Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Sunday, December 19, 2010

Bank of America Sued by Arizona, Nevada Over Mortgage Modification Program

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Instead of working to modify loans on a timely basis, Bank of America proceeded with foreclosures while borrowers’ requests for modifications were pending, a violation of a 2009 agreement with Arizona to help borrowers facing the loss of their homes, Terry Goddard, the state’s attorney general, said yesterday in a statement.


WhatReallyHappened's Commentary:


We keep hearing how all these home loan modification programs were actually used to trick home owners into foreclosures instead of helping them refinance. Bank of America is just the latest.

The reason is simple. The banks are caught in the middle of a forced repurchase of the toxic (i.e. fraudulent) mortgage-backed securities Wall Street got rich selling over the last several years. Now the banks NEED your homes to re-capitalize their balance sheets, because simply printing up more money to cover the buybacks destroys the value of the dollar. The banks need something of real value on their balance sheets ... and they don' care how they get it.

This is forced wealth confiscation, done in a way to trick Americans into thinking it is their own fault they lost their homes.

The government took your jobs so the banks could take your homes, to keep the fraudsters out of prison by buying back the bad paper!





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Friday, October 2, 2009

Are 'Dead Peasant' Life Insurance Policies Fair?

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YOUR EMPLOYERS ARE BETTING ON YOUR LIFE OR DEATH!

YOU ARE WORTH MORE TO THEM DEAD!





Corporations Often Take Out These Policies on Lower-Level Employees

Life insurance used to be rather straightforward, known for offering security to loved ones in a tough time.

Some companies stand to profit from "Dead Peasants" life insurance policy.

So when Irma Johnson learned that her husband, Daniel, who died of brain cancer, had been insured for $1.5 million, it should have been at least a small comfort.

But she did not receive the money. His employer did.

It's one of the strangest free-market perversions that Michael Moore highlights in his latest film, "Capitalism: A Love Story."

In the corporate practice dubbed "Dead Peasants" life insurance, companies wager on employees' lives, expecting to make money when they die.

And it's pervasive, said Mike Myers, an attorney who has uncovered many of these cases and helped angry relatives sue.

"Life insurance is traditionally used to guard against the death of breadwinners. This is an investment scheme," he said.

Dozens of blue chip companies have these policies, according to Myers. But only banks are forced to reveal them, and several have billions of dollars worth of policies.

"The driving force behind it is the tax deductions," he said.

The life insurance policies were designed to allow companies to insure a few crucial executives. Savvy companies then realized they could also get a tax break by insuring many lower-level employees.

The financial scheme doesn't actually cost the employees anything, except, some say, their trust.

Betina Tillman felt shocked and deceived when a reporter from The Wall Street Journal told her that her brother, a music store cashier, was insured by his employer for $339,000 when he died, despite the fact that he no longer worked at the store.

"We were just in disbelief they were able to do it, and actually cash the policy and cash in on the policy," Tillman said.





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