Here is a new but unsurprising development in the foreclosure fraud mess. We already knew legal documents are being fabricated. Now we have evidence of a price sheet outlining the cost of these fabrication services.
I would imagine the shredders are getting cranked up as the rats work to destroy evidence that they knew of the elements of this fraud.
Obviously they knew. Many, many bank employees and managers knew. Attorneys General of at least two states have halted foreclosures. These foreclosure freezes may not be voluntary for long. Judges are waking up. The American people will not stand for a legal bailout. After skating past TARP I and the credit market meltdown, it is hard to see how banks, trustees, and servicers are going to get past this one. The dollars involved are staggering. How can the RMBS market not take a hit? When it does, how can those who made the decisions to do business in this manner not bear the brunt of the cost? All that “risk” that was so profitably offloaded to investors may be coming back, morphed into other forms. Would that not be justice served?
Shareholders are impotent. This is a matter that shareholder oversight might have helped with if shareholders were engaged and empowered. The shareholder rights movement has been neutered by corporate lobbies. Shareholders need to be able to elect Board Members over the objections of management. This fiasco and it’s consequences needs to provide impetus for a revisiting of the governance issues. For management, no matter how many “get out of jail, free” cards are issued, has proven itself unable to govern these “Too Big Too Care” institutions. Some of these employees, I have no doubt, objected vigorously to these practices. Some are no longer with these banks. Run out. Others were marginalized or intimidated. It is time for these to come forward and help usher in a new age of responsible enterprise.
It is time to end Too Big Too Care.