The banks played fast and loose

Discussion in 'Economy' started by Truthmatters, Dec 2, 2010.

  1. Truthmatters
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    BofA's `Sloppy' Prime Mortgages Add to Pressure for Buybacks - Bloomberg


    Overdue prime mortgages set a record this year, opening more loans to scrutiny for defects that could entitle investors to a buyback. The Congressional Oversight Panel said last month that too many repurchases could rattle the financial system, and Bank of America’s stock dropped 27 percent this year through yesterday, partly on concern that $4.4 billion of reserves stockpiled to cover such costs won’t be enough.

    “It was just a very sloppy process” that wasn’t confined to subprime loans, said David Havens, an analyst at Nomura Holdings Inc. in New York. “Overlooking bits and pieces of the underwriting process can come back to hurt you, because investors sold a faulty bill of goods want to recover losses.”
     
  2. Truthmatters
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    Next month when wikileaks releases the major bank internal docs you people wont be able to lie about what caused this mess.

    It was assholes like the people working at this bank who fudged the numbers even in prime loans to make a quick buck that fucked us all.
     
  3. william the wie
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    william the wie Gold Member

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    This is news? The FBI was presumably told to STFU back in 2003 after they announced they wanted to investigate widespread mortgage fraud. At least I didn't hear of big cases being made and I do believe from state investigations that 1994-2008 saw the most wide open financial crime wave in at least 70 years and probably longer.
     
  4. B. Kidd
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    B. Kidd Gold Member

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    The days of the robber barons have returned.
     
  5. Truthmatters
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    Its why spitzer got pegged for political distruction
     
  6. DiveCon
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    where was TM bitching when the banks were being bailed out?
     
  7. cocolove
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    cocolove Rookie

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    The FBI was presumably told to STFU back in 2003 after they announced they wanted to investigate widespread mortgage fraud. At least I didn't hear of big cases being made and I do believe from state investigations that 1994-2008 saw the most wide open financial crime wave in at least 70 years and probably longer.
     
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  8. Truthmatters
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    Yeap its why they went after spitzer, he was going after them on the state level.

    The bank bailout was a needed evil.

    The country would have sunk into a deep depression and taken the worlds economy with it.

    The way Paulson set it up the banks got everything they wanted and none of the curtailments that could have been easily out in the bailout.

    The US could haved made bank and helped all of the people fucked by the banks on this one.
     
  9. DiveCon
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    yeah, poor Spitzer
    he did nothing wrong, isnt that right TneverM?
     
  10. william the wie
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    william the wie Gold Member

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    Don't want this to inadvertently degenerate into a pissing match but it was Geithner and Bernancke who led the charge on the mess we ended up in. Their hirings by Obama was seen as mistake at the time and is still seen as a problem. Paulson was inept but the out and out insanity and stupidity came from the Fed.
     

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