Michael (nebris) wrote in the_recession,
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Maddow on Mortgage Fraud—NC County Recorder sues big banks for dozens of instances of "fraud"

By Gaius Publius on 3/25/2012 02:48:00 PM

"The banks could start losing these cases," says Maddow. Yes, there's hope — the real kind.

This is an excellent primer on the mortgage mess (it's actually a crime scene, as you'll see). Very watchable, easily grasped. Please take time, if you have it, to view. This is ground-zero for the greatest challenge to our legal system in modern times. As Jeff Thigpen says in the clip, this is a "rule of law" story — writ large, in my view.

(Our primer is here, if you want a fuller explanation.)

Note especially that, despite the apparent impossibility of going through the Bush II–Obama I bank-fraud indemnification firewall, you (and your county clerk) can do it. As Maddow says (at 4:22):

Going after the banks by going through their paperwork turns out to be not that hard to do; regular people can do it, with a little training. ... It's looking more and more like they may be onto something.
Change "may be" to "are" and you have it.

It helps to have a Jeff Thigpen (4:50 in the clip; that's his face below), but there are lots of counties in the country. It won't take many of them to bust this wide. Watch:

This is about property rights (yes, good old libertarian property rights) versus hiding and indemnifying the massive criminal banking fraud that led to the 2008 crisis — and making sure that prosecuting said fraud doesn't bring down the entire U.S. banking system.

That's a really tough place to be, isn't it — caught between systemic banking collapse and protection of property rights. What's a money-hungry political ad campaign to do?

I'll have more on this — David Dayen and Digby have aired this issue in a recent Virtually Speaking episode that's a textbook explanation of this Scylla–Carybdis dilemma.

GP
Tags: 'capitalism', banking sector, crime, foreclosuregate, fraudclosure, global financial trainwreck of 2007-2012, mortgage backed securities
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