Daily Archives: June 20, 2012

New NSA docs contradict 9/11 claims

Over 120 CIA documents concerning 9/11, Osama bin Laden and counterterrorism were published today for the first time, having been newly declassified and released to the National Security Archive. The documents were released after the NSA pored through the footnotes of the 9/11 Commission and sent Freedom of Information Act requests.

The material contains much new information about the hunt before and after 9/11 for bin Laden, the development of the drone campaign in AfPak, and al-Qaida’s relationship with America’s ally, Pakistan. Perhaps most damning are the documents showing that the CIA had bin Laden in its cross hairs a full year before 9/11 — but didn’t get the funding from the Bush administration White House to take him out or even continue monitoring him. The CIA materials directly contradict the many claims of Bush officials that it was aggressively pursuing al-Qaida prior to 9/11, and that nobody could have predicted the attacks. “I don’t think the Bush administration would want to see these released, because they paint a picture of the CIA knowing something would happen before 9/11, but they didn’t get the institutional support they needed,” says Barbara Elias-Sanborn, the NSA fellow who edited the materials.

Read more from Salon.

Federal Judge Makes it Easier for Monolines to win Big Damages in JP Morgan RMBS Putback Suits

The monolines suing JP Morgan for RMBS putbacks got a BIG win today in Federal court. Judge Crotty showed he wasn’t buying the banks fancy legal arguments about needing to show a loan already blew up before you get your money back because you issued reps and warranties that weren’t actually true. This means New York lawyers at Patterson Belknap, under managing partner Philip Forlenza, are going to be really busy filing more monoline suits against JP Morgan now that their test case, Syncora v. EMC (owned by Bear Stearns now JPM), blew through this huge legal hurdle.

Syncora won on their loss causation request but didn’t get the judges stamp on their rescission request. In the hearing last week the puffy-chest Sullivan Cromwell lawyer for JPM, Bob Sacks, told Judge Crotty he didn’t have the ‘right’ to decide on the rescission issue that Syncora asked for; but in today’s decision the Judge flat out reminded Sacks he did. He then punted and said he just wasn’t going to rule on that request now as it’s best suited at trial when all the evidence is presented. Syncora doesn’t really need rescission (since they won on loss causation) to anti-up their negotiating power though. Rescission means the monoline could putback the whole value of the $656 million security if they proved there was a material breach in the reps and warranties.

The only thing we didn’t get out of the ruling is how many triple digit millions Syncora will estimate as damages but it’s going to be a lot more now that it’s not contingent on the loan already being in default.

Read from Teri Buhl’s website.

Dewey creditors to probe JPMorgan Chase & other lenders & bondholders collateral demand

Thomson Reuters News & Insight.

A committee of Dewey & LeBoeufcreditors is pitting itself against senior lenders in an inter-creditor dispute that could help determine the recoveries in the law firm’s bankruptcy.

Dewey’s unsecured creditors’ committee says it will investigate the actions of JPMorgan Chase & Co and other lenders and bondholders ahead of Dewey’s collapse last month. They say the group may have violated bankruptcy laws by demanding an increase in collateral as a condition for extending two approaching loan deadlines in the weeks before the firm filed for Chapter 11.

The added collateral may be voidable under bankruptcy laws barring creditors from receiving payment and other consideration from insolvent companies without giving something of equal value in return, Ed Weisfelner, lead lawyer for Dewey’s unsecured creditors’ committee, said at a court hearing last week.

Did Dimon and JP Morgan Steal MF Global Funds? Whalen Thinks So. Whalen says JPM should not steal by loophole in bankruptcy law.

I listened to Jamie Dimon not come clean to the House regarding unlimited rehypothecation betting in the City of London. Turns out that there is less regulation in London, and the Square Mile financial center answers to virtually no one, maybe not even the Queen!

Soon after listening to Dimon’s ugly testimony, I came across Chris Whalen claiming that JP Morgan stole money from MF Global.

If Whalen’s opinion is true, no account at a broker/dealer is safe from the investment bank that determines to get money from a bankruptcy proceeding. There is a loophole that allows a margin call, even from companies that are bankrupt, and the bank can accept money that comes from protected accounts. They do not have to wait for the bankruptcy proceeding and then no one is left to protect the account holders! Wow, I say.

Read more from Business Insider.

Bexar County, Texas sues MERS, Bank of America

Bexar County has accused Merscorp Inc., Mortgage Electronic Registration Systems Inc. and Bank of America of shortchanging the county by tens of millions of dollars with their mortgage-tracking system. The county filed suit in federal court last Thursday, accusing the companies of violating state law by failing to properly record transactions and to pay county filing fees as mortgage loans were packaged and resold to investors through the secondary market. The suit seeks unspecified damages and asks for class action status on behalf of the other 253 Texas counties. Officials estimate that the county has missed out on as much as $30 million in filing fees on hundreds of thousands of property transactions since the 1990s, when the mortgage industry created MERS as a way to track mortgage loan ownership and servicing.

Read on.

Biloxi Buzz for Wednesday

Hosni Mubarak Reportedly On Life Support

CIA Releases Declassified 9/11 Documents

Towing Company Cancels Bill For Woman Set On Fire At Gas Station

Sandusky’s Wife Testifies, Takes Aim At Accusers

Marco Rubio 101: His Connection to Foreclosure Firm David J. Stern, P.A.

Marco Rubio 101: His Connection to Foreclosure Firm David J. Stern, P.A..


Marco Rubio 101: His Connection to Foreclosure Firm David J. Stern, P.A.

Rubio has been a practicing lawyer since he graduated from law school, working for the Miami law firm Tew Cardenas, and from 1998 to 2000, he was a part-time city commissioner for West Miami. Stern’s longtime attorney, Jeffrey Tew, told the Sun Sentinel that Stern wouldn’t want to talk about his personal life and declined to comment.