not ask the questions that Dan did not ask...
and should have.
So, without any further "adieu", to you...
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JGBellHimself
The short answers are:
The data was now available, very, very, absolutely not, and yes.
The 1st Q is not as simple as you suggest that it is: one, your W "nationalized" the game - which meant that not only did the CEOs change, but the legal team did to. And, when FHFA was not placed directly under the Executive, they are quasi-independant - able to make their own decisions based upon The Law, the economics, and the possible retention of their jobs and pensions.
What is MOST significant however was the receipt of The Docs from the subpoenas that were issued. You do remember do you not, that The Big Bad Banksters did try to stonewall? With people like Yves telling/showing them where to look and what to look for, they demanded, and got, "The Evidence".
Some believe that it is perfectly OK to sue even if you don' t have the evidence in hand - by assuming that you will be able to find it, someday, some way. Oddly, some Govt lawyers prefer to assemble at least a prima facie case before they file.
And, that is what happened here. They went and got The Stuff, took the time to look it over, and then filed.
But, not to worry, Dan, "They" will try to "plea bargain"; and if that doesn't work they will ask for a Presidential Pardon. Good only knows they will have paid enough in the next 13 months to get one.
Does that mean this was not a quasi-political decision? Are there ANY decisions made in DC that are not (and, no, that was not a question).
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JGBellHimself
Said you re Q 3: "As other investors file similar suits, uncertainty may again begin to cloud the financial sector..."
Point out we: NYLife, Metropolitan, and other insurance COs have already sued. So have numerous state and local pension plans, like Calpers. The strength of their cases are significantly made better by the "revelations" that the Federal Subpoenas produced. Will they piggyback? Who knows, why they would not.
JGBellHimself
Said you re Q 3: "As other investors file similar suits, uncertainty may again begin to cloud the financial sector..."
Point out we: NYLife, Metropolitan, and other insurance COs have already sued. So have numerous state and local pension plans, like Calpers. The strength of their cases are significantly made better by the "revelations" that the Federal Subpoenas produced. Will they piggyback? Who knows, why they would not.
This does not address the fraud in the origination paperwork, nor the fraud in the foreclosure paperwork, nor does it directly address the private packaging of RE mortgage packages - some US$ 2.5 Trillion totally outside, and mostly before, FMae and FMac.
It will, however, directly affect those cases. Once someone shows the fraud, and a decision is granted, the stampede for summary judgments will begin.
But, not to worry, Dan, most of those bad ARMs and subprimes were "covered" by PMI! And, then there are the truly real backstoppers - all those credit default swaps. Investment Banksters are such amazing creatures, aren't they, Dan.
So, what we might actually get is "certainty" -
"They did the crime, now they have to pay back The Dime".
(who was it that said that)
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JGBellHimself
In your last question, you ask:
"Did banks really manage to execute a grand conspiracy, in unison, to defraud these companies by intentionally and deeply obscuring the truth?"
Ask we:
What part of the Wall Street mortgage banksters' US$ 2.5 Trillion in bad ARMs and subprime RE loans do you really not understand?
The "origination" of no-doc, no income, so-called "liar loans"? By Countrywide, WAMU, Wichovia, New Century, etc.?
The "packaging" of those bad loans into "securitized" investments - knowing they were bad, and then betting that they would fail?
The selling of those "securitized" investment packages to insurance co's, private AND public pensions, and not just a few 401Ks of U.S. - earning for themselves huge salaries, bonuses, and perks - aka, wine (or straight malts), women (or men) and siren songs, all through the night.
The purchase of forged and fraudulent docs to "cover up" their gross negligence. The problem was NOT merely that they were "robo" signed - twas that they were false - and they KNEW they were false.
And, after doing all THAT - with private mortgage securities - they did it again, publicly, to FMae+FMac.
Of course, tis all China's fault!!!
When they told W that they wouldn't buy anymore RE securities from U.S., the House of Cards collapsed.
Who, now in Hell, asked 'em?
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JGBellHimself
Dan, your question about the scope of this lawsuit is very good.
Hardly anyone is talking about this. Good on ya. What, precisely, are they suing about? IF it is only the narrow issue of the SEC "false statements" and/or fraud, the recovery might BE very narrow. Not GD likely.
However, IF they ask for "consequential damages", we enter into a brave new world. That would raise the question of how much in TOTAL "equity value" has been lost due to their fraud. And, that could extend, not only to the RE loans that they sold FMae&FMac, but to ALL of the RE loans made during the "dead years" in the sand states.
As you know the Wall Street investment banksters sold US$ 2.5 Trillion in RE loans to U.S. that have almost all gone bad. What that also did was destroy the home equity value of every single home around those bad RE loans.
While your lookin at FMae+FMac is great fun, maybe you should take a close(r) look at the Wall Street investment banksters' RE loan losses.
What is the current status of THAT little "game", Dan?
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5 Question Raised by the Government's Coming Mortgage Lawsuits
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Government Going After Banks for Shoddy Mortgage Securities==============
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