Video: Chris Whalen – more on MBS FraudGate, Pension Fund suits, Securities Law and the markets need to restructure these TBTF banks

The risks are high, and Mr Market is asleep, methinks that Uncle Sam has given the TBTF the all clear, leaving taxpayers holding the bag, again.

Courtesy of Market-Ticker:

“This is cancer – this isn’t a sudden crisis that is going to erupt out of the ground.”

“We’re going to wait until well-into this, and then we’re going to do the right thing – which is restructuring.”

“MBS…. are calling their lawyers.  Trustees may or may not have the note.”

“There are a lot of investors out there who don’t know what they own… they may own unsecured loans….. trustees that were supposed to do things under state law (and didn’t)… even Fannie and Freddie have issues with this.”

“…. this is not minutia; this is the letter of the law.”

“The dealer has to deliver to the trustee the notes (under NY State Law)”

October 21, 2010. Tags: Bank of America, Chris Whalen on housing, Chris Whalen on MBS, Fannie, FHA, financial earnings, forced bank buybacks of MBS, Foreclosures, Freddie, Housing, HUD, MBS Fraud, mortgage backed securities fraud buybacks, NYFED, Obama housing policy, RMBS litigation, Too big to fail. Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Wall St. Comments off.