(Newswire.net — May 7, 2013) BETHESDA, MD. Attorney John Lux of Maryland today denied rumors that his associate Alex Morfesis had any hand in the sudden settlement of the MBIA case with the NY State Department of Financial Services and Bank of America.
Although it is true that Alex Morfesis was at the offices of the DFS late on Friday and he has has been a strong defendant of MBIA, advocating against the actions taken by Major Servicers like Bank of America in their misleading actions in securitizations and derivative contracts, in no which way shape or form were we involved in any continued pressure on Bank of America to face up to its perceived inequitable activities in attempting to profit from the disruption of MBIA’s municipal bond activities and the derivative positions Bank of America had taken and had funded through its Prime Brokerage arms before they were sold to BNP Paribas. Alex Morfesis was at the New York City offices of the DFS on another matter for a client that had nothing to do with the MBIA settlement.
Alex Morfesis, a national expert on foreclosure issues, was in New York City attempting to coordinate meetings and strategies on his upcoming request to have the OCC restate and revoke the Outstanding and Satisfactory ratings handed out last year to Bank of America, Wells Fargo, JP Morgan/Chase, Citigroup, Goldman Sachs, Morgan Stanley, HSBC and US Bancorp, as they have clearly, on its face, violated the Community Reinvestment Act by improperly funding shorting of derivatives on securitized loan pools to destabilize the housing markets which is also a direct violation of the Fed’s Holding Company Act.
The Settlement with MBIA, although a good step, will in no way divert the attention needed to forcing Bank of America to comply with its long standing regulatory requirements to create a stable housing market in return for taxpayer subsidized FDIC insurance. If Bank of America continues to refuse to work within the well established regiment then it can remove itself from the protections of the FDIC system and operate as a “free market” entity. We all know no one trusts these monster institutions with their money and they only survive due to the backing of the American public through the FDIC system.
It is sad that after the market has found stability, and we hit new highs on the stock market, these entities choose to play with their shareholders’ existence and continue to refuse to abide by their responsibilities and obligations tied to their access to the Fed window and FDIC insurance.
“Too big to fail does not mean they can’t be made to fail”
Attorney John Lux intends to continue putting pressure on these institutions to insure the American Taxpayer is given an equitable return on their investment in the FDIC and Federal Reserve System.
John E. Lux, Esq.
10411 Motor City Drive, Suite 750
Bethesda, Maryland 20817
(240) 200-4529
http://www.marylandforeclosuredefense.com
PR-PublicRelations.com Heidi Gillion 323-250-9904