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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Nye Lavalle
FYI folks. When you here the word "subprime" that's also ALL of us. Anyone who's note [paper] has been turned anything else than A paper means subprime. EMC, Litton, Ocwen, SPS ALL subprime servicers. The markets were created due to their ability to liquidate quickly and keep the check kiting and ponzi scheme going without transperancy. As long as the investors and hedge funds got paid, all was well till prices collasped and there was no more equity extraction available since market prices became reality.. So, now when people want to withdraw thier money, its not there. Wonder why?

German prosecutors to look at IKB's
subprime-related collapse,

The Associated Press
Published: August 3, 2007

FRANKFURT, Germany: Prosecutors in Duesseldorf and government regulators in Berlin are looking into how a German bank became overexposed in the U.S. subprime mortgage lending crisis, but stopped short of saying they were launching a formal investigation.

Peter Lichtenberg, a prosecutor in Duesseldorf, told The Associated Press on Friday that there was no official investigation under way of IKB Deutsche Industriebank AG.

But, he said, prosecutors, along with BaFin, Germany's financial watchdog and the IKb itself were collecting information about what happened and how it happened.

"We are in contact with IKB and BaFin and we are collecting all needed information to make an evaluation to see what we will do next," Lichtenberg said.

The news prompted shares of IKB, which plunged by more than 48 percent this week, to recover slightly in Frankfurt trading Friday, rising less than half a percent to €12.36 (US$16.93).

The German state-owned KfW Bankengruppe stepped in this week to protect IKB from exposure to the U.S. subprime crisis, and said the financial obligations totaled €8.1 billion (US$11.09 billion).

IKB's problems sprang from one of its investment vehicle's apparent funding shortfalls because of exposure to U.S. subprime real estate loans, which are made to borrowers with weak credit histories.

According to a filing with the U.S. Securities and Exchange Commission on Monday, KfW, which holds a nearly 38 percent stake in IKB, assumed all of its "rights and obligations" to the investment vehicle, Rhineland Funding Capital Corp.

On Monday, IKB issued a profit warning, saying it had "felt the impact of the crisis in the U.S. sub-prime mortgage market," and said its chief executive, Stefan Ortseifen had resigned. Ortseifen was replaced by KfW board member Guenther Braeunig.

IKB also said it could not maintain its earnings forecast of €280 million (US$383.43 million) for the 2007-2008 financial year because of its exposure.

Besides help from KfW, German cooperative banks confirmed Thursday that they are part of the rescue operation.

The three-pillar German banking system is made up of private or commercial banks, government-owned banks and cooperative banks.

The involvement of government-owned banks in the IKB rescue operation has raised questions as to whether it constitutes illegal state subsidy, but the government has said it does not believe that is the case.

On Thursday, IKB said its annual general meeting, originally planned for Aug. 30, had been postponed until later this year, given what had happened.

It also said that it had hired PriceWaterhouseCoopers to conduct a comprehensive special audit to find out how the exposure became so massive.
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Nye, I hope they are looking at the funding through GE Capital from NYC!

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