U.S. Court sides with City of Cleveland v Wall Street

U.S. Federal Appeals court sides with City of Cleveland (Ohio)

UNITED STATES COURT OF APPEALS

FOR THE SIXTH CIRCUIT ANNOUNCES

For years the City of Cleveland (Ohio) has fought a herculean battle against Banks, Wall Street and the lenders which almost destroyed the entire housing stock of Cleveland. The city fought to Hold Banks accountable in local courts, State and Federal courts and even all the way to the U.S. Supreme Court. Unfortunately, the well funded banks have spent millions litigating these cases, going "all-in" with a transparent effort and goal to financially wipe out the city (with legal expenses). The banks hoped, litigating these cases, even to the point of absurdity, would teach Cleveland (and other cities) a lesson - Don't take on Wall Street! To date, that strategy has worked well by applying "legal paralysis" (on-going litigation) in an effort to prevent the already "asleep at the wheel" federal agencies and regulators from acting.

Fortunately, the U.S. Court of Appeals (for the Sixth Circuit) refuses to be "bought out" or "sell-out." The court continues to enforce the Rule of Law and even show the Supreme Court of Ohio they'll NOT allow the trashing of existing laws in favor of the Banks and Wall Street firms. Although this is not a win (on the merits of the suit), nonetheless, it holds co-conspirators Plaintiffs JP Morgan Chase (Chase Bank) responsible for procedurally abiding by the rules. The Sixth Circuit, took the time, as part of their published decision, to opine on the foreclosure crisis and added some colorful commentary (below) on the havoc that Wall Street brought on the city.

CHASE BANK USA, N.A., JPMORGAN CHASE BANK, N.A., JPMORGAN MORTGAGE
Acquisition Corp., and J.P. Morgan Securities, Inc.
Plaintiffs-Appellants/Cross-Appellees
V.
CITY OF CLEVELAND,
Defendant-Appellee/Cross-Appellant 

READ CASE DECISION: CASE Nos. 10-4115/4116

KAREN NELSON MOORE, Sixth Circuit Judge:
.....The foreclosure crisis that swept the nation in the latter half of the past decade hit Cleveland particularly hard. It also led to this litigation. Though this case has - as its background - such weighty factual topics as subprime-mortgage lending, foreclosures, and the precarious economic state of the post industrial Midwest, the issue at stake in this appeal is solely procedural. Because the district court (United States District Court for the Northern District of Ohio at Cleveland. No. 08-00514) nonetheless dismissed the suit...without notice to the parties, we REVERSE the judgment of the district court and REMAND for further proceedings.

Cleveland’s decision to address the issue of subprime-mortgage securitization through litigation arguably reflects an otherwise frustrated regulatory intent, as the city likely could not regulate such activity directly. Ohio law appears to prevent Cleveland from regulating subprime mortgages in the traditional manner (i.e. by municipal ordinance), as it vests the state with sole authority to “regulate the business of originating, granting, servicing, and collecting loans and other forms of credit in the state and the manner in which any such  business is conducted.” Ohio Rev. Code § 1.63(A). In addition, Ohio law expressly preempts “[a]ny ordinance, resolution, regulation, or other action by a municipal corporation” to regulate such matters. Id.§ 1.63(B). Indeed, the OHIO SUPREME COURT struck down Cleveland's previous attempt to regulate predatory mortgage lending by ordinance as preempted by state law, including § 1.63. Am. Fin. Servs. Ass’n v. City of Cleveland, 858 N.E.2d 776, 785–86 (Ohio 2006).

I. BACKGROUND

The City of Cleveland has seen a record number of home foreclosures in the past decade. Between 2000 and 2008, Cuyahoga County, Ohio, where Cleveland is located, recorded approximately 80,000 foreclosures. In Cleveland, Foreclosures Decimate Neighborhoods,NPR Radio, May 24th, 2008.

In 2007, County Treasurer Jim Rokakis described the city as "the epicenter of the mortgage meltdown in America." (Thomas Ott & Susan Vinella, Home Loan Foreclosures on the Rise in Cuyahoga, The Plain Dealer, July 4, 2007).  Against this backdrop came three (3) lawsuits relevant to this case:

A. City of Cleveland v. Ameriquest Mortgage Securities, Inc. (City of Cleveland I)

In January 2008, Cleveland brought suit against twenty-one (21) financial institutions in Ohio state court, alleging that the defendants’ actions in the subprime-mortgage industry constituted a public nuisance under Ohio common law. By securitizing subprime mortgages and later foreclosing on the houses purchased through such mortgages, the defendants allegedly contributed to a financial crisis in the city that included significant declines in property values, a shrinking tax base, and an increase in criminal activity. Cleveland sought to recover for the costs it incurred in monitoring, maintaining, or demolishing foreclosed properties and for decreased tax revenues. The defendants {Ameriquest} removed the case to federal court. {Then} after denying Cleveland’s motions to remand and to amend its complaint...the district court granted the defendants’ motion to dismiss on the grounds that the city’s suit was preempted by state law and was barred by the economic-loss doctrine.

B. City of Cleveland v. JP Morgan Chase Bank, N.A. (City of Cleveland II)

In August 2008, shortly after the district court denied Cleveland’s motion to remand in City of Cleveland I, Cleveland filed a second suit in Ohio state court against twenty-eight (28) financial institutions, including the non-diverse JPMorgan Chase Bank, N.A. In addition to pleading another public-nuisance claim, Cleveland alleged that the defendants had violated the Ohio Corrupt Activities Act (“OCAA”), the state RICO analogue, by inaccurately claiming title to mortgages and promissory notes in foreclosure proceedings in violation of Ohio Revised Code § 2921.12(A). See Ohio Rev. Code § 2923.32. Cleveland also sought to recover under Ohio Revised Code § 715.261 for costs incurred maintaining or demolishing foreclosed houses.

C. Chase Bank, USA, N.A. v. City of Cleveland (Chase Bank)

In February 2008, while City of Cleveland I was pending, Plaintiffs-Appellants Chase Bank, USA, N.A., JPMorgan Chase Bank, N.A., JPMorgan Mortgage Acquisition Corp., and J.P. Morgan Securities, Inc. (collectively, “Chase Bank”) brought the suit that is currently before us. Chase Bank sued Cleveland in federal district court... requesting an injunction against that suit. After Cleveland filed City of Cleveland II, Chase Bank amended its complaint to request declaratory relief and an injunction against both of Cleveland’s lawsuits.

D. Recent Developments:
Since this case left the district court, several developments have occurred in both City of Cleveland I and City of Cleveland II. In City of Cleveland II, the Cuyahoga County Court of Common Pleas dismissed Cleveland’s public-nuisance and OCAA claims, but denied the defendants’ motion to dismiss. {As}J.P. Morgan Chase Bank, N.A. and J.P. Morgan Securities, Inc. are defendants in City of Cleveland II. Cleveland voluntarily dismissed its §715.261 claim and appealed the trial court’s dismissal of the public nuisance and OCAA claims. That appeal is currently pending in the Court of Appeals of Ohio, Eighth Appellate District.

In addition, the United States Supreme Court denied Cleveland’s petition for a writ of certiorari in City of Cleveland I. City of Cleveland v. Ameriquest Mortgage Sec., Inc., 131 S. Ct. 1685 (2011). Accordingly, Chase Bank’s request for injunctive and declaratory relief regarding City of Cleveland I is now moot. All that remains of the suits in which Cleveland is the plaintiff is City of Cleveland II. Because Chase Bank, USA, N.A. and JPMorgan Mortgage Acquisition Corp. are not parties to City of Cleveland II, we dismiss their claims as moot.

Another Recent Case linked below from the same U.S. Federal Court (Sixth Circuit):

US Court of Appeals smackdown of Ohio Mill Firm - LSR

CLEVELAND WARNED the Regulators !! Yet...No one did a thing!!!
SHOCKING, STUNNING, and ACCURATE predictions are quotes from this now 4 year old (2008) article : As Decade Dawned signs of Crisis:   9-28-2008 - Roger Mezger

"We called it early... Nobody listened,"There was blood on the streets of Cuyahoga County. But it wasn't until there was blood on the streets of Wall Street that anyone cared."
(Jim Rokakis - Cuyahogo County Treasure)

'This is going to become an epidemic,' and they sat on their hands. For whatever reason, they didn't act. But if you were looking, the handwriting was on the wall. If you were looking, it was obvious something was wrong."
(Tony Stevenson, a staff attorney with Housing Advocates Inc. in Cleveland)

"Regulators allowed loose lending to keep the economy going. All the regulators knew what was going on."
(Raj Aggarwal, dean of the College of Business Administration at the University of Akron)

For years Cleveland had been WARNING "asleep-at-the-wheel" State and Federal regulators of what was to come.  Home prices had become so outrageous in value, that during a 6 year period, median home prices (in Cleveland) rose 56%, according to county real estate records, while the city's population dropped 4% during the same period. It didn't make sense. YET - No one in OHIO or the Federal Government would listen or do anything to stop these lenders and banks from pillaging the city.

Ohio Blogger to White House for Housing Summit

At White House Meeting, Youngstown Ohio Housing Leader, Blogger, Homeowner  - Pushes Obama Administration for Solutions to Foreclosure and Housing Crisis

WASHINGTON, DC – On Thursday September 13th, Mark Roarty, an Ohio leader and nationally recognized blogger and housing advocate traveled to our nation’s capital to meet with top Obama Administration officials at the White House. Mr. Roarty discussed the immediacy and need for implementing bold new solutions to the housing and foreclosure crisis that has devastated our communities. cities & states.

Mark Roarty prior to White House housing summit

In break-out meetings with officials from HUD, DOJ, and the White House National Economic Council - Mark joined 150 other leaders, clergy, homeowners, and housing advocates (representing 26 states) and laid out recommendations to address the housing crisis and getting our economy back on solid ground. Roarty, along with other leaders, told the White House administration that it is far past time that they enact policy solutions such as:
- Principal reduction as a bold new plan needed to address foreclosures, fix the housing crisis, create jobs, and reset the economy. Specifically, the request included strong language to remove Ed DeMarco, interim director of FHFA, which oversees Fannie Mae and Freddie Mac. Ed DeMarco obstinately and ideologically opposes principal reduction, despite its proven benefits for homeowners and taxpayers.
- Publicly support the RMBS Task Force investigating big bank fraud, which the president announced in his State of the Union address back in January. The task force needs additional financial resources and staff to conduct real and effective investigations. The task force work will result in accountability for Wall Street crimes that crashed our economy.
- A nationwide Homeowner Bill of Rights that enacts strong standards for how banks must work with borrowers in foreclosure, including mediation and mandatory principal reduction when it would help the homeowner and investor.

Later in the day, Roarty joined up with other Ohio housing support groups and organizational leaders to visit Ohio Senators Sherrod Brown and Rob Portman. In the Senators' Washington D.C. offices they met with key staff to share ideas and ask for support from the Ohio Senators on the recently introduced Menendez/Boxer Bill (S. 3522). The bill would allow homeowners trapped in high-interest loans, guaranteed by Fannie Mae and Freddie Mac, to refinance into lower interest loans and also eliminate up-front fees along with appraisal and loan closing costs.

Roarty, was invited to the meeting because of  his affiliation with NPA and The New Bottom Line along with his nationally recognized blog Ohio FRAUDclosure. In Ohio, he is a leader and homeowner advocate with the Mahoning Valley Organizing Collaborative (MVOC). 

Tracy Van-Slyke (Director of The New Bottom Line) & Mark Roarty on front steps of White House prior to meeting.

Mark Roarty is also one of three nationwide home-owner spokespersons for The New Bottom Line coalition's Home Is Where The Vote Is campaign. The campaign, with the goal of making President Obama and Governor Romney address the foreclosure and housing crisis, features Roarty in a two-minute video explaining the realities faced by thousands of Ohio homeowners. Some of the deeply felt pain, of being in foreclosure, is shared by Roarty in the video. Recently, after a 4 1/2 year legal battle, a decision was handed down by an Ohio Appellate Court reversing the illegal foreclosure on his home.



More than 400,000 OHIO homeowners have been foreclosed on since 2007, with the state’s eight urban cores being hit hardest. The spike in foreclosures has led to massive neighborhood blight, vacant properties and community disinvestment. Those maintaining their homes have seen a huge decline in value, leaving 529,834 Ohio homeowners underwater on their mortgages. That figure is roughly one quarter of all homeowners in the state. Nationally, there are almost 16 million underwater homes, totaling a loss of $1.2 trillion in home equity. Resetting those mortgages to fair market value would save the average underwater homeowner $543 per month, pumping $104 billion into the national economy every year. This would also allow financial capacity to create 1.5 million jobs nationally.

Related: New Jersey - Homeowners Underwater and abandoning ship.

The foreclosure crisis in Ohio is rooted in illegal activity by lenders and Wall Street and inadequate rules and enforcement. The misconduct included predatory sub-prime lending, targeting of senior citizens, veterans, and communities of color, and bundling and pawning off flawed mortgages, avoiding accountability. Those forces combined with record long-term unemployment to bring our economy to the brink of collapse, and continue to jeopardize our economic recovery.

"The Mahoning Valley (Youngstown), like many areas across the country, need help to stop the on-going and rampant bank and servicing fraud in foreclosure," Roarty said. "Local and state leaders and organizations have done everything possible to deal with the result of illegal and improper foreclosures (vacant homes & blighted neighborhoods) by helping secure funds for demolition. Now we need to address the cause. We need action, and we need it now. My home, our communities, and our economic future is depending on it."

Speaking directly to HUD Secretary Shaun Donovan at the end of the meeting, Roarty, in front of the entire forum, asked that the administration officials in attendance pass along the importance of these issues  - directly to the President.

Although he was impressed that the administration agreed to host the forum, he feels that more immediate action is needed. "The President needs to address this in his campaign," Roarty said after the meeting. "It’s great that administration officials heard our concerns and critique, but this requires more than lip service."

Information for Ohio Homeowners at Home is Where the Vote is (HERE)

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Musical Gnosis: A Love Supreme/Music For Airports

Musical Intelligence....information and directives in and out through street singers.

Musical broadcasts, jukeboxes and records, High School bands, whistling boys, cabaret performers, singing waiters, transistor radios.

Red sails on the sunset way out on the sea.

- from  the Western Land by William S..Burroughs read by him in the song Ineffect from the album Seven Souls produced by Bill Laswell.



Anyone who has worked with music, creating it, listening to it or both, knows  it communicate a great deal of information.  So much so that a particular piece may still yield new insights after many listens.  Music can also act like a guide and suggest  evolutionary directives if one is open to it.  It can serve as a vehicle or medium for some sort of contact with Higher Intelligence. Led Zeppelin emphasizes this idea in the song Houses of the Holy: "Let the music be your master, can you hear the master's call?"  



The Burroughs quote implies that Musical Intelligence radiates abundantly.  My experience concurs.  We can even say that all good music, all genuine musical expression has an Intelligence behind it that can potentially communicate useful information when unlocked and accessed.  Music can be looked at as an artifact to be psychometrized.  Psychometry is the psychic ability to unlock information stored in artifacts.  I maintain that the musical form makes a very good container for storing alchemical, magical,  and evolutionary information.  Music communicates mood which means that it also communicates states of consciousness.  Gnosis responds to particular moods or emotional postures.  Getting into the right mood seems to unlock the gnosis or Intelligence transmitted musically.



Related to music's esoteric function of communicating mood, I suggest, based literally on thousands of experiments, that the mood of the space the music gets recorded, mixed or mastered in ends up in the final product.  In my experience, states of consciousness can and do get recorded and transmitted.  This doesn't require belief, it can be determined for oneself.  I'll give a couple of suggestions for experiments to find out for oneself a little later. 



I began to entertain the notion that the mood of a space can recorded onto a reproducible medium from cleaning up and mastering hundreds of talk tapes in E. J. Gold's archive recordings which date from the '60's.  Sometimes the intense mood given off had a much stronger effect than the words being said.  I've heard Robert Anton Wilson talk tapes that also have this quality.  The atmosphere around these talks communicates something as well.



The Beatles, at the height of their creativity, invoked powerful energies into their music.  For instance, the song they wrote for the first ever world-wide satellite broadcast was All You Need Is Love.  This deceptively simple, but  encompassing Zen koan prayer states a basic truth.  Visionary design science advocate Buckminster Fuller elaborated this truth in a different way when he said that we have everything we need to make the world work, the resources, technology, and intelligence.  We just need to take the emphasis away from the technological development of weaponry and direct toward what he called "livingry."  Livingry is defined by Fuller as that which supports Life.  The world  doesn't actually need war, violence and  the disadvantaging of one part of humanity to advantage another.  It may have seemed necessary at one time, but no longer rings true according to Fuller and other Comprehensivists.  It's a new day. 



We also see evidence of The Beatles magick in the Philip K. Dick gnostic reception discussed earlier.  PKD was listening to Strawberry Fields Forever when he got information beamed into him that saved his son'slife,  I found out more about this incident from the book What If Our World Is Their Heaven?  The Final Conversations of Philip K. Dick.  The information that saved the life of his son was communicated through the music.

... first there was this flash of light, hit me right in the face and blinded me.  It did.  And it came out and all I could see was this pink and I was listening to this Beatles tune on the stereo and all of a sudden the words rearranged themselves.  And there was something outside me.  But what I heard was The Beatles' words rearranged.  It told me that my little boy had this, you know, undiagnosed birth defect, and it told me what the birth defect was.  And when I told Tess and I said you must take him to the doctor  immediately, it's urgent, she went right to the hospital to the doctor and it was true.  He did have that defect and he scheduled surgery for as soon as possible.



Something about Strawberry Fields Forever allowed it to get used as a vehicle for gnostic transmission.



Perhaps if we know something about the artist's intention behind a piece we can more easily access the headspace they were in when they composed and performed it.  Maybe that can aid to unlock the Musical Intelligence contained within?  Here's a couple of classic examples for experimentation:



John Coltrane's liner notes for A Love Supreme clearly state his intention behind the piece.  Here's an excerpt.  I would call it devotional or Bhakti yoga:

I will do all I can to be worthy of Thee O Lord.

It all has to do with it.

Thank you God.

Peace.

There is none other.

God is. It is so beautiful.

Thank you God. God is all.

Help us to resolve our fears and weaknesses.

Thank you God.

In You all things are possible.

We know. God made us so.

Keep your eye on God.

God is. He always was. He always will be.

No matter what...it is God.

He is gracious and merciful.

It is most important that I know Thee.

Words, sounds, speech, men, memory, thoughts,

fears and emotions – time – all related ...

all made from one ... all made in one.

Blessed be His name.

Thought waves – heat waves-all vibrations –

all paths lead to God. Thank you God. 

The complete liner notes are HERE.



Now find a copy of A Love Supreme and listen to it trying to get into 'Trane's headspace.  This experiment doesn't require any belief. Atheists and agnostics ( of which I am one) should have no problem with this.   God can be whatever you want it to be including nothing at all.



Here's the You Tube version if you don't have a better fidelity copy. It will still work:

And/or try this out: Brian Eno stated his intention behind composing the initial Ambient Music release, Music for Airports  was to write for someone who might be concerned and worried about or who might actually die in a plane crash.  It was music designed for those particular transit spaces called airports and Eno did use it to communicate something about fear of death.  With this in mind, listen to Music for Airports and see what, if any, of his communication comes through.