Ask a Stupid Question…
Posted originally Zero Hedge, October 25, 2010
“The question isn’t who is going to let me, it is who is going to stop me?”–Ayn Rand
WITH THE SWIRLING FRAUDCLOSURE CRISIS HEATING UP literally by the trading hour, I thought I would take a look at Dr B’s speech this morning to see if I could glean how His Helicoptership sees the “big fraudclosure picture.” I am not a PhD in the art of Fed speak, so the first thing I did was run the speech through a visual word cloud generator. Here is the result:
Hmmm… the words mortgage and foreclosure figure prominently. Not surprising since the conference is titled: “Conference on Mortgage Foreclosures and the Future of Housing.” I see the word crisis, at least he will ackowledge that much. However, I don’t see the words “possible systemic fraud” anywhere, do you? I don’t see the words “accountability,” “purge” or “confidence” either.
I then read the speech iself, which talks a lot about a FED program called “MORE” and a Treasury/Dept of Labor unemployment task force called “HOPE NOW.”
MORE… HOPE NOW, feel better?
Here is what Dr B says about the fraudclosure crisis:
“I would like to note that we have been concerned about reported irregularities in foreclosure practices at a number of large financial institutions.”
WB7: You must be, your Maiden Lane Branch sent a “notice to cure” letter to Bank of America just last week.
Dr B: “The federal banking agencies are working together to complete an in-depth review of practices at the largest mortgage servicing operations. We are looking intensively at the firms’ policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures.”
WB7: That is very very very reassuring, “systemic weaknesses leading to improper foreclosures.” Now here is the sentence I find very, very interesting:
Dr B: “We take violations of proper procedures seriously.”
Really? “Proper procedures”? I don’t know much about PhD mumbo jumbo. But I know what a leading question is when I see one. They spend plenty of time drilling this skill into you in Law School, a question framed in a manner intended to suggest the answer.
If all you are searching for are violations of “proper procedures” then all you are going to find is unfortunate “mistakes, errors and faulty processes”. You are certainly not going to find a pattern of criminal racketeering activity as contemplated by the RICO statute.
Dr B choses his verbiage very carefully. I find this sentence to be very telling if you are wondering which direction the primary institution in charge of overseeing the banking system would like to see the fraudclosure/mortgage servicing crisis proceed. He and Timmy are going to have to pull all the stops to make their wish come true.
MORE HOPE NOW!
MORE HOPE NOW!