Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Friday, November 23, 2007

The Dubai government, whose purchase of six American ports sparked a political furor, is poised to acquire substantial stakes in Citigroup and other New York-based banks mired in subprime mortgage debt.

Omar bin Sulaiman, the governor of the Dubai government's investment arm, DIFC Investments, is currently on a spending spree, spurred by the bargains that have resulted from the low value of the dollar and the sinking of the stock markets caused by the subprime mortgage crisis. Last year, Dubai caused a political storm in America when its Dubai Ports World company acquired six major American ports as part of its purchase of the British company P&O. Opposition to ownership by an Arab country of such sensitive properties at a time when America is waging a war against Islamist terrorists obliged Dubai to sell the port management companies to the American insurance company AIG amid anxieties about port security.

Dubai, a tiny country in the Persian Gulf with a matching small population, which is part of the United Arab Emirates, is cash-rich because of its vast natural reserves of oil.

Under its ruler, Sheik Mohammed bin Rashid al-Maktoum, Dubai has aggressively begun to diversify its investments into tourism, construction, and finance and has concentrated upon acquiring blue-chip companies around the world. The sheik's aim is to make Dubai home to two of the world's 10 largest financial institutions within the next eight years.

The turmoil in the markets and the subprime mortgage mess has made large American financial institutions and banks vulnerable.

"There are good assets in the U.S., good opportunities for acquisitions to be identified," Mr. bin Sulaiman told reporters at the World Financial Centers Summit conference in Dubai. He said he was hoping to buy into American oil and gas interests, as well as telecommunications companies and real estate while the prices were right.

He is also eyeing the troubled American banking sector, where four major financial institutions have had to write off billions of dollars of bad debt stemming from their involvement in risky subprime mortgages.

Earlier this year, the Dubai government took a 2.2% stake in Deutsche Bank for $1.97 billion, making it the fifth-largest shareholder of Germany's flagship bank. Other state-owned Dubai investment groups have in the past year bought substantial stakes in HSBC Holdings and Standard Chartered.

Istithmar, the Dubai government-funded investment house that bought into Standard Chartered, said in September that it was interested in investing in two American companies hit by subprime bad debts.

Mr. bin Sulaiman refused to be drawn on whether he was focusing his attention on Citicorp, America's largest bank, Merrill Lynch, the world's largest brokerage, Bear Stearns, or Morgan Stanley.

Three chief executives of banks have been fired because of their firms' exposure in the subprime mortgage market which has caused a total write down of $45 billion so far in bad debts. Merrill Lynch marked down $8.4 billion in assets during the third quarter; Citigroup has written down at least $13 billion.

Chief executives are not the only ones to lose their jobs. According to Bloomberg, Bank of America, JPMorgan Chase, Bear Stearns, Citigroup, Lehman Brothers, and Morgan Stanley have announced more than 24,000 job cuts in the first 10 months of 2007.

"Without mentioning names, we have a track record of taking stakes in major banks, with the right partners for management," Mr. bin Sulaiman told Reuters. He thought that, notwithstanding the sharp reduction in the share prices of the four, he would bide his time as they were likely to slip further. "The challenge is how low do we look," he said. "The price has to be right, and you need to understand the strategy of the organization and, if that aligns with our strategy, the decision is easier."

Other Dubai investment agencies are also circling American financial institutions. "What's happening in the States is going to create a lot of opportunities," Mohammed Shaibani, chief executive officer of the Investment Corporation of Dubai, told reporters yesterday. "In financial services, we are evaluating the situation."

Mr. Shaibani said he was waiting until the shares of companies like Merrill Lynch, which have dropped 42% since June 1, sank even lower. He said he thought at their price yesterday, they were "still expensive."


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What language do Dubaiians speak?????????????

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Oompa loompa oompa de da , we have a riddle that's waiting for you .
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Never happen.  Banks are national assets.  No foreign nation can buy a controlling interest in them.

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The official language is Arabic and the official religion is Islam. They are part of the UAE but not considered extremists but have been working on developing closer ties to the current Iranian regime.
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Abu Dhabi blazes trail as investors circle US banks

A $7.5bn Abu Dhabi deal to buy Citigroup shares may have created a model for acquisitions by Gulf and other emerging-market investors scouring the ruins of the U.S. mortgage crisis for bargains.

The Abu Dhabi Investment Authority (ADIA) sought no role in managing Citi, allowing the world's wealthiest sovereign fund to invest as a saviour of the largest US bank without the risk of being perceived in the United States as an Arab predator.

Investors from Dubai to China could be considering similar deals with cash-strapped US banks, hoping to ride a recovery in their stocks and avoid the political barriers that could have been thrust in their path in better times, analysts said.

"There will be more such investments," said Giyas Gokkent, head of research at the National Bank of Abu Dhabi. "The other buyers will likely play the same white-knight role," he said of other Gulf Arab investments in Wall Street firms.

Citi, which could book $17.8bn in second-half credit-market losses, said ADIA would buy 4.9% of stock, eventually becoming the largest shareholder of a bank that has lost 42.5% of its market value in the past five months.

Other Gulf investors, backed by $1.2 trillion in state reserves, say they could follow, depending on when they expect the worst of the crisis triggered by defaults on high-risk home loans to have passed.

Investment Corporation of Dubai said on November 20 it was looking to benefit from the U.S. crisis, but judged shares of Citigroup to be too expensive as were those of Merrill Lynch, which reported the biggest credit losses after Citi.

DIFC Investments, the Dubai government agency that bought into Deutsche Bank this year, said last week it could invest in banks and property among other US assets.

Dubai's state-owned private equity firm Istithmar said in September it was considering buying into two US companies hit by exposure to sub-prime, or high-risk, mortgages. It did not name them.

These investments would likely be minority stakes that offer the buyers no say in how the banks are run, said Gokkent. Sovereign funds such ADIA, with an estimated $650bn in assets, lack the expertise or desire to run a bank, he said.

"The idea is to capture growth for their investment portfolio," Gokkent said.

Funds and firms in the world's biggest oil-exporting region have been snapping up assets from Japan to Africa as their government-owners reap the windfall from a five-fold increase in crude prices since 2002.

Gulf investors have spent more than $70bn on foreign acquisitions this year, twice as much as the record set in 2005, to reduce reliance on oil revenue.

Increasingly Gulf buyers are running into resistance from governments wary of allowing foreigners to control assets they say could affect their economic interests and national security.

Dubai's DP World relinquished control of U.S. ports after lawmakers threatened to block its 2006 acquisition of British rival P&O on national security grounds.

Dubai Aerospace Enterprises' failed attempt to buy New Zealand's Auckland International Airport and Borse Dubai's offer to takeover Nordic exchange operator OMX encountered political opposition this year.

The growing power of sovereign wealth funds is raising concerns in the West, with the Group of Seven industrial nations calling for greater scrutiny of their role this year.

Still, the initial response to the Citi investment was different, even though it came from the largest and most secretive of these funds.
U.S. Senator Charles Schumer, who opposed the DP World deal and raised questions about Borse Dubai's plans to swap stakes with Nasdaq Stock Market Inc, said ADIA was helping New York retain its status as the world's financial centre.

The U.S. mortgage crisis could hold similar opportunities for investors from other emerging markets, especially China, which is still smarting from Washington's opposition in 2005 to CNOOC's bid for U.S. oil firm Unocal.

"Emerging economies have welcomed Chinese investors with open arms but acquisitions in developed markets have been more problematic for them so far," Flemming Nielsen, Asia economist at Danske Bank in Copenhagen.
"It may still be a problem but my guess is pricing and banks' liquidity problems may make it more possible," he said.

Bear Stearns agreed a $ bn equity swap with China's CITIC Securities last month and industry sources said China Jianyin Investment Securities, controlled by an arm of the central bank, was eyeing a tie-up with a global brokerage, possibly Merrill Lynch.

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Shaggy, thanks for the post.
God, just when I though it couldn't sound any worse, it does!
(Sorry 4J I stole your tag line) and it's true.

This post should really be a part of the thread titled :"DEATH OF THE U.S. ECONOMY" , shaggy so I hope you don't mind me providing the link there.

Before We know it America will no longer be owned by America, it will be owned by foreign countries, and we will NO LONGER BE FREE.

But that's OK, cause the RICH SERVICER BASTARDS, will BE WITHOUT THE SAME. The Land of the FREE.

~~~They truly will get their own.


If you are reading this thread make sure you come to the thread listed below to read, about the DEATH of the U.S. Economy.
Just click the link:
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Stocks Higher After Citi Secures Capital
Tuesday November 27, 3:06 pm ET
By Joe Bel Bruno, AP Business Writer
Wall Street Advances After Abu Dhabi Agrees to $7.5 Billion Investment in Citigroup

NEW YORK (AP) -- Wall Street rebounded Tuesday after the Abu Dhabi Investment Authority said it will invest $7.5 billion in Citigroup Inc. -- a vote of confidence for the nation's largest bank, which has suffered severe losses amid the ongoing crisis in the mortgage market. The Dow Jones industrials rose more than 120 points.

The banking industry has been battered in recent months as defaults on home loans have risen and rendered some mortgage-backed securities essentially worthless. Major financial institutions, including Citi and its competitors, have had to book some $80 billion of writedowns on those holdings -- a trend that has left the markets nervous about the full extent of the damage.

"The Citi deal is certainly a relief after a series of negative news on Monday with respect to the financials," said Todd Salamone, director of trading at Schaeffer's Investment Research. "Sovereign wealth funds that have plenty of cash may be viewed as a potential rescuer given the balance sheet troubles the banks are having. A weak dollar makes it that much more possible."

Investors were relieved that Citi was able to secure an injection of capital, and that others might be able to do the same. Concerns about further writedowns caused the Dow to fall 240 points Monday, bringing the blue chip index, along with the Standard & Poor's 500 index, down 10 percent from recent highs, a decline that signifies a correction.

Still, the market showed it is still quite vulnerable to anyone raising the specter of a sagging economy.

Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said he won't be surprised if U.S. economic data over coming months is weak, and warned that recent central bank rate cuts have increased the risk of higher inflation. Meanwhile, Federal Reserve Bank of Chicago head Charles Evans said in a speech that further turmoil in financial markets could cut into business investment and curb consumer spending on big-ticket items.

Their comments eroded some of the day's gains. The Dow rose 124.04, or 0.97 percent, to 12,867.48 after being up nearly 250 points earlier in the session.

Broader stock indexes also moved higher, with the S&P 500 index up 7.57, or 0.54 percent, at 1,414.79, and the Nasdaq composite index up 18.45, or 0.73 percent, at 2,559.44.

New York Stock Exchange:

Nasdaq Stock Market:

This is why letting these financial criminals loot our economy is doubly dangerous
it hurts our economy and exposes us to increased crime and drugs do to creation of bad neighborhoods but it also causes the U.S. to be vulnerable to foreign interests as they prop up our economy they then call the shots. How do we know China the Arab nations and others won't demand we permit terrorism and human rights violations because they own us literally. Mexico seems to be calling many of our foreign policy shots too we have to permit drug dealers, gangs and violent criminals due to Nafta and Cafta and who know what other under the table agreements the tail is wagging the dog.

I'm not suggesting we act like bullies just because we can but why should we let the financial criminals and crooked politicians transform us into a 3rd world nation in just a generation?

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