"Wall St. Meltdown","criminal charges"..WHY??

Discussion in 'Politics' started by healthmyths, Jan 15, 2012.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    I am NOT an expert in Wall Street, mortgages, much less "criminal charges for Wall St. meltdown fraud"!
    I am an expert in Medicare though but this NOT the point of the thread.

    For YOU EXPERTS in "Wall St.", Mortgages, and (what ?) "meltdown".. please correct the following dots....

    I saw the "60 Minutes" piece about two high-ranking financial whistleblowers say they tried to warn their superiors about defective and even fraudulent mortgages

    Read more: http://www.cbsnews.com/video/watch/?id=7390540n#ixzz1jX2lO1LF


    But even after that, I don't understand the "fraud" part.

    A) Banks forced by Acorn among other protesters in 1995 started granting loans to
    unqualified people. Knowing that if they didn't the banks would be picketed and the
    biased MSM write totally inaccurate stories..

    in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining.
    Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA (Community Reinvestment Act) and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront.
    Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.
    -------------------------
    In 1999, under pressure from the Clinton administration, Fannie Mae, the nation's largest home mortgage underwriter, relaxed credit requirements on the loans it would purchase from other banks and lenders, hoping that easing these restrictions would result in increased loan availability for minority and low-income buyers.
    ------------------------------------
    Rham Emmanuel, Former OBAMA CHIEF OF STAFF and Jamie Gorelick were employees and directors of Fannie and freddie took between the two took out over $20 million. Gorelick was appointed Vice Chairman of Federal National Mortgage Association (Fannie Mae) from 1997 to 2003. She served alongside former Clinton Administration official Franklin Raines During that period, Fannie Mae developed a $10 billion accounting scandal. Gorelick took home $26.46 million in the period from 1998 to 2002 (she left in that year, so she wasnÂ’t there for the entire period under investigation).
    Of that figure, nearly $15 million came from EPS bonuses.
    and while serving as Deputy Attorney General under Bill Clinton, Gorelick spoke in favor of banning the use of strong encryption and called for a key escrow system to allow the Federal government access to encrypted communication.

    Top 3 politicians receiving campaign funds from Fannie/Freddie...
    Dodd, Christopher S D-CT $133,900
    Kerry, JohnS D-MA $111,000
    Obama, Barack S D-IL $105,849

    B) Banks made the loans BUT under pressure from FDIC that considered rightfully so
    the toxicity "securitized" and resold WITH Fannie Freddie FEDERAL Guarantee..
    Oct. 23,2008 (Bloomberg) --
    Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the
    "full faith and credit'' of the U.S. government, Federal Housing Finance Agency
    Director James Lockhart said after the hearing.
    That does give them effectively a guarantee of the U.S. government.''
    Lockhart's Fannie, Freddie Guarantee Remarks Stir Up Confusion - Bloomberg

    C) So investors bought these toxic securities mortgages BACKED by Fannie/Freddie that
    in turn was GUARANTEED by the Federal Govt.

    WHERE is the fraud when investors knowingly bought "bad" mortgages knowing the Federal Govt. would lend them the money?
    * House Financial Services Committee Chairman Barney Frank (D-MA) criticized
    the President's warning saying:
    "these two entities - Fannie Mae and Freddie Mac - are not facing any kind of
    financial crisis .The more people exaggerate these problems, the more
    pressure there is on these companies, the less we will see in terms of
    affordable housing."
    ..
    (Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie
    Mae," New York Times, 9/11/03)

    * Senate Committee on Banking, Housing and Urban Affairs Chairman
    Christopher Dodd also ignored the President's warnings and called on
    him to "immediately reconsider his ill-advised" position. (
    Eric Dash,
    "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected,
    As Critics Complain Of Opportunism," New York Times, 8/11/07)


    "Fraud"???
     
  2. California Girl
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    California Girl BANNED

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    Was there a massive fraud? Yes. Why no criminal charges? Because the guys who were involved are also running the country - and therefore it's legal system. Simple.
     
  3. Truthmatters
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    Truthmatters BANNED

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    you people are insane
     
  4. TakeAStepBack
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    TakeAStepBack Gold Member

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    Many new that these were going to fail and bet against them, while selling them. That's fraud. But, your post does not even begin to capture the issue of the mortgage crisis. There was an expansion of credit with artificially low rates. Which signaled to lenders that people who might not otherwise qualify, could do so with nothing down on variable rate mortgages. This policy of "everyone should have the chance to own a home", was a Bush doctrine. If you want to blame someone, blame the central banksters. The fun starts there.
     
  5. TakeAStepBack
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    TakeAStepBack Gold Member

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    exactly.
     
  6. Full-Auto
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    We are, imagine the regular folks expecting democrats to to accountable for their actions.
     
  7. California Girl
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    I agree with Bush. Everyone should have the CHANCE to own a home. That does not mean that they can own one... just that they should have the opportunity to work hard and succeed and thus be able to buy one - that they can afford.

    That this theory became a 'right to your own home' was a substantial part of the problem. It's not a right.
     
  8. TakeAStepBack
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    TakeAStepBack Gold Member

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    No disagreement there. Lenders were giddy to make the returns and lent to folks who had no business owning the home they were signing on for. $30k a year, no money down on a variable rate mortgage for a $250,000 home?

    Where were the buyer's brains through this??
    The moral hazard was created at the very top, and everyone else played right along.
     
  9. healthmyths
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    healthmyths Gold Member Supporting Member

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    OH no you don't! Being an expert on massive fraud.. YOU need to tell explain exactly what that means!

    I mean anyone can accuse why Obama of "massive fraud" !

    Exactly where was the fraud?
    Exactly what do you as an expert with the answers mean by "massive"?

    You answered quickly and as if an expert in mortgages,wall street and fraud so be more specific!
     
  10. healthmyths
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    healthmyths Gold Member Supporting Member

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    Many "new"
    Oct. 23,2008 (Bloomberg) --
    Fannie Mae and Freddie Mac have an ``effective'' federal guarantee, not the
    "full faith and credit'' of the U.S. government, Federal Housing Finance Agency
    Director James Lockhart said after the hearing.
    That does give them effectively a guarantee of the U.S. government.''
    Lockhart's Fannie, Freddie Guarantee Remarks Stir Up Confusion - Bloomberg

    That means how can there be fraud if the govt. is willing to back the toxic loans?

    And the Govt did! What was TARP???
     

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