Levitin to Congress: Truth About Banks’ Insolvency, Bonuses

Foreclosure Blues reports from a great Daily Bail post here

STOP!  This one is important.  More below – Ratigan, Black, Paulson and leverage.

Video – Georgetown Law Professor Adam Levitin

Start watching at 1:35, though the bomb from Levitin comes near the end…

  • “If they started writing off their second-lien mortgages, they would have no capital left.  They would be insolvent.”

He mentions Citigroup (nyse:C), JP Morgan (nyse:jpm), Bank of America (nyse:BAC), and Wells Fargo (nyse:wfc) by name.

Though it’s nice to hear the truth leak out in front of a small Congressional committee, this is nothing new to Daily Bail readers.  It’s not even close, really.  The 4 largest banks are insolvent many times over.  Their puny and massively over-leveraged capital bases would not just be wiped out, they would be turned into negative multiples of the original equity.

Then take the next step and understand that these same criminally fraudulent and insolvent institutions, are paying their executives $144 billion in bonuses this year, based on false accounting that was endorsed by Congress and jammed down the throats of FASB in June of 2009.

Go to the Daily Bail piece or Foreclosure Blues to get links to other articles in Daily Bail regarding 

the criminal insolvency of banks

VIDEO: 120 Seconds Of Gerald Celente Kicking Wall Street’s Ass – “$144B Bonus Is 49th Largest GDP In World!”

What If The Bankers Gorged On A Record $144 Billion In Bonuses And No One Noticed

Bill Black has made the case recently here…

  • William Black Calls On FDIC To Seize Bank Of America
  • William Black With Dylan Ratigan: “There Is Bank Fraud Everywhere And BERNANKE Is Leading The Cover-Up,” PLUS Part 2 Of ‘Seize Bank Of America’

Adam Levitin’s thoughts can be found in more detail here…

  • MUST READ: 2 Law Professors Are Scaring The Shite Out Of Wall Street Saying Millions Of Mortgages Could Be Rendered Invalid Due To Securitization Errors
  • “Foreclosure Fraud Nightmare Scenario Could Dwarf The Lehman Weekend”
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