I have news from Morgan Stanley for Jeremy Griffin and the SAFE activists attempting to block his eviction in South Seattle: "We do not own the loan and had no involvement in the foreclosure process," says Mark Lake, a Morgan Stanley spokesman. This despite Morgan Stanley, along with Deutsche Bank, being listed as plaintiffs on the eviction order.
This stuff is complex, but from what I understand based on my reporting, Morgan Stanley was responsible for packaging a set of loans together, including Griffin's, and selling them to investors. This process is called securitization. Deutsche Bank represents those investors, and probably hired Wells Fargo as the servicer to carry out the foreclosure.
I asked Lake whether Morgan Stanley has any comment on the practice of securitization, which contributed to the financial collapse in 2008. "No comment," he replied, after a pause.
The securitization "food chain" was a "ticking time bomb," according to this a clip from the Oscar-winning documentary Inside Job, which explains how investment banks including Morgan Stanley sold packages of loans to investors, and in turn, helped wreck the economy:
Charles reports that Pope Francis is "calling for a more ethical banking system and curbs on financial speculation." Hear hear! SAFE, the group organizing the eviction blockade, sent out text messages this morning asking supporters to "please be on alert." They say King County Sheriff detective Pierre Thiry has warned them the eviction is likely to happen in the next several days.