Defaulting banks - where will it stop?

[Jan Klimkowski]

Ah - keep that zippo in your pocket for a few hours more (from Karl Denninger's Market Ticker)

Defunct Lenders Told No - For Right Now

In a stunning development a number of mortgage companies tried to get a judge to allow them to shred original files related to their loan originations....

WILMINGTON, Del., Jan 24 (Reuters) - A U.S. bankruptcy judge temporarily blocked bankrupt subprime lender Mortgage Lenders Network USA from destroying 18,000 boxes of original loan files after federal prosecutors said documents in them may be needed as evidence in more than 50 criminal investigations.

No, really?

There wasn't any sort of fraud in the origination of those loans, was there? And these documents wouldn't actually prove that, would they?

You know, one of the disturbing parts of this entire mess is that due to the obstruction and political game-playing, these clowns may actually get away with running the clock on the Statute of Limitations. I'm not sure what it is when it comes to these sorts of crimes, but it's not indefinite - and if you can keep from being indicted for long enough, you can get away with it legally - even if you're guilty as sin.

Yeah.

(Of course destroying all the evidence with a Judge's permission might make getting away with it easier too, no?)

http://market-ticker.org/akcs-www?post=178125