Ker-BOOM! Transformational Change in [Market-Ticker]: "JUDGE CURLEY THE HEAD BK JUDGE IN AZ JUST RULED MINUTES AGO THAT THE BANK OF NEW YORK MELLON MUST PRODUCE THE CUSTODIAL RECORDS IN THEIR VAULT IN A CASE AGAINST AN AZ HOMEOWNER, THEREBY PRODUCING THE NOTE AND ALL OTHER DOCS.
THIS IS A TRANSFORMATIONAL DECISION.
Now we're cooking. This decision changes literally everything - at least for Arizona. If it spreads, and it probably will, it will change everything period.
If BONY doesn't have the documentation in their custody, with proper endorsements, then there's gonna be trouble. You can bet the banks will try to bury notice of this way off the front page, but they're not going to get away with it.
The key issue here has always been whether the people buying these securities were really buying what they thought they were - and maybe whether they were buying anything at all.
If BONY can't produce the documents because they don't have them, and cannot prove up ownership of the note with proper endorsements, the lid is going to come off this thing.
The funny part of this, as Yves over at Naked Capitalism has noted, is this:"