justice unit to probe mortgage backed securities

[Truthmatters]

Justice unit to probe mortgage-backed securities - Washington Times


Go get these greedy bastards

 

[Truthmatters]

I hope every one of the CEOs who walked away with money after crashing this economy has to give us every dime they have.

 

[Truthmatters]

you would think this was a non partisan issue?

Is it?

 

[editec]

justice unit to probe mortgage backed securities

Only about ten years too late.

Still... better late then never

 

[Truthmatters]

funny not many care about this issue.

They should be made to give us every dime they have upon being found quilty.

 

[Truthmatters]

[ame=http://www.youtube.com/watch?v=6-IvKE1stIo]Waxman: I have a basic question for you. Is this fair? - YouTube[/ame]

 

[Truthmatters]

why do so few care about this?

 

[theDoctorisIn]

My old friend Eric Schneiderman is chairing that committee.

 

[whitehall]

I wish the "justice dept" would probe the justice dept. It seems that everyone is getting away with taking the 5th rather than testify about what they knew and when they knew it concerning Op-Fast/Furious that sent more than 2,000 illegal weapons to Mexico.

 

[waltky]

2 NY pleas in federal sub-prime mortgage probe...

Credit Suisse exec charged in NY mortgage probe
Wed Feb 1,`12 – The desire to fatten year-end bonuses motivated a Credit Suisse executive and two of his employees to conspire to hide the deteriorating condition of the U.S. housing market in 2007 to keep the value of bonds based on subprime mortgages artificially high, authorities said Wednesday.

Federal prosecutors in Manhattan said Kareem Serageldin, the financial company's former managing director and global head of structured credit, was slated to receive nearly $7 million in compensation in 2007 before the company learned about the fraud and withheld $5.2 million of his pay. The fraud was blamed as part of the reason the company was forced to take a $2.65 billion write-down of its 2007 year-end financial results. "It is a tale of greed run amok," U.S. Attorney Preet Bharara said. "They papered over more than a half billion dollars in subprime mortgage-related losses to secure for themselves a big payday at the same time that many people were losing their homes and their jobs."

Serageldin, 38, a U.S. citizen living in England, wasn't in custody and there were no immediate plans to seek his extradition on charges of conspiracy, falsifying books and records, and wire fraud, all of which carry a potential penalty of 45 years in prison, Bharara said. "I would encourage him to come to the United States and answer the charges against him," the prosecutor said. Meanwhile, David Higgs, 42, a former London-based managing director and a citizen of the United Kingdom, and Salmaan Siddiqui, 31, of McLean, Va., a former trader with the investment firm in Manhattan, seemed eager to identify others as they entered their pleas in U.S. District Court in Manhattan to conspiracy charges.

The criminal prosecution was one of the first to target those who sold complex investments called collateralized debt obligations that were based on the valuations of mortgages. The securities — baskets of mortgage bonds — have been blamed by some for contributing to the housing bubble and its spectacular collapse. The probe — which focuses on activities in 2007 and 2008 — centers on exaggerations that brokers made about the value of subprime mortgage securities. Authorities say brokers enticed investors to pour money into the securities market for subprime mortgages by making the market sound healthy.

The ensuing subprime mortgage crisis fueled the financial meltdown in the fall of 2008 that pushed the U.S. into the most severe recession since the Great Depression of the 1930s. After their pleas, Higgs and Siddiqui were freed on $500,000 bail. Higgs was permitted to cooperate from his home in England; Siddiqui can travel the country.

MORE

 

[whitehall]

Maybe the "justice" dept thinks all Americans are fools. Why else would they open the sub-prime can of worms? The federal government forced banks to make bad loans or risk civil rights litigation. In a scam worthy of organized crime the bad loans were bundled with good loans and sold to lending institutions as good loans. Legitimate firms thought they were buying good mortgaged backed securities but they were junk allegedly backed by Fannie Mae. House Banking Chairperson who had oversight responsibility for Fannie Mae told Americans that Fannie was solvent when it was in trouble. So who do we blame? The people who bought and sold the securities thinking they were backed by the federal government or the people who created the scam? Why did Barney Frank tell Americans that Fannie Mae was solvent when it wasn't? Wouldn't an economic crisis just before the presidential election be a benefit to the democrat party and dumb radical lefties to parrot today?

 

[Wiseacre]

I think it's a great thing, but I want to know why it took Obama 3 freakin' years to do this. Wouldn't be cuz they waited until his re-election year, would it?

I think we ought put more teeth into the laws for this stuff, it oughta hurt bad to defraud people.