Posted on 07/07/2011 10:27:33 PM PDT by Kartographer
The chief executive of HSBC in the US has been threatened with sanctions by a New York judge because of a row over a foreclosured home.
A judge has issued an order claiming HSBC and a law firm deliberately misled the court by filing false and “robo-signed” documents in an attempt to foreclose on the house of a Brooklyn resident
(Excerpt) Read more at telegraph.co.uk ...
PING!
Right here, we see the true reason for the robo-signers and the outsourced legal work from the banks, who certainly have their own legal departments:
“A HSBC spokesman said any improper documents were prepared by an independent company acting as mortgage loan servicer, and not by HSBC.”
The banks wanted to keep the frauds upon the courts at arms’ length from their legal departments and execs. The trouble is, it will be very difficult for the bankers to claim that they had no constructive knowledge of these practices.
Could it happen to a nicer company?
Absolutely. It's an effort to create plausible deniability for a shell game.
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