Could be the biggest news story so far this decade.

[iamwhatiseem]

Let's hope they actually do something with what they find.
It is still, I think, the biggest money fraud story in the history of mankind as well as the most corrupt institutions in the history of America.

Let's hope:

NY probe seeks mortgage records, official says - Forbes.com

 

[uscitizen]

I will bet Fox is all over this.

 

[California Girl]

Let's hope they actually do something with what they find.
It is still, I think, the biggest money fraud story in the history of mankind as well as the most corrupt institutions in the history of America.

Let's hope:

NY probe seeks mortgage records, official says - Forbes.com

I'm curious as to how it'll play out globally.

 

[Truthmatters]

I surely hope it ferrets out the real thieves.

If it can manage that then maybe the people will completely understand why we need to regulate this industry and in what way.

 

[iamwhatiseem]

The other day I wrote this in another thread...

Ask any market defender (there are a few on this forum) to explain two things to you...and standby and watch them mumble and walk away.

1) "Originate and sell". Sounds simple and is categorically the absolute top reason why the markets went from the 3,000's to beyond 10,000 in just 10 years. And is also why the markets went from 10,000 to 14,000 in the next 3 years after that. And is also an infinite lie that every single wall street firm gleefully took advantage of while the SEC and the FED and the entire world government bodies stood by and watched it happen, and never said a word because they too were making a sizeable fortune partaking of. (and consequently is how "AAA" rated multi-$billion firms went bankrupt overnite)
2) Shelving or bond underwriting. Tell them to explain how it is this was done by every wall street firm (particularly Goldman Sacs) and no one went to jail, in fact several of the founders of this idea have and are advisors to the past two Presidents (yes fans Obama walks with the corrupt on a daily basis)

There - that is it.
Learn about these two things - and you will learn what the Stock Market really is

 

[California Girl]

I surely hope it ferrets out the real thieves.

If it can manage that then maybe the people will completely understand why we need to regulate this industry and in what way.

Thieves, not theifs, you ignorant septic tank. Here is a little helpful tip for you... 'I before E, except after C'. Got that? Good.

And... there is no value in the US regulating banking if other countries do not. All that will happen is that the banks will move their HQs overseas, and carry on. If we are to address the whole banking system, it must be a global regulation or it will not help.

 

[iamwhatiseem]

All we can hope is that the media doesn't allow this to get buried.
I am VERY confident that the FED and the SEC, as well as several congress/senate members AND the White House will push hard for this guy and his team to stifle the investigation.
As it would certainly also reveal that the FED and the SEC were complicit in the fraud at minimum. At the same time it would also show the public that the for last 20 years the stock market, and the entire financial system in America was a mirage. Indeed, this investigation if fulfilled could send the markets in a suicide fall.

 

[Trajan]

didn't we go thru this with GS bundling and welling what they knew was crap via e mails etc.? Its legal, I am sorry but there it is, unless I am missing something from this article......

the real culprits, imho are S&P, Moodys and Dun & Bradstreet, they awarded the ratings...

 

[kwc57]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

 

[Caroljo]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

And all this started back in the Clinton administration...i'm so surprised!

 

[Truthmatters]

What a pack of lies.

Only an idiot would belive that this was caused by what you claim.


Ask an unbiased economics proff and you have your answer.


The sub primes that were written had very little to do with the amount the gov required to be handed out.


Why would they write so many more than the gov required?


Becuase they repackaged them off and sold them as triple A investiments and made a shit load of money.

 

[California Girl]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I've raised both those facts time and again. The Democrats have a hard time dealing with the fact that they were the ones who forced banks to provide sub-primes.

National regulations did not and will not help the banking industry. We either bring in global agreements and legislation or we accept that shit will happen. Not rocket science.

 

[iamwhatiseem]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

Not saying you personally, but that is a cop-out.
Indeed the Federal Government strong-armed banks into giving loans to people who likely would not pay them back. Thank Clinton and Frank for this.
However - wall street in concert with banks took this notion to the nth degree.
They sold these mortgages, or should I say...HID...these mortgages in overly complicated bond vehicles and made enormous profits putting the entire system at great risk.
It is like... say you are a car dealer...and I told you that you need to give s few loans to people who can't really afford it. And you complied. Buuuut...realizing you can make a lot of money originating these loans and then selling them - you open 15 more car lots across the country and made $millions. This...is not what I originally encouraged you to do.

 

[editec]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

 

[spectrumc01]

The bottom line is this...

Democrat or Republican, Liberal or conservative it doesn't matter because that is not where the blame goes. It is all a matter of the rich getting richer and the poor getting poorer. All the regulation in the world will not matter because the it is the crooks and thieves themselves that are making the regulations. This isn't even about class warfare, or greed. This is all about selfishness and lack of care for your neighbor. This is the belief that, "I got mine and screw everyone else, so what if everyone else is suffering, and who cares the market tanked, I got mine and am now living large."

 

[kwc57]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

Don't need to.......I'm part of the book. I've lived it.

 

[kwc57]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

Not saying you personally, but that is a cop-out.
Indeed the Federal Government strong-armed banks into giving loans to people who likely would not pay them back. Thank Clinton and Frank for this.
However - wall street in concert with banks took this notion to the nth degree.
They sold these mortgages, or should I say...HID...these mortgages in overly complicated bond vehicles and made enormous profits putting the entire system at great risk.
It is like... say you are a car dealer...and I told you that you need to give s few loans to people who can't really afford it. And you complied. Buuuut...realizing you can make a lot of money originating these loans and then selling them - you open 15 more car lots across the country and made $millions. This...is not what I originally encouraged you to do.

But when you follow the trail to the trailhead, who set the whole thing in motion?

 

[iamwhatiseem]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

Not saying you personally, but that is a cop-out.
Indeed the Federal Government strong-armed banks into giving loans to people who likely would not pay them back. Thank Clinton and Frank for this.
However - wall street in concert with banks took this notion to the nth degree.
They sold these mortgages, or should I say...HID...these mortgages in overly complicated bond vehicles and made enormous profits putting the entire system at great risk.
It is like... say you are a car dealer...and I told you that you need to give s few loans to people who can't really afford it. And you complied. Buuuut...realizing you can make a lot of money originating these loans and then selling them - you open 15 more car lots across the country and made $millions. This...is not what I originally encouraged you to do.

But when you follow the trail to the trailhead, who set the whole thing in motion?

Pheh...it's like if the nazi soldiers took no blame for mass murdering people with an extraordinary efficiency saying "Hitler made me do it".
Indeed the Democrats in the 80's set this all in motion, but it was the banks and the entire financial system that took that ball and created an entire industry that grew to such and extent that the ENTIRE nations economy stood on it's crumbling foundation.

 

[editec]

My wife and I have both worked in the banking industry for over 30 years now. What few people realize is that banking is one of the most heavily regulated industries in the country. The other thing that people don't realize about the mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back. If you want to get to the root cause of the mortgage crisis, it is the government and not the banks. When it comes to lending money, the vast majority of banks are very conservative. They want to make loans to people and businesses that will actually pay the loans back as they make money off the interest payments. When forced to loan some high school dropout who is flipping burgers the money to buy a two bedroom house, they know they will most likely never get paid and the property will wind up in foreclosure.

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

Don't need to.......I'm part of the book. I've lived it.

In what capacity of banking did you live that gives you that vantage to make such specious claims?

I ask since you CLAIM to have inside information. What are your bono fides?

mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back.

The above is simply not remotely true.

No government regulation made banks give liars loans, NINJA loans, 110% loans, or exploing in your face adjustible rate morgage loans, either. Those were the invention of the bnksters themselves.

If you doubt that, please do feel free to cite the bnaking givenment regulation which you "lived for 30 years" that forced bansters to make those loans

Tain't there, sport.

I don't say this lightly, I seldom bother, but in your case, it so obviously fits.

You, sir, are a liar.

 

[kwc57]

I don't doubt that you sincerely believe that hogwash you just posted, but you have been rather clearly and cleverly misinformed.

Read a book.

Don't need to.......I'm part of the book. I've lived it.

In what capacity of banking did you live that gives you that vantage to make such specious claims?

I ask since you CLAIM to have inside information. What are your bono fides?

mortgage side of banking is that banks were forced by the government to make loans to people who didn't qualify and couldn't pay them back.

The above is simply not remotely true.

No government regulation made banks give liars loans, NINJA loans, 110% loans, or exploing in your face adjustible rate morgage loans, either. Those were the invention of the bnksters themselves.

If you doubt that, please do feel free to cite the bnaking givenment regulation which you "lived for 30 years" that forced bansters to make those loans

Tain't there, sport.

I don't say this lightly, I seldom bother, but in your case, it so obviously fits.

You, sir, are a liar.

Would you like my SSN, birth date and street address too? Whether you believe me or not doesn't bother me a bit. This is an interwebz bulletin board. You get what you pay for. That being said, I assure you that my wife and I have both worked in the industry since 1979. There is another side to this story that isn't being told by the media.