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  • Wall St's 3000 To 1 Bet You Never Heard of

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    See how before 2008, every Mortgage borrower (and many others) were defrauded by TBTF banks; how secret leverage, bonuses created the housing (price and overbuilding) bubbles...

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    Wall St's 3000 to 1 bet you never heard of

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    See how before 2008, every Mortgage borrower (and many others) were defrauded by TBTF banks; how secret leverage, bonuses created the housing (price and overbuilding) bubbles...

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Wall St's 3000 To 1 Bet You Never Heard of

    Uploaded by

    mcfid
    See how before 2008, every Mortgage borrower (and many others) were defrauded by TBTF banks; how secret leverage, bonuses created the housing (price and overbuilding) bubbles...

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    C HRIS M C C ONNELL & A SSOCIATES

    P.O. Box 251438 Loa Angeles, CA 90025 (310) 943 - 6509 Telephone (866) 818 - 2487 Fax

    info@fiduciaryexpert.com Email

    TBTFBankstwostepconcealeda50foldincreaseinleverageonhouseprices, defraudingeverymortgageborrower(andmanyothers)alongtheway.For decades,60timesleverageunderpinnedthehousingfinancemarketuntilthe 2000swhenTBTFbankshijackeditwith3,000timesleverage.


    $17TrillionworthofMortgagebackedsecuritieswereissuedfrom2001to2008,up$1.4Trillion peryearoverthe1996to2000period. 3,000timesleveragecreatedthehousing(priceandoverbuilding)bubbles;Borrowersleverage timesBanksleverage.Mortgageswereapprovedoneatatime,andwereultimatelypricedand controlledexclusivelybybankslargelyinacertainFederalReservedistricteastoftheHudson. Step#1Borrowersleveragea20foldincreasefrom5to100timesleverage: Fordecades,borrowerswererequiredtoputdown20%meaningtheycouldbuyahouseworth5 timesthedownpayment.WhenIput$50,000downIcouldthenapplyforamortgagetoborrow $200,000andbuya$250,000house;equals5timesleverage,$250,000housepricedividedby $50,000downpayment.Inthehousingbubbleborrowers(subprimeorpredatorylendingaside) wereapprovedbybanksforzerodownmortgages;100%loantovalueis100timesleverage.

    AREYOUREADYFORTAKEOFFINTOTHECAUSEOFTHEHOUSINGBUBBLE? TBTFbanks50foldincreaseinfinancialleverage!
    Step#2TBTFBanksleverageincreasedfrom12to30ormoretimes: Steptwo,copyingthevintage1998LTCMmodel,TBTFbanksstoppedsellingall$17Trillionworth ofMBSofftoinvestors.Why?TBTFbankstradersbonusesincreasedasassetsincreasedthekey however,wasTBTFbankshidtrillionsoffbalancesheet,(seepage7)leverage(seepage13)went from12to30ormoretimes,oneTBTFbankwasleveragedover68times.Saidanotheraway, leverageisassetsownedbutnotfullypaidfor. 100X30=3,000timesfinancialleverageonhouseprices: Borrowersleverageof100multipliedbyTBTFbanks30timesleverageequals3,000times leverageonthepriceoftheunderlyingcollateral,houses.Nowitshopedyoullunderstandthat despitenoborrowerputtingaguntotheheadofanybanker,TBTFbankerswereplayingRussian roulettewithotherpeoplesincludingdepositorsmoney,themostimportantthingwasperhaps theyforgot(Imbeingpolite)totellthemarket,regulatorsattheNYSE,FINRA,FederalReserve andtheSEC.
    Independent Qualified Investment Fiduciary Audits | Training | Expert Witness www.fiduciaryexpert.com FiduciaryFORENSICS Compensation, Employment, Valuation Securities, Banking and Financial Services Divorce Fiduciary Audit Real Estate Fiduciary Audit

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    Copyright CHRIS MCCONNELL & ASSOCIATES 2011. All rights reserved. FiduciaryFORENSICS is an internationally registered trademark of CHRIS MCCONNELL & ASSOCIATES Divorce Fiduciary Audit and Real Estate Fiduciary Audit are pending registration as trademarks of Chris McConnell & Associates

    AboutChrisMcConnell,AIFA ChrisMcConnellAIFAisanindependentexpertonthesecuritiesindustryandfiduciary responsibility.Hehasover28yearsofexperience.Since2003asanindependentexpertconsultant, McConnellsFiduciaryFORENSICSserviceassessingliabilityanddamageshasassistedbothplaintiff anddefensecounselasexpertwitnessorconsultantonbanking,insurance,securities,hedgefunds, derivatives,intellectualproperty,compensation,valuationandpensionsinvolvingtrusts,IRAs, ERISA,TaftHartley,foundations,regulatoryagency,familylawanddivorcematters. HeholdsaBAdegreeinEconomicsfromRutgersUniversity,anMBAfromPepperdineUniversity,an AIFAfromtheCenterforFiduciaryStudiesandhasextensiveaccountingexperienceincluding successfullypassingtheUniformCertifiedPublicAccountantexamination. Websitewww.fiduciaryexpert.com Emailinfo@fiduciaryexpert.com Office(310)9436509

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