in a threatening gesture […] Serbian nationalists called for attacks to release the radioactive contents. […] the sheer scale of Ukraine’s nuclear enterprise calls for far greater global concern […] aging plants provide 40% of Ukraine’s electricity. […] In Ukraine, nuclear emissions could exceed both Chernobyl and Fukushima. Wartime conditions would prevent emergency crews from getting to an affected plant […] In the event of fighting near reactors, the West should prepare to ferry forces to secure the plants […] in the event of a meltdown, the West should rally both governments to initiate a cease-fire […] failure to prepare for the worst is not an option.

Ramberg’s analysis suggests several scenarios:

  • Warfare is rife with accidents and human error, and […] could cause a meltdown
  • Fighting could disrupt off-site power
  • Operators could abandon their posts
  • Combatants could invade nuclear plants
  • Others might take refuge there, creating a dangerous standoff
  • Failure of military command and control
  • Fog of war could bring plants under bombardment

Andrii Deshchytsia, Ukraine acting foreign minister at the Nuclear Security Summit in The Hague: “Potential threat to many nuclear facilities [should events deteriorate into open warfare].”

Ihor Prokopchuk, IAEA ambassador from Ukraine wrote to the agency’s board of governors: “[An invasion could bring a] threat of radiation contamination on the territory of Ukraine and the territory of neighboring states.”

From Jan. 30, 2014: BBC: Ukraine “on brink of civil war” — Gov’t: Threats to blow up nuclear plants; Facilities on high alert after seizure of energy ministry (VIDEO)

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Bloomberg: Fukushima a global disaster with huge environmental consequences… like all nuclear catastrophes — UC Berkeley Nuclear Expert: There’s ‘clear and obvious’ consequences from radiation release… citizens should be prepared… ‘cold truth’ is accidents will always occur

Published: April 9th, 2014 at 12:10 pm ET
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Bloomberg, Apr. 4, 2014: World Needs to Get Ready for the Next Nuclear Plant Accident– Three major atomic accidents in 35 years are forcing the world’s nuclear industry to stop imagining it can prevent more catastrophes and to focus instead on how to contain them. […] scientists warn the next nuclear accident is waiting to happen […] the causes of the three events followed no pattern, and the inability to immediately contain them escalated the episodes into global disasters with huge economic, environmental and political consequences. […] according to the last Soviet leader Mikhail Gorbachev it was a factor in bringing about the collapse of the Soviet Union […]

Joonhong Ahn, professor at the Department of Nuclear Engineering of University of California, Berkeley: “The cold truth is that, no matter what you do on the technological improvements side, accidents will occur — somewhere, someplace.” […] The consequences of radiation release, contamination and evacuation of people is “clear and obvious” […] That means governments and citizens should be prepared, not just nuclear utilities […] The problem with an engineering solution [is]  those defense systems can also fail […] “This is an endless cycle. Whatever is your technology, however it is developed, we always have residual risk.” When the next nuclear accident occurs the world needs to have better knowledge of how to limit the spread of radiation and do the clean-up, including removing radiation […] We also need more understanding of the impact of low-dose radiation on organisms […] “This is about recovery from an accident, not preventing an accident […] It’s completely different. And I think this concept is very necessary for the future of nuclear utilization.”

Gregory Jaczko, ex-chairman of the U.S. Nuclear Regulatory Commission: “We have this accident and people will say, you know, it was caused by this and that […] But the next accident is going to be something different. Nobody can tell you where or when or what exactly it is going to be […] Once you have an accident, a low-probability and high consequence event, you can no longer call it a low probability event […] It is an event that’s happened and you cannot ignore the consequences simply because it was never supposed to happen. The consequences are real. Probabilities are always hypothetical.” […] The cost of cleaning up Fukushima may be more than the total cost of building all the world’s nuclear plants to date […] “If we look at this technology and we challenge ourselves to make technology that meets this standard then we’ll see that there are ways to do it […] But if there aren’t ways to do it — economically viable ways to do it […] this is perhaps then not a technology that we want to rely on well into the future.”

See also: Former Top U.S. Nuclear Official: U.S. nuclear plants should be phased out — “Can’t guarantee against accident causing widespread land contamination”

Published: April 9th, 2014 at 12:10 pm ET
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  1. Officials: Nuclear release from container(s) indicated at #WIPP site — “We never, ever thought this kind of an event would occur” — “Absolute seriousness of this can’t be overstated” — Resident: “I feel like they’re not telling us everything” (VIDEO) February 25, 2014
  2. TV: US Senators want federal agents near WIPP to check if safe; “A lot more people could have been hurt a lot worse” — Public “skeptical whole truth about environmental risks shared” — Report: “It will shut WIPP down for a year or more, and now everyone is talking about maybe WIPP is no good” (VIDEO) March 27, 2014
  3. ‘Developing Story’ at Los Alamos: “No timetable for any release of details concerning what the substance actually was” — Even newspaper got automated 911 call — Businesses on DP Road still waiting for all-clear — Advised to shelter in place March 15, 2012
  4. ‘Historical Weirdness’: Expert says US gov’t has failed public by not testing Pacific for radiation — A ‘very obvious’ need since Fukushima is leaking into ocean — They told me “it’s salty” and that’s not our thing (VIDEO) January 25, 2014
  5. ‘New tests show elevated radiation’ near U.S. nuclear site — ‘More airborne radiation detected’ around WIPP — Gov’t issues press release on ‘radiological event’ (MAP)February 24, 2014

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TV: “Far more serious than Feds letting on” at US nuclear site — Many workers in much worse shape than reported — Week-long nosebleeds, intense headaches, shaking, burning lungs, vomiting — Worker: Now I’m worrying… after two weeks I feel worse, not better (VIDEO) #Hanford

Published: April 10th, 2014 at 2:02 am ET
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KING5 News Seattle, Apr. 8, 2014: An unprecedented string of unknown chemical vapor exposures has sent more than 2 dozen workers to the hospital of doctor since mid-March. […] We found the situation is far more serious than the Feds and the contractors are letting on. All of the employees were not and still are not back to work. And many have symptoms far worse than irritation. […] Right before coming to the interview, a doctor cauterized Becky’s nose to stop a week’s worth of nosebleeds. And Steve spent all of the day before throwing up. […] Her symptoms [have been] nosebleeds, intense headaches, sweats and shaking […] Steve deals with burning lungs and non-stop
coughing — using inhalers and narcotics to cope. […] He’s still struggling to breathe […] Becky still has a really bad headache, but her biggest concern, this is a scary one, she’s not thinking clearly. She says she’s forgetting a lot of things and that’s really frightening to her. […] They aren’t the only ones. I’ve talked to others who say their lungs are burning, they don’t feel right, but they’ve been cleared to work, so they’re out on the job.

Becky Holland, health physics technician and 28-year veteran of the Hanford Site: “I felt kind of dizzy like I couldn’t walk. […] It was hard for me to get my nose to stop bleeding”

Steve Ellingson, health physics technician at Hanford: “Now I’m getting worried because this is two weeks and it’s not better. Yesterday was the worst day I’ve had. I’m getting worried that this may be the way that I am the rest of my life.”

Watch the broadcast here

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Professor: U.S. personnel destroyed thousands of documents to prepare for evacuation of Japan after 3/11 — Bloomberg: “Near-Chernobyl experience” for Tokyo even though 200+ kilometers from Fukushima

Published: February 8th, 2014 at 8:11 pm ET
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Bloomberg, Willianm Pesek in Japan, Feb. 6, 2014: […] Anyone who lived through Tokyo’s near-Chernobyl experience in 2011 may recall how poorly NHK performed even then. The network downplayed risks at every turn to avoid panic. Many of us learned about explosions at Fukushima from CNN, BBC and U.S. military news conferences, not Japan’s most trusted news source. Just imagine the next time disaster strikes. Abe’s secrecy law means journalists and whistle-blowers can go to jail for reporting what the government doesn’t want the public to know. It’s nice to know that during the next crisis, when we’re desperate for news, NHK will be ready to distract us with cheerful PR puff pieces. It’s now official policy.

Number 1 Shimbun, Foreign Correspondents Club of Japan, Feb. 4, 2014: Paul Blustein, former Washington Post [and Wall Street Journal reporter who is now affiliated with the Brookings Institution] […] accuses some present members [of the  FCCJ] of propagating misinformation — even of “journalistic malpractice.” […] “I’m referring to the oft-repeated claim that the accident came perilously close to irradiating the Tokyo metropolitan area. […] it is massively at odds with the facts. Propagating it is not just misinformation; it can now be fairly deemed an act of journalistic malpractice […] It pains me to level such accusations at fellow journalists […] Leading the pack was the New York Times, which carried a front-page story on Feb. 27, 2012 asserting that Kan and his fellow Japanese leaders “secretly considered the possibility of evacuating Tokyo” […]  Jeffrey Bader, who had served on President Obama’s National Security Council, explained that modeling of radiation plumes and weather patterns by Lawrence Livermore National Laboratory – one of the government’s premier scientific facilities – had shown there was no need to consider evacuating Americans from the Tokyo metropolitan area.” […]

Rebuttal from David McNeill, The Economist, Feb. 4, 2014: […] I’m puzzled by this criticism. It seems to suggest that we should outweigh or dismiss the views of Japan’s sitting prime minister at the time of the disaster in favor of those of some U.S. officials in Washington. It also seems to ignore the growing body of evidence to the contrary. To cite only the latest intervention into this debate that I know of, Kyle Cleveland of Temple University Japan has written a well-sourced essay this year revealing that U.S. officials in Japan were concerned enough in March 2011 about the possibility of evacuation to have destroyed thousands of documents at military and diplomatic facilities. Mr. Blustein may also be aware that Kevin Maher, former director of the Office of Japan Affairs also said in his 2011 (Japanese) book, The Japan That Can’t Decide, that U.S. officials in Japan planned to evacuate 90,000 citizens from Tokyo during the disaster. […]

See also: Study: Contamination in Tokyo suburb 3 times higher than area 1 mile from Fukushima Daiichi — Nuclear Scientist: Significant contamination in Tokyo, a serious problem (AUDIO)

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Gov’t model shows airborne radioactive plume covering entire west coast of US & Canada on Mar 22, 2011… 10 times more radioactive than plume coming from Fukushima plant on same day — Radiation levels in some plumes had no discernible decrease after crossing Pacific (VIDEO)

Published: April 8th, 2014 at 8:16 am ET
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Fukushima Radioactive Aerosol Dispersion, NOAA: The [HYSPLIT] model was developed by NOAA to follow the transport and dispersion of pollutants in the atmosphere. In HYSPLIT, the computation is composed of four components: transport by the mean wind, turbulent dispersion, scavenging and decay. A large number of pollutant particles, which by convention are called “particles” but are just computational “points” (particles or gases), are released at the source location and passively follow the wind. […] March 11th […] by 16:36 a nuclear emergency was reported. By the early morning hours of March 12th, radioactive emissions were occurring […] the simulation from NOAA’s HYSPLIT model shows a continuous release of tracer particles from 12-31 March at a rate of 100 per hour representing the Cesium-137 emitted from Fukushima Daiichi. Eachchange in particle color represents a decrease in radioactivity by a factor of 10.

Notable Features

The March 22, 2011 NOAA model (above right) shows the West Coast of US and Canada covered in red particles, while the Fukushima site — and all of Japan — are under orange particles.  According to the NOAA above a “change in particle color represents a decrease in radioactivity by a factor of 10

Watch NOAA’s Fukushima airborne plume simulation here

Published: April 8th, 2014 at 8:16 am ET
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  1. U.S. gov’t model of Fukushima cesium-137 particles covering Northern Hemisphere (VIDEO) March 14, 2013
  2. Professor on PBS: The Fukushima plume is heading to West Coast in “a consolidated mass of water that’s moving in unison” — Study: Nuclear waste “confined to a narrow band” crossing ocean — “Very little dispersion in eastern Pacific” (MAP) February 14, 2014
  3. California schools announce Fukushima testing: Imperative we monitor for any Fukushima contamination “that will be arriving this year” in ocean — LA Times claims levels are declining, fails to inform readers of radioactive plume crossing Pacific January 13, 2014
  4. Experts: Areas along West Coast “may be… affected in a significant way” by Fukushima plume in coming months — Impact cannot be accurately predicted, currents to produce complex results — Radioactive materials can be ‘fairly concentrated’ even after crossing Pacific February 24, 2014
  5. Gundersen: When the radioactive plume hits West Coast in a few months “it’s not like it’s going to end” — Fukushima still pumping contamination into Pacific Ocean 1,000 days after disaster began (AUDIO) December 7, 2013

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I tried to post the article, it would not properly format to fit.  You will need to go here:

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Inside Sources: Fukushima crisis “actually far worse than anyone acknowledged… information withheld to prevent panic” – Professor: “Level of radiation was far worse than Navy officers anticipated” – US gov’t shredded documents for 4 days while drawing up plans to evacuate Japan — “Somebody was obviously very worried”

 
Published: April 5th, 2014 at 5:51 pm ET 
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Japan Times, Jeff Kingston of Temple Univ., Apr. 4, 2014: Kyle Cleveland, my colleague […] recently published a report […] a critical, but nuanced picture of a crisis that was closer to careening out of control than is generally acknowledged. […] Naval officers […] discovered the level of radiation was far worse than they anticipated. Radiation gauges on the [USS Reagan] measured levels of radiation at 100 nautical miles off the coast that were 30 times greater than normal. [Sailors report] significant health problems due to exposure to radiation […] Cleveland finds that there was considerable disagreement between various U.S. agencies about the severity of the risk […] Given that the U.S. government expanded the exclusionary zone in Fukushima to 80 km and developed contingency plans for a massive evacuation while shredding of documents continued for four days at the U.S. Embassy and military bases in Japan, somebody was obviously very worried. […] Some of his insider sources tell him that the crisis was actually far worse than anyone acknowledged at the time and that information was withheld to prevent a panic. Cleveland concludes that Japan’s nuclear reactors should not be restarted.

Professor Kyle Cleveland, Temple University Japan: “[The navy was] more risk averse than either the NRC (Nuclear Regulatory Commission) or State, and from day one was ringing alarms that were not entirely understood, not completely validated and not well received by the NRC and State. The navy was pushing the other federal agencies to take more aggressive actions because their radiation measurements were indicating dose rates that were more significant than what was implied by the abstract modeling […]”

Unidentified US Nuclear Expert: “Without a qualitatively different regulatory system, and in light of how Japan/Tepco responded to this crisis, Japan has not earned the right to have nuclear energy. No critically minded and informed person can evaluate this disaster and look at how Japan has responded in the aftermath and have any confidence that Japan will use nuclear energy safely. In the most seismically active country […] even if Japan had a robust regulatory structure and thoroughly integrated crisis protocols, nature conspires against the best-laid-plans of human institutions. And what Japan has is certainly not the best plan by any measure.”

See also: Anonymous U.S. Gov’t Nuclear Expert: Fukushima radiation levels were “astronomical… nothing containing release of radioactivity, it’s an unmitigated, unshielded number”

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Radiation Expert: 5 types of plutonium were released from WIPP; Officials not informing public — Caldicott: “I predict that facility will never be able to be used again”; Inhaling a millionth of a gram of plutonium will induce lung cancer (AUDIO)

 
Published: March 25th, 2014 at 12:03 pm ET 
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KUNM, Mar. 24, 2014: The director of an organization that evaluated the WIPP site for over 25 years said officials aren’t doing enough to inform New Mexicans. […] “I just can’t stress the importance of DOE being available to respond to detailed questions that people have,” [Dr. Bob Neill] said. “There’s no substitute for direct communication.” Immediately after the leak was discovered, the public should have been given a detailed explanation of what was released, said Dr. Neill, who received his degree in radiological medicine. Americium 241 and plutonium 239 were mentioned. “But there are four other radio-isotopes of plutonium, namely the 238, 240, the beta and 241,” he said. “They’re all bone-seekers. So you want to be able to report all the values—how each one may have contributed. It’s just essential.” […] “It’s so important to answer people’s questions—and not just people in Carlsbad, but throughout the state and elsewhere,” he said. As for the leak itself, he said all of the possible causes of the failure at WIPP must be considered, and a response system should be designed accordingly.

Interview with Dr. Helen Caldicott, March 2014 (at 37:30 in): One of the repositories for very, very dangerous radioactive waste plutonium, americium, etc. has just leaked radiation all around the area in Carlsbad, New Mexico. One microgram of plutonium, a millionth of a gram of plutonium, if inhaled will induce lung cancer. It’s extraordinarily radioactive. So they thought this would be safe storing radiation in salt mines, but something happened, one of the casks blew up or part of the ceiling fell on the casks, we do not know. But I predict that that facility will never be able to be used again, it will be so contaminated.

Full interview with Dr. Caldicott available here (subscription required)

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FHFA Settles With BofA for $5.83 Billion Over Countrywide Legacy Loans

http://nationalmortgageprofessional.com/news47937/FHFA-Settles-With-BofA-%245.83-Billion-Over-Countrywide-Legacy-Loans?utm_source=MadMimi&utm_medium=email&utm_content=NMP+Daily%3A+FHFA+Settles+With+BofA+for+%245_83+Billion+Over+Countrywide+Legacy+Loans+and+More+___&utm_campaign=20140327_m119753830_NMP+Daily%3A+FHFA+Settles+With+BofA+for+%245_83+Billion+Over+Countrywide+Legacy+Loans+and+More+___&utm_term=FHFA+Settles+With+BofA+for+_245_83+Billion+Over+Countrywide+Legacy+Loans

FHFA_Logo_04_13_12

The Federal Housing Finance Agency (FHFA) has announced it has reached a settlement in cases involving Bank of America, Countrywide Financial, Merrill Lynch, and certain named individuals totaling approximately $5.83 billion. Bank of America Corporation owns Countrywide and Merrill Lynch. The cases alleged violations of federal and state securities laws in connection with private-label, residential mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007. Allegations of common law fraud were made in the Countrywide and Merrill Lynch cases.

The Agreement provides for an aggregate payment of approximately $9.33 billion by Bank of America that includes the litigation resolution as well as a purchase of securities by Bank of America from Fannie Mae and Freddie Mac.

“FHFA has acted under its statutory mandate to recover losses incurred by the companies and American taxpayers and has concluded that this resolution represents a reasonable and prudent settlement of these cases,” said FHFA Director Melvin L. Watt. “This settlement also represents an important step in helping restore stability to our broader mortgage market and moving to bring back the role of private firms in providing mortgage credit. Many potential homeowners will benefit from increasing certainty in the marketplace and that is very much the direction we should be taking.”

Of the 18 PLS suits filed in 2011, FHFA now has claims remaining in seven suits against various institutions and remains committed to satisfactory resolution of these pending actions.

The settlement agreement regarding private label securities claims between FHFA and Bank of America involves the following cases: Federal Housing Finance Agency v. Bank of America Corp., et al., No. 11 Civ. 6195 (DLC) (S.D.N.Y.); Federal Housing Finance Agency v. Countrywide Financial Corp., et al., No. 12 Civ. 1059 (MRP) (C.D. Cal.); Federal Housing Finance Agency v. Merrill Lynch & Co., Inc., et al., No. 11 Civ. 6202 (DLC) (S.D.N.Y.); as well as one Merrill Lynch security in Federal Housing Finance Agency v. First Horizon National Corp., No. 11 Civ. 6193 (DLC) (S.D.N.Y.).

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POLICY: LAW

http://washingtonexaminer.com/a-whistleblowers-worst-nightmare/article/2546069 

A whistleblower’s worst nightmare 

BY DIANE DIMOND | MARCH 21, 2014 AT 2:52 PM 

TOPICS: 2007 HOUSING CRISIS WHISTLEBLOWERS LAW 

Photo – Sadly, there is not enough space here to tell you the entire 7-year saga of whistleblower Michael Winston, but the bottom line is this: He got royally screwed by the California judicial system.

Sadly, there is not enough space here to tell you the entire 7-year saga of whistleblower Michael…

Justice is supposed to be blind. But what happens when it turns out to be blind, deaf and dumb?

Sadly, there is not enough space here to tell you the entire 7-year saga of whistleblower Michael Winston, but the bottom line is this: He got royally screwed by the California judicial system.

Winston, 62, is a mild-mannered Ph.D. and a veteran leadership executive who has held top jobs at elite corporations such as McDonnell Douglas, Motorola and Merrill Lynch. After taking time off to nurse his ailing parents, Winston was recruited by Countrywide Financial to help polish their corporate Image. He was quickly promoted — twice — and had a team of 200 employees.

It’s almost unheard of for a top-tier executive turning whistleblower, but that’s what Winston became after he noticed many of his staff were sickened by noxious air in their Simi Valley, California, office. When the company failed to fix the problem, Winston picked up the phone and called Cal-OSHA to investigate. Retaliation was immediate. Winston’s budget was cut and most of his staff was reassigned.

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Several months later, Winston says he refused Countrywide’s request to travel to New York and, basically, lie to the credit ratings agency Moody’s about corporate structure and practices. That was the death knell for Winston’s stellar 30-year-long career.

When Countrywide was bought out by Bank of America in 2008 — following Countrywide’s widely reported lead role in the sub-prime mortgage fiasco that caused the collapse of the U.S. housing market — Winston was out of a job.

In early 2011, after a month-long trial, a jury overwhelmingly found that Winston had been wrongfully terminated and awarded him nearly $4 million. Lawyers for Bank of America (which had assumed all Countrywide liabilities) immediately asked the judge to overturn the verdict. Judge Bert Gennon Jr. denied the request saying, “There was a great deal of evidence that was provided to the jury in making their decision, and they went about it very carefully.” Winston and his lawyer maintain they won despite repeated and egregious perjury by the opposition.

Winston never saw a dime of his award, and nearly two years later, B of A appealed. In February 2013, the Court of Appeal issued a stunning reversal of the verdict. The court declared Winston had failed to make his case.

“This never happens … this isn’t legal,” Cliff Palefsky, a top employment lawyer in San Francisco told me during a phone conversation. “The appeals court is not supposed to go back and cherry-pick through the evidence the way this court did. And if there is any doubt about a case, they are legally bound to uphold the jury’s verdict.”

None of the legal eagles I spoke to could explain why the Court of Appeal would do such an apparently radical thing.

The Government Accountability Project, a whistleblower protection group in D.C., has been watching the Winston case closely. Senior Counsel Richard Condit says he believes the appeal judge wrongly “nullified” the jury’s determination.

“This case is vitally important,” Condit told me on the phone. “Seeing what happened to Winston, who will ever want to come forward and reveal what they know about corporate wrongdoings?” GAP and various legal academicians are trying to figure out a way to get Winston’s case before the U.S. Supreme Court.

There have been whispers about the possible malpractice of Winston’s trial lawyer failing to file crucial documents that might have satisfied the appeal court’s questions. His appellate lawyer didn’t even tell him when the appeals court was hearing the case and Winston was out of town. The LA District Attorney and the Sheriff’s Department refused to follow up on evidence that Countrywide witnesses, including founder Angelo Mozilo, had blatantly committed perjury on the stand. Some court watchers speak of the, “unholy alliance” between big corporations and the justice system in California.

Winston, who says he spent $600,000 on legal fees, further depleted his savings by appealing to the California Supreme Court. That court refused to hear his case.

During one of our many hours-long phone conversations, Winston told me, “So, here I sit,” the whistleblower. The good guy loses. And the bad guys, officials at the corporation that cheated and lied and nearly caused the collapse of the U.S. economy — win.”

There’s a lot of talk out of Washington these days about “economic equality.” But seven years have passed since the housing crisis and the feds have not prosecuted one key executive from any of the financial giants that helped fuel the economic crash. Too big to fail — and too big to jail, I guess.

Bank of America has spent upward of $50 billion in legal fees, litigation costs and fines cleaning up the Countrywide mess. Their latest projections indicate they’ll spend billions more before it’s over. To my mind, a stiff prison sentence for the top dogs who orchestrated the original mortgage schemes would go much further than agreeing that they pay hefty fines. That’s no deterrent to others since they all have lots of money.

A recent email I got from Michael Winston, a proud man who has been unemployed for four years, said: “I have just received (a) court order mandating that I pay to Bank of America over $100,000.00 for their court costs. This will be in all ways — financial, emotional, physical and spiritual — painful.”

If a top-tier executive can’t prevail blowing the whistle on a corrupt company, if the feds fail to pursue prison terms, and if a jury’s verdict can be over-turned without the opportunity to appeal — what kind of signal does that send to the dishonest?

You know the answer. We’re telling them it is OK to put profit above everything else. We’re telling them to continue their illegal behaviors because there will be no prison time for them. At worst, they may only have to part with a slice of their ill-gotten gains.

This is not the way the justice system is supposed to work.

 

DIANE DIMOND, a Washington Examiner columnist, is nationally syndicated by Creators Syndicate.

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Hearsay on Hearsay: Bank Professional Witnesses Using Business Records Exception as Shield from Truth

by Neil Garfield

Wells Fargo Manual “Blueprint for Fraud”

Well that didn’t take long. Like the revelations concerning Urban Lending Solutions and Bank of America, it is becoming increasingly apparent that the the intermediary banks were hell bent for foreclosure regardless of what was best for the investors or the borrowers. This included, fraud, fabrication, unauthorized documents and signatures, perjury and outright theft of money and identities. I understand the agreement between the Bush administration and the large banks. And I understand the reason why the Obama administration continued to honor the agreements reached between the Bush administration and the large banks. They didn’t have a clue. And they were relying on Wall Street to report on its own behavior. But I’m sure the agreement did not even contemplate the actual crimes committed. I think it is time for US attorneys and the Atty. Gen. of each state to revisit the issue of prosecution of the major Wall Street banks.

With the passage of time we have all had an opportunity to examine the theory of “too big to fail.” As applied, this theory has prevented prosecutions for criminal acts. But more importantly it is allowing and promoting those crimes to be covered up and new crimes to be committed in and out of the court system. A quick review of the current strategy utilized in foreclosure reveals that nearly all foreclosures are based on false assumptions, no facts,  and a blind desire for expediency that  sacrifices access to the courts and due process. The losers are the pension funds that mistakenly invested into this scheme and the borrowers who were used as pawns in a gargantuan Ponzi scheme that literally exceeded all the money in the world.

Let’s look at one of the fundamental strategies of the banks. Remember that the investment banks were merely intermediaries who were supposedly functioning as broker-dealers. As in any securities transaction, the investor places in order and is responsible for payment to the broker-dealer. The broker-dealer tenders payment to the seller. The seller either issues the securities (if it is an issuer) or delivers the securities. The bank takes the money from the investors and doesn’t deliver it to an issuer or seller, but instead uses the money for its own purposes, this is not merely breach of contract —  it is fraud.

And that is exactly what the investors, insurers, government guarantors and other parties have alleged in dozens of lawsuits and hundreds of claims. Large banks have avoided judgment based on these allegations by settling the cases and claims for hundreds of billions of dollars because that is only a fraction of the money they diverted from investors and continue to divert. This continued  diversion is accomplished, among other ways, through the process of foreclosure. I would argue that the lawsuits filed by government-sponsored entities are evidence of an administrative finding of fact that closes the burden of proof to be shifted to the cloud of participants who assert that they are part of a scheme of securitization when in fact they were part of a Ponzi scheme.

This cloud of participants is managed in part by LPS in Jacksonville. If you are really looking for the source of documentation and the choice of plaintiff or forecloser, this would be a good place to start. You will notice that in both judicial and non-judicial settings, there is a single party designated as the apparent creditor. But where the homeowner is proactive and brings suit against multiple entities each of whom have made a claim relating to the alleged loan, the banks stick with presenting a single witness who is “familiar with the business records.” That phrase has been specifically rejected in most jurisdictions as proving the personal knowledge necessary for a finding that the witness is competent to testify or to authenticate documents that will be introduced in evidence. Those records are hearsay and they lack the legal foundation for introduction and acceptance into evidence in the record.

So even where the lawsuit is initiated by “the cloud” and even where they allege that the plaintiff is the servicer and even where they allege that the plaintiff is a trust, the witness presented at trial is a professional witness hired by the servicer. Except for very recent cases, lawyers for the homeowner have ignored the issue of whether the professional witness is truly competent,  and especially why the court should even be listening to a professional witness from the servicer when it is hearing nothing from the creditor. The business records which are proffered to the court as being complete are nothing of the sort. There documents prepared for trial which is specifically excluded from evidence under the hearsay rule and an exception to the business records exception.

Lately Chase has been dancing around these issues by first asserting that it is the owner of a loan by virtue of the merger with Washington Mutual. As the case progresses Chase admits that it is a servicer. Later they often state that the investor is Fannie Mae. This is an interesting assertion which depends upon complete ignorance by opposing counsel for the homeowner and the same ignorance on the part of the judge. Fannie Mae is not and never has been a lender. It is a guarantor, whose liability arises after the loss has been completely established following the foreclosure sale and liquidation to a third-party. It is also a master trustee for securitized trusts. To say that Fannie Mae is the owner of the alleged loan is an admission that the originator never loaned any money and that therefore the note and mortgage are invalid. It is also intentional obfuscation of the rights of the investors and trusts.

The multiple positions of Chase is representative of most other cases regardless of the name used for the identification of the alleged plaintiff, who probably doesn’t even know the action exists. That is why I suggested some years ago that a challenge to the right to represent the alleged plaintiff would be both appropriate and desirable. The usual answer is that the attorney represents all interested parties. This cannot be true because there is an obvious conflict of interest between the servicer, the trust, the guarantor, the trustee, and the broker-dealer that so far has never been named. Lawsuits filed by trust beneficiaries, guarantors, FDIC and insurers demonstrate this conflict of interest with great clarity.

I wonder if you should point out that if Chase was the Servicer, how could they not know who they were paying? As Servicer their role was to collect payments and send them to the creditor. If the witness or nonexistent verifier was truly familiar with the records, the account would show a debit to the account for payment to Fannie Mae or the securitized trust that was the actual source of funds for either the origination or acquisition of loans. And why would they not have shown that?  The reason is that no such payment was made. If any payment was made it was to the investors in the trust that lies behind the Fannie Mae curtain.

And if the “investor” had in fact received loss sharing payment from the FDIC, insurance or other sources how would the witness have known about that? Of course they don’t know because they have nothing to do with observing the accounts of the actual creditor. And while I agree that only actual payments as opposed to hypothetical payments should be taken into account when computing the principal balance and applicable interest on the loan, the existence of terms and conditions that might allow or require those hypothetical payments are sufficient to guarantee the right to discovery as to whether or not they were paid or if the right to payment has already accrued.

I think the argument about personal knowledge of the witness can be strengthened. The witness is an employee of Chase — not WAMU and not Fannie Mae. The PAA is completely silent about  the loans. Most of the loans were subjected to securitization anyway so WAMU couldn’t have “owned” them at any point in the false trail of securitization. If Chase is alleging that Fannie Mae in the “investor” then you have a second reason to say that both the servicing rights and the right to payment of principal, interest or monthly payments in doubt as to the intermediary banks in the cloud. So her testimony was hearsay on hearsay without any recognizable exception. She didn’t say she was custodian of records for anyone. She didn’t say how she had personal knowledge of Chase records, and she made no effort to even suggest she had any personal knowledge of the records of Fannie and WAMU — which is exactly the point of your lawsuit or defense.
 

If the Defendant/Appellee’s argument were to be accepted, any one of several defendants could deny allegations made against all the defendants individually just by producing a professional witness who would submit self-serving sworn affidavits from only one of the defendants. The result would thus benefit some of the “represented parties” at the expense of others.

Their position is absurd and the court should not be used and abused in furtherance of what is at best a shady history of the loan. The homeowner challenges them to give her the accurate information concerning ownership and balance, failing which there was no basis for a claim of encumbrance against her property. The court, using improper reasoning and assumptions, essentially concludes that since someone was the “lender” the Plaintiff had no cause of action and could not prove her case even if she had a cause of action. If the trial court is affirmed, Pandora’s box will be opened using this pattern of court conduct and Judge rulings as precedent not only in foreclosure actions, disputes over all types of loans, but virtually all tort actions and most contract actions.

Specifically it will open up a new area of moral hazard that is already filled with debris, to wit: debt collectors will attempt to insert themselves in the collection of money that is actually due to an existing creditor who has not sold the debt to the collector. As long as the debt collector moves quickly, and the debtor is unsophisticated, the case with the debt collector will be settled at the expense of the actual creditor. This will lead to protracted litigation as to the authority of the debt collector and the liability of the debtor as well as the validity of any settlement.

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         Foreclosure filings were reported on 124,419 U.S. properties in January 2014, an 8 percent increase from December but still down 18 percent from January 2013.  Foreclosure filings were reported on 1,361,795 U.S. properties in 2013, down 26 percent from 2012 and down 53 percent from the peak of 2.9 million properties with foreclosure filings in 2010.  But still, 9.3 million U.S. residential properties were deeply underwater representing 19 percent of all properties with a mortgage in December 2013, down from 10.7 million homes underwater in September 2013.[1] 

            In 2006 there were 1,215,304 foreclosures, 545,000 foreclosure filings and 268,532 Home Repossessions.  By 2007 foreclosures had almost doubled – up to 2,203,295 with 1,260,000 foreclosure filings and 489,000 Home Repossessions.  2008 saw an even further increase to 3,019,482 foreclosures, 2,350,000 Foreclosure filings and 679,000 Home Repossessions.  In 20093,457,643 foreclosures, 2,920,000 foreclosure filings, and 945,000 Home Repossessions.  2010:  3,843,548 foreclosures, 3,500,000 foreclosure filings, and 1,125,000 Home Repossessions.  2011:  3,920,418 foreclosures, 3,580,000 foreclosure filings, and 1,147,000 Home Repossessions.  Then January to September 20121,616,427 foreclosures 1,382,000 foreclosure filings and 572,844 Repossessions.  The remainder of 2012 – September through December saw an additional 2,300,000 foreclosures, 2,100,000 foreclosure filings and 700,000 Repossessions.  In other words, from 2006 through 2012, there were a total of  21,576,117 foreclosures; 17,637,000 foreclosure filings; 5,926,376 Home Repossessions.  The foreclosures added to the repossessions is equal to:  27,502,493[2].  The numbers are staggering.

            Many of the homes have been wrongfully foreclosed upon, where either the party had not been in default, or the foreclosing party lacked standing to foreclose.  It has become almost as lawless as the wildwest, or comparable to a shark feeding frenzy.


[1] All of the foreclosure figures came from RealtyTrac:  http://www.realtytrac.com/content/foreclosure-market-report

[2] http://www.statisticbrain.com/home-foreclosure-statistics/                                                                 Statistic Verification  Source: RealtyTrac, Federal Reserve, Equifax

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NEW LEGAL ISSUES COMING UP IN TRIAL AND APPELLATE COURTS

DECEMBER 16, 2013

With the release of the US Bank admissions per our post of November 6, 2013; the issuance of the opinions from the Supreme Courts of Oregon and Montana holding that MERS is not the “beneficiary”; and recent opinions from various jurisdictions which are now, finally, holding that securitization-related issues are relevant in a foreclosure, a host of new legal issues are about to be litigated in the trial and appellate courts throughout the country. It has taken six (6) years and coast-to-coast work to get courts to realize that securitization of a mortgage loan raises issues as to standing, real party in interest, and the alleged authority to foreclose, and that the simplistic mantra of the “banks” and servicers of “we have the note, thus we win” is no longer to be blindly accepted.

One issue which we and others are litigating relates to mortgage loans originated by Option One, which changed its name to Sand Canyon Corporation and thereafter ceased all mortgage loan operations. Pursuant to the sworn testimony of the former President of Sand Canyon, it stopped owning mortgage loans as of 2008. However, even after this cessation of any involvement with servicing or ownership of mortgage loans, we see “Assignments” from Option One or Sand Canyon to a securitization trustee bank or other third party long after 2008.

The United States District Court for the District of New Hampshire concluded, with the admission of the President of Sand Canyon, that the homeowner’s challenge to the foreclosure based on a 2011 alleged transfer from Sand Canyon to Wells Fargo was not an “attack on the assignment” which certain jurisdictions have precluded on the alleged basis that the borrower is not a party to the assignment, but is a situation where no assignment occurred because it could not have as a matter of admitted fact, as Sand Canyon could not assign something it did not have. The case is Drouin v. American Home Mortgage Servicing, Inc. and Wells Fargo, etc., No. 11-cv-596-JL.

The Option One/Sand Canyon situation is not unique: there are many originating “lenders” which allegedly “assigned” mortgages or Deeds of Trust long after they went out of business or filed for Bankruptcy, with no evidence of post-closing assignment authority or that the Bankruptcy court having jurisdiction over a bankrupt lender ever granted permission for the alleged transfer of the loan (which is an asset of the Bankruptcy estate) out of the estate. Such a transfer without proof of authority to do so implicates bankruptcy fraud (which is a serious crime punishable under United States criminal statutes), and fraud on the court in a foreclosure case where such an alleged assignment is relied upon by the foreclosing party.

As we stated in our post of November 6, the admission of US Bank that a borrower is a party to any MBS transaction and that the loan is governed by the trust documents means that the borrower is, in fact, a party to any assignment of that borrower’s loan, and should thus be permitted to seek discovery as to any alleged assignment and all issues related to the securitization of the loan. We have put this issue out in many of our cases, and will be arguing this position at both the trial and appellate levels beginning early 2014.

Jeff Barnes, Esq., http://www.ForeclosureDefenseNationwide.com

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I was reading some information about the financial crisis in this country (USA), and ran across a paper written by US District Court Judge Jed S. Rakoff.  If we had more Judges with the mind of this one, we would not be in nearly as bad a shape as we are in.  I have not yet figured out how the Judges justify allowing foreclosures, when they know for a fact that the Banks and their attorneys are creating fraudulent documents, committing perjury in their Courtrooms, and are breaking so many laws, that it has become the norm…  

Read what Honorable Judge Jed S. Rakoff says:  http://www.ft.com/cms/cb1e43f2-4be6-11e3-8203-00144feabdc0.pdf

11/12/13
Why Have No High Level Executives Been Prosecuted In Connection With The Financial Crisis?
by Jed S. Rakoff
(U.S. District Judge)

Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation: without jobs, without resources, without hope.

Who was to blame? Was it simply a result of negligence, of the kind of inordinate risk-taking commonly called a “bubble,” of an imprudent but innocent failure to maintain adequate reserves for a rainy day? Or was it the result, at least in part, of fraudulent practices, of dubious mortgages portrayed as sound risks and packaged into ever-more-esoteric financial instruments, the fundamental weaknesses of which were intentionally obscured?

If it was the former – if the recession was due, at worst, to a lack of caution – then the criminal law has no role to play in the aftermath. For, in all but a few circumstances (not here relevant), the fierce and fiery weapon called criminal prosecution is directed at intentional misconduct, and nothing less. If the Great Recession was in no part the handiwork of intentionally fraudulent practices by high-level executives, then to prosecute such executives criminally would be “scapegoating” of the most shallow and despicable kind.

But if, by contrast, the Great Recession was in material part the product of intentional fraud, the failure to prosecute those responsible must be judged one of the more egregious failures of the criminal justice system in many years.Indeed, it would stand in striking contrast to the increased success that federal prosecutors have had over the past 50 years or so in bringing to justice even the highest level figures who orchestrated mammoth frauds. Thus, in the 1970’s, in the aftermath of the “junk bond” bubble that, in many ways, was a precursor of the more recent bubble in mortgage-backed securities, the progenitors of the fraud were all successfully prosecuted, right up to Michael Milken. Again, in the 1980’s, the so-called savings-and-loan crisis, which again had some eerie parallels to more recent events, resulted in the successful criminal prosecution of more than 800 individuals, right up to Charles Keating. And, again, the widespread accounting frauds of the 1990’s, most vividly represented by Enron and WorldCom, led directly to the successful prosecution of such previously respected C.E.O.’s as Jeffrey Skilling and Bernie Ebbers.

In striking contrast with these past prosecutions, not a single high level executive has been successfully prosecuted in  connection with the recent financial crisis, and given the fact that most of the relevant criminal provisions are governed by a five-year statute of limitations, it appears very likely that none will be. It may not be too soon, therefore, to ask why.

One possibility, already mentioned, is that no fraud was committed. This possibility should not be  discounted. Every case is different, and I, for one, have no opinion as to whether criminal fraud was committed in any given instance.

 But the stated opinion of those government entities asked to examine the financial crisis overall is not that no fraud was committed. Quite the contrary. For example, the Financial Crisis Inquiry Commission, in its final report, uses variants of the word “fraud” no fewer than 157 times in describing what led to the crisis, concluding that there was a “systemic breakdown,” not just in  accountability, but also in ethical behavior. As the Commission found, the signs of fraud were everywhere to be seen, with the number of reports of suspected mortgage fraud rising 20-fold between 1998 and 2005 and then doubling again in the next four years. As early as 2004, FBI Assistant Director Chris Swecker, was publicly warning of the “pervasive problem” of mortgage fraud, driven by the voracious demand for mortgagebacked securities. Similar warnings, many from within the financial community, were disregarded, not because they were  viewed as inaccurate, but because, as one high level banker put it, “A decision was made that ‘We’re going to have to hold our nose and start buying the product if we want to stay in business.’”

Without multiplying examples, the point is that, in the aftermath of the financial crisis, the prevailing view of many government officials (as well as others) was that the crisis was in material respects the product of intentional fraud. In a nutshell, the fraud, they argued, was a simple one. Subprime mortgages, i.e., mortgages of dubious creditworthiness, increasingly provided the sole collateral for highly-leveraged securities that were marketed as triple-A, i.e., of very low risk. How could this transformation of a sow’s ear into a silk purse be accomplished unless someone dissembled along the way?

While officials of the Department of Justice have been more circumspect in describing the roots of the financial crisis than have the various commissions of inquiry and other government agencies, I have seen nothing to indicate their disagreement with the widespread conclusion that fraud at every level permeated the bubble in mortgage-backed securities. Rather, their position has been to excuse their failure to prosecute high level individuals for fraud in connection with the financial crisis on one or more of three grounds:

First, they have argued that proving fraudulent intent on the part of the high level management of the banks and companies involved has proved difficult. It is undoubtedly true that the ranks of top management were several levels removed from those who were putting together the collateralized debt obligations and other securities offerings that were based on dubious mortgages; and the people generating the mortgages themselves were often at other companies and thus even further removed. And I want to stress again that I have no opinion as to whether any given top executive had knowledge of the dubious nature of the underlying mortgages, let alone fraudulent intent. But what I do find surprising is that the Department of Justice should view the proving of intent as so difficult in this context. Who, for example, were generating the so-called “suspicious activity” reports of mortgage fraud that, as mentioned, increased so hugely in the years leading up to the crisis? Why, the banks themselves. A top level banker, one might argue, confronted with increasing evidence from his own and other banks that mortgage fraud was increasing, might have inquired as to why his bank’s mortgage-based securities continued to receive triple-A ratings?  And if, despite these and other reports of suspicious activity, the executive failed to make such inquiries, might it be because he did not want to know what such inquiries would reveal?  

This, of course, is what is known in the law as “willful blindness” or “conscious disregard.” It is a well-established basis on which federal prosecutors have asked juries to infer intent, in cases involving complexities, such as accounting treatments, at least as esoteric as those involved in the events leading up to the financial crisis. And while some federal courts have occasionally expressed qualifications about the use of the willful blindness approach to prove intent, the Supreme Court has consistently approved it. As that Court stated most recently in Global-Tech Appliances, Inc. v. SEB S.A., 131 S.Ct. 2060, 2068 (2011), “The doctrine of willful blindness is well established in criminal law. Many criminal statutes require proof that a defendant acted knowingly or willfully, and courts applying the doctrine of willful blindness hold that defendants cannot escape the reach of these statutes by deliberately shielding themselves from clear evidence of critical facts that are strongly suggested by the circumstances.” Thus, the Department’s claim that proving intent in the financial crisis context is particularly difficult may strike some as doubtful.

Second, and even weaker, the Department of Justice has sometimes argued that, because the institutions to whom mortgagebacked securities were sold were themselves sophisticated investors, it might be difficult to prove reliance. Thus, in  defending the failure to prosecute high level executives for frauds arising from the sale of mortgage-backed securities, the then head of the Department of Justice’s Criminal Division, told PBS that “in a criminal case … I have to prove not only that you made a false statement but that you intended to commit a crime, and also that the other side of the transaction relied on what you were saying. And frankly, in many of the securitizations and the kinds of transactions we’re talking about, in reality you had very sophisticated counterparties on both sides. And so even though one side may have said something was dark blue when really we can say it was sky blue, the other side of the transaction, the other sophisticated party, wasn’t relying at all on the description of the color.”

Actually, given the fact that these securities were bought and sold at lightning speed, it is by no means obvious that even a sophisticated counterparty would have detected the problems with the arcane, convoluted mortgage-backed derivatives they were being asked to purchase. But there is a more fundamental problem with the above-quoted statement from the former head of the Criminal Division, which is that it totally misstates the law.  In actuality, in a criminal fraud case the Government is never required to prove reliance, ever. The reason, of course, is that would give a crooked seller a license to lie whenever he was  dealing with a sophisticated counterparty.  The law, however, says that society is harmed when a seller purposely lies about a material fact, even if the immediate purchaser does not rely on that particular fact, because such misrepresentations create problems for the market as a whole. And surely there never was a situation in which the sale of dubious mortgage-backed securities created more of a huge problem for the marketplace, and society as a whole, than in the recent financial crisis.

The third reason the Department has sometimes given for not bringing these prosecutions is that to do so would itself harm the economy. Thus, Attorney General Holder himself told Congress that “it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute – if we do bring a criminal charge – it will have a negative impact on the national economy, perhaps even the world economy.” To a federal judge, who takes an oath to apply the law equally to rich and to poor, this excuse — sometimes labeled the “too big to jail” excuse – is disturbing, frankly, in what it says about the
Department’s apparent disregard for equality under the law.

In fairness, however, Mr. Holder was referring to the prosecution of financial institutions, rather than their
C.E.O.’s. But if we are talking about prosecuting individuals, the excuse becomes entirely irrelevant; for no one that I know of has ever contended that a big financial institution would collapse if one or more of its high level executives were prosecuted, as opposed to the institution itself.

Without multiplying examples further, my point is that the Department of Justice has never taken the position that all the top executives involved in the events leading up to the financial crisis were innocent, but rather has offered one or another excuse for not criminally prosecuting them – excuses that, on inspection, appear unconvincing. So, you might ask, what’s really going on here? I don’t claim to have any inside information about the real reasons why no such prosecutions have been brought, but I take the liberty of offering some speculations, for your consideration or amusement as the case may be.

At the outset, however, let me say that I totally discount the argument sometimes made that no such prosecutions have been brought because the top prosecutors were often people who previously represented the financial institutions in question and/or were people who expected to be representing such
institutions in the future: the so-called “revolving door.” In my experience, every federal prosecutor, at every level, is seeking to make a name for him-or-herself, and the best way to do that is by prosecuting some high level person. While companies that are indicted almost always settle, individual defendants whose careers are at stake will often go to trial. And if the Government wins such a trial, as it usually does, the prosecutor’s reputation is made.My point is that whatever small influence the “revolving door” may have in discouraging certain white-collar prosecutions is more than offset, at least in the case of prosecuting high-level individuals, by the career-making benefits such prosecutions confer on the successful prosecutor.  So, one asks again, why haven’t we seen such prosecutions growing out of the financial crisis? I offer, by way of speculation, three influences that I think, along with others, have had the effect of limiting such prosecutions.

First, the prosecutors had other priorities. Some of these were completely understandable. For example, prior to 2001, the FBI had more than 1,000 agents assigned to investigating financial frauds, but after 9/11 many of these agents were shifted to anti-terrorism work. Who can argue with that?  Eventually, it is true, new agents were hired for some of the vacated spots in fraud detection; but this is not a form of detection easily learned and recent budget limitations have only exacerbated the problem.

Of course, the FBI is not the primary investigator of fraud in the sale of mortgage-backed securities; that responsibility lies mostly with the S.E.C. But at the very time the financial crisis was breaking, the S.E.C. was trying to deflect criticism from its failure to detect the Madoff fraud, and this led it to concentrate on other Ponzi-like schemes, which for awhile were, along with accounting frauds, its chief focus. More recently, the S.E.C. has been hard hit by budget limitations, and this has not only made it more difficult to assign the kind of manpower the kinds of frauds we are talking about require, but also has led S.E.C. enforcement to focus on the smaller, easily resolved cases that will beef up their statistics when they go to Congress begging for money.

As for the Department of Justice proper, a decision was made around 2009 to spread the investigation of these financial fraud cases among numerous U.S. Attorney’s Offices, many of which had little or no prior experience in investigating and prosecuting sophisticated financial frauds. At the same time, the U.S. Attorney’s Office with the greatest expertise in these kinds of cases, the Southern District of New York, was just embarking on its prosecution of insider trading cases arising from the Rajaratnam tapes, which soon proved a gold mine of good cases that absorbed a huge amount of the attention of the securities fraud unit of that office. While I want to stress again that I have no inside information, as a former chief of that unit I would venture to guess that the cases involving the financial crisis were parceled out to Assistants who also had insider trading cases. Which do you think an Assistant would devote most of her attention to:  an insider trading case that was already nearly ready to go to indictment and that might lead to a highvisibility trial, or a financial crisis case that was just getting started, would take years to complete, and had no guarantee of even leading to an indictment? Of course, she would put her energy into the insider trading case, and if she was lucky, it would go to trial, she would win, and she would then take a job with a large law firm. And in the process, the financial fraud case would get lost in the shuffle.

Alternative priorities, in short, is, I submit, one of the reasons the financial fraud cases were not brought, especially cases against high level individuals that would take many years, many investigators, and a great deal of expertise to investigate.  But a second, and less salutary, reason for not bringing such cases is the Government’s own involvement in the underlying circumstances that led to the financial crisis.

On the one hand, the government, writ large, had a hand in creating the conditions that encouraged the approval of dubious mortgages. It was the government, in the form of Congress, that repealed Glass-Steagall, thus allowing certain banks that had previously viewed mortgages as a source of interest income to become instead deeply involved in securitizing pools of mortgages in order to obtain the much greater profits available from trading. It was the government, in the form of both the executive and the legislature, that encouraged deregulation, thus weakening the power and oversight not only of the S.E.C. but also of such diverse banking overseers as the O.T.S. and the O.C.C. It was the government, in the form of the Fed, that kept interest rates low in part to encourage mortgages. It was the government, in the form of the executive, that strongly encouraged banks to make loans to low-income persons who might have previously been regarded as too risky to warrant a mortgage. It was the government, in the form of the government-sponsored entities known as Fannie Mae and Freddie Mac, that helped create the fora-time insatiable market for mortgage-backed securities. And it was the government, pretty much across the board, that acquiesced in the ever greater tendency not to require meaningful documentation as a condition of obtaining a mortgage, often preempting in this regard state regulations designed to assure greater mortgage quality and a borrower’s ability to repay.

The result of all this was the mortgages that later became known as “liars’ loans.” They were increasingly risky; but what did the banks care, since they were making their money from the securitizations; and what did the government care, since they  were helping to boom the economy and helping voters to realize their dream of owning a home.

Moreover, the government was also deeply enmeshed in the aftermath of the financial crisis. It was the government that proposed the shotgun marriages of Bank of America with Merrill Lynch, of J.P. Morgan with Bear Stearns, etc. If, in the process, mistakes were made and liabilities not disclosed, was it not partly the government’s fault?

Please do not misunderstand me. I am not alleging that the Government knowingly participated in any of the fraudulent practices alleged by the Financial Inquiry Crisis Commission and others. But what I am suggesting is that the Government was deeply involved, from beginning to end, in helping create the conditions that could lead to such fraud, and that this would give a prudent prosecutor pause in deciding whether to indict a C.E.O. who might, with some justice, claim that he was only doing what he fairly believed the Government wanted him to do.

 The final factor I would mention is both the most subtle and the most systemic of the three, and arguably the most important, and it is the shift that has occurred over the past 30 years or more from focusing on prosecuting high-level individuals to focusing on prosecuting companies and other institutions. It is true that prosecutors have brought criminal charges against companies for well over a hundred years, but, until relatively recently, such prosecutions were the exception, and prosecutions of companies without simultaneous prosecutions of their managerial agents were even rarer. The reasons were obvious. Companies do not commit crimes; only their agents do. And while a company might get the benefit of some such crimes, prosecuting the company would inevitably punish, directly or indirectly, the many employees and shareholders who were totally innocent.   Moreover, under the law of most U.S. jurisdictions, a company cannot be criminally liable unless at least one managerial agent has committed the crime in question; so why not prosecute the agent who actually committed the crime?

 In recent decades, however, prosecutors have been increasingly attracted to prosecuting companies, often even without indicting a single individual. This shift has often been rationalized as part of an attempt to transform “corporate cultures,” so as to prevent future such crimes; and, as a result, it has taken the form of “deferred prosecution agreements” or even “non-prosecution agreements,” in which the company, under threat of criminal prosecution, agrees to take various prophylactic measures to prevent future wrongdoing. But in practice, I suggest, it has led to some lax and dubious behavior on the part of prosecutors, with deleterious results.    

If you are a prosecutor attempting to discover the individuals responsible for an apparent financial fraud, you go about your business in much the same way you go after mobsters or drug kingpins: you start at the bottom and, over many months or years, slowly work your way up. Specifically, you start by “flipping” some lower level participant in the fraud whom you can show was directly responsible for making one or more false material misrepresentations but who is willing to cooperate in order to reduce his sentence, and – aided by the substantial prison penalties now available in white collar cases – you go up the ladder. For a detailed example of how this works, I recommend Kurt Eichenwald’s well-known book The Informant, which describes how FBI agents, over a period of three years, uncovered the huge price-fixing conspiracy involving high-level executives at Archer Daniels, all of whom were successfully prosecuted.

But if your priority is prosecuting the company, a different scenario takes place. Early in the investigation, you invite in counsel to the company and explain to him or her why you suspect fraud. He or she responds by assuring you that the company wants to cooperate and do the right thing, and to that end the company has hired a former Assistant U.S. Attorney, now a partner at a respected law firm, to do an internal investigation. The company’s counsel asks you to defer your investigation until the company’s own internal investigation is completed, on the condition that the company will share its results with you. In order to save time and resources, you agree. Six months later the company’s counsel returns, with a detailed report showing that mistakes were made but that the company is now intent on correcting them. You and the company then agree that the company will enter into a deferred prosecution agreement that couples some immediate fines with the imposition of expensive but internal prophylactic measures. For all practical purposes the case is now over. You are happy because you believe that you have helped prevent future crimes; the company is happy because it has avoided a devastating indictment; and perhaps the happiest of all are the executives, or former executives, who actually committed the underlying misconduct, for they are left untouched. 

I suggest that this is not the best way to proceed. Although it is supposedly justified in terms of preventing future crimes, I suggest that the future deterrent value of successfully prosecuting individuals far outweighs the prophylactic benefits of imposing internal compliance measures that are often little more than window-dressing. Just going after the company is also both technically and morally suspect. It is technically suspect because, under the law, you should not indict or threaten to indict a company unless you can prove beyond a reasonable doubt  that some managerial agent of the company committed the alleged crime; and if you can prove that, why not indict the manager?  And from a moral standpoint, punishing a company and its many innocent employees and shareholders for the crimes committed by some unprosecuted individuals seems contrary to elementary notions of moral responsibility.

These criticisms take on special relevance, however, in the instance of investigations growing out of the financial crisis, because, as noted, the Department of Justice’s position, until at least very, very recently, is that going after the suspect institutions poses too great a risk to the nation’s economic recovery. So you don’t go after the companies, at least not criminally, because they are too big to jail; and you don’t go after the individuals, because that would involve the kind of years-long investigations that you no longer have the experience or the resources to pursue.

In conclusion, I want to stress again that I have no idea whether the financial crisis that is still causing so many of us so much pain and despondency was the product, in whole or in part, of fraudulent misconduct. But if it was — as various governmental authorities have asserted it was –- then, the failure of the government to bring to justice those responsible for such colossal fraud bespeaks weaknesses in our prosecutorial system that need to be addressed.

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US BANK ADMITS, IN WRITING FROM THEIR CORPORATE OFFICE, THAT THE BORROWER IS A PARTY TO AN MBS TRANSACTION; THAT SECURITIZATION TRUSTEES ARE NOT INVOLVED IN THE FORECLOSURE PROCESS; HAVE NO ADVANCE KNOWLEDGE OF WHEN A LOAN HAS DEFAULTED; THAT THE “TRUE BENEFICIAL OWNERS” OF A SECURITIZED MORTGAGE ARE THE INVESTORS IN THE MBS; AND THAT THE GOAL OF A SERVICER IS TO “MAXIMIZE THE RETURN TO INVESTORS”                                                                                                                                                                                                 November 6, 2013

 We have been provided with a copy of U.S. Bank Global Corporate Trust Services’ “Role of the Corporate Trustee” brochure which makes certain incredible admissions, several of which squarely disprove and nullify the holdings of various courts around the country which have taken the position that the borrower “is not a party to” the securitization and is thus not entitled to discovery or challenges to the mortgage loan transfer process. The brochure accompanied a letter from US Bank to one of our clients which states: “Your account is governed by your loan documents and the Trust’s governing documents”, which admission clearly demonstrates that the borrower’s loan is directly related to documents governing whatever securitized mortgage loan trust the loan has allegedly been transferred to. This brochure proves that Courts which have held to the contrary are wrong on the facts. 

The first heading of the brochure is styled “Distinct Party Roles”. The first sentence of this heading states: “Parties involved in a MBS transaction include the borrower, the originator, the servicer and the trustee, each with their own distinct roles, responsibilities and limitations.” MBS is defined at the beginning of the brochure as the sale of “Mortgage Backed Securities in the capital markets”. The fourth page of the brochure also identifies the “Parties to a Mortgage Backed Securities Transaction”, with the first being the “Borrower”, followed by the Investment Bank/Sponsor, the Investor, the Originator, the Servicer, the Trust (referred to “generally as a special purpose entity, such as a Real Estate Mortgage Investment Conduit (REMIC)”), and the Trustee (stating that “the trustee does not have an economic or beneficial interest in the loans”). 

The second page sets forth that U.S. Bank, as Trustee, “does not have any discretion or authority in the foreclosure process.” If this is true, how can U.S. Bank as Trustee be the Plaintiff in judicial foreclosures or the foreclosing party in non-judicial foreclosures if it has “no authority in the foreclosure process”? 

The second page also states: “All trustees for MBS transactions, including U.S. Bank, have no advance knowledge of when a mortgage loan has defaulted.” Really? So when, for example, MERS assigns, in 2011, a loan to a 2004 Trust where the loan has been in default since 2008, no MBS “trustee” bank (and note that it says “All” trustees) do not know that a loan coming into the trust is in default? The trust just blindly accepts loans which may or may not be in default without any advanced due diligence? Right. Sure. Of course. LOL. 

However, that may be true, because the trustee banks do not want to know, for then they can take advantage of the numerous insurances, credit default swaps, reserve pools, etc. set up to pay the trust when loans are in default, as discussed below. 

The same page states that “Any action taken by the servicer must maximize the return on the investment made by the ‘beneficial owners of the trust’ — the investors.” The fourth page of the brochure states that the investors are “the true beneficial owners of the mortgages”, and the third page of the brochure states “Whether the servicer pursues a foreclosure or considers a modification of the loan, the goal is still to maximize the return to investors” (who, again, are the true beneficial owners of the mortgage loans). 

This is a critical admission in terms of what happens when a loan is securitized. The borrower initiated a mortgage loan with a regulated mortgage banking institution, which is subject to mortgage banking rules, regulations, and conditions, with the obligation evidenced by the loan documents being one of simple loaning of money and repayment, period. Once a loan is sold off into a securitization, the homeowner is no longer dealing with a regulated mortgage banking institution, but with an unregulated private equity investor which is under no obligation to act in the best interest to maintain the loan relationship, but to “maximize the return”. This, as we know, almost always involves foreclosure and denial of a loan mod, as a foreclosure (a) results in the acquisition of a tangible asset (the property); and (b) permits the trust to take advantage of reserve pools, credit default swaps, first loss reserves, and other insurances to reap even more monies in connection with the claimed “default” (with no right of setoff as to the value of the property against any such insurance claims), and in a situation where the same risk was permitted to be underwritten many times over, as there was no corresponding legislation or regulation which precluded a MBS insurer (such as AIG, MGIC, etc.) from writing a policy on the same risk more than once. 

As those of you know who have had Bloomberg reports done on securitized loans, the screens show loans which have been placed into many tranches (we saw one where the same loan was collateralized in 41 separate tranches, each of which corresponded to a different class of MBS), and with each class of MBS having its own insurance, the “trust” could make 41 separate insurance claims AND foreclose on the house as well! Talk about “maximizing return for the investor”! What has happened is that the securitization parties have unilaterally changed the entire nature of the mortgage loan contract without any prior notice to or approval from the borrower. 

There is no language in any Note or Mortgage document (DOT, Security Deed, or Mortgage) by which the borrower is put on notice that the entire nature of the mortgage loan contract and the other contracting party may be unilaterally changed from a loan with a regulated mortgage lender to an “investment” contract with a private equity investor. This, in our business, is called “fraud by omission” for purposes of inducing someone to sign a contract, with material nondisclosure of matters which the borrower had to have to make the proper decision as to whether to sign the contract or not. 

U.S. Bank has now confirmed, in writing from its own corporate offices in St. Paul, Minnesota, so much of what we have been arguing for years. This brochure should be filed in every securitization case for discovery purposes and opposing summary judgments or motions to dismiss where the securitized trustee “bank” takes the position that “the borrower is not part of the securitization and thus has no standing to question it.” U. S. Bank has confirmed that the borrower is in fact a party to an MBS transaction, period, and that the mortgage loan is in fact governed, in part, by “the Trust’s governing documents”, which are thus absolutely relevant for discovery purposes. 

Jeff Barnes, Esq.,

http://www.ForeclosureDefenseNationwide.com

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Fannie and Freddie Demand $6 Billion for Sale of “Faulty Mortgage Bonds”

by Neil Garfield

You read the news on one settlement after another, it sounds like the pound of flesh is being exacted from the culprits again and again. This time the FHFA, as owner of Fannie and Freddie, is going for a settlement with Bank of America for sale of “faulty mortgage bonds.” And most people sit back and think that justice is being done. It isn’t. $6 Billion is window dressing on a liability that is at least 100 times that amount. And stock analysts take comfort that the legal problems for the banks has basically been discounted already. It hasn’t.

For practitioners who defend mortgage foreclosures, you must dig a little deeper. The term “faulty mortgage bonds” is a euphemism. Look at the complaints there filed. When they are filed by agencies it means that after investigation they have arrived at the conclusion that something was. very wrong with the sale of mortgage bonds. That is an administrative finding that concluded there was at least probable cause for finding that the mortgage bonds were defective and potentially were criminal.

So what does “defective” or “faulty” mean? Neither the media nor the press releases from the agencies or the banks tell us what was wrong with the bonds. But if you look at the complaints of the agencies, they tell you what they mean. If you look at the investor lawsuits you see that they are alleging that the notes and mortgages were “unenforceable.” Both the agencies and the investors filed complaints alleging that the mortgage bonds were a farce, sham or in other words, a PONZI Scheme.

Why is that important to foreclosure defense? Digging deeper you will find what I have been reporting on this blog. The investors money was not used to fund the REMIC trusts. The unfunded trusts never had the money to buy or fund the origination of bonds. The notes and mortgages were never sold to the Trusts even though “assignments” were executed and shown in court. The assignments themselves were either backdated or violated the 90 day cutoff that under applicable law (the laws of the State of New York) are VOID and not voidable.

What to do? File Freedom of Information Act requests for the findings, allegations and names of investigators for the agency that were involved in the agency action. Take their deposition. Get documents. Find put what mortgages were looked at and which bond series were involved. Get a list of the mortgages and the bonds that were examined. Get the findings on each mortgage and each mortgage bond. Use the the investor allegations as lender admissions admissions in court — that the notes and mortgages are unenforceable.

There is a disconnect between what is going on at the top of the sham securitization chain and what went on in sham mortgage originations and sham sales of loans. They never happened in the real world, no matter how much paper you throw at it.

And that just doesn’t apply to mortgages in default — it applies to all mortgages, which is why all the mortgages that currently exist, and most of the deeds that show ownership of the property have clouded and probably “defective” and “faulty” titles. It’s clear logic that the government and the banks are seeking to avoid, to wit: that if the way in which the money was raised to fund the loans or purchase the loans were defective, then it follows that there are defects in the chain of title and the money trail that were obviously not disclosed, as per the requirements of TILA and Reg Z.

And when you keep digging in discovery you will find out that your client has some clear remedies to collect the profits and compensation paid to undisclosed recipients arising out of the closing of the “loan.” These are offsets to the amount claimed as due. If the loan was not funded by the Trust, then the false paper trail used by the banks in foreclosure is subject to successful attack. If the loans were in fact funded directly by the trust complying with the REMIC provisions of the Internal Revenue Code, then the payee on the note and the mortgagee on the mortgage would be the trust — or if the loan was actually purchased, the Trust would have issued money to the seller (something that never happened).

And lastly, for now, let us look at the capital structure of these banks. A substantial portion of their capital derives from assets in the form of mortgage bonds. This is the most blatant lie of all of them. No underwriter buys the securities issued by the company seeking financing through an offering to investors. It is an oxymoron. The whole purpose of the underwriter was to create securities that would be appealing to investors. The securities are only issued when you have a buyer for them, and then the investor is the owner of the security — in this case mortgage bonds.

The bonds are not issued to the investment bank as an asset of the investment bank. But they ARE issued to the investment bank in “street name.” That is merely to facilitate trading and delivery of certificates which in most cases in the mortgage bond market don’t exist. The issuance in street name does not mean the banks own the mortgage bonds any more than when you a stock and the title is issued in street name mean that you have loaned or gifted the investment to the investment bank.

If you follow the logic of the investment bank then the deposits of money by depository customers could be claimed as assets — without the required entry in the liabilities section of the balance sheet because every dollar on deposit is a liability to pay those monies on demand, which is why checking accounts are referred to as demand deposits.

Hence the “asset” has been entered on the investment bank balance sheet without the corresponding liability on the other side of their balance sheet. And THAT remains that under cover of Federal Reserve purchase of these bonds from the banks, who don’t own the bonds, the value of the bonds is 100 cents on the dollar and the owner is the bank — a living lies fundamental. When the illusion collapses, the banks are coming down with it. You can only go so far lying to the public and the investment community. Eventually the reality is these banks are underfunded, under capitalized and still being propped up by quantitative easing disguised as the purchase of mortgage bonds at the rate of $85 Billion per month.

We need to be preparing for the collapse of the illusion and get the other financial institutions — 7,000 community and regional banks and credit unions — ready to take on the changes caused by the absence of the so-called major banks who are really fictitious entities without a foundation related to economic reality. The backbone is already available — electronic funds transfer is as available to the smallest bank as it is to the largest. It is an outright lie that we need the TBTF banks. They have failed and cannot recover because of the enormity of the lies they told the world. It’s over.

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