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Florida’s “Too Big for Fraud” Court System

Posted By Barry Ritholtz On November 11, 2010 @ 7:19 am In Foreclosures | Comments Disabled

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 [1] (September 23rd, 2010)

Foreclosure Fraud Reveals Structural & Legal Crisis [2] (October 5th, 2010)

Why Foreclosure Fraud Is So Dangerous to Property Rights [3] (October 12th, 2010)

Legal Impossibilities & Foreclosure Errors [4] (October 14th, 2010)

The Impact of Error From Securitization to Foreclosure [5] (October 15th, 2010)

Foreclosure Fraud: “Systemic, Industrywide, Pervasive” [6] (October 16th, 2010)

The Big Lie on Fraudclosure [7] (October 29th, 2010)

The Foreclosure Zoo [8] (November 5th, 2010)

Source:
Matt Taibbi: Courts Helping Banks Screw Over Homeowners [9]
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 [10]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2010/11/vampire-squid-courts/

URLs in this post:

[1] Man without Mortgage Loses Home in Foreclosure: http://www.ritholtz.com/blog/2010/09/man-without-mortgage-loses-home-in-foreclosure/

[2] Foreclosure Fraud Reveals Structural & Legal Crisis: http://www.ritholtz.com/blog/2010/10/foreclosure-fraud-reveals-structural-legal-crisis/

[3] Why Foreclosure Fraud Is So Dangerous to Property Rights: http://www.ritholtz.com/blog/2010/10/why-foreclosure-fraud-is-so-dangerous-to-property-rights/

[4] Legal Impossibilities & Foreclosure Errors: http://www.ritholtz.com/blog/2010/10/examples-massive-foreclosure-errors/

[5] The Impact of Error From Securitization to Foreclosure: http://www.ritholtz.com/blog/2010/10/the-impact-of-error-from-securitization-to-foreclosure/

[6] Foreclosure Fraud: “Systemic, Industrywide, Pervasive”: http://www.ritholtz.com/blog/2010/10/systemic-industrywide-pervasive/

[7] The Big Lie on Fraudclosure: http://www.ritholtz.com/blog/2010/10/the-big-lie-on-fraudclosure/

[8] The Foreclosure Zoo: http://www.ritholtz.com/blog/2010/11/the-foreclosure-zoo/

[9] Matt Taibbi: Courts Helping Banks Screw Over Homeowners: http://www.rollingstone.com/politics/news/17390/232611

[10] Foreclosures: http://www.ritholtz.com/blog/category/foreclosures

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