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dagwud
Senior Contributor

60 Minutes & fake documents by bankers

Anyone see tonight's 60 Minutes program.  I came in after the show had started but was shocked by what I did see.   Seems several banks including some of the big boys like Bank of America were buying fake documents from businesses that were in the business of creating and selling fake documents.  They interviewed people who worked for one of these fake document companies and they say they signed up to a couple thousand fake banking documents every day.  One lady's name "Linda Green" was signed by several different people and showed she was a bank vice-president for up to 5 different banks.  On some documents the name of Linda Green was signed by two different people.

 

 

Seems that when things went south and banks tried to foreclose on home owners that many of them did not have the proper paper work showing they actually held the note on the home as they had been bundled and resold.  Seems the banks screwed up trying to foreclose on one lady interviewed on 60 Minutes.  She was an expert on forged documents and had worked with the FBI helping train their agents on spotting fake and forged documents.  When the bank first announced they were foreclosing on her home they said they could not find the paper work but somehow surprisingly found it all months later.  The lady showed a copy of the newly found bank note to 60 Minutes and the forged bank note was dated months after they started to foreclose on her house.  

 

 

Seems to me that if the government and Justice Dept. don't step and do their jobs to protect people from these crooks that we need to see some very large class action lawsuits.

11 Replies
Iowa notiller
Senior Contributor

Re: 60 Minutes & fake documents by bankers

I did not see the program. By what you say, it seems the government oversight was not doing their job. Do I understand that correctly?

schnurrbart
Veteran Advisor

Re: 60 Minutes & fake documents by bankers

No, that isn't what he was saying.  And I think this is just now coming out as to exactly how this happened.  The banks are saying that they weren't really involved because there is an industry that "researched and searched " for missing documents.  Problem was that they were creating these docs in the back room using phonies.

GreaTOne_65
Senior Contributor

Re: 60 Minutes & fake documents by bankers

Correct, Brian.

bruce MN
Advisor

Re: 60 Minutes & fake documents by bankers

Shocked that you were shocked dag. This site has been loaded with links to stories on tihs matter. Someobdoy or other has probably linked up all of the fabulous articles written by Matt Tiaabi in Rolling Stone that center on it. People with diverse views have posted links to Karl Denninger's Market-ticker and Yves Smith's nakedcapitalism blog sites which both hold an obsession with it.

 

The 60 Minutes piece was actually quite weak. My wife offered that it was like reading Clif's Notes on the subject. There are stupendous crimes involved in what has gone on if weighed against existing statutes and precedents. It was foreseen and warned against to no avail by many, and was sanctioned with the repeal of Glass-Stegal and the installation of a series of (bi-party) regulators and Justice Dept. officals and States Attornies who didn't want to "bother" the banks. Billions of unpaid recordeing fees have been avoided that could have benefited local governments AND TAXPAYERS.  

 

The mainstream press seems very comfortable with the main line story of the roots and causes of the housing crisis and mortgage sytem implosion being that it was caused by devious borrowers, primarily urban and of ethnic minorities, who set out with malice aforethought to screw the banks. Thos elong lines of diverse borrowers at those help centers should help to dispel that,but as always, people will only see what they want to see.

 

A very weak, just barely surface scratching investigation and story. Did you watch the rest of 60 Minutes? One of the most inspirational and moving human interest pieces I've seen in a long, long time.

dagwud
Senior Contributor

Re: 60 Minutes & fake documents by bankers

I knew there was plenty of cases of fraud involved Bruce but did not know just how rampant it was and how brazen these people were.  The fake document company even hand their own legit store front and the people they hired for $10 an hour to sign the fake documents knew what was going on was not kosher. Putting down the name Linda Green on bunches of fake documents and listing her as a vice president of 5 different banks makes one realize how desperate these folks were and or how little concern they had about being caught be regulators.

 

 

I have read some of Taibbi's stuff as well as seen him a few times on Maher's show however I don't think a majority of people are familiar with his work.  I'm guessing the 60 Minutes show will reach a far larger audience then his printed articles or Maher's show and hopefully get more folks upset and demanding action on this large scale crimes.

 

 

We had company so was able to watch the entire program or give it my undivided attention.  As for the inspirational and moving story are you talking about the lady that was teaching Gospel music to teenage black children?  I saw a bit of that segment but did see what their third story was about assuming they had a third story line as is typical for most shows.

 

 

I must not see thee same main street press coverage on this scandal as you do Bruce as I have never gotten the impression the press is trying to blame the housing crisis on "devious borrowers."   I have seen news reports on devious bank employees that were giving out and approving loans to people who should have never been approved as they simply did not have the means to make good on the loans but the bank employees were often rewarded by the amount of loans made with little or no concern given to rather or not the loans would get repaid.

schnurrbart
Veteran Advisor

Re: 60 Minutes & fake documents by bankers

You can see it here: http://www.cbs.com/primetime/60_minutes/video/?vs=Full%20Episodes

 

The lady who teaches Gospel music is great.  What she does with these innercity black kids is nothing short of miracles.

bruce MN
Advisor

Re: 60 Minutes & fake documents by bankers

There was no third segment. The second one ran for the duration of the program.

 

Ding it up on line. My musician sisters and daughters who saw it were rather emotional over it actually. 

 

As for the mainstream press, no effort to dispel that commonly held assumption, which is the primary and substantial view "on the street".....brewed out of ignorance and  heated by prejudice and deceptio on the part of the industry constitutes deplorable journalism.

 

Yeah, more people became exposed....but just barely with nothing, really, to take with them from it.

dagwud
Senior Contributor

Re: 60 Minutes & fake documents by bankers

I would like to know if banking regulators and the Justice Dept will hold these banks accountable for all these forged documents or will they be able to hide behind the document companies like Enron tried to hide behind their accounting firm, or how Decoster tries to hide behind his hiring agencies claiming he didn't know all the workers were illegal aliens.

 

 

To me the banks should be responsible for maintaining the proper paper work on all these loans which by the way represent the biggest financial decision most folks will ever make in their life times.  They should throw the book at the banks along with the fake document companies.

Samnospam
Advisor

Re: 60 Minutes & fake documents by bankers

And dag, on the other end of the deal is a pension fund or insurance company that thought they were purchasing collateral backed bonds, when in truth they have no legal claim to collect on.