THE ANSWER THAT YOU ALWAYS WANTED AS TO THE SECURITIES AND BACKTRACING

Legal Question text hotline: 843-484-6724

Article by @To0muchSaucedrip on Telegram, co-author Infinity on Telegram

Cusip tracking involves tracking the historical ownership of a security using its CUSIP number. Here's a general step-by-step guide:

1. Gather Information: Collect the CUSIP number of the security you want to backtrace.

2. Access Securities Data Provider: Subscribe to a financial data provider or use online databases that offer historical ownership data. Some popular options include Bloomberg Terminal, FactSet, or various online financial websites.

3. Query Database: Use the CUSIP number to query the database for historical ownership information. You'll want to retrieve data on institutional investors, funds, and individuals who have held the security.

4. Identify Initial Holders: Look for the earliest records to identify the initial holders of the security. This could be the issuing company or entities that participated in the initial offering.

5. Trace Ownership Changes: Examine subsequent records to see how ownership of the security changed over time. Note any transfers, acquisitions, or divestitures made by various holders.

6. Analyze Institutional Holdings: Pay attention to institutional investors such as mutual funds, pension funds, and hedge funds. These records can provide insight into larger ownership shifts.

7. Review Filings: If applicable, look at regulatory filings like Form 13F (filed by institutional investment managers) and Form 4 (filed by company insiders) in the United States. These forms disclose ownership changes.

8. Consider Mergers and Acquisitions: If the issuing company was involved in mergers or acquisitions, trace how ownership of the security may have been affected.

9. Follow Up on Ownership Changes: If you notice a significant ownership change, you might need to backtrace the owners of the acquiring or merging companies to understand the full picture.

10. Compile and Analyze Data: Compile the ownership data you've collected over time. You might want to create a timeline or graph to visualize the changes in ownership.

11. Draw Conclusions: Based on your analysis, draw conclusions about how ownership of the security has evolved over time. You could identify trends, key players, and any significant events that affected ownership.

"Busting up batching and pooling" refers to the process of challenging the validity of a securitization transaction, specifically where individual CUSIP numbers were assigned to each underlying asset, instead of being pooled together. This practice was sometimes used during the mortgage-backed securities boom prior to the 2008 financial crisis. Here's how the process works:

1. Gathering Information: Collect all available information related to the securitization transaction in question, including documents, contracts, prospectuses, and CUSIP numbers assigned to individual assets. Like above.

2. Understanding Batching and Pooling: Batching and pooling involve the bundling of individual assets (such as mortgages) into a pool, which is then used to create securities sold to investors. Understand the BUNDLE is the security after that - individual identity is lost. However, the challenge arises when individual CUSIP numbers are assigned to each asset instead of using a single CUSIP for the entire pool.

3. Legal Guidance: we are versed in securitization for monetizing and reverse securitization. We can guide you through the process and help determine whether a legal case can be made based on the specifics of the transaction. And usually it can.

4. Reviewing Documents: Carefully review all the relevant documents associated with the securitization, such as the applications, pooling and servicing agreement (PSA), prospectus, offering memorandum, and any communications related to the CUSIP assignment.

5. Identifying Inconsistencies: Look for inconsistencies in the documentation that may indicate that the securitization was not executed properly. This could include discrepancies between the way the assets were described and how they were actually bundled and sold. This could include representation that things were done that werent.

6. Analyzing Ownership Chain: again if you have not anready trace the ownership chain of the securitized assets. This involves backtracing the ownership history of the underlying assets to determine whether the proper legal steps were followed in transferring ownership to the trust that issued the securities.

Yes they put stuff into a Trust often then the trust issues investment interest tranches.

7. Assessing Regulatory Compliance: Evaluate whether the transaction complied with applicable regulatory requirements and disclosure obligations. If any violations are identified, they will strengthen your case.

8. Expert Opinions: Engage financial and legal experts who can provide opinions on the validity of the securitization based on industry practices, documentation, and legal standards.

9. Building the Case: Compile all the evidence, documentation, and expert opinions to build a strong legal case. This could involve drafting legal complaints, motions, and supporting documentation. I've done a sample case below.

10. Filing Lawsuit: If the evidence supports your claims, file a lawsuit against the parties involved in the securitization, such as the issuing entity, the servicer, trustees, and potentially others. The lawsuit would assert that the individual CUSIP assignment was improper and that the securitization is invalid. As such you must be restored the security, revenue must be disgorged, and the related obligations against you released.

11. Legal Proceedings: The lawsuit will proceed through legal proceedings, potentially including discovery, hearings, and a trial. The goal is to prove that the securitization was flawed and should be invalidated.

12. Potential Remedies: If successful, the court may order various remedies, which could include rescission of the transaction, voiding of all adverse action based on the transactions, damages, or other appropriate relief.