Submitted by Reggie Middleton on 09/02/2011 09:23 -0400
The Banking Industry Still Looks Dismal Despite Rising Share Prices". Well, it looks as if the Chickens Are Coming Home To Roost! The NY Times reports U.S. Is Set to Sue a Dozen Big Banks Over Mortgages:
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at #0066cc;">Bank of America, JPMorgan Chase, Goldman Sachs and#0066cc;">Deutsche Bank, among others, according to three individuals briefed on the matter.
Hmmm... Let's go back as far as 2008 and as recently as last quarter to see if this was hard to anticipate for the followers of BoomBustBlog...
BoomBustBlog Traders Armed With BoomBustBlog Research Caught ~10% Deutsche Bank Fall: The DB CEO telegraphed this coming last quarter. You just have to be able to read and comprehend CEO Sanskrit.
#0066cc;">Re: B of A - With Banks Being Forced To Admit The Inevitable Truth, How Long Will It Be Before Fundamentals Rule The Day Again?
#0066cc;">The Putback Parade Cometh: Pimco, New York Fed Said to Seek Bank of America Repurchase of Mortgages
#0066cc;">As JP Morgan & Other Banks Legal Costs Spike, Many Should Ask If It Was Not Obvious Years Ago That This Industry May Become The "New" Tobacco Companies
#0066cc;">The Squid Is A Federally (Tax Payer) Insured Hedge Fund Paying Fat Bonuses That Can't Trade In Volatile Markets? Who's Gonna Tell The Shareholders and Tax Payer???
For those that have followed me over the past 4 or 5 years, I am known to definitely go against the tide of popular opinion. One of those heterox moments was when I directly challenged the most well respected banks in the world, JP Morgan. Why did I do it? Because much of that oft lavished, pop media respect was not deserved and didn't reflect the reality on the ground (or in the books). For justification of said statement, I pray thee reference As JP Morgan & Other Banks Legal Costs Spike, Many Should Ask If It Was Not Obvious Years Ago That This Industry May Become The "New" Tobacco Companies
JPM also increased its mortgage repurchase reserves increased $1.0 billion pretax in anticipation of pressures from GSE’s for repurchase of troubled mortgages and made a provision of $1.3bn for litigation reserves. I explicitly outlined this risk this time last year (Reggie Middleton on JP Morgan’s “Blowout” Q4-09 Results) and reiterated it days before JPM’s earnings release (The Robo-Signing Mess Is Just the Tip of the Iceberg, Mortgage Putbacks Will Be the Harbinger of the Collapse of Big Banks that Will Dwarf 2008!) wherein I told BoomBustBlog readers to carefully follow the “warranties and representations” numbers, which is nearly guaranteed to spike – and spiked it has.
LOT more,,,,,,,,,,,,,,,,,,,,,,,,,,
http://www.zerohedge.com/contributed/you-know-those-bombastic-warnings-i-gave-about-banks-being-new-tobacco-industry-well-you?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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