Executive
departures at Fannie, Freddie and Investment Banks
The Wall Street Journal and the New York Times are all buzzing
about the departures and layoffs of high placed investment bankers at Fannie
and Freddie and the huge layoffs at BOA, Citi, Chase, and Wells of formerly
high-priced (stupidly high salaries and bonuses) of major players in their
investment banking divisions. These people have intimate knowledge of the
actual flow of money, securities and the alleged securitization of millions of
loans.
If you are looking for fact and expert witnesses, this group of
people contains at least a few hundred whistle blowers despite contracts they
signed for their benefits package on leaving the GSEs and the Banks. Many of
them are waiting to be contacted and believe they can make far more money
busting the banks or agencies that hired them than the bloated severance
package they received.
If you ask the right questions and follow up with them, you will
learn that from the very start the documents used at closing with borrowers
were even more misleading than the documents used at closing with the lender
investors. They will also tell you names of investors and investor
"pools" and the fund manager of each. And of course they will tell
you that the pools are either empty, non-existent or hydrogenated so that their
existence and contents are a complete mystery even ton those who sold
repackaged mini bonds or mortgage bonds using the dissolution of the old
"trust" that purportedly claimed ownership over the entire loan.
Most important is that these people can tell you why
"bankruptcy remote" thinly capitalized entities were used to
originate the loans rather than the lending pools. And they can tell you where
to find the money that was received, but not allocated to reduce the loan
balances or the balances due on the mortgage bonds.
