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Links 1-12-2010

January 13, 2011

The TC Must Read: Why It Could Be Very Hard for Banks to Avoid Ibanez Mortgage Catastrophes – CNBC:

Option One: “First of all, no one who handled that mortgage still works here. You might have heard about the mortgage meltdown, right? Second, we sold it to Lehman, according to the file.”

This is big, bad news for the servicers, and this means BoA is in huge trouble.  Resolving the problems with these notes is not theoretically impossible.  But as this link points out, getting this paperwork signed in a legal manner will be so difficult that it cannot be done on the scale of a few million homes.

Already Mike Konzal is on it, so is Yves.  I said back here that BoA was DoA and would be liable for mountains of securities fraud due to the problems with the securitization process:

Additionally, BoA management must know the severity of the non-conveyance problem.  The extent of the problem is something one can determine 2 weeks time.  BoA says it investigated and did not find major issues.

The veracity of this statement is material information, and with the Sarb-Ox, C-levels are staring at substantial jail time for saying something false about material information.  And yet, the Fed and Pimco had to give notice about their intention to change servicers because the delays are so substantial.

If the emails from Wikileaks reveals that the CFO has a decent idea of the mess, or could have found out easily, the CFO will end up in jail, and BoA will be nationalized for a short period.

All of this is closely related to the Goldman/SEC link below.


  1. Deficits, Debt and Looming Disaster: Reform of Entitlement Programs May Be the Only Hope: or you could learn accounting and figure out MMT and avoid writing papers that will be looked at as hopelessly dated in 10 years.
  2. Hyman Minsky – Wikipedia, the free encyclopedia: Minsky actually read The General Theory. His levels of finance are crucial for understanding where and how reflexive events occur.
  3. Stocks – News & Commentary: Intel earnings up big – more good earnings as I predicted last week.
  4. Clarium Slumps 90% From Peak After Thiel Hedge Fund Has Third Losing Year – Bloomberg: It is pretty clear that this guy never learned the slightest thing about risk management.  Maybe he can sweep the pieces off the table rather than lose.
  5. Deleveraging, Deceleration and the Double Dip | Steve Keen’s Debtwatch: The Credit impluse is all important.
  6. Video – Breaking News Videos from CNN.com: Not the sharpest tool in the shed.
  7. 10 Things I Learned While Trading for Victor Niederhoffer Altucher Confidential: plenty of great stuff here – and not a bad field manual for life.
  8. Yglesias » What’s The Real Problem With China: Yep – its a rouge nation.
  9. Demand Side Blog: Transcript 419A: Non-Events of 2010, Part I: Always excellent.
  10. Is The Criminal Case Against Goldman About To be Reopened, As Robert Khuzami’s “Ethical” Reputation Lies In Ruins | zero hedge: It is starting to look like some congressional investigations may happen.  It wasn’t just Goldman.
  11. Ball of fire turns out to be meteor near Oklahoma – todaysthv.com | KTHV | Little Rock, AR: Always interested in fires in the sky.
  12. Kinder Surprise egg seized at U.S. border | Sympatico.ca News: If you haven’t seen these, they are chocolate eggs with plastic toys inside.  My German friends thought this was particularly hilarious.  Over 2,000 have been seized.
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