THE BANKS ARE STEALING HOMES THEY DO NOT OWN! THE LAW STATES THAT ONLY REAL PARTY IN INTEREST - THE SECURITIZED TRUST, MOSTLY LIKELY NOW DISSOLVED BUT STILL IN CONTROL OF ITS ASSETS, CANNOT FORECLOSE EITHER!

1. IN THE CIRCUIT COURT OF THE __________________
JUDICIAL CIRCUIT, __________________
COUNTY, ILLINOIS
JP MORGAN CHASE BANK, NATIONAL )
ASSOCIATION )
Plaintiffs, )
)
v. )
) Case No.
)
Pro-Se Defendants )
)
COUNTERCLAIM )
)
)
Pro Se Counter-Plaintiffs )
)
v. )
)
JP MORGAN CHASE BANK, NA )
CHASE HOME FINANCE LLC ) DEMAND FOR JURY TRIAL
WASHINGTON MUTUAL BANK NA )
Counter-Defendants )
OWNERS SUPPLEMENTAL EVIDENCE
COMES NOW Defendants and Counter-claimants __________________, (collectively
―Owners‖), proceeding pro se hereby files Supplemental Evidence presenting to the Court
pertinent information that has been discovered as a result of further investigation:
THE CONSPIRACY
1. The matters raised by the Owners in their affirmative defenses and counterclaims
cannot be viewed in a vacuum and need to be viewed in the context of what Chase and other
related Bank entities were doing, and are continuing to do, to this day.
2. Defendant and Counter-Plaintiff, __________________has conducted extensive
research into the anomalous events transpiring in our country and the world today, and has sought

2. to identify the underlying root cause in such a way that these events make sense. Her journey
began in ignorance and naiveté, grew to incredulity, and ended with Truth. She seeks to expose
this Truth so that our great nation can begin to heal. For unless the problem can be identified, we
will be unable to find a solution. One thing is certain: a cancer is infecting our Nation and must be
excised now. This cancer has been present for decades as evidenced in attorney Ellen Brown‘s
―Web of Debt‖
―The 1890‘s were plagued by an economic depression that was nearly as severe as
the Great Depression of the 1930s. The farmers lived like serfs to the bankers,
having mortgaged their farms, their equipment, and sometimes even the seeds
they needed for planting. They were charged so much by a railroad cartel for
shipping their products to market that they could have more costs and debts than
profits. The farmers were as ignorant as the Scarecrow of banking policies; while
in the cities, unemployed factory workers were as frozen as the Tin Woodman
from the lack of a free-flowing supply of money to ―oil‖ the wheels of industry. In
the early 1890s, unemployment had reached 20 percent. The crime rate soared,
families were torn apart, racial tensions boiled. The nation was in chaos. Radical
party politics thrived.‖
3. Like any investigator, one need simply ‗follow the money‘ and ask who benefited
from this crisis, who made off with Trillions and who is NOT being prosecuted, for then one will
be led directly to the culprits. Those culprits are Insiders at the privately-owned Federal Reserve,
Wall Street, JP Morgan Chase, Citigroup, Bank of America, HSBC, and Goldman Sachs (the
―Conspirators‖) which are currently engaged in a systematic multi-faceted course of conduct, a
Conspiracy, in every state in these United States of America, and the world to bring about an
economic collapse of the monetary system utilized by most of the countries in this world - a fiat-
based monetary system which is a veritable ticking time bomb due to explode soon. Upon the
inevitable collapse of this system, it is speculated that the Conspirators will unveil a Global
monetary system which will allow them to perpetuate their scam of printing fake money and
charging interest on that fake money thereby having the power and control over the world - a
position they have covertly held for centuries.
4. Indisputable evidence has emerged from investigations by the SEC, FBI, FTC,
FDIC and various other governmental agencies which expose the Conspirator‘s scheme resulting
in the greatest shift of assets from the middle class to the wealthiest around the world. Although

3. these allegations may sound incredulous, the facts and events unfolding in our world fully
corroborate them.
5. The Conspirators, supposedly among the ―best and brightest‖ on Wall Street, the
Federal Reserve and the five largest banks, are paid Millions of dollars for their superior intellect,
but said Conspirators allege that not one of them had an inkling that an economic crisis was
brewing, in direct contradiction to what others on Wall Street were saying.
6. According to Nomi Prins, former Goldman Sachs analyst who authored ―It Takes
a Pillage‖, Rolling Stone Wall Street reporter Matt Taibbi, who authored ―Griftopia‖, and
Michael Lewis who authored ―The Big Short‖, those on Wall Street who were not ―insiders‖
absolutely knew that something was happening which prompted some to look deeper into the
sale of Mortgage-Backed securities. They soon discovered that even though these securities were
rated AAA, meaning they were low risk investments, they were, as revealed in Congressional
hearings, ―pieces of crap‖. Any rational person would ask why these highly respected firms
would sell AAA-rated ―pieces of crap‖? Herein lies a paradox.
7. In fact, many Wall Street ―outsiders‖ felt that a ‗house of cards‘ was intentionally
being set up, which was validated in a CNBC documentary entitled ―House of Cards‖ which
cited the following quotation from an internal Wall Street email dated 12/15/2006:
―Let‟s hope we‟re all wealthy and retired by the time this house of cards falters.”
8. In the January 2011 Financial Crisis Inquiry Commission (―FCIC‖) Report - Pg
xx- stated:
―In the years leading up to the crisis many financial institutions borrowed to the hilt,
leaving them vulnerable to financial distress or ruin if the value of their
investments declined even modestly. For example, as of 2007 the five major
investment banks—Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill
Lynch, and Morgan Stanley—were operating with extraordinarily thin capital.
By one measure, their leverage ratios were as high as 40 to 1, meaning for every
$40 in assets, there was only $1 in capital to cover losses. Less than a 3% drop in
asset values could wipe out a firm. To make matters worse, much of their
borrowing was short-term, in the overnight market—meaning the borrowing had to
be renewed each and every day. For example, at the end of 2007, Bear Stearns had
$11.8 billion in equity and $383.6 billion in liabilities and was borrowing as much
as $70 billion in the overnight market. It was the equivalent of a small business

4. with $50,000 in equity borrowing $1.6 million, with $296,750 of that due each and
every day. One can‘t really ask ―What were they thinking?‖ when it seems that
too many of them were thinking alike. And the leverage was often hidden—in
derivatives positions, in off-balance-sheet entities, and through ―window dressing‖
of financial reports available to the investing public. The kings of leverage were
Fannie Mae and Freddie Mac, the two behemoth government-sponsored enterprises
(GSEs). For example, by the end of 2007, Fannie‘s and Freddie‘s combined
leverage ratio, including loans they owned and guaranteed, stood at 75 to 1.‖
9. On 3-15-2012 Economist Charles Kadlec, writer for The Daily Reckoning and
member of the Economic Advisory Board of the American Principles Project reported the
following in an article entitled ―Tim Geithner Covers for Corruption on Pennsylvania
Avenue‖:
―The government through Fannie Mae and Freddie Mac directed $5.2 trillion (that
is trillion with a ―T‖) of capital to increase the supply of mortgages. In addition, it
passed a law that required banks to make billions of dollars in loans to individuals
that were unlikely to pay off the loans, in the end with 0% down. In 1998, Fannie
Mae announced it would purchase mortgages with only 3% down. And, in 2001,
it offered a program that required no down payment at all. Between 2001 and
2004, subprime mortgages grew from $160 billion to $540 billion. And between
2005 and 2007, Fannie Mae‘s acquisition of mortgages with less than 10% down
almost tripled. These loans are now known as ―subprime‖ and ―alt A‖ loans. At
the time they were made, Fannie Mae and Freddie Mac encouraged their issuance
by lowering their standards and buying them up from the now vilified mortgage
brokers, S&Ls, banks and Wall Street investment banks. This activity was not due
to a lack of regulation or oversight as you (Treasury Secretary Geithner) claim.
Both companies are under the direct supervision of a federal regulator and
Congress. At the time these loans were being purchased by these two Government
Sponsored Enterprises, their actions were defended by many in Congress who, led
by Senator Chris Dodd and Congressman Barney Frank, saw such reckless
lending as a successful government initiative. At the same time, the easy money
policies of the Federal Open Market Committee, of which you were a voting
member, were feeding an asset bubble in residential real estate, providing what
proved to be an irresistible lure not only for speculators, but also for American
families trying desperately to buy a house before inflation robbed them of their
chance for home ownership. Six top executives of Fannie Mae and Freddie Mac
have been charged by the Securities and Exchange Commission with securities
fraud for hiding the size of the purchases of low quality mortgages from the
market. In addition, the normal check on excessive leverage provided by
unwilling lenders was overwhelmed by the perception, now validated, that Fannie

5. Mae and Freddie Mac debt were backed by the full faith and credit of the federal
government. This created a willing buyer backed by the federal government with
unlimited access to credit markets and a trillion dollar budget. No wonder S&Ls
and Wall Street found ways to satisfy the demand. Blaming a lack of regulation
for the subsequent losses is political spin meant to cover up the greed and
corruption on Pennsylvania Avenue that led to the crisis. these two state
sponsored financial giants have cost taxpayers more than $140 billion and are
seeking billions more in bailout funds.
10. Any rational person would ask, as the FCIC Report pondered, ―What were
they thinking.‖ And more important: ―What are they up to?‖ These highly questionable
anomalies would prompt any rational person to ask the following questions:
A. Why would the banks create questionable loan products and lure prospective
borrowers into these loans, knowing that if interest rates were to rise, these clients
would be unable to make their payments;
B. Why would banks sell mortgage-backed securities to investors and then not follow
the governing documents and deliver the notes to the investors;
C. Why would the originators of the loans purport to be the lender, when the loans were
pre-funded by the investors of the MBS‘s;
D. Why would the Depositors fail to record the documents as required by law to at the
county level, thus slandering owners titles across America;
E. Why would mortgage servicers promise to modify borrower‘s loans and then
repeatedly ―lose‖ the paperwork which was sent in multiple times;
F. Why would the Originating ―Lenders‖ stop using standard underwriting to approve
loans;
G. Why would originators accept and encourage inflated appraisals;
H. Why would the banks fraudulently fabricate documents and then have robo-signors
forge them;
I. Why would the originators not deliver the notes to the trusts thus rendering the MBS
non-mortgage-backed;
J. Why would the banks pretend that this economic crisis was a random event that they
knew nothing about;
K. Why would the Federal Reserve lower interest rates and keep them low knowing that
they would be creating a bubble;

6. L. Why are the courts pushing foreclosures through as fast as they can, thereby tearing
families apart while 20 million housing units in America are vacant and rotting and
the banks cannot keep up with this burgeoning inventory of REO properties. Statistics
prove that foreclosure breeds foreclosure and creates a vicious cycle: more
homelessness, despair, and crime in addition, causes real estate prices plunge further
and further thereby affecting all Americans;
M. Why are 90% of all mortgage Originators now bankrupt;
N. Why are banks which were considered too big to fail, growing even larger as they
acquire the banks which failed for literally pennies on the dollar;
O. Why are the banks CEO‘s and executives paying themselves Millions and Millions
for companies they ran into the ground;
P. Why did corporations move manufacturing out of this country;
Q. Why has our free-market economy, which entails risk, eliminated risk through the
purchase of credit default swap ―insurance‖;
R. Why are numerous cases against the largest banks being prosecuted and settled but no
one is being sent to jail...
11. The Conspirators reaped, and are continuing to reap, untold Trillions of dollars
while others writhe in misery, anxiety, anguish, and panic. This unconscionable lust for power
and lack of social conscience displayed by the Conspirators has resulted, and is continuing to
result, in millions of citizens being thrown out of their homes oftentimes with nowhere to go, an
increase in suicide, massive unemployment, a lowered standard of living, and trillions of dollars
of wealth stripped from the American public and put into the Conspirators already burgeoning
pockets.
12. This atrocious, flagrant and abominable scheme is ongoing and its final objective
is yet to be realized, but is indeed looming. However, judges across the country have also asked
themselves the aforementioned questions and are finally beginning to see the truth and are ruling
against the Conspirators.
13. The hope for our country is being placed in the hands of our judiciary which was
established by our founding fathers to mete justice equally; to see through the antics that the
Conspirators counsel will undoubtedly try to utilize to divert the judiciary‘s attention from the
substantive allegations posed in this complaint, to the trivial and technical, in their attempt to

7. circumvent the laws of this nation. It is the hope of the Owners that the judiciary will have the
courage to uphold their sacred oaths and deliver a powerful message that will serve to deter the
Conspirators from future violations of the law. For anything less than that can only aid in the
disintegration of our civilized society.
14. This Conspiracy is being waged across the globe and is multi-pronged, however
for the purposes of the instant case, and other victims across America who are similarly situated,
this supplemental evidence will focus on the role that foreclosure is playing in the Conspiracy.
THE FIAT-BASED MONETARY SYSTEM
15. At the core of the Conspiracy is the collapse of the fiat monetary system used by
America and manipulated by the Conspirators. Fiat money is not asset-backed by gold or silver
but instead backed by ―faith‖ and debt where money is printed out of thin air.
16. This faith-based system requires that those at the helm of our largest institutions
operate from a foundation of trust, ethics, honesty, integrity, compassion, morals and social
conscience.
17. The Conspirators have an expertise in the world of finance and economics and
control the world of finance. They have used this expertise and control to exploit the foundation
of trust that Americans and others around the world relied upon, and manipulated the system to
their advantage.
18. History shows that any fiat debt-based monetary system is unsustainable and
every society which based its currency upon this system has collapsed. Its doom is based upon
expanding debt and the compounding interest needed to sustain that debt, thereby driving the
engine of the economy. At some point in time, the debt reaches a point where it becomes so great
that the compounding interest exceeds the revenue coming into the Treasury, at which point, the
system collapses.
“The money meltdown observed in Wall Street is what monetarists have been
warning about for some time. What we are witnessing now is the failure of the
central banking system. The debt-based fiat monetary system with compounding
interest is simply unsustainable and the United States, occupying the pinnacle of the

8. capitalistic model, is being brought down by the inherent fallacies within its own
monetary system.” — A. Kameel
Wall Street Meltdown – Failure of Central Banking System by 10/20/08 the Edge
19. The Federal Reserve uses the ―magic‖ of Compounding Interest to fleece the
American people. Debora O'Malley, M.Sc. and Melvin Pasternak, Ph.D. explained how easy it
to do so in their March 15, 2012 article entitled ―The Money Making Magic of Compound
Interest‖:
―When Albert Einstein was asked: “What is the most fantastic thing you ever
realized in all your studies?” He sarcastically responded, ―Compound
interest.‖ ...the principles of compound interest can be used to make a substantial
amount of money over time. Financially speaking, compounding is the
exponential increase of an investment, or the interest you earn on interest. If you
put $2,000 in the bank with a 5% annual interest, you will earn about $100 in
interest the first year. If you leave that $100 in your account, the following year,
your $2,100 will earn $105 in interest. Compound interest is most powerful over a
long period of time. Using the above example, your $2,000 initial investment
would double in about 14 years. If all the money remained untouched, it would
earn twice as much interest between years 15 through 28. In year 29, you'd
effectively be earning 20% interest on the original investment (sometimes called
"yield on cost"), all without needing to lift a finger.‖
20. According to Modern Money Mechanics, a booklet produced by the
Federal Reserve Bank of Chicago:
―Fiat currencies are backed by debt.‖ (loans).
“As the debt grows, government‟s interest burden grows with it. The more our tax
dollars are consumed by interest, the fewer dollars are available for discretionary
spending. What‟s worse, more pressure is then exerted to use tax increases to
fund mandatory spending programs, such as Social Security, Medicare, and
Medicaid. We all know government spends more than it collects. The federal
interest burden exists simply because government must actually service its debt.
Interest, of course, represents the cost of debt service.” — Daniel J. Pilla
21. Those who have held the highest offices in America throughout history
have continually warned that our fiat/debt-based monetary system was unsustainable.

9. “The eyes of our citizens are not sufficiently open to the true cause of our distress.
They ascribe them to everything but their true cause, the banking system; a system
which if it could do good in any form is yet so certain of leading to abuse as to be
utterly incompatible with the public safety and prosperity. The Central Bank (now
the Federal Reserve) is an institution of the most deadly hostility existing against
the principles and form of our Constitution.” — Thomas Jefferson (1743 –
1826)
“I place economy among the first and most important virtues, and public debt as
the greatest of dangers. To preserve our independence, we must not let our rulers
load us with perpetual debt. — Thomas Jefferson
“World GDP is around $65 trillion but the latest Bank for International
Settlements (“BIS”) statistics on outstanding derivatives contracts (Wall Street
bets) indicate that they are currently $707* trillion as of June 2011 at face value
(the true numbers are in the Quadrillions or more according to some sources).
This means that the banks are betting over ten times the worlds GDP against
each other, for each derivative (Las Vegas styled bet) is a bet against a
counterparty. It is a matter of simple mathematics to realize the western fiat
debt-based banking system is doomed. That means for every winner there is an
equal loser. Some very big banks have certainly lost more money than exists in
the real world”.*See BIS 2008; the notional amount of a derivatives contract refers to the
value or nominal amount of the underlying to the derivatives contract; outstanding refers to open
derivatives contracts that are held by market participants. 13) See BIS 2008 and WFE statistics
(www.world-exchanges.org). — Benjamin fulford
A HOUSE OF CARDS SKILLFULLY ENGINEERED TO BRING DOWN THE
ECONOMY
22. The Conspirators meticulously crafted a scheme to control the collapse of our
monetary system through a manufactured Depression in order to control We, the People, for
when the masses are in survival-mode they are far easier to manipulate.
“The Federal Reserve definitely caused the great depression by contracting the
amount of currency in circulation by one third from 1929 to 1933.‖
—Milton Friedman
Nobel Prize winning economist and Stanford University Professor
“It must be realized that whoever controls the volume of money in any country is
absolutely master of all industry and commerce. And when you realise that the
entire system is very easily controlled, one way or another, by a few powerful men
at the top, you will not have to be told how periods of inflation and depression
originate.” — President James Garfield
(1831–1881) 20th President of the United States
23. The Great Recession was artificially created by the Federal Reserve through its
ability to control interest rates (which we will explore in detail). The bubble they created and its

10. subsequent depression caused a panic where people sold, and are currently selling, their assets
for pennies on the dollar in order to survive. The Conspirators then cunningly acquire these
assets with the fake money they create out of thin air, and acquire every commodity needed to
control every aspect of life thus rendering We the People of this world, enslaved to the
Conspirators for ―He who has the gold, indeed makes the rules.‖
24. The Conspirators scheme was catalyzed by Mortgage-Backed Securities (―MBS‖),
Warren Buffet referred to in 2002 as ―weapons of mass financial destruction.‖ These bonds were
styled after Michael Milliken‘s high-yield junk bond scheme which he developed in the 1980‘s
that landed him in jail. However, the Mortgage-backed securities of the 2000‘s evolved as they
were ―insured‖ by Credit Default Swaps which in 2009 Economist and writer for Atlantic
Monthly, Charles Davi referred to as: ―the destroyer of economies‖.
25. MBS‘s were sold to Pension funds throughout the world ensuring that the
cancerous tentacles created by the Conspiracy would spread and cause a collapse so deep and
widespread that We, the People of the world would one day be on our knees begging for mercy
at which time the Conspirators will unveil their new Monetary system which grants to them the
complete and absolute control over our world‘s monetary system.
“I care not what puppet is placed upon the throne of England to rule the Empire
on which the sun never sets. The man that controls Britain's money supply
controls the British Empire, and I control the British money supply.”
— Baron Nathan Mayer Rothschild (1840 –1915)
1984 GRACE COMMISSION REPORT VALIDATES THE IMPENDING COLLAPSE
26. In 1984, President Reagan appointed the Grace Commission to find ways to cut
the waste and inefficiency in the government, instructing its members to "be bold" and "work
like tireless bloodhounds; not to leave any stone unturned in your search to root out
inefficiency." However, what the commission discovered was shocking:
“One-third of all income taxes is consumed by waste and inefficiency in the
federal government, and another one-third escapes collection owing to the
underground economy. With two thirds of everyone‟s personal income taxes
wasted or not collected, one hundred percent of what is collected is absorbed
solely by interest on the Federal debt and by the Federal Government

11. contributions to transfer payments. In other words, all individual income tax
revenues are gone before one nickel is spent on services which taxpayers expect
from their Government.‖
27. The Commission warned:
“If fundamental changes are not made in Federal spending, as compared with the
fiscal 1983 deficit of $195 billion, a deficit of over ten times that amount, $2 trillion,
is projected for the year 2000, only 17 years from now. In that year, the Federal
debt would be $13.0 trillion and the interest alone would be $1.5 trillion per year.
“100 percent of what is now collected (as taxes) is absorbed solely by interest on
the Federal debt and by Federal Government contributions to transfer payments. In
other words, all individual income tax revenues are gone before one nickel is
spent on the services which taxpayers expect from their Government.‖
28. If 100 percent of what was collected as revenue in 1982 was absorbed solely by
interest on the Federal debt, that compounding interest could only grow exponentially with each
successive year even if the national debt were not to increase. The Conspirators were well aware
of this fact but did nothing, as their power is based upon their complete and absolute control of
the monetary and banking systems. Since 1982, our national debt has risen exponentially as a
result of the continual wars we have been engaged in since that time which has brought our
economic system to the brink of collapse.
THE CONSPIRATORS HAVE THEIR FINGER ON THE TRIGGER OF ECONOMIC
COLLAPSE
29. The Conspirators have orchestrated events so that they now have their finger on
the trigger of economic collapse. The Conspirators own and control the five largest banks in our
country: JP Morgan Chase, Citigroup, Bank of America, HSBC, and Goldman Sachs. These
banking institutions also control the International Swaps and Derivatives Association (―ISDA‖)
which determines when and if a ―credit event‖ occurs in the Derivatives (MBS) market. If a
credit event is ―determined‖, that determination initiates the pay off of Credit Default Swap bets.
30. These same 5 Conspirator-owned banks hold nearly 95 percent of the industry‘s
total exposure to derivatives contracts which now stands at $707 Trillion – an amount far
exceeding their ability to pay off Credit Default Swap bets which now stand at $32,409 Trillion.
Therefore, if the ISDA initiates a ―credit event,‖ determined by a default or write-down of Greek
bonds, for instance, the Conspirators can bring about the collapse of their own banking

12. institutions, which in turn, will bring about the collapse of the world‘s banking systems. Thus,
the world‘s economy is now resting upon whether these 5 banks declare a default. In other words,
the system the banks created is a House of Cards just waiting for a single card to fall.
THE ―NON‖FEDERAL RESERVE
31. Among the critically placed Conspirators are the Insiders at the Federal Reserve
(―Fed‖) ; a privately held corporation, a central bank at the helm of the American economy, for it
possesses the power to manipulate the economic system of the United States.
“The passage of the Federal Reserve Act proved every allegation Thomas
Jefferson had made against a central bank in 1791: that the subscribers to the
Federal Reserve Bank stock had formed a corporation, whose stock could be and
was held by aliens; that this stock would be transmitted to a certain line of
successors; that it would be placed beyond forfeiture and escheat; that they would
receive a monopoly of banking, which was against the laws of monopoly; and that
they now had the power to make laws, paramount to the laws of the states. No
state legislature can countermand any of the laws laid down by the Federal
Reserve Board of Governors for the benefit of their private stockholders. This
board issues laws as to what the interest rate shall be, what the quantity of money
shall be and what the price of money shall be. All of these powers abrogate the
powers of the state legislatures and their responsibility to the citizens of those
states.” — Eustace mullins
Secrets of the Federal Reserve pg 35
32. Throughout the history of the United States, many in government fought to oust
the central banking system utilized on and off for hundreds of years, but in a covert move in
1912, the Conspirators devised a plan to seize control the monetary system once and for all and
called it the ―Federal‖ Reserve System. We, the People presumed that the ―federal‖ Reserve was
actually part of our government, but the name was a ruse as the Fed was established solely for
the Bankers so that they could exert Power over our government which, in reality, is not a
democracy but an Oligarchy.
33. According to the Federal Reserve‘s website: ―The Federal Reserve is independent
within government in that its monetary policy decisions do not have to be approved by the
President or anyone else in the executive or legislative branches of government. Its authority is
derived from statutes enacted by the U.S. Congress and the System is subject to Congressional
oversight.‖

13. 34. When the Federal Reserve came into being in 1913 it was opposed by many, but
those voices were not heard because the Conspirators knew that in order to control the masses,
they also had to control the media, which they quickly bought up and to this day, own and
control.
HISTORY IS REPEATED
35. The Conspiracy began long ago as evidenced by the following pamphlet
published by the United States Banker‘s Association in 1892:
“We (the bankers) must proceed with caution and guard every move made, for the
lower order of people are already showing signs of restless commotion. Prudence
will therefore show a policy of apparently yielding to the popular will until our
plans are so far consummated that we can declare our designs without fear of any
organized resistance. The Farmers Alliance and Knights of Labor organizations
in the United States should be carefully watched by our trusted men, and we must
take immediate steps to control these organizations in our interest or disrupt
them. At the coming Omaha Convention to be held July 4th (1892), our men must
attend and direct its movement, or else there will be set on foot such antagonism
to our designs as may require force to overcome. This at the present time would
be premature. We are not yet ready for such a crisis. Capital must protect itself in
every possible manner through combination (conspiracy) and legislation. The
courts must be called to our aid, debts must be collected, bonds and mortgages
foreclosed as rapidly as possible. When through the process of the law, the
common people have lost their homes, they will be more tractable and easily
governed through the influence of the strong arm of the government applied to a
central power of imperial wealth under the control of the leading financiers.
People without homes will not quarrel with their leaders. History repeats itself in
regular cycles. This truth is well known among our principal men who are
engaged in forming an imperialism of the world. While they are doing this, the
people must be kept in a state of political antagonism. The question of tariff
reform must be urged through the organization known as the Democratic Party,
and the question of protection with the reciprocity must be forced to view through
the Republican Party. By thus dividing voters, we can get them to expand their
energies in fighting over questions of no importance to us, except as teachers to
the common herd. Thus, by discrete action, we can secure all that has been so
generously planned and successfully accomplished.”

14. 36. Equally revealing is the following article posted on December 13, 2011 by
Washington‘s Blog entitled: Fraud By The Big Banks – More Than Anything Done By The
Little Guy – Caused The Financial Crisis, as it too reveals that a conspiracy is indeed
unfolding today:
―The U.S. Treasury’s Office of Thrift Supervision Noted Last Year: The FBI
estimates that 80 percent of all mortgage fraud involves collaboration or
collusion by industry insiders This confirms what one of the country‟s top fraud
experts has said for years: that it was fraud by the big banks – more than anything
done by the little guy – which caused the financial crisis: William K. Black –
professor of economics and law, and the senior regulator during the S & L crisis –
explained last month before to the Financial Crisis Inquiry Commission why banks
gave home loans to people who they knew couldn‟t repay. The whole piece is a
must-read, but here are excerpts from the introduction: The data demonstrate
conclusively that most liar’s loans were fraudulent, which means that there were
millions of fraudulent mortgage loans because liar’s loans became common
(Credit Suisse estimates that they represented 49% of new originations by 2006).
The data also demonstrate that even minimal underwriting of the loan files was
sufficient to detect the overwhelming majority of such fraudulent liar‟s loans. No
honest, rational lender would make large numbers of liar’s loans. The epidemic
of mortgage fraud was so large that it hyper-inflated the housing bubble, which
allowed refinancing to further extend the life of the bubble (and the depth of the
ultimate Great Recession. In the cases where there have been even minimal
investigations (New Century, Aurora/Lehman, Citi, WaMu, Countrywide, and
IndyMac) senior lender officials were aware that liar’s loans were fraudulent.
Liar‟s loans optimized short-term accounting income by creating a “sure thing”
(Akerlof & Romer 1993). A fraudulent lender optimizes short-term fictional
accounting income and longer term (real) losses by following a four-part recipe: A.
Extreme Growth B. Making bad loans at a premium yield C. Extreme leverage D.
Grossly inadequate loss reserves. Note that this same recipe maximizes fictional
profits and real losses. This destroys the lender, but it makes senior officers that
control the lender wealthy. This explains Akerlof & Romer‟s title – Looting The
Economic Underworld of Bankruptcy for Profit. The failure of the firm is not a
failure of the fraud scheme. (Modern bailouts HAVE recapitalized the looted bank
and left the looters in charge of it.) The first two “ingredients” are related. Home
lending is a mature, reasonably competitive industry. A lender cannot grow
extremely rapidly by making good loans. If he tried, he‟d have to cut his yield and
his competitors would respond. His income would decline. But he can guarantee
the ability to grow extremely rapidly by being indifferent to loan quality and
charging weaker credit risks, or more naïve borrowers, a premium yield. In order
to become indifferent to loan quality the officers controlling the lender must
eviscerate its underwriting. There is no honest reason for a secured lender to
seek or permit inflated appraisal values. This is a sure marker of accounting
control fraud – a marker that juries easily understand. In other words, banks made
loans to borrowers who they knew couldn’t really repay because the heads of the

15. banks could make huge bonuses based on high volumes and fraudulent
appraisals, and they didn’t care if their own companies later failed. In short, they
looted their companies and the economy as a whole. Professor Black brings us
current to where we are today: History demonstrates that if the control frauds get
away with their frauds, they will strike again. By allowing the banks to use their
political power to gimmick the accounting rules to permit them to hide their
massive losses on liar‟s loans we have made it far harder to take effective
administrative, civil, and criminal sanctions against the elite frauds that caused the
Great Recession. Hiding the losses also adopts the dishonest Japanese approach
that cripples economic recovery and public integrity. Prosecuting the elites control
frauds can be done successfully. Create a new “Top 100” priority list and appoint
regulators that will make supporting the Justice Department a top agency priority.
That‟s how we obtained over 1000 priority felony convictions of elite S&L
criminals. No controlling officer of a large, non-prime specialty lender has been
convicted of running a control fraud. Only one has even been indicted. The FBI
has written that any discussion of the crisis that ignores the role of mortgage
fraud is ―irresponsible.‖But instead of prosecuting fraud, the government just
continues to cover it up.”
THE CREATION OF MONEY
37. The Conspirators were able to perpetrate this scheme because few understand the
mechanics of the monetary system employed by the U.S.:
“All the perplexities, confusion and distress in America arise, not from the defects
of the constitution or confederation, not from want of honour or virtue, so much
as from the downright ignorance of the nation, of coin, credit and circulation.”
— President John Adams (1735–1826)
“I believe that banking institutions are more dangerous to our liberties than
standing armies and that the principle of spending money to be paid by posterity,
under the name of funding, is but swindling futurity on a large scale. If the
American people ever allow private banks to control the issue of their currency,
first by inflation, then by deflation, the banks... Will deprive the people of all
property until their children wake-up homeless on the continent their fathers
conquered... The issuing power should be taken from the banks and restored to
the people, to whom it properly belongs.” — President Thomas Jefferson
The Debate Over The Recharter Of The Bank Bill, (1809)
38. The underlying methods employed by the banking industry began centuries ago
according to Modern Money Mechanics, a booklet published by the Federal Reserve:
“It started with goldsmiths. As early bankers, they initially provided safekeeping
services, making a profit from vault storage fees for gold and coins deposited with
them. People would redeem their "deposit receipts" whenever they needed gold or

16. coins to purchase something, and physically take the gold or coins to the seller who,
in turn, would deposit them for safekeeping, often with the same banker. Everyone
soon found that it was a lot easier simply to use the deposit receipts directly as a
means of payment. These receipts, which became known as notes, were acceptable
as money since whoever held them could go to the banker and exchange them for
metallic money. Then, bankers discovered that they could make loans merely by
giving their promises to pay, [rigging the system to their advantage] or bank
notes, to borrowers. In this way, banks began to create money. More notes could be
issued than the gold and coin on hand because only a portion of the notes
outstanding would be presented for payment at any one time. Enough metallic
money had to be kept on hand, of course, to redeem whatever volume of notes was
presented for payment.”
39. Thus, the ―fractional reserve‖ system of banking was born, where a deposit in the
form of cash, or a promissory note can be used by the bank to monetize or create 9X the amount
of the ―deposit.‖ The key to the whole operation lay in the public's willingness to leave their
assets in the bank's vaults and use the bank's notes. This system is based on the faith and
ignorance of the people which allows the banks to use the assets they have on deposit, set aside
10% of those deposits as a reserve (capital requirement) and loan out the remainder thus earning
a profit on the spread between what they paid for the ―wholesale‖ money at the Fed discount
window, and the amount they charged to the borrower.
“The actual process of money creation takes place primarily in banks ... bankers
discovered that they could make loans merely by giving their promise to pay, or
bank notes, to borrowers. In this way banks began to create money. Transaction
deposits are the modern counterpart of bank notes. It was a small step from
printing notes to making book entries crediting deposits of borrowers, which the
borrowers in turn could „spend‟ by writing checks, thereby „printing‟ their own
money.” — Modern Money Mechanics
Federal Reserve Bank of Chicago
40. Throughout history this system allowed the Bankers to get rich while most
everyone else got by. It created an unfair system where those at the top who controlled the
money had the power, while everyone else unknowingly was enslaved.
41. When a borrower takes out a bank loan or mortgage, the bank does not use its
own funds but goes to the Fed where it [electronically] receives 10 times the amount of the loan
in new currency. Ten percent of this money is allocated to the borrower, 10%, held in reserve
by the bank and the remaining 80%, allocated to the bank to lend or invest.

17. “A deposit created through lending is a debt that has to be paid on demand of the
depositor, just the same as the debt arising from a customer's deposit of checks or
currency in the bank. Of course they [the banks] do not really pay out loans from
the money they receive as deposits. If they did this, no additional money would be
created. What they do when they make loans is to accept promissory notes in
exchange for credits to the borrowers' transaction accounts.”
— Federal Reserve Bank
Chicago, Modern Money Mechanics, p. 6
“Banks create credit. It is a mistake to suppose that bank credit is created to any
extent by the payment of money into the banks. A loan made by a bank is a clear
addition to the amount of money in the community.‖
— Encyclopædia Britannica 14th Edition
“What they [banks] do when they make loans is to accept promissory notes in
exchange for credits to the borrowers‟ transaction accounts.‖
—Modern Money Mechanics, pg 6
“The initial $10,000 of reserves distributed within the banking system gives rise
to an expansion of $90,000 in bank credit (loans and investments) and supports a
total of $100,000 in new deposits under a 10 percent reserve requirement. The
deposit expansion factor for a given amount of new reserves is thus the reciprocal
of the required reserve percentage (1/.10 = 10). Loan expansion will be less by
the amount of the initial injection.” — Modern Money Mechanics
Federal Reserve Bank of Chicago - pg 8
42. In the events leading up to the economic crisis, the Conspirators controlled both
the Federal Reserve (―Fed‖) and the banks and used the Fractional Reserve System to rape the
system. The Conspirators used borrower‘s promissory notes as ―deposits‖ and monetized 9X
their face value through the Fed. When the Fed issues ―credit‖ to the bank, it sells the
―credit/‖money‖ at a discount interest rate. The bank charges the borrower a higher rate and
profits from the difference. The Fed/Treasury lists the loan as a ―demand deposit‖ – a liability
and the Note as an asset on its books thus canceling each other out. These transactions are
governed by the GAAP (Generally Accepted Accounting Principles) which banks must employ.
However, the Bank must then pay the Fed for the use of this ―credit‖ through the borrowers
mortgage payments, but the Conspirators ledgered the liability on the PUBLIC side (the Fed) and
ledgered the asset on the PRIVATE side, as their own asset and continued to use borrowers
NOTEs over and over again.
43. The Conspirators then used the same Notes and pretended to sell them to
investors of the MBS which had pre-funded the borrowers loans with TBA (―to be announced‖)
funds brazenly violating the Pooling and Servicing Agreements established by the MBS Trusts.

18. The Conspirators held the Notes which should have been delivered to the MBS Trustees
according to New York law which governs the securities, and sold the same notes repeatedly
to multiple trusts. The Notes were simply copied in order to sell these notes to MBS investors
both here and abroad and so they could be used once again to ―validate ownership‖ in
foreclosure cases according to the FCIC report as of January 2011:
―Goldman Sachs alone packaged and sold $73 billion in MBS‘s from July 1, 2004
to May 31, 2007. These MBS‘s referenced more than 3,400 mortgage securities,
with 610 of them referenced at least twice. This is apart from how many times
these securities may have been referenced in synthetic CDO’s created by other
firms.‖
TITLE CRISIS
44.
The Conspirators needed to divert the attention of the masses so as to delay the public from
discovering their Conspiracy prematurely. They accomplished said distraction in myriad ways,
one being the creation of a title crisis. The Conspirators intentionally failed to record the
conveyance transactions of real estate at the county level and bypassed the law completely by
creating their own recording database called the Mortgage Electronic Registration System
(MERS) - a secretive veil which would allow them to hide their crimes.
45. The Conspirators not only failed to record these conveyances, but in failing to
deliver the Notes to the Trusts, in direct violation of the governing documents of the Trust, a
cloud is created on the titles of nearly every property in the U.S. according to Professor Adam
Levitin‘s testimony as stated below.
46. In sworn testimony by Linda De Martini supervisor and operational team leader
for the Litigation Management Department for BAC Home Loans Servicing L.P. in Kemp V
Countrywide, ―BAC Servicing‖ testified that Countrywide NEVER delivered the notes to the
trusts. Again, any rational person would ask why.
47. Professor Adam Levitin testified before the House Financial Services Committee
and stated:

19. ―If mortgages were not properly transferred in the securitization process, then
mortgage-backed securities would in fact, not be backed by any mortgages
whatsoever. The chain of title concerns stem from transactions that make
assumptions about the resolution of unsettled law. If those legal issues are resolved
differently, then there would be a failure of the transfer of mortgages into
securitization trusts, which would cloud title to nearly every property in the
United States and would create contract rescission/putback liabilities in the
trillions of dollars, greatly exceeding the capital of the US‘s major financial
institutions….Recently, arguments have been raised in foreclosure litigation about
whether the notes and mortgages were in fact properly transferred to the
securitization trusts. This is a critical issue because the trust has standing to
foreclose if, and only if it is the mortgagee. If the notes and mortgages were not
transferred to the trust, then the trust lacks standing to foreclose…If the notes and
mortgages were not properly transferred to the trusts, then the mortgage-backed
securities that the investors‘ purchased were in fact non-mortgage-backed
securities. In such a case, investors would have a claim for the rescission of the
MBS, meaning that the securitization would be unwound, with investors receiving
back their original payments at par (possibly with interest at the judgment rate).
Rescission would mean that the securitization sponsor would have the notes and
mortgages on its books, meaning that the losses on the loans would be the
securitization sponsor‘s, not the MBS investors, and that the securitization sponsor
would have to have risk-weighted capital for the mortgages. If this problem exists
on a wide-scale, there is not the capital in the financial system to pay for the
rescission claims; the rescission claims would be in the trillions of dollars, making
the major banking institutions in the United States would be insolvent.
FORECLOSURE CRISIS
48. The Conspirators intentionally created a complex sham intended to create chaos
in the courts thereby burdening them with millions of foreclosures. The defaults began with the
subprime mortgages, but this momentum soon ―trickled up‖ to long-standing mortgages where
borrowers had amassed a great deal of equity in their properties which would soon be lost to
plummeting real estate values.
49. The Conspirators instructed the courts to ―accelerate the foreclosures‖ under the
guise that ―the economy would then stabilize.‖ But sooner or later the public and the courts
would learn the truth, so the Conspirators had to make sure their plan so deeply embedded in
society that there could be no escape from the consequences of the economic collapse, just as the
Bankers pointed out in their 1892 pamphlet:

20. ―for the lower order of people are already showing signs of restless commotion.
Prudence will therefore show a policy of apparently yielding to the popular will
until our plans are so far consummated that we can declare our designs without
fear of any organized resistance.”
LAYING THE GROUNDWORK FOR COLLAPSE
50. The Conspirators methodically laid the groundwork which would create a new
mortgage lending infrastructure where the era of ‗fiduciary‘ relationships was thrown out the
window. The values upon which America was founded would be exploited as the Conspirators
knew that Americans and the courts would presume that highly respected lending institutions
operated from a foundation of trust.
51. The Conspirators attempted to disguise their scheme in a ―complex language‖
they concocted which was designed to confuse, confound and overwhelm the average person
thus enabling them to carry out their plan.
“Monetary science, finance and economics are mired in a convoluted language.
Economics experts propagate multiple terms and multiple definitions for those
terms. This quagmire hinders the ability of individuals outside the economic elite to
reach reasonable conclusions. Because the current system is inherently unsound,
unstable and unethical, those who perpetuate it must attempt to keep those it
abuses in ignorance, ensuring they are confounded and misdirected from the true
issues.” - Trace Mayer
Monetary scientist and author of The Great Contraction
DEREGULATION
52. The objective of the Conspirators could not be realized if the banking industry
was regulated, so in the 1990‘s a series of events, beginning with the merger of Citibank and
Travelers Insurance in 1998, illegal at the time, began to unravel the long-standing regulations
which ensured that catastrophes like the Great Depression could not occur again. Because the
merger of Citibank and Travelers Insurance violated the Glass-Steagall Act, enacted in 1934 to
separate commercial banking from investment banking to prevent Wall Street and the largest
banks from gambling and risking the deposits of others, the Conspirators had to repeal the Glass-
Steagall Act.

21. 53. The Conspirators knew that Congress would do their bidding because as Illinois
Senator Dick Durbin stated on April 29, 2009: "the banks, hard to believe in a time when we're
facing a banking crisis that many of the banks created, are still the most powerful lobby on
Capitol Hill. And they frankly own the place." They indeed own ―the place‖ as a result of
paying Billions to lobbyists. New legislation quickly passed which began to dismantle the Glass-
Steagall Act and the Citi-Travelers merger paved the way for the Conspirators‘ scheme to unfold.
54. Furthermore, the repeal of the Glass-Steagall Act effectively opened the door for
the securitization of mortgage loans - the catalyst needed to collapse the economy.
SHIFTING THE RISK FROM THE CONSPIRATORS TO THE SHAREHOLDERS
55. In 1998, the Conspirators shielded any potential risk away from themselves by
converting the once privately-held investment banks on Wall Street into publicly-held
corporations, thereby shifting risk to the hapless shareholders of those companies. As a result of
this paradigm shift, compensation on Wall Street and the largest banks rose meteorically which
afforded the Conspirators the means to ―invest‖ even more Billions of dollars in lobbying efforts
to ensure their control of Washington. By bankrolling the elections of those they wanted in office,
those who would protect their interests, they made sure these people ‗remembered‘ who put them
in that office.
DISEMPOWERING THE MIDDLE CLASS
56. The Conspirators sought to deter the American public from recognizing their
scheme by systematically disempowering the middle class of America. In 1994 the Democrats
and Republicans passed NAFTA which sent 50,000 manufacturing plants overseas, hence a loss
of jobs and revenue for the government through taxes, under the guise of fulfilling their
obligation of ‗making profit for their shareholders.‖ By obliterating jobs, they forced the middle-
class into survival-mode, thereby robbing the American people of their pensions, and assets, thus
rendering them impotent, shamed, humiliated and focused on supporting their families. The
foreclosure crisis, a tactic they had employed in the past, was used to destabilize Americans and
strip them of their assets.
DIVIDE AND CONQUER

22. 57. To distract and divert the attention of the public, thereby delaying the premature
discovery of the Conspiracy and potentially stopping it, the Conspirators have and still are
employing an effective strategy known as ―divide and conquer.‖ This strategy is being carried
out to extreme absurdity today by filling the airwaves with dissension between America‘s two
political parties on the most ridiculous, inconsequential and trivial issues which trigger emotion.
As they pit one side against the other, the Conspirators pour fuel upon these issues and maintain
a constant state of chaos in the population.
CREATING A WEAPON OF MASS FINANCIAL DESTRUCTION: MORTGAGE-
BACKED SECURITIES
58. The final desecration of the Glass-Steagall Act in 1998-1999 opened the door for
the Conspirators to introduce new ‗innovative‘ products into the American marketplace known
as Mortgage Backed Securities (―MBS‘s‖). These securities played an integral role in the
Conspirators scheme as they were designed to earn high fees, to make money out of nothing,
create widespread fraud which would contribute to lawsuits whose settlements would be so great
and so widespread that said settlements could result in the collapse of the financial institutions;
and over-leveraging the institutions to such a great degree that the Conspirators would have yet
another means of collapsing the economy. These securities were backed by the valuable
promissory notes on borrowers‘ homes and considered to be a ‗low risk‘ investment as providing
a roof over ones‘ family‘s head is a priority to American families.
59. After a borrower closed on a mortgage, that mortgage would be combined with
other similar mortgages and converted into a securitized instrument. These instruments would be
pooled together and create a Collateralized Debt Obligation (―CDO‖) where pieces of that pool
were sold as bonds to investors all over the world referred to as certificateholders.
60. The Conspirators needed both borrowers and investors, each a pawn in a much
larger game they were unaware of - a pervasive scheme where the Conspirators could exploit
them in order to rob the world and collapse the economy.
61. The Conspirators churned out MBS‘s by the millions despite the fact that they
were taking enormous risks which many on Wall Street found to be both incredulous and
irrational. These investments over-leveraged their respective companies with (high-risk) MBS

23. securities. The risk was clear: if anything were to go wrong in the market, the ―investment‖
company would fail; exactly what the Conspirators set out to do as it provided a cover of
plausible deniability.
62. The January 2011 Financial Crisis Inquiry Commission (―FCIC‖) Report - Pg
230- Commission Conclusions on Chapter 11 -The Bust stated that over-leverage was indeed
a major cause of the financial crisis:
―The Commission concludes that the collapse of the housing bubble began the
chain of events that led to the financial crisis. High leverage, inadequate capital,
and short-term funding made many financial institutions extraordinarily vulnerable
to the downturn in the market in 2007. The investment banks had leverage ratios,
by one measure, of up to 40 to 1. This means that for every $40 of assets, they held
only $1 of capital. Fannie Mae and Freddie Mac (the GSEs) had even greater
leverage—with a combined 75 to 1 ratio. Leverage or capital inadequacy at many
institutions was even greater than reported when one takes into account ―window
dressing,‖ off-balance-sheet exposures such as those of Citigroup, and derivatives
positions such as those of AIG. The GSEs contributed to, but were not a primary
cause of, the financial crisis. Their $5 trillion mortgage exposure and market
position were significant, and they were without question dramatic failures. They
participated in the expansion of risky mortgage lending and declining mortgage
standards, adding significant demand for less-than-prime loans. However, they
followed, rather than led, the Wall Street firms. The delinquency rates on the loans
that they purchased or guaranteed were significantly lower than those purchased
and securitized by other financial institutions.‖
INFLATING THE BUBBLE
63. The Fed has the ability to intentionally create a bubble by lowering interest rates,
as credit is then plentiful which opens the market for increased debt. To prevent a bubble from
inflating, the Fed must slowly raise interest rates for if it does not, a bubble will result.
64. According to the Federal Reserve website:
“A higher Fed funds rate means banks are less willing to borrow money to keep
their reserves at the mandated level. This means they will lend less money out, and
the money they do lend will be at a higher rate since they themselves are borrowing
money at a higher rate. Since loans are more difficult to get and more expensive,
businesses will be less likely to borrow, thus slowing the economy. When the Fed
raises rates, it is called contractionary monetary policy. “

24. 65. The consequence of a bubble is inflation for each new loan ―monetizes‖ 10
times its amount thereby adding to the amount of money in circulation which in turn devalues
the dollars currently in circulation. According to the inflation calculator at CoinNews.net,
validated by numerous sources, if you were to purchase on item in 1913 for $20.00, the year the
Fed was established, that same item would cost $454.42 in 2012.
66. The Conspirators chose real estate as the vehicle to fuel their bubble because, as
Chairman of the Federal Reserve, Ben Bernacke stated in 2005 amid warnings of a bursting real
estate bubble: “Historically, real estate has never dropped in value and therefore there is no
bubble.” Bernacke made this statement despite the fact that at that time, irrefutable evidence
existed to the contrary.
67. In 2002 the Federal Reserve began to inflate the bubble needed to achieve the
Conspirators objective and lowered interest rates from 6.5% to 1.25% which made credit easy to
obtain. These low rates initiated a ―feeding frenzy‖ and as anticipated, unwary borrowers took
the bait. The market, now flooded with homebuyers, artificially drove up property ―values‖
which resulted in home prices doubling from 1996 to 2006.
“If the American people ever allow private banks to control the issue of their
currency, first by inflation, then by deflation, the banks... Will deprive the people
of all property until their children wake-up homeless on the continent their fathers
conquered... The issuing power should be taken from the banks and restored to
the people, to whom it properly belongs.” — President Thomas Jefferson
The Debate over the Recharter of the Bank Bill, (1809)
“By a continuing process of inflation, governments can confiscate, secretly and
unobserved, an important part of the wealth of their citizens....while the process
impoverishes many, it actually enriches some. There is no subtler, no surer means
of overturning the existing basis of society than to debauch the currency. The
process engages all the hidden forces of economic law on the side of destruction,
and does it in a manner which not one man in a million is able to diagnose.”
— John Maynard Keynes (1883–1946)
British Economist 1919-Economic Consequences of Peace
CREATING LOANS DESIGNED TO DEFAULT

25. 68. To fuel the real estate bubble, the Conspirators needed a great quantity of
mortgage loans which would have a high percentage of default, not if, but when the Conspirators
raised interest rates. Under the altruistic guise of ‗helping more people to achieve the American
dream,‘ the non-partisan Conspirators instructed their cronies in Congress to enact laws in both
the Bush and Clinton administrations which created a whole new market of borrowers. One of
those new laws was the Community Reinvestment Act which made it illegal for a bank not to
grant a loan to a ―sub-prime‖ borrower. In the past, these borrowers were unable to secure
mortgages because they did not meet underwriting guidelines designed to protect lenders from
default. But the Conspirators didn‘t care about underwriting guidelines as they needed loans
which would default, so they exploited these borrowers.
69. The Conspirators enticed more borrowers into their web of deceit with a bevy of
new mortgage products: no-document loans, stated income loans, 100% of purchase loans, and
adjustable rate mortgages, which allowed borrowers to obtain loans under suspicious
circumstances. To lure even more unsuspecting borrowers into loans they could not afford if
interest rates rose, the lenders offered ‗teaser interest rates‘ as low as 1.00% for a specified
length amount of time. These ‗teaser rates‘ delayed the onset of the true higher payments which
would go into effect at a specified time in the future determined by the prevailing interest rates at
that specific time. In other words, if interest rates rose, borrowers‘ payments would rise -
exponentially. And these loans had a far greater chance of default because they were „designed to
default.‟
70. These loans were replete with fraud as countless lawsuits have attested, but the
Conspirators did not care. To ensure that the loans would default, the Conspirators set up
conditions which induced bank employees with bonuses, high salaries. If that tactic was
unsuccessful, the employees were threatened with the loss of their jobs if they didn‘t produce
loans ...and fast! Bank employees were pushed to relax or completely eliminate underwriting
standards, inflate appraisals; essentially telling borrowers anything to get them to sign loan
documents. *See sworn testimony from bank employees at the end of this document.
71. Borrowers were unaware that their notes were being converted into ‗securities,‘
pooled together with other mortgages and sold to investors, with the majority of the loans pre-

26. funded by the MBS investors who had advanced funds according to the Federal Reserve Bank of
New York Staff Reports entitled ―TBA Trading and Liquidity in the Agency MBS Market‖ by
James Vickery and Joshua Wright, Staff Report No. 468 - August 2010:
―A less widely recognized feature is the existence of a liquid forward market for
trading agency MBS, out to a horizon of several months.3 The liquidity of this
market raises MBS prices and improves market functioning. It also helps
mortgage lenders manage risk, since it allows them to ―lock in‖ sale prices for
new loans as or even before those mortgages are originated. The vast majority
of agency MBS trading occurs in this forward market, which is known as the
TBA market (TBA stands for ―to be announced‖). In a TBA trade, the seller of
MBS agrees on a sale price, but does not specify which particular securities will
be delivered to the buyer on settlement day. Instead, only a few basic
characteristics of the securities are agreed upon, such as the coupon rate and the
face value of the bonds to be delivered. *3 In a forward contract, the security and
cash payment for that security are not exchanged until after the date on which the
terms of the trade are contractually agreed upon. The date the trade is agreed upon
is called the ―trade‖ date. The date the cash and securities change hands is called
the ―settlement‖ date.‖
SECURITIZING THE LOANS
72. The process of Securitization was designed to distance the Conspirators from
liability and rob citizens of Trillions of dollars. The following is the securitization process:
A. Mortgages loans are obtained or ―originated‖ by ―lenders‖: large banks, mortgage
brokers etc.
B. The loans are then sold to a ―Sponsor‖ - typically a subsidiary of the originating
bank created to distance the bank from potential liability. This sponsor is called a
"special purpose vehicle/entity" "SPV"/―SPE‖, and is a tax-exempt company or
trust which forms a passive shell which is ―bankruptcy remote‖, meaning that if
the original ―lender‖ goes into bankruptcy, the assets of the lender cannot be
seized by the creditors of the bank. In order to achieve this status, the governing
documents of the bank restrict its activities to those necessary to complete the
issuance of securities, for once the assets are transferred to the Sponsor/SPV,
there is normally no recourse to the originator.
C. The Sponsor assembles the newly-purchased loans into pools consisting of
approximately 5,000 mortgages.
D. The Sponsor then sells the pool of loans to a Depositor.

27. E. The Depositor issues the bonds/certificates created by the Underwriter of a
Conspirator-owned Wall Street Investment Bank (Goldman Sachs) backed by the
underlying mortgage loan.
F. The depositor establishes a trust and lays out the rules the trust must follow
according to a ―pooling and servicing agreement.‖
G. The depositor typically owns 100% of the beneficial interest in the issuing entity
and is usually the parent, or a wholly owned subsidiary of the parent, which
initiates the transaction.
H. Each trust issues Certificates which are sold to large institutional investors.
I. The depositor transfers loans to the Trust in accordance with the PSAs.
J. The Depositor works with the Underwriter (Investment Bank such as Goldman
Sachs) to sell the securities to investors.
K. Underwriters of Conspirator-owned Wall Street Investment Banks pay the
depositor with funds from the MBS Investors.
L. Underwriters convert loans into security bonds.
CREATING MBS BONDS FOR INVESTORS TO PURCHASE
A. Registration statements are filed with the Securities and Exchange Commission
(SEC) which includes a description of the offering, a ―prospectus‖ that explains the general
structure of the investment. Prospectus supplements contain specific detailed descriptions of the
mortgage pool. To lure unsuspecting investors, the Prospectus Supplements purported to provide
accurate statistics regarding the mortgage loans in the collateral group and the entire
securitization.
B. The investment banks set up the structure of the transaction.
C. Underwriters at the investment banks pre-sold bonds before the loans were
originated, which is referred to as forward selling.
D. MBS Certificates/bonds were categorized based upon risk into various levels or
tranches. The highest senior bonds carried the lowest risk and were paid first whereas the lower
tranches, while paying a higher rate of interest, carried a higher risk.
E. MBS bonds were based upon specific criteria which placed each loan into a
specific ―tranche‖ based upon the FICO credit score of the borrower, loan-to-value ratio of the
loan, outstanding principal balance of the loans, geographic location, whether the loans were for
purchase or refinance purposes, a primary residence, second home, or investment property, and
information concerning when a loan would be determined to be delinquent.

28. F. The most common securitization trusts, having lower yields, were the
Conspirator-owned (flagrantly run into the ground by leveraging their assets 75:1) privately-held
corporations, Fannie Mae and Freddie Mac. Although these institutions are referred to as
government-sponsored enterprises, the title is misleading.
G. Investors desiring a higher yield purchased certificates from private label
securities firms, such as Goldman Sachs.
H. Each Certificate entitled the investor to a specified portion of the mortgage
payments based upon the level of perceived risk in the certificates which were typically rated
AAA.
I. Investors acquired a percentage of ownership interest in the cash flow from the
mortgage loan payments and in the promissory notes - the assets of the trust, which were
supposed to be held by the Trustee on behalf of the certificate-holders.
J. According to Investopedia, the MBS Trust (its trustee being an agent for the
Conspirators) typically purchased credit default swap ―insurance‖ as a ―credit enhancement‖
used to entice investors into thinking they were buying low-risk investments which were
guaranteed not to lose. All tranches received periodic payments based on the cash flows from the
credit default swaps.
K. If a ―credit event‖ occurred, such as a mortgage default, and reached a specific
default percentage, starting from the lowest tranche and working its way up that tranche would
be liquidated causing investors to lose their investment. But if the certificates were covered by
CDS insurance the investors were compensated for their losses, if the insurance company was
not bankrupted as AMBAC (American Municipal Bond Assurance Corporation) was in 2010.
THE MONTH TO MONTH OPERATION FOR BORROWERS
A. The mortgage Servicer, an agent for the Conspirators, collects the mortgage payments,
take its fee off the top and passes the remainder to trustee of the MBS trust, another agent
of the Conspirators.
B. Servicer‘s are responsible for collecting delinquent loans and determining when to charge
off a loan by writing down its balance - a conflict of interest as the Servicers fee is based
upon the outstanding loan balance in the pool.
C. The Servicer, typically a subsidiary of the Conspirator parent originator, therefore
controlled by the Conspirator, has the power to significantly affect the cash flows to the
investors because it controls the charge-offs and recoveries on the loans.
D. Any income remaining after payments and expenses is usually accumulated to some
extent in a reserve account which is returned to the depositor.
E. The Servicer is required to report key information about the loans to the trustee.

29. F. According to the PSA (Pooling and Servicing Agreement), when a loans defaults the loss
is absorbed first by the lowest most risky tranches, with the upper-level tranches
remaining unaffected until losses exceed the entire amount of the subordinated tranches at
which point the trust is dissolved and files a 15-15D report with the SEC indicating its
probable dissolution.
G. The lowest tranches, most exposed to payment risk, are retained by the Conspirator-owned
Originator knowing that when the loans default, they will be first in line to collect CDS
payments.
H. The trustee, as alleged gate-keeper of the Trusts‘ assets, is part of the Conspirator-owned
SPV, which is typically wholly owned by the Conspirator Originator.
GAMING THE SYSTEM THE CONSPIRATORS CREATED
A. The loans made to borrowers were packaged and/or sold to variety of Conspirator players,
each earning a profit on each transaction.
B. The prospectus was created, the MBS rated, and the investor‘s money pledged before the
homeowner ever applied for a loan.
C. Each MBS/Trust was required to keep a list of the individual loans they had allegedly
recruited for the MBS. This list has to be publicly recorded with the SEC, however, the
SEC did not require any proof that the loans actually existed or were possessed by the
MBS.
D. The underwriter earned a yield spread premium: the difference between what the interest
rate the loan was sold for and the interest rate paid to the investors of the MBS‘s.
E. The originator was simply the liaison between the borrower and the Investor and was paid
a ―commission‖ when the depositor purchased the loan from the Sponsor.
F. The Conspirators controlled the Servicer and designed the PSA to ensure that when a loan
defaulted the Servicer would then ―advance‖ loan payments on behalf of the defaulted
borrower. The Servicer‘s fee was based upon the outstanding balance of the pool, so if the
loan was non-performing and the Servicer reported it as such, it would earn less money.
G. Servicing rights are considered as assets with recognized value and called Mortgage
Servicing Assets (MSA) which are sold, assigned, and securitized.
H. A Master Mortgage Servicer receives a large fee called a service release premium (SRP)
when it sells its servicing rights, thus this market is quite active.
I. Additionally, the largest Servicers earn billions on late fees they frequently create through
shenanigans.

30. J. The largest Servicers earn massive fees when a loan defaults: late fees, penalties, etc.
Therefore, the longer the loan is in default, the Servicer accrues fees and interest payments
which will be paid when the home is foreclosed.
K. The Servicer doesn't care how much the foreclosed home sells for, as any amount which
exceeds their expenses is pure profit.
CREDIT DEFAULT SWAPS AKA ―OVER THE COUNTER (OTC) DERIVATIVES‖
73. The ‗Atomic Bomb‘ of the Conspirators scheme, designed to catalyze the collapse
of the economy and rob untold Trillions from the public, were the Credit Default Swap‘s,
unregulated ―insurance‖ policies taken out on MBS bonds. Unlike a fire insurance policy where
only one person can take a policy on property in the event of a loss, credit default swap
―insurance‖ (more like a Las Vegas ―bet‖) could be sold to many gamblers. And this wasn‘t a
true bet, for the game was rigged. The data clearly indicates that the predatory loans sold to
unsuspecting borrowers were designed to default. Therefore, the Conspirators only had to sit
back and wait for the dollars to pour in while the economy collapsed piece by piece.
74. CDS‘s had little risk and great reward according to the 2011 Financial Crisis
Inquiry Commission Report:
―...entering into an equity swap that mimicked the returns of someone who owned
the actual stock may have had some upfront costs, but the amount of collateral
posted was much smaller than the upfront cost of purchasing the stock directly.
Often no collateral was required at all. Traders could use derivatives to receive the
same gains—or losses—as if they had bought the actual security, and with only a
fraction of a buyer‘s initial financial outlay.‖ ―The credit default swap (CDS),
offered the seller a little potential upside at the relatively small risk of a potentially
large downside. The purchaser of a CDS transferred to the seller the default risk of
an underlying debt. The CDS buyer made periodic payments to the seller during
the life of the swap. In return, the seller offered protection against default or
specified ―credit events‖ such as a partial default. If a credit event such as a default
occurred, the CDS seller would typically pay the buyer the face value of the debt.‖
75. CDS‘s were a zero-sum bet; for example, a bet on a MBS tranche that held $100
million in mortgages would cost $200,000. for that ―policy.‖ Therefore, when a specific
percentage of mortgages in an MBS tranche defaulted, each policy holder would be paid $100
Million! Obviously, the insurance company (AIG, for example) which sold the CDS‘s would
have to have enough money to pay off the $100 Million to each party who placed a bet which

31. required that the insurance companies have enough liquidity to pay off the bets. A large
percentage of defaults could easily bankrupt the ―insurance‖ company, for by 2008 the
derivatives market had ballooned to $45 trillion - the reason insurance giant AIG would have
been bankrupt it were not bailed out at the Conspirators behest. What we have learned today is
that the bailout money was used to pay off the bets taken by the Conspirators at 100 cents on the
dollar! On page 347 of the 2011 Financial Crisis Inquiry Commission Report, it was stated:
―On September 2, 2008 the New York Fed‘s Danielle Vicente noted: ‗AIG‘s
current liquidity position is precarious and asset liability management appears
inadequate given the substantial off balance sheet liquidity needs.‘ Liquidating an
$835 billion securities portfolio to cover liabilities [CDS‘s] would mean substantial
losses and ―potentially‖ affect prices, she wrote. Borrowing against AIG‘s
securities through the Fed‘s PDCF (New York Fed: The Primary Dealer Credit
Facility (PDCF) is an overnight loan facility that will provide funding to primary
dealers in exchange for any tri-party-eligible collateral and is intended to foster the
functioning of financial markets more generally.) might allow AIG to unwind its
positions calmly while satisfying immediate cash needs, but Vicente questioned
whether the PDCF was ―necessary for the survival of the firm.‘ Arguably, however,
AIG‘s volatile funding sources made the firm vulnerable to runs. Off-balance-sheet
commitments—including collateral calls, contract terminations, and liquidity
puts—could be as high as $33 billion if AIG was downgraded. Yet AIG had only
$4 billion of revolving credit facilities in addition to the $12 to $13 billion of cash
it had on hand at the time. Analysts worried about the losses in AIG‘s credit default
swaps and investment portfolios, about rating agency actions, and about subsequent
impacts on capital.‖
76. In another excerpt from the 2011 Financial Crisis Inquiry Commission Report it
was stated:
―Credit default swaps (CDS)—fueled the mortgage securitization pipeline. CDS’s
were sold to investors to protect against the default or decline in value of
mortgage-related securities backed by risky loans. Companies ―sold
protection‖— to the tune of $79 billion, in AIG‘s case... helping to launch and
expand the market and, in turn, to further fuel the housing bubble.‖
77. To create the circumstance of an economic death spiral and thus collect Trillions
on the credit default swap ―bets‖ the Conspirators placed, it was imperative that the loans default.
Moreover, because credit default swaps were integral to the success of the Conspirators scheme,
all obstacles which could derail the success of the scheme had to be eliminated.
ELIMINATING THE OBSTACLES

32. 78. One obstacle that could potentially deride the Conspirators‘ scheme was
Brooksley Born, Chairman of the Commodity Futures Trading Commission (―CFTC‖), the
federal agency which oversees the futures and commodity options markets. A lauded brilliant
attorney and expert in the field of derivatives, (MBS) Ms. Born analyzed the potential risk of the
unregulated derivative market and became alarmed for she had the moxie to understand that
something major was awry. She then called Alan Greenspan, Chairman of the Federal Reserve of
the United States from 1987 to 2006, who became surprisingly angry with her for recognizing
this fact. Shaken, but undaunted, and fueled by her conviction to protect the American people,
she lobbied Congress and President Clinton in 1998 in an effort to regulate these derivatives and
protect the American economy.
79. However, in Congressional hearings, Conspirators, Alan Greenspan, Larry
Summers, Secretary of the Treasury from 1999 to 2001, and Robert Rubin, Secretary of the
Treasury from 1995 to 1999, all of whom who you would think would want to protect the public,
instead fought hard to keep derivatives unregulated and when challenged, displayed a then
perplexing contempt for Ms. Born as each vehemently opposed her warnings collectively stating:
―We have grave concerns about this action and its possible consequences. . . . We are very
concerned about reports that the CFTC‘s action may increase the legal uncertainty concerning
certain types of ―over-the-counter‖ (OTC) derivatives.*‖ [*credit default swaps] In a revealing
irrational display of emotion shown in the Oscar-winning documentary ―Inside Job”, these
Titans of Wall Street accused Ms. Born of wanting to bring the economy of the United States
down, rather than trying to protect it! Alan Greenspan stated: “Aside from safety and soundness
regulation of derivatives dealers under the banking and securities laws, regulation of derivatives
transactions that are privately negotiated by professionals, is unnecessary.”
80. In September of 1998, Greenspan had changed his tune. The Federal Reserve
Bank of New York orchestrated a $3.6 billion recapitalization of Long-Term Capital
Management (LTCM) by 14 major OTC derivatives dealers. LTCM, an enormous hedge fund,
had amassed more than $1 trillion of exposure in derivatives and $125 billion of securities on a
mere $4.8 billion of capital without the knowledge of federal regulators. Greenspan then
revealed that there was enormous risk posed by unregulated derivatives and testified to
Congress that in the New York Fed‘s judgment, LTCM‘s failure would potentially have had

33. systemic effects: a default by LTCM ―would not only have a significant distorting impact on
market prices but also in the process could produce large losses, or worse, for a number of
creditors and counter-parties, and for other market participants who were not directly involved
with LTCM.‖
81. Despite those premonitions, in December 2000, the Conspirator-controlled
Congress passed the Commodity Futures Modernization Act of 2000 (CFMA), which shielded
credit default swaps from virtually all regulation or oversight by both the CFTC and the SEC.
According to the 2011 Financial Crisis Inquiry Commission Report:
―The enactment of legislation in 2000 to ban the regulation by both the federal
and state governments of over-the-counter (OTC) derivatives was a key turning
point in the march toward the financial crisis.‖
EXPANDING THE CREDIT DEFAULT MARKET
82. At year-end 2000, when the Commodity Futures Modernization Act law was
passed by Congress, the global exposure to these outstanding bets was $95.2 trillion, meaning
that when the mortgages defaulted, the amount of money required to pay off the bet was $3.2
Trillion. In June 2008 when the market peaked, this exposure increased sevenfold to $672.6
trillion; with a gross market value of $20.3 Trillion, and in March 2012 stands at $707 Trillion
with $34.9 Trillion in CDS‘s.
83. In the aftermath of the economic crisis, Conspirator Greenspan testified to the
FCIC that credit default swaps—a small part of the market when Congress discussed regulating
derivatives in the 1990‘s —―did create problems‖ during the financial crisis. Conspirator Larry
Summers testified that ―the derivatives that proved to be by far the most serious, [were] those
associated with credit default swaps [which] increased 100 fold between 2000 and 2008.‖
84. If the laws and Congress are indeed intended to protect the public and our society
from potential harm, the irrational, illogical steps which took place paved the way for the
derivative market to grow exponentially, thus increasing risk exponentially. But the
Conspirator-owned Congress passed Laws which allowed banks and hedge funds to hold less
capital in reserve against their exposure to losses if they purchased derivatives. Additionally, to
further inflate the MBS market, the cost on these ―bets‖ was low.

34. 85. According to a class action Federal RICO lawsuit filed in October 2010 in
Kentucky (Foster v. Mortgage Electronic Registration Systems Inc., 10-cv-611):
The Double and Triple Dip and Derivative Contracts:
―Many of the MBS/Trusts were covered by an insurance policy, commonly
referred to as a Derivative or Collateral Contract. These Derivative Contracts are
not recorded or regulated by the SEC. Upon information and belief, the
Defendants have attempted to receive distribution, fees or proceeds or have
received distributions from the liquidation of the borrower‘s homes, when the
actual beneficiaries under the homeowners‘ loans, the shareholder/investors have
been made whole by a Derivative Contract. In other instances, the MBS has been
―closed‖ months or years prior. Funds collected from the loans allegedly within
the MBS, are no longer being paid to the investors, but are an unearned windfall to
the servicer. Additionally, there is no contract between the investors and the
foreclosing entity which would allow them so act as a Plaintiff in a Foreclosure
even when the MBS is not shut down.
Likewise, the MBS/Trusts themselves became parties to Derivative Contracts.
Most times, the actual Derivative contract is for more, up to ten times (10x), the
face value of the MBS. More often than not, multiple insurance policies were
taken and traded on the MBS. The ―double dip‖ or double compensation of the
MBS/Trustee, or Servicer is improper in its own right. The offense is patently
egregious when it is viewed in light of the fact that the Servicer has no standing to
foreclose, yet they came and continue to come to the Courts with the fabricated
and forged documents.‖
TOO BIG TO FAIL
86. To ensure the collapse of the economy, the Conspirators had to make sure that the
banks and institutions were so critical to the financial infrastructure of the American economy
(and the world), that a failure would have dramatic, far-reaching consequences, therefore these
institutions had to be ―too big to fail‖ and thereby ―rescued‖ by the government. Hence, for the
10 years prior to the ―crash,‖ numerous mergers had taken place with larger banks gobbling up
the smaller banks thus rendering them as ‗too big to fail.‘
87. In the aftermath of the ―crash‖ the Conspirator-owned largest banks have
consolidated the banks which intentionally failed so they could create even larger institutions
which would then be capable of controlling the world‘s monetary system. These Conspirator-
owned institutions bought the banks which failed for pennies on the dollar. Washington Mutual
had $307 Billion in assets, but was acquired by Chase for a mere $1.9 Billion, with the officers

35. of the failing banks retaining their multi-Million bonuses and golden parachutes in exchange for
their Oscar-winning performances where they acted as if they knew nothing.
MERS: THE SECRETIVE VEIL WHICH CONCEALS INSIDER FRAUD
88. To deceive the public and the courts for as long as they possibly could, the
Conspirators devised a secretive veil to hide their crimes. That smokescreen was the Mortgage
Electronic Registration System, or MERS, a privately held corporation created in 1998 by the
Conspirators. MERS was established to circumvent the lawful requirement to record all
documents pertaining to the beneficial ownership of real estate at the county level. And the
Conspirators brazenly created this new entity without going through the legislative process.
89. MERS undermines and eviscerates long-standing principles of real property law,
such as the requirement that any person or entity who seeks to foreclose upon a parcel of real
property: 1) be in possession of the original note, 2) Have a publicly recorded mortgage in the
name of the party for whom the underlying debt is actually owed and who is the holder of the
original Promissory Note with legally binding assignments and 3) possess a written assignment
giving he, she or it actual rights to the payments due from the borrower pursuant to both the
mortgage and note.
90. Most important, MERS operates ―in the dark‖ thus allowing the Conspirators to
conceal numerous violations of the law which could later be used as evidence of their scheme.
Among those violations is having the ability to repeatedly sell and assign borrowers promissory
notes this making even more money the Conspirators used the cover of mers to make it possible
to sell these mortgage notes to multiple MBS pools to make even more money!
91. MERS does not share their registry with anyone and therefore, it has created a
shadow or false registry. Because MERS and the Conspirator-owned banks refuse to share the
chain of title with any entity, they have the ability to create any document they want.
BRIBING THE RATINGS AGENCIES
92. Large institutional investors have restrictions placed upon them and can only
invest in AAA-rated low risk investments, so according to the Oscar-winning documentary

36. ―Inside Job,‖ and Michael Lewis‘ ―The Big Short‖, the Conspirators simply paid the Ratings
agencies, Moody‘s, Fitch and Standard and Poors, millions of dollars in ―bribes.‖ The
Conspirators singled out the ‗best and brightest‘ employees of the ratings agencies and if these
people produced favorable ratings for the MBS‘s, they were offered extremely well-paying jobs.
Thus, there was a built-in bias to rate the MBS pools favorably despite contrary data emanating
from multiple sources which indicated that sub-prime MBS‘s were indeed an extremely high-risk
investment and contained mortgages which were so bad that they were guaranteed to fail.
93. The majority of MBS were rated ―AAA‖ by Moody‘s or Standard & Poors in
order to invoke a sense of confidence to the investors. The rating agencies, currently under
investigation by the Justice Department for their role in the financial meltdown, were controlled
by the Conspirators. The Underwriter/salesman of the Conspirator-owned banks hired and
compensated the ratings agencies.
GETTING RID OF TROUBLESOME REGULATORS
94. To ensure that potentially problematic regulators would not have the ability to
uncover the Conspirator‘s scheme, according to the Oscar-winning documentary ―Inside Job,‖
the Conspirator-controlled Congress quickly passed legislation to cut the Enforcement Division
of the SEC from 146 regulators to 1 lone regulator who remained on staff.
95. The Conspiracy and its Conspirators extended to other countries including Prime
Minister Tony Blair of Great Britain. Economist Charles Kadlec wrote in The Daily Reckoning:
―As former Prime Minister Tony Blair writes in his memoir, A Journey of My
Political Life, an important contributor to the financial crisis was a failure ―of
understanding. We didn‘t spot it...it wasn‘t that we were powerless to prevent it
even if we had seen it coming; it wasn‘t a failure of regulation in the sense that we
lacked the power to intervene. Had regulators said to the leaders that a huge crisis
was about to break, we wouldn‘t have said: There‘s nothing we can do about it
until we get more regulation through. We would have acted. But they didn‘t say
that.‖
ACCOUNTING‘S ROLE IN THE FRAUD
96. The governing documents for the MBS Trusts specify distinct rules (the PSA) for
loans in default and how they are to be removed or traded out. Non-performing loans are not