A Ghostly Palimpsest “by Consent of the Governed”—Just a spoonful of sugar helps expropriation go down–Little Illusions as the Way of Life in 21st Century America

Franklin D. Roosevelt’s New Deal was famous for operating by “three letter bureaucracies” (the “NRA”, the “TVA”, the “FBI”, the “IRS”, “OSS”, etc.).  Things are decidedly more complex under Obama and the RMBSWG is both typical and symptomatic of this complexity.   Four letter projects such as “HARP” and “TARP” from 2009, the First Year of the Obama administration, just haven’t cut the cheese…. And SO, the Residential Mortgage Backed Securities Working Group is now trying to reform the Securitized Mortgage business—NOTE THE WORD, REFORM.  
Why should anything as destructive, confusing, and complex as securitization be reformed, you might ask?
Securitization is the high road to the Final Perfection of Communism. ****
Securitization operates by the transformation of debt into wealth, of contractual obligation into ownership.  Securities are simultaneously both contracts for performance and titles of ownership.  Securities operate very much in the same manner as title of ownership to a slave.  This is why securitization is so important to Obama and the Brave New World (Order).
A dedicated Patriot friend, Frederick M. Fox (startgate11@cox.net), writes from Orange County:
You cannot enforce an eviction based on a fraud of this nature. I would use this to file an appeal.
Semper Fi and Sic Semper Tyrannis!
Sadly, this shows NO understanding of what’s going on.  The purpose of the RMBSWG is to perfect Caesar, not to bury him, to exalt and improve his dictatorship and usurpation of the Republic, not to end it. Almost exactly parallel to the 9th Circuit decision I published here on these pages yesterday (Corvello v Wells Fargo Bank NA), the work of the RMBSWG is designed to force the “Industrial Armies” (i.e. large corporate/bureaucratic instrumentalities of the Centrally Planned Political Economy) to operate better, more efficiently and more properly.  The 9th Circuit Shows no intentions, nor does the Obama Administration, to curb the power of the Banks at all, but rather to make them operate more correctly, smoothly, and thus to permit MORE expropriations, MORE evictions, MORE eviscerations of the right to private property, until literally nothing is left in private hands anywhere.
The goal of this Obama RMBS “Working Group” first to put on a show for the easily entertained masses, to make it appear that the Government cares about Corporate Crime, but second and most importantly TO MAKE IT ALL WORK (securitization and hence communism).  That’s the irony of it all.  
Much of the (very limited) “relief” that’s being granted to occasional homeowners right now operates by way of political “show trial” to punish the banks for not quite getting the Government’s centrally planned programs right—“for failure to implement the party line according to the highest ideals of the Marxist-Leninist State and the Soviet Socialist Internationale.”  
“Industrial Armies” like JP Morgan Chase and Wells Fargo are being punished for failure to follow orders or for failure to execute plans flawlessly.  They were not following the Central Committee’s/ Supreme Soviet’s/ Politburo’s guidelines on how to expropriate property perfectly…..  Communism is triumphing in the US 24 years after the Collapse of the Berlin Wall.   The careful planning and sophistication with which all this is being done is simply breathtaking….  Marx’ plan was very general, vague, and imprecise about how expropriation of land and communal ownership was to take place.  But the pathway to abolition of private property could not be more clearly demarcated….
         The Marx-Engels 1848 Manifesto outlines the basics—hyper-Centralization of the Central Banking systems, the institution of Industrial Armies to unify and control all industries (those Industrial Armies are what WE now call the “Mega-Corporations,” DuPont & Monsanto through Tesco and Walmart, and the use of liberal extensions of credit—but Marx never delineated exactly how ownership and control were to be transferred from individual to communal ownership.  It turns out that’s the big difference between the Soviet and Chinese Experiments in mass expropriation vs. the Western Experiment in Fabian Gradualism, of which the Securitization Process is the perfection.  As John Stormer pointed out long ago in “None Dare Call it Treason”—it was agreed after World War II that in the West, the expropriation of private property would be carried out, so nearly as possible, under the guise and cover of apparent “due process of law.”

Obama Financial Fraud Task Force Takes on Banks Too Big to Fail

Friday, 09 Aug 2013 07:31 AM 

The criminal investigation of JPMorgan Chase & Co.’s mortgage-backed securities practice is evidence a U.S. Justice Department task force set up to investigate causes of the financial crisis is finally getting some traction against banks blamed for ruining the economy.

The probe, disclosed this week in the bank’s quarterly filing, is the latest enforcement effort to emerge from the Residential Mortgage Backed Securities Working Group. It was set up last year on orders of President Barack Obama to coordinate prosecutions of fraudulent underwriting activity by banks that contributed to the financial crisis.


The JPMorgan probe, which is also looking at possible civil violations, grew out of the working group’s efforts, said Lauren Horwood, a spokeswoman for U.S. Attorney Benjamin Wagner in Sacramento, who is leading the investigation and is a member of the group’s parent, the Financial Fraud Enforcement Task Force.

“Over the last year and a half, the RMBS Working Group members have been aggressively investigating multiple cases across the country and the public is only beginning to see the results,” Associate Attorney General Tony West, the No. 3 ranking official at the Justice Department, said in an e-mail.

The JPMorgan Chase investigation, which may not lead to criminal charges, follows parallel civil lawsuits filed earlier this week by the U.S. Securities and Exchange Commission and the U.S. Attorney Office in Charlotte, North Carolina. U.S. officials claim Bank of America Corp. failed to disclose risks embedded in $850 million in mortgage-backed securities issued in 2008.

First Case

In February, as the government’s financial fraud task force started what would become a series of financial crisis-related cases, the Justice Department filed a civil suit against Standard & Poor’s, a ratings company, alleging that the firm committed fraud by blessing a series of mortgage-backed securities with top-quality ratings in 2007. Federal and state investigators alleged S&P should have known that the securities were well below investment grade. The government has asked the firm to repay $5 billion in losses.

Last October, New York Attorney General Eric Schneiderman brought the first case on behalf of the RMBS working group, accusing JPMorgan Chase of fraud stemming from the actions of its Bears Stearns Cos. subsidiary.

“The President’s Working Group continues to meet and make progress in its efforts to hold banks accountable for the crash of the housing market and the collapse of the American economy,” Schneiderman, who co-chairs the working group, said in a statement Aug. 7.

The Team

The RMBS group’s director is Geoff Graber, who was also the lead Justice Department lawyer in the investigation of New York-based McGraw Hill Financial Inc.’s S&P unit. More than 200 federal and state attorneys, investigators and analysts have played a role in the group’s work, according to the Justice Department.

Graber’s coordinating team, composed of eight members, is based in Washington and made up of criminal prosecutors, civil attorneys and analysts. As part of its work, it conducts daylong meetings every two months, the most recent of which occurred on July 12, according to the Justice Department.

The meetings, which include staff from the SEC, Justice Department, representatives of Schneiderman’s office and other state attorneys general and the FHFA’s inspector general, are centered on current investigations, identifying new targets and coordinating strategies.

Faced Criticism

The group has faced criticism from lawmakers and consumer advocates for its failure to live up to the promises President Obama made when he announced its establishment in his January 2012 State of the Union address. The pace of the group’s work drew early complaints from lawmakers, including California Representative Maxine Waters, now the top Democrat on the Financial Services Committee.

It took the group nearly four months to create a website, name its executive director and hire a staff of attorneys, analysts and FBI investigators. The group didn’t announce its first action until October 2012, when Schneiderman filed his suit against JPMorgan over misrepresentations related to RMBS put together by Bear Stearns.

The group took on a mix of continuing civil and criminal investigations and new probes into misrepresentations by securities originators and underwriters on the quality of mortgages backing the securities, failures to repurchase problematic loans and failures to transfer ownership of collateral into the securities in question.

Broad Mandate

The group has a broad mandate to investigate “any harm suffered by American consumers” related to misrepresentations or failures in agreements related to the securities, according to a Jan. 27, 2012, memo by Attorney General Eric Holder.

The uptick in the group’s work has mostly been on the civil side, as the department’s attorneys have begun to focus on and use a 1989 statute that allows the government to seek civil penalties for losses to federally-insured financial firms that occurred as long as a decade ago. Standard securities-fraud cases need to be brought within five years.


The Bank of America suit was brought under that law and the civil charges being weighed by prosecutors against JPMorgan are being crafted through that statute too.

“This is the RMBS Working Group’s most recent legal enforcement targeting misconduct in the RMBS market, but it will not be our last,” said West, who is also vice-chairman of the task force’s steering committee.

© Copyright 2013 Bloomberg News. All rights reserved.


[****I should clarify that I define Communism as a completely integrated system political economy.  The Communist political system is merely the means by which to plan, and then by regulatory bureaucracy “command and control” (as Obama’s “right hand man”) Cass Sunstein used to say back at the University of Chicago Law School) the entire economy, down to the most minute details of household life.  
The Communist state is a completely integrated but  highly complex conglomerate system of political and economic “corporations” (aka “bureaucratic systems” or “Industrial Armies”), but integration is achieved by and through a central banking system which holds all capital [allegedly] on behalf of and for the benefit of the politico-economic conglomerate “state” and the population at large.  But the Population at large, under communism is powerless to change the system or influence the decisions made by the directors of the central banking system or any of the implementing “industrial armies” or subordinate instruments of the completely.  
The key to understanding communism is that its mythology of economic and social equality is entirely illusory—it is designed to create government and economic operation by and through a new, highly intellectual, “rational” elite, and so to entirely obliterate the real power of the worker-proletariat in whose name communism was created, along with all competing elites.]

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