It ain't only the Ticker who's on to this crapola.
...Suggestions to restructure zombie banks like Bank America are
ridiculed by former Treasury Secretary and Robert Rubin minion Tim
Geithner and his ilk because of supposed “systemic risk,” but such
arguments reek of corruption. The real reason nobody wanted bankruptcy
for Bank America’s Countrywide unit was because of the securities fraud
that would be revealed by a thorough examination of the mortgage backed securities
originated by Countrywide and other lenders. Geithner’s successor at
Treasury, Jack Lew, is another Rubin minion who was parked at Citigroup during the bad old days under Sandy Weill.
Just go down the list of the top six universal banks in the US; all
have some degree of exposure to old mortgage backed bonds that, for
example, had multiple pledges of collateral. That is, a home mortgage
might have been pledged as security on two or more different bond deals.
This is why neither Geithner nor his nominal boss, Barack Obama, would
not dare prosecute any of the heads of the largest commercial banks for
securities fraud; for fear of what they would find inside Pandora’s Wall
Street drop box. ...
The banks have been handed "free money" by the Fed for the last several years, which has allowed them to survive. But what happens when T-Bond yields begin to rise?
Stay tuned. That'll happen sooner than you think!
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