A New STD (Securitization Transmitted Damages): Losses May Be In Trillions of Dollars

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FiduciaryFORENSICS® expert Chris McConnell, AIFA® has identified a new enormous risk area for all investors: STD™ (Securitization Transmitted Damages). McConnell has been calling for increased investment independent due diligence before investing for years.

“If you live in a house or rent an apartment then you’re involved in STDs.” Whether you own your own home, rental property, or invest in these securities, these STDs will affect you.

FiduciaryFORENSICS® expert Chris McConnell, AIFA® has identified a new enormous risk area for all investors: STD™ (Securitization Transmitted Damages). McConnell has been calling for increased investment independent due diligence before investing for years.

STDs arise when mortgages are not properly assigned to trusts designed to hold certain legal documents--or from improper foreclosures. Potential losses are in the trillions of dollars. Investors believed negatively impacted include the Federal Reserve (ultimately the US taxpayer), NY Federal Reserve Bank, large institutional investors like pension and 401k plans, charities, nonprofits, foundations and hedge funds, mutual funds, exchange traded funds ETFs, and direct investors in any mortgage backed security (MBS) and/or Municipal Bond starting with money market mutual funds.

State, county and local city government budgets may face unprecedented pressure as house values directly impact property taxes. Property tax collections usually decline when a home goes into foreclosure AND when remaining homes in the neighborhood values’ decline, causing some homeowners to further seek relief, appeal property tax bills.

Today Bloomberg reports that the NY Fed and PIMCO have asked Bank of America to take back $47 Billion of mortgage backed securities.

Yesterday, Bloomberg TV aired an interview with a Texas cattle rancher who stated the indisputable, “If you eat then you’re involved in agriculture.” When it comes to STDs, Chris McConnell, AIFA® FiduciaryFORENSICS® expert says, “If you live in a house or apartment then you’re involved in STDs.”

Whether you own your own home, rental property, or invest in these securities, these STDs will affect you. The securities are known in the industry as RMBS (Residential Mortgage Backed Securities) or CMBS (Commercial Mortgage Backed Securities).

How did STDs come about?

The banks that originated mortgages prior to the so called financial crisis, later resold them to trusts which in turn sold them (the industry term is securitized them into MBS) to investors. But bond trust, investigations reveal, may not hold proper title to the underlying collateral. Defective title virally permeates the MBS food chain, hence STDs.

Expert Evaluation of Investors claims for Breach of Fiduciary Duty or Suitability

There are two levels of suitability analysis that may affect claims evaluation, in addition to the fiduciary duty owed to investors. Investors and attorneys wishing to understand how to successfully evaluate claims related to MBS, RMBS, CMBS, CDOs, Synthetic CDOs, and CDS and fiduciary duty can contact Chris McConnell & Associates for more information.

Since 2004, Mr McConnell has issued annual, one-page FiduciaryALERTS™. Like, July 2008's “Denial of twin-flation™ is not a prudent investment strategy.”

“Fiduciary training, education and proper due diligence audits by a 100% independent, experienced, qualified fiduciary auditor are the best ways for trustees, ERISA plan sponsors, charity boards and public investment entities to avoid exposure or loss,” McConnell said.

An expert with over 27 years of actual Wall Street and securities litigation and FINRA arbitration experience and advanced fiduciary training, McConnell is known as the man who wrote the book on broker dealer compensation, accounting, margin, compliance and managed accounts, he can assist others in learning all the ways a stock brokerage firm may have caused losses or profited from assets in your accounts without your knowledge or consent..

About Chris McConnell, AIFA®
Chris McConnell received a BA, Economics/Accounting option from Rutgers University in 1983, passed the CPA exam in New York in 1986, and received an MBA from Pepperdine University in 1990. He was certified as an AIFA® by the Center for Fiduciary Studies in 2003. He has 27 years of combined experience as a recognized expert, including his considerable securities industry experience.

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MARTIN GROSSMAN
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