Tag: Plausible Deniability

The Mortgage Meltdown of 2006-2010: A Crisis of Fraud, Plausible Deniability, and Failed Legal Oversight

By Daniel Edstrom *
September 24, 2024

The mortgage meltdown of 2006-2010 wasn’t just the result of risky loans or Wall Street’s greed. It was a perfect storm where nearly every step of the process—from mortgage origination to foreclosure—was marred by misrepresentation, fraud, and systemic negligence. Central to this crisis was the culture of plausible deniability, where every participant could claim ignorance of wrongdoing, allowing the entire system to collapse without anyone being held fully accountable. And even when the crisis hit, the legal and regulatory system showed significant leniency toward financial institutions while homeowners were left to face severe consequences.

Continue reading “The Mortgage Meltdown of 2006-2010: A Crisis of Fraud, Plausible Deniability, and Failed Legal Oversight”

Judge Schack Hammers HSBC for False Paperwork

Judge Schack Hammers HSBC for False Paperwork

By Daniel Edstrom
DTC Systems, Inc.

Here are Neil Garfield’s comments regarding this case from LivingLies (http://livinglies.wordpress.com/2011/12/30/schack-bangs-hsbc-for-false-paperwork/):

Posted on December 30, 2011 by Neil Garfield

EDITOR’S NOTE: Plausible deniability went out the window as HSBC tried to get out of the consequences for submitting false, fabricated papers to the court in support of a fraudulent foreclosure. They tried to say they didn’t know. Schack didn’t buy it and slapped them with a $10,000 fine.

But the real story is yet to be told. We are getting closer to the real question, yet the inquiry into WHY false papers are being submitted on such a widespread basis has not occurred. This is the industry that practically invented dotted i’s and crossed t’s. They processed tens of millions of mortgages just the way they wanted them without error. Now they are claiming that they messed up the paperwork because of the same volume that they processed without a problem. And they are layering the responsibility by outsourcing the fabrication, forgery and fraud. Continue reading “Judge Schack Hammers HSBC for False Paperwork”