California public employee union calls for investigation of JP Morgan Chase, other banks for LIBOR scandal

Fallout from the financial scandal that hit the interest-rate setting measure, known as LIBOR, continues to affect borrowers and investors. Some of them filed lawsuits after the banks’ wrongdoing came to light in 2012, including suits by the city of Baltimore and a group of homeowners. Now, California’s largest public employee union wants the state to investigate JP Morgan Chase and other major banks linked to LIBOR and consider suing to recover billions in lost investment dollars. From Sacramento, FSRN’s Max Pringle reports.

Imagine waking up one day to find your bank account has not only been compromised, but that more than $30,000 in fraudulent checks have been written on it. Then to make matters worse, once things seem to be resolved, another bogus charge is placed on an entirely new account.

This is what happened to Consumerist reader Lisa, who recently received a call from a Chase bank because someone there believed a newly deposited check was a fake.

It was. Then Lisa looked at her Wells Fargo bank statement and found that in a matter of a couple days, a total of $32,526.27 had been drained from her account, putting her more than $30,000 into overdraft.

The Wells website had scans of the 30 scammy checks, which Lisa had obviously not written. The checks were fakes that had been created using her name and account number, but Lisa knew these weren’t…

Bloomberg Reports that the big banks are borrowing big time money using money market funds as source money for financing repurchase agreements. This stirs the obvious conclusion that the mortgage bonds — and hence the claim on underlying loans — are in constant movement making the proof problems in foreclosure proceedings difficult at best.

The underlying theme is that there is tremendous pressure to make good on the mortgage bonds that never actually existed issued by REMIC trusts that were never actually funded who made claims on loans that never actually existed. All that is why I say you should argue away from the presumption and keep the burden of persuasion or burden of proof on the party who has exclusive access to the actual proof of payment and proof of loss.

The banks are still claiming assets on their balance sheet that are either without value of any kind…