New York Attorney General Accuses Bank Of New York Mellon Of Fraud, Moves To Block Bank Of America's

[WillyT]

This is what government is supposed to do! :toast: To AG Schneiderman :toast:

New York Attorney General Accuses Bank Of New York Mellon Of Fraud, Moves To Block Bank Of America's Mortgage Deal
Shahien Nasiripour - HuffPo
First Posted: 8/4/11 08:32 PM ET Updated: 8/4/11 09:06 PM ET



<snip>

WASHINGTON -- New York Attorney General Eric Schneiderman asked a state judge to reject a proposed $8.5 billion settlement agreement over soured loans between Bank of America and a group of investors, claiming in court documents that a separate bank representing the investors committed fraud for failing to ensure that the mortgage securities were created in accordance with state law and for failing to act in the investors' best interest.

Bank of New York Mellon, the trustee representing the investors, "knowingly, repeatedly, and consistently" misled investors into thinking that the mortgage bonds were created properly, Schneiderman said in court documents. BNY Mellon also put its own interests before those of the investors it's supposed to represent, he said. BNY Mellon, the 11th-largest U.S. bank by assets and one of the nation's largest trustees, stands accused of "repeated fraud and illegality," according to court filings, which alleges that the abuses "were repeated literally hundreds of times."

In short, Countrywide Financial, the lender purchased by BofA in 2008, failed to properly assemble loan documents needed for the creation of mortgage securities, and BNY Mellon effectively looked the other way, which "apparently triggered widespread fraud," Schneiderman said in court documents. BNY Mellon should have known the mortgage securities were improperly created because the evidence was "abundant," Schneiderman asserted, citing the bank's own documents, news coverage of "foreclosure fraud" and foreclosure actions brought on the bank's behalf.

Schneiderman also accused Bank of America of fabricating the missing documents when it came to foreclosing on homeowners who defaulted on their mortgages. There are "serious questions about the fairness and adequacy" of the proposed settlement agreement, Schneiderman said in court documents.

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More: http://www.huffingtonpost.com/2011/08/04/new-york-attorney-general_n_919008.html

:kick:

[proud patriot]

1. good

[izquierdista]

2. How long?

Until he is found with a hooker? an underage gay one, just to be sure...

[girl gone mad]

3. Really liking him so far.

[WillyT]

4. Kick !!!

:kick:

[Armstead]

5. Too bad the US Government won;t do these things