Posted on 06/10/2010 6:13:35 AM PDT by blam
Deutsche Bank Is About To Turn Into America's Public Enemy #1
Vince Veneziani
Jun. 10, 2010, 8:46 AM
If you've read Michael Lewis' "The Big Short," you know how well-entwined Deutsche Bank is in the subprime housing market. After all, CDO wunderkind Greg Lippmann decided he'd had enough and has since headed, with other ex-DB execs, to greener pastures.
But CDOs aside, Deutsche Bank is about to get a lot of bad PR from its latest move here in the U.S. The German bank is beginning to evict people from their homes and start foreclosure proceedings on a boatload of homes, according to Spiegel Online.
Spiegel Online: Deutsche Bank is deeply involved in the American real estate crisis. After initially profiting from subprime mortgages, it is now arranging to have many of these homes sold at foreclosure auctions. The damage to the bank's image in the United States is growing.
"In the last few years, Deutsche Bank has been responsible for far and away the most foreclosures here," says Eva Heintzelman. She is the director of the ROOF Project, which addresses the consequences of the foreclosure crisis in New Haven in collaboration with the city administration. According to Heintzelman, Frankfurt-based Deutsche Bank plays such a significant role in New Haven that the city's mayor requested a meeting with bank officials last spring.
How many houses was he responsible for, Co was asked? "Two thousand," he replied. But then he corrected himself, saying that 2,000 wasn't the number of individual properties, but the number of securities packages being managed by Deutsche Bank. Each package contains hundreds of mortgages. So how many houses are there, all told, he was asked again? Co could only guess. "Millions," he said.
[snip]
(Excerpt) Read more at businessinsider.com ...
What kind of moronic nonsense is this? How is a bank responsible in any way for a foreclosure?
oversight? penalties?
As crooked as they come. Screwed around with a house in my area. Straw buyers, etc..
They’ve inverted the meaning of all the words. Up is down.
How is a bank responsible in any way for a foreclosure?
I advise anyone in a foreclosure proceeding where the mortgage has changed hands since it was originated to investigate this possibility.
Involved in all kinds of mischief including bad arms deals and covering up bad loans.
The largest mortgage holding institution in America is me and you via the government/Fed.
They have a long, long, looooooong way to go before they can knock Congress out of that spot.
Exactly. Huge under reported issue going on here. Because of the chaos of the last 2 years banks have lost track of their paper. My sister who is a municipal clerk clued me into this months ago, and there was a story last week on FR how deadbeat homeowners were awarded the home because the bank couldn’t prove the lineage of the note.
If this goes viral a lot of dirtbags are going to be awarded free homes
This is all about allowing deadbeats to remain in homes they couldn’t afford, didn’t intend to make mortgage payments, and scammed the taxpayer with the aid and comfort of Barney Frank, Chris Dodd, and assorted other dem dirtbags.
What makes them dirt bags when their lender sold their loan and the buyer lost the note for the loan? The homeowner didn’t have a say in the matter.
Otherwise, I could agree to repay you and. at some later date, have the -true- note holder come after me for a second repayment of the same debt.
Gosh, that's terrible. Gonna cry myself to sleep tonight about the poor disorganized banks, you betcha.
Who in their right mind would ever want to lend money for a mortgage again?
The Libs have screwed up the capital markets for a generation.
Brilliant insight! These notes have been sliced and diced into unfathomable garbage. The lenders would have been more secure had they run the notes through a paper shredder!
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