Jimmy Carter: The U.S. Is an “Oligarchy With Unlimited Political Bribery” 07/30/2015

AP-120526123936
Former US President Jimmy Carter speaks with the Associated Press following a press conference which outlined the initial assessments of the Carter Center’s election observation mission in Cairo, Egypt on Saturday, May 26, 2012. The Carter Center, which former President Carter founded, monitors elections world wide and deployed 102 observers to Egypt to monitor the Presidential elections that took place on the 23rd and 24th of May. While he expressed satisfaction with the overall order and peacefulness of the elections, he also cited concerns over restrictions placed on the delegation by the Egyptian authorities. (AP Photo/Pete Muller)
Photo: Pete Muller/AP

Jimmy Carter: The U.S. Is an “Oligarchy With Unlimited Political Bribery”
Jon Schwarz
July 30 2015, 7:09 p.m.
https://theintercept.com/2015/07/30/jimmy-carter-u-s-oligarchy-unlimited-political-bribery/

Former president Jimmy Carter said Tuesday on the nationally syndicated radio show the Thom Hartmann Program that the United States is now an “oligarchy” in which “unlimited political bribery” has created “a complete subversion of our political system as a payoff to major contributors.” Both Democrats and Republicans, Carter said, “look upon this unlimited money as a great benefit to themselves.”

Carter was responding to a question from Hartmann about recent Supreme Court decisions on campaign financing like Citizens United.

Transcript:

HARTMANN: Our Supreme Court has now said, “unlimited money in politics.” It seems like a violation of principles of democracy. … Your thoughts on that?

CARTER: It violates the essence of what made America a great country in its political system. Now it’s just an oligarchy, with unlimited political bribery being the essence of getting the nominations for president or to elect the president. And the same thing applies to governors and U.S. senators and congress members. So now we’ve just seen a complete subversion of our political system as a payoff to major contributors, who want and expect and sometimes get favors for themselves after the election’s over. … The incumbents, Democrats and Republicans, look upon this unlimited money as a great benefit to themselves. Somebody’s who’s already in Congress has a lot more to sell to an avid contributor than somebody who’s just a challenger.

I’ve added Carter’s statement to this list of politicians acknowledging that money controls politics. Please let me know if you have other good examples.

(Thanks to Sam Sacks for pointing this out.)

CrowdstrikeGate: A Massive Deep State Scandal That Will Collapse the Democrat Party

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https://beforeitsnews.com/opinion-conservative/2019/10/crowdstrikegate-a-massive-deep-state-scandal-that-will-collapse-the-democrat-party-3491102.html
Friday, October 18, 2019 11:58
Profile image
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By John Rolls (Reporter)

“The impeachment hoax
was initiated because of
Trump’s determination
to fully expose
CROWDSTRIKEgate.
That radioactive scandal
perpetrated by CrowdStrike
and the DNC leadership
is so dangerous to the
Democrat Party they
desperately started the
impeachment inquiry.
Now Trump really wants
that epic fraud investigated
because his presidency
depends upon it.”
— Intelligence Analyst & Former U.S. Military Officer
State of the Nation

Truly, it doesn’t get anymore explosive than CROWDSTRIKEgate!

CONFIRMED: DNC paid the ‘Russian’ founder of CrowdStrike to hack its server so it could be blamed on Russia!
What, pray tell, could be more radioactive than the fact that CrowdStrike was specifically hired by the Democrat National Committee to plant fake evidence on the DNC servers. The cyber-perps deceitfully used Russian digital signatures in order to falsely blame Russia for the election hack that never even occurred … except that it did and it was actually conducted by CrowdStrike.

Screen-Shot-2019-10-17-at-6-31-00-AM

Wow … what a tangled web, indeed … and incredibly reckless scandal ! ! !

How did Deep State ever think they could get away with such a conspiratorial hoax?

Especially with President Trump using his Twitter account to expose the entire CIA-directed black operation?

“Fancy Bear”
____________________________________________________________________________
Why Crowdstrike’s Russian Hacking Story Fell Apart – Say Hello to Fancy Bear
____________________________________________________________________________
This is exactly why they named the CrowdStrike-implemented psyop “Fancy Bear”.

The real perps behind the non-existent Russian hack wanted the American people to believe that CrowdStrike was a Russian bear-killing cybersecurity firm, which they aren’t.

Let’s be clear, the single best way for Trump to completely exonerate himself of even the slightest appearance of ‘Russian collusion’ is to prove that the Democrats falsified the evidence in the first place, WHICH THEY DID.

Why else would the DNC continually refuse to hand over their severs to the FBI so that the necessary forensic analysis could be conducted?!?!

Why else would the CEO of CrowdStrike — Dmitri Alperovitch — the “Russian-born American computer security industry executive … and co-founder and chief technology officer of CrowdStrike” name his bogus hacker-hunting operation “Fancy Bear” except to implicate the Kremlin for a hack that CrowdStrike pulled off?

bear-hunting-history-and-attribution-of-russian-intelligence-opeBear Hunting: History and Attribution of Russian Intelligence Operations

Source – “Bear Hunting: History and Attribution of Russian Intelligence Operations” posted by CrowdStrike at slideshare.net
——————————-

CROWDSTRIKEgate
Yes, the back story to this unparalleled Democrat scandal is long and complicated, convoluted and full of intrigue. The following exposé breaks it all down in a way that every voter ought to understand before November 3, 2020.
______________________________________________________________________________
DNC Russian Hackers Found!
______________________________________________________________________________
Let’s face it: the Democrats will do anything to overturn the 2016 election result. These serial traitors to the Republic are so overwhelmed by Trump derangement syndrome that they will use any means required to take down Trump.

Well, CROWDSTRIKEgate shows just how far these hopelessly crazy communists will go.

When even a casual observer takes a closer look at all the evidence — scientific, circumstantial and anecdotal — it’s clear that the Democrats contrived an extraordinarily absurd and fictitious story to launch this scandal. In other words, “Fancy Bear” is really “Fanciful Bear”.

Whereas Dimity Alperovitch is really Russian by birth and ancestry, he was employed by the C.I.A and NSA to carry out espionage and counterespionage operations similar to their Russian hack op. And, here’s the indisputable timeline that proves it:
Fancy Frauds, Bogus Bears & Malware Mimicry?

IMPEACHMENTgate
Which brings us to the true reasons behind IMPEACHMENTgate. See IMPEACHMENTgate: The Scandal Is Much Worse & Plot Much Thicker Than Anyone Knows

The Democrats know that Trump is not only on to them, he’s on a mission to expose the entire treasonous scandal.

What that really means is that it’s all-out war between Team Trump and Deep State.

See:
Deep State Attempts Yet Another Coup in Broad Daylight, Evidence Proves Treason and a Complex Criminal Conspiracy

This is it folks. The final battle in American politics is being played out between now and Election Day 2020.

What’s at stake is EVERYTHING … for both sides of the political aisle. It’s a winner take all proposition.

Try THIS on Your Car and You’ll Never Need to Wax it Again! (See Video)
That’s why the Democrats concocted out of thin air the patently false allegations that were used to trigger the impeachment inquiry.

That’s why the fake UKRAINEgate was immediately blown up by the CIA’s Mockingbird Media and has not relented despite the lack of any evidence whatsoever. As follows:

UKRAINEgate: CIA black op, Deep State psyop, Democrat coup, MSM distraction, Israeli espionage, Trump sting, or all 6?

Not only that, but seditious co-conspirators Pelosi and Schiff have even refused to present the so-called CIA ‘whistleblower’ whose ridiculous report was obviously fabricated to trigger the impeachment process.

See:
SOFT COUP IN PROGRESS: Deep State Democrats Staged Fake ‘Whistleblower’ Complaint to Orchestrate Impeachment Hoax
________________________________________________________________________________

KEY POINT: As always, there’s a much deeper and broader back story to CROWDSTRIKEgate. This particular video accurately connects so many dots it boggles the mind:
Super-sleuth drops more radioactive intel in 22 minutes than the entire Alt Media does in a month!
________________________________________________________________________________

5970-F7-B4-A58-A-45-C9-83-AC-6513718-B3-D81

Take a close look at this CrowdStrike piece taken from their website. Notice the heavy anti-Russian meming as well as the crucial dates. Everything points to a joint CIA-Madison Ave venture to further smear Russia.

Conclusion
Both Deep State and the entire Democrat Party are in extreme desperation mode.

Yes, they are facing the multifarious consequences associated with:
UKRAINEgate
BIDENgate
IMPEACHMENTgate
WHISTLEBLOWERgate,
but it’s really
CROWDSTRIKEgate
that has the highly explosive potential to destroy the thoroughly corrupt and criminal Democrat Party forever.

The stark reality is that, once the CrowdStrike crime wave is disclosed to the American people, the Democrats are history—FOR REAL!

This is precisely why Deep State has put the craziest of all the crazies — Schiff, Pelosi, Nadler, Schumer, Newsom, DeBlasio, etc. in charge of their insane asylum at this pivotal point during their historic crash and burn. These bad actors (very bad by the looks of Shifty Schiff in every interview) were specifically chosen because of how profoundly compromised each of them is.

Try This Egyptian Copper Secret! You’ll Never Believe What It Does Until You See the Blood Video!
Just how compromised?

This compromised:
PEDOGATE: Pandora’s Box Has Been Opened for Deep State and the C.I.A.

Let’s also take a much closer look at Nasty Nancy’s well-hidden history here: COUP-IN-PROGRESS: Pelosi, the Mafia and the Black Nobility.

Bottom Line: This rapidly intensifying 3rd Millennium “War of the Titans” is gonna get hot—hotter, in fact, than either the Civil War or American Revolution.

Therefore, the best thing the Patriot Movement can do is to disseminate this incriminating information so that the body politic is totally saturated with it. The more folks who are informed, the greater the likelihood that the collective consciousness will expand sufficiently to prevent a national cataclysm. Wide circulation of this critical material can de-escalate this decisive conflict as much as anything.

A LOT of prayer for the protection and focused intention for the continuity of the American Republic would greatly help as well.

State of the Nation
October 17, 2019

CROWDSTRIKEgate: A Massive Deep State Scandal that Will Collapse the Democrat Party

5970-F7-B4-A58-A-45-C9-83-AC-6513718-B3-D81

Have We Ever Been Told the Truth About ANYTHING?


It literally has gotten to where, I don’t believe anything, said at any time, by anyone, other than a handful of people. People that also have been lied to during their whole lives.


It is amazing, everything we thought we knew is wrong. The inventions of geniuses has been kept secret; people murdered and their patents stolen just to keep us in the dark. Screw the state of the planet, we want to continue making money on oil, and all energy.

What a crock of shit! And what do we do? Like a bunch of gullible cattle just accept everything, when deep down inside, most of us know it has all been a lie.

(Carbon Tax. Carbon Tax. Carbon Tax)


Carbon tax? Get fucking real! The taxes we pay go to the Federal Reserve. There is nothing Federal about the Federal Reserve, it is just one more great big fucking lie, to make us continue being the good little slaves that we are. I don’t know about you, but between the fucking crooked courts, with their crooked fucking judges finding in favor of the fucking crooks, I have had enough!

ELKINS v. UNITED STATES, 364 U.S. 206 (1960) 364 U.S. 206?? No. 126.
Argued March 28-29, 1960.   Decided June 27, 1960.
In a government of laws,” said Mr. Justice Brandeis, “existence of the government will be imperiled if it fails to observe the law scrupulously. Our Government is the potent, the omnipresent teacher. For good or for ill, it teaches the whole people by its example. Crime is contagious. If the Government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy.” 277 U.S., at 485 . (Dissenting opinion.).

It is really hard to pinpoint just when the onslaught of lies began, and even escalated. Apparently thousands of years ago. You know, scientists cannot even agree upon the age of the earth. The scientists are some of the biggest liars too.
UFOs don’t exist, there are no aliens, we landed on the moon, global warming (they’re going to have a hard time explaining global warming when it’s the ice age coming, not global warming. Then on top of that, they have everyone going around believing that it is our fault. OUR FAULT???
See: “Climate Scientist Admits To Lying, Leaking Documents” “he confessed that he had lied to obtain internal documents from the Heartland Institute, a group that questions to what extent climate change is caused by humans” .
How can it be our fault, when they were the ones keeping us using fossil fuels. They have known for at least, yes, at least, fifty years, that we could have been using clean FREE Energy! But, can you imagine what it would be like for everyone on earth to have clean, free energy? My God! Everyone would be much more equal to one another, wouldn’t they?



“Inventor of ‘Free Energy’ Electrical Generator: ‘I’ve Been Poisoned Several Times’”. Look what they did to Tesla, and any other genius that wanted to share what they had learned, with us? They have been discredited, killed, and some very recently killed.
Why has Elon Musk repeatedly been plagued with fires at his Tesla shop?

Like Obama going to Africa and telling them that they can’t have A/C and no every household needs a car. Who the fuck is he? Going to Africa, while he was the US President telling the Africans that crock of shit, while knowing that free energy was capable, and in fact, clean and free.

But you know, if we had free, clean energy, we would all be using it, and the lies about needing oil, together with the utility companies forcing bills to keep warm, bills to keep cool, bills to use the computer, we pay for everything we do. Why? Because the lies and secrecy have kept us in the dark ages.
Listen to Dr. Steven Greer sometimes. He is brilliant, and he has been trying to force disclosure for 25-30 years.


Do you know what the excuse for not doing full disclosure now is? It is because people will get so mad, that there will be meltdown. All of these people that have been foreclosed upon, all of these people that pay extremely high power bills, gas bills, all of these people that are being taxed out the ass, all these nuclear power plants that we are paying for, and will never benefit from, unless you find cancer at younger ages beneficial…


What is wrong with the people? How can we go to work every day, knowing we are living a lie, while our children and grandchildren are at school where their young developing minds are being twisted with sick gender bullshit by people running a sick experiment on all of us? And half of the US is so worried that Hillary didn’t get elected and Trump did. SO FUCKING WHAT!!! The Clintons are bigger crooks than most everyone in the US combined!
The same idiots, are so sick, they have had to be given a diagnosis of Trump Derangement Syndrome. So you get the sickos with Trump Derangement Syndrome, together with the Antifa, and the fascists and the communists in this country, and before long, I hate it, but before long, unless the sleeping half awakens soon, we will be just like Venezuela, where they are so hungry, they have eaten all of the animals out of the zoos, they have eaten their pets, and the pets of their neighbors. Last I heard, they were eating all of the grass growing on the ground. And these people want socialism???? Where the fuck did we get these people from.
You know what I saw a day or two ago? I saw where in the Court’s instructions, and the Court’s rules, you are no longer allowed to refer to the gender of a person. People are no longer male, or female, they are whatever the hell they claim they are that day. A dog, a mule, a building, an airplane…
What the fuck people!?! Get over the bullshit!

I could go on all day with the things we have been lied to about. Take my word for it. Everything we’ve ever been told, history, current, whenever, it has all been a lie…

Turn Them Off! #QAnon and the collapse of #FakeNews media

Turn Them Off! #QAnon and the collapse of #FakeNews media
By Editor August 8, 2018 1 Comment
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http://www.theeventchronicle.com/intel/turn-them-off-qanon-and-the-collapse-of-fakenews-media-2/

The scientist is not a person who gives the right answers, he is one who asks the right questions.

Claude Lévi-Strauss

By Martin Geddes

We are at war. Until now it has been a shadow conflict, conducted largely out of sight of the public. In the last few weeks it has begun to unmistakably break through into the open. There is nothing else in the tech-telecom world that comes close to it in importance, which is why I write about it in preference to everything else. To pretend otherwise would be a dishonourable act of omission.

This war is for the most important territory on the planet: your mind and spirit. It is a real war, being conducted by the formal military against a highly organised opponent. The enemy is not a foreign country, but instead comprises traitors and criminals in our midst. Whilst it has a traditional kinetic component — bombs, lasers and drones — its defining weapons are memetic. Surveillance, counter-intelligence and propaganda are the new longbows, armour and missiles.

Longstanding readers will know that I am not stupid or silly. Being human, I have the occasional foolishness or misadventure, but my intellect and integrity are both fully intact. There is a good reason why I am forcefully presenting things that may make you feel uncomfortable: there is going to be no way of avoiding these matters in the very near future. Everyone is going to be confronted with diametrically opposing narratives, and will have to make a choice over which one to believe and act upon.

You are likely to have seen one of the many articles in the mainstream media in the past week on #QAnon. Each one of them warns you of how this is a “dark”, “right-wing” and “dangerous” movement. The loaded term “conspiracy theory” is used over and over, warning you of the shameful and fearful social consequences of being associated with this movement.

My position is well known: Q is instead a military operation by “white hats”against the corrupt and criminal “deep state”, being led by the NSA and Marines. The mass media has been infiltrated and compromised for decades, being used as a tool of social control. The #QAnon programme is a fifth-generation warfare technique to destroy the credibility and power of the #FakeNews media.

This has come to a head because at the Tampa rally, Trump supporters were allowed to bring in placards, which are usually banned for safety and security reasons. Many of them included messages about Q and WWG1WGA. This forced the hand of the media to cover the story, since further ignoring it would be such a telling silence that it could awaken the sleeping masses.
Here are some questions I would like you to ponder, so you can decide for yourself which way the truth might lie.

1. Why has not a single one of these media organisations asked President Trump whether Q is legitimate, since this would immediately resolve the matter for everyone? How do you account for this journalistic lapse in elementary data gathering before publishing a story slurring such a large group of ordinary people?

2. Why do they not cite or rebut Q’s drops, as would be normal journalistic practise in disproving something of factual debate? If they are self-evidently false, this should be trivially easy. Why do you think they refuse to engage on the facts, but offer emotive innuendo in its place?

3. Why is there no mention of the 45,000 sealed indictments (50x growth over normal), signifying impending mass arrests? This is a matter of public fact and record — as are the unprecedented CEO resignations (very few being rehired…) and politicians withdrawing from office. What’s your hypothesis for this omission?

4. Why is there no concomitant coverage of the significant increases (5x over past) in arrests and convictions for human trafficking and child pornography, yet there are constant protestations that widespread “elite” paedophilia (aka “pizzagate”) is a “debunked” matter? The press coverage of the sensational NXIVM cult trial — implicating those close to the Clinton Foundation with child sex slavery — is spectacularly muted. How do you account for this silence, given what Q tells us?

5. Why are the dozens and dozens of strong links between Q and the Trump administration given no credence? (Here are 45 for you to begin with — this would easily get you beyond the standard of proof for a court case.) Q encourages people to think for themselves, whereas you are being told by the MSM what to believe and ignore the evidence in front of your own eyes. How do you make sense of this data not being presented to you?

6. How come none of these organisations deemed #QAnon newsworthy before the Tampa rally, yet it is a movement that is suddenly threatening to the wellbeing of democracy and society? How do you account for this timing and the coordinated message using identical terminology? (Although apparently following Q is simultaneously “fringe” and “wildly popular”!)

7. These same organisations overwhelmingly supported Hillary Clinton for President, and wrongly predicted her win right up until the last minute. They have widespread and documented links to the Democratic party, both legitimate (as donors) and illegitimate (illegal and unethical relationships documented by Wikileaks). Are they dispassionate reporters of fact, or active players in the political game attempting to shape the narrative? How might it affect their reporting on Q?

8. Given that these media reports make many basic factual errors, are they credible journalism? Here’s one (from the Guardian):
Turn Them Off! #QAnon and the collapse of #FakeNews media

Q has never posted on Reddit. Does this suggest familiarity with the subject matter, or profound ignorance?
You are very soon going to have to decide whether these media organisations are involved in transnational criminal racketeering, and collusion with mafia-like entities embedded into government. It will only take a single tweet from President Trump — flagged up by one of Q’s first messages — to end the debate. This single message would destroy all these yellow journalists, forever:

This would explicitly confirm that Q is an agent of the Trump administration. At that point every single damning article about Q as a “conspiracy theory” becomes a perpetual condemnation of its author and publisher. Such confirmation could come in many other forms — this being just one possibility. The #FakeNews media trap has been set by Q, the bait has now been taken, and the gory denouement is approaching.

That moment of reckoning is inevitable, even if I cannot predict when: today, this week, this month, or even later in the autumn. It is a “slow walk” leading up to the US mid-term elections, and you never reveal your plans to the enemy in advance. The worst will doubtless be revealed close to that November date for maximum destructive impact. The #FakeNews media is being given adequate time to manufacture the rope by which it will send itself to the gallows of infamy.

I believe that you are seeing a carefully scripted military operation play out. The mass media’s audience is an active part of the direction of the play. In this spiritual fight against evil masquerading as virtue, everybody is on the information warfare battlefield, like it or not. The next few weeks and months promise to be quite a ride. As Q has stated 28 times so far: “enjoy the show”.

This is not a game, it is the real deal. You have a responsibility to yourself and your family to make good choices. Consider my questions very carefully. Imagine how criminals working to usurp your freedom and security would act if they controlled the mass media. Who do you think is telling the truth, when nobody else tells you what to believe?

Listen to your heart for the answers, for it cannot ever lie.

Legitimate journalism, or mafia media threat against free-thinking patriots who resist their social and mind control techniques?
Related content

You may also enjoy the following related content that I have produced.

WWG1WGA: The greatest communications event in history—50,000 readers can’t all be wrong!
The silence of the sheep — giving hard evidence the media isn’t telling you the whole story.
The Great Awakening: Its impact on the tech industry — an introduction to the idea “something big is happening all around us”.
Making sense of #QAnon and #TheStorm — title speaks for itself — with the follow-up of Q is Military Intelligence.
Treason and text messages: whom to trust and what’s the truth?—heuristics to separate fallacy from facts.
My experience of Twitter censorship—creepy editing of reality by the social media giant.

About Martin Geddes

I am a distributed computation expert, network performance scientist, and consultant to telcos and their vendors.

I collaborate with leading practitioners in the communications industry to create game-changing new technologies and businesses.

Get in touch if you need a thinking partner, inspiring speaker, workshop magician, or strategic advisor. I also offer education in network performance, digital supply chain quality, and the future of the Internet.

More about me in my professional guise: martingedd.es
About my consulting company: http://www.martingeddes.com

Follow @martingeddes on Twitter. I am also on Gab as a backup plan.

This article was originally published as a Future of Communications newsletter.

This article (Turn Them Off! #QAnon and the collapse of #FakeNews media) was originally published on Medium and syndicated by The Event Chronicle.

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Morgan Stanley is paying a huge fine for a precrisis ‘magic’ trick

Morgan Stanley is paying a huge fine for a precrisis ‘magic’ trick

  • Feb. 11, 2016, 9:46 AM
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RANKED: Here’s how Wall Street’s biggest players stack up against each other on the golf course

Morgan Stanley

Morgan Stanley is paying a huge settlement related to residential mortgage-backed securities, or RMBS, sold before the financial crisis.

New York Attorney General Eric Schneiderman on Thursday announced a $3.2 billion settlement with the firm over charges it misled investors on the quality of mortgage loans it sold.

New York State will receive $550 million.

“We are pleased to have finalized these settlements involving legacy residential mortgage-backed securities matters. The Firm has previously reserved for all amounts related to these settlements,” Morgan Stanley said in a statement.

The settlement follows an investigation by the Residential Mortgage-Backed Securities Working Group of the Financial Fraud Enforcement Task Force, a joint federal-state working group formed in 2012.

“Morgan Stanley securitized and sold RMBS with underlying mortgage loans that it knew had material defects,” the Attorney General’s office said in a statement.

The statement described a 2006 email in which Morgan Stanley’s due diligence team told a colleague: “Please do not mention the ‘slightly higher risk tolerance’ in these communications. We are running under the radar and do not want to document these types of things.”

Anothe 2006 email from a due diligence team member included a list of questionable loans, seeking approval for purchase. The email read: “I assume you will want to do your ‘magic’ on this one?”

Goldman Sachs last month announced it would pay a $5 billion settlement related to RMBS sold between 2005 and 2007. That nearly wiped out fourth-quarter earnings for the firm.

The RMBS Working Group has previously settled with Bank of America for $16.7 billion, JPMorgan for $13 billion, and Citigroup for $7 billion.

Here is the news release from the New York Attorney General:

NEW YORK – Attorney General Eric T. Schneiderman today joined members of the state and federal working group he co-chairs to announce a $3.2 billion settlement with Morgan Stanley over the bank’s deceptive practices leading up to the financial crisis.  The settlement includes $550 million – $400 million worth of consumer relief and $150 million in cash – that will be allocated to New York State.

The resolution requires Morgan Stanley to provide significant community-level relief to New Yorkers, including loan reductions to help residents avoid foreclosure, and funds to spur the construction of more affordable housing. Additional resources will be dedicated to helping communities transform their code enforcement systems, invest in land banks, and purchase distressed properties to keep them out of the hands of predatory investors.

The settlement was negotiated through the Residential Mortgage-Backed Securities Working Group, a joint state and federal working group formed in 2012 to share resources and continue investigating wrongdoing in the mortgage-backed securities market prior to the financial crisis.

“Today’s agreement is another victory in our efforts to help New Yorkers rebuild in the wake of the financial devastation caused by major banks,” said Attorney General Schneiderman. “Today’s settlement will deliver resources to the families and communities that need them the most, while helping New Yorkers avoid foreclosure, and spurring the construction of more affordable housing units statewide.”

The settlement includes an agreed-upon statement of facts that describes how Morgan Stanley made multiple representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors, and its process for screening out questionable loans.  Contrary to those representations, Morgan Stanley securitized and sold RMBS with underlying mortgage loans that it knew had material defects.

In the statement of facts, Morgan Stanley acknowledged that it increased the acceptable risk levels for loans in its securitized pools.  This allowed Morgan Stanley to purchase various loans with loan-to-value (LTV) ratios over 100%, i.e. loans that were “underwater.” In a May 31, 2006 email, the head of Morgan Stanley’s team tasked with doing due diligence on the value of properties underlying the mortgage loans asked a colleague, “please do not mention the ‘slightly higher risk tolerance’ in these communications. We are running under the radar and do not want to document these types of things.”

In another email on November 21, 2006, a member of the Morgan Stanley due diligence team forwarded a list of questionable loans, seeking review and approval to purchase them and adding “I assume you will want to do your ‘magic’ on this one?” In another similar instance from July 2006, the head of Morgan Stanley’s valuation due diligence cleared dozens of risky loans for purchase after less than one minute of review per loan file.

In the settlement, Morgan Stanley also acknowledged that it securitized certain loans that neither complied with underwriting guidelines nor had adequate compensating factors. Morgan Stanley also purchased and securitized many loans which its credit and compliance team recommended not be purchased, after its finance team decided that the loans had “acceptable risk.”  Morgan Stanley also allowed loans that it knew were risky to be purchased and securitized without a loan file review for credit and compliance.

In his 2012 State of the Union address, President Obama announced the formation of the RMBS Working Group. The collaboration brought together the Department of Justice, other federal entities, and several state law enforcement officials – co-chaired by Attorney General Schneiderman – to investigate those responsible for misconduct contributing to the financial crisis through the pooling of loans and sale of residential mortgage-backed securities.

Under the settlement, Morgan Stanley will be required to provide a minimum of $400 million in creditable consumer relief directly to struggling families and communities across the state. The settlement includes a menu of options for consumer relief to be provided, and different categories of relief are credited at different rates toward the bank’s $400 million obligation. Creditable dollars will go toward the creation and preservation of affordable rental housing, land banks, code enforcement, communities purchasing distressed properties, and principal reductions for homeowners.

“Mayors across the state have been dealing with the impact of the financial crisis for years now. The settlement funds will have a huge impact, helping homeowners who continue to struggle and are in need of mortgage relief” said Tom Roach mayor of the city of White Plains and Vice President of the New York Conference of Mayors. “Applying the settlement proceeds to fund land banks, affordable housing and enhanced code enforcement will have a direct impact on the quality of life of those most affected by the financial meltdown and be of great assistance to our municipalities.”

“The Center for NYC Neighborhoods applauds Attorney General Eric Schneiderman for standing with New Yorkers at risk of foreclosure. This settlement will help to ensure that our neighbors’ homes do not fall into the hands of predatory investors. With innovative programs like these, we can finally put the housing crisis behind us and work toward a stronger, more affordable New York,” said Christie Peale, Executive Director of the Center for NYC Neighborhoods.

“Attorney General Schneiderman’s use of these settlement dollars to investment in communities hardest hit by the foreclosure crisis,  has significantly accelerated the recovery efforts of cities across New York who are still struggling to move past this crisis. Without these critical funds, our organization would not be able to make such broad revitalization impacts on such a short timeline,” said Madeline Fletcher, Executive Director of Newburgh Land Bank.

This matter was led by Senior Enforcement Counsel for Economic Justice Steven Glassman and Assistant Attorney General Tanya Trakht. The Division of Economic Justice is led by Karla G. Sanchez.