Florida’s Rocket Dockets get the Matt Taibbi treatment. The underlying issue is not the deadbeat homeowners, but rather the “vast landfills of deceptively generated and essentially worthless mortgage-backed assets.”

While there are no “Vampire Squids” in the court system, we do get a new phrase: Too Big for Fraud.

Here’s an excerpt:

“The foreclosure lawyers down in Jacksonville had warned me, but I was skeptical. They told me the state of Florida had created a special super-high-speed housing court with a specific mandate to rubber-stamp the legally dicey foreclosures by corporate mortgage pushers like Deutsche Bank and JP Morgan Chase. This “rocket docket,” as it is called in town, is presided over by retired judges who seem to have no clue about the insanely complex financial instruments they are ruling on — securitized mortgages and laby rinthine derivative deals of a type that didn’t even exist when most of them were active members of the bench. Their stated mission isn’t to decide right and wrong, but to clear cases and blast human beings out of their homes with ultimate velocity. They certainly have no incentive to penetrate the profound criminal mysteries of the great American mortgage bubble of the 2000s, perhaps the most complex Ponzi scheme in human history — an epic mountain range of corporate fraud in which Wall Street megabanks conspired first to collect huge numbers of subprime mortgages, then to unload them on unsuspecting third parties like pensions, trade unions and insurance companies (and, ultimately, you and me, as taxpayers) in the guise of AAA-rated investments. Selling lead as gold, shit as Chanel No. 5, was the essence of the booming international fraud scheme that created most all of these now-failing home mortgages.

The rocket docket wasn’t created to investigate any of that. It exists to launder the crime and bury the evidence by speeding thousands of fraudulent and predatory loans to the ends of their life cycles, so that the houses attached to them can be sold again with clean paperwork. The judges, in fact, openly admit that their primary mission is not justice but speed. One Jacksonville judge, the Honorable A.C. Soud, even told a local newspaper that his goal is to resolve 25 cases per hour. Given the way the system is rigged, that means His Honor could well be throwing one ass on the street every 2.4 minutes.”

As I have been wailing about for months, this is not about the homeowners — its about Due Process, Property Rights, and the reckless behavior of banks that should have been allowed to fail under the weight of their own incoompetence . . .

>

Previously:
Man without Mortgage Loses Home in Foreclosure (September 23rd, 2010)

Foreclosure Fraud Reveals Structural & Legal Crisis (October 5th, 2010)

Why Foreclosure Fraud Is So Dangerous to Property Rights (October 12th, 2010)

Legal Impossibilities & Foreclosure Errors (October 14th, 2010)

The Impact of Error From Securitization to Foreclosure (October 15th, 2010)

Foreclosure Fraud: “Systemic, Industrywide, Pervasive” (October 16th, 2010)

The Big Lie on Fraudclosure (October 29th, 2010)

The Foreclosure Zoo (November 5th, 2010)

Source:
Matt Taibbi: Courts Helping Banks Screw Over Homeowners
Matt Taibbi
Rolling Stone Nov 10, 2010
http://www.rollingstone.com/politics/news/17390/232611

All of TBP Foreclosure comments can be found here: Foreclosures

Category: Foreclosures

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

20 Responses to “Florida’s “Too Big for Fraud” Court System”

  1. Dennis the menace says:

    That series of previous Fraudclosure posts was way ahead of the curve when it comes to identifying the problem before the MSM and putting it onto context. Bravo.

    Where is your Amazon wish list? I made oodles shorting BAC on your reporting

  2. Mike in Nola says:

    I heard this a week or so ago. Don’t know if it they got it from Taibbi or if it was independent:

    http://www.npr.org/templates/story/story.php?storyId=130729666

    Sounds like a redo of The Octopus.

  3. Mike in Nola says:

    Hit the send button a little quickly. Wanted to add that at least The Octopus helped to advance the country. It wasn’t soleyl about extracting money from the populace in exchange for nothing.

  4. Petey Wheatstraw says:

    “ . . . banks that should have been allowed to fail under the weight of their own incompetence . . .”
    ____________

    Incompetence has nothing to do with it (although it’s the automatic assumption drawn by most). Criminality is at the heart of the Corporatist putsch.

  5. [...] Matt Taibbi is covering the the Fraudclosure story now.  Goodie gumdrops.  (TBP) [...]

  6. ToNYC says:

    No Taxation Without Representation rang pretty true and loudly in the early 1770′s.
    ZIRP seems to have been a phenomenal misdirection acronym when in fact it is a 90% tax on the hard-earned and put-away life savings earned Interest for an extended period being denied in favor of bank monopoly protector and counterfeit credit money provider Federal Reserve.
    All Interest With Representation should be the current cry in the 2010′s
    No surprise Florida judges love those Banks too, watching ZIRP giving them incredible margins paying 0.25% and sold to you at 29.99%

  7. Petey Wheatstraw says:

    Never forget that the courts are wholly-owned by the law industry (that our legal system has become a huge cash-cow industry is the first proof that our Constitutional Republic has fallen), under the aegis of the Bar Associations. The Law Division of the Corporatist State.

    The Judges don’t work for you. The lawyers don’t work for you. They work towards the enrichment of their bretheren by maladministering and manipulating the already bloated, poorly written and loophole ridden Federal, State, and local Codes (provided for them by their enterprise partners in the Legislative Division).

    Think about this: Not one of these retired judges questioned the legality of what they were doing (being that they are judges, one would think they would at least question the legality of what they were asked to do). The Judiciary is full of robo-signers.

    Oh, the corporatocracy of it all.

  8. financial says:

    If Mr. Taibbi was at least a little incompetent, you could read this as being an exaggeration. Unfortunately, he is not, and as such what he write must be taken at face value. The level of fraud here is just mind blowing. Those we were responsible will get away with it. One comment I though was a little of with regards to JPM which is known to be much more careful in its documentation.

    This is the proof (as if any was needed) that the American legal and banking system is after a kleptocracy. Unlike China which is open about this, America likes to believe that it is society regulated by laws — its not; apparently if you are a banker you can do a hit-and-run, and if you are a bank you can tell tall stories in court.

  9. VennData says:

    Tea Party superduperstar Mark Rubio got around the Rocket docket…

    http://politicalticker.blogs.cnn.com/2010/06/18/rubio-not-facing-foreclosure-anymore-says-campaign/

    So while the WSJ opinion page demands investigations…

    “…Our advice would be that Mr. Issa start by finishing his committee’s probe of the Countrywide sweetheart loan program that Democrats tried to deep-six. Tell us which Members and staff of Congress, or officials at Fannie and Mae and Freddie Mac received easy mortgage terms as part of former Countrywide CEO Angelo Mozilo’s VIP program. If he lets the facts emerge on Republicans as well as Democrats, Mr. Issa will build credibility as a fair-minded investigator…”

    http://online.wsj.com/article/SB10001424052748704635704575604853386861086.html

    Mark Rubio’s slick escape from the “Rocket Docket” is where Issa should start.

  10. GrafSchweik says:

    Petey W @ 8:42am

    I only lurk these days due to a writing project but you really nailed the salient issue as you often do.

    The cry must already be echoing in the limousines, helicopters and jets of our Corporate Overlords as they head off each morning for another day of glorious capital and capitol acquisition, “Serfs up!”

  11. FrancoisT says:

    When I read the article by Taibbi, I couldn’t help remembering Gonzalo Lira’s post about fascist police-state, most especially this:

    What’s key to the definition of a police-state is the lack of redress: If there is no justice system which can compel the state to cede to the citizenry, then there is a police-state. If there exists a pro forma justice system, but which in practice is unavailable to the ordinary citizen because of systemic obstacles (for instance, cost or bureaucratic hindrance), or which against all logic or reason consistently finds in favor of the state—even in the most egregious and obviously contradictory cases—then that pro forma judiciary system is nothing but a sham: A tool of the state’s repression against its citizens. Consider the Soviet court system the classic example.

    A police-state is not necessarily a dictatorship. On the contrary, it can even take the form of a representative democracy. A police-state is not defined by its leadership structure, but rather, by its self-protection against the individual.

    http://www.nakedcapitalism.com/2010/06/gonzalo-lira-is-the-u-s-a-fascist-police-state.html

    Note that here, the “state” (be it the Federal or the States) have considered the interests of the financial sector to be no different than theirs. Strictly speaking, the State of Florida decided to act as the enforcer for the private big banks and their shareholders at the detriment of their own people.

    If that is not a police-state, you tell me what is!

  12. Mannwich says:

    “Due process”, “property rights”. How quaint.

  13. mmcd says:

    Isn’t there a single interested party to scream “BULL#$%^”?

  14. Darkness says:

    >>If that is not a police-state, you tell me what is!

    I’ve wondered the same thing with regard to cops with guns enforcing copyright law. How twisted is that?

  15. constantnormal says:

    Your names and aliases have been taken down and these expressions of sedition noted. Please go straight to the local constabulary and turn yourselves in — don’t make us come after you.

    (yeah, I know, it’s a bit teabagger, but it seemed to fit …)

  16. perra says:

    It’s pretty amazing that they are getting away with this.

  17. wngoju says:

    “the reckless behavior of banks that should have been allowed to fail under the weight of their own incoompetence . ..”

    In theory Dodd-Frank leaves a regulatory option for Treasury/Fed to do …whatever… to deal with systemic failure. In Theory. “Whatever”. It would/will take a regulator with kahunas to actually do something. Spitzer – yes. Geithner/Sumers/Bernanke/… Naw. The girls – Bair/Warren – not enough power, Not looking good.

  18. constantnormal says:

    @perra

    “It’s pretty amazing that they are getting away with this.”

    Only if you are still clinging to antiquated notion of free markets and a middle-class-driven economy. Adjust your thinking to a giant banana republic, with the masses of sheeple being milked and bilked using the resources of a government that is owned by the moneyed elite, and everything will seem quite appropriate.

  19. ToNYC says:

    @wngoju Says:

    …you must be meaning a Kahuna with big cojones? We had one once who they drove down Elm Street in Dallas and 50 years ago on Monday, US citizens elected him and junked a pale-gray, used Nixon.

  20. MikeG says:

    The teabagger solution is to remove any remaining pitiful restraints by government upon corporations’ ability to engage in looting and cronyism. I can understand why corporate powers embrace this ideology, but it amazes me that any average person (especially one who has ever worked for a corporation) would be stupid enough to think that corporate rule has their interests at heart and that their lives would improve under a corporate-police state.