FAT CAT Investors lay a HAYMAKER on FAT CAT Bankers!
By Matthew Lexus FATCATEXECUTIVE.COM
Tuesday August 18th found Judge Richard Holwell rejecting Countrywide Financials (Owned by Bank of America) petition to have a lawsuit by Greenwich Financial Services’ heard in Federal court.
Countrywide’s objective was to seek the Safe Harbor protection offered by the Helping Families Save Their Homes Act of 2009 come into play. Keep in mind this particular law was written to give bullet proof protection to Loan servicers from lawsuits by Investors when bank loan servicers modify loans for their customers in need.
At the last second the restrictive language of the law was changed by politicians (at the behest of FAT CAT Investors) so that it did give some provisions for Investors to sue Loan Servicers.
Originally Greenwich Financial Services filed their lawsuit in December of 2008 attempting to force Countrywide into repurchasing over $8 billion dollars in mortgage loans that Countrywide agreed to modify because of lawsuits filed by Attorney General’s offices in various states over predatory lending practices by Countrywide Financial.
Countrywide wanting to have its case tried in federal court would be able to more easily argue that any contractual obligations they had to investors to repurchase modified loans were trumped by the new federal law, Helping Families Save Their Homes Act of 2009.
Judge Richard Holwell pulls a whammy on Countrywide Financial by stating he lacks jurisdiction to decide the case. Investors like William A. Frey head of Greenwich Financial Services who filed the lawsuit were jumping for joy, while some of the top dogs at Bank of America wanted to jump out of their windows because of the potential implications of what this ruling could mean to them if it succeeds.
Note what Frey stated:
“I view this as an opening salvo and a demonstration that investors do have contractual rights, even when it is politically unpopular, this is ultimately going to be one of many legal battles over who should pay the hundreds of billions of dollars in losses on mortgages.”
Yes who should pay?
“Who should pay and who will pay in a world ruled by greedy Fat Cat Titans is normally the ones who have the least money to defend themselves.” – Matthew Lexus Former Fat Cat Executive.
We’ll discuss this in more detail in the following article.
