Wall Street Bankers Whine That They Shouldn’t Have To Pay For Their Fraud

Discussion in 'Media' started by hvactec, Sep 10, 2011.

  1. hvactec
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    hvactec VIP Member

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    Here’s another reason for the rest of us to get mad at Wall Street. Even where the government can prove massive fraud in the mortgage market, the finance folks are saying the suits should be dropped.

    The suits were announced last Friday by the Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac. FHFA sued 17 major banks and a number of individuals for fraud in the issuance and sale of mortgage backed securities during the buildup of the housing bubble.

    In response, a columnist for the Motley Fool has called the suits a “misguided search for vengeance” and “an unnecessary distraction.” An investment banker told Bloomberg that the government should “stop punishing banks.” The mortgage fraudsters should get away, they say, because we don’t want to shake confidence in the big banks that FHFA says committed massive mortgage fraud.

    But there are so many reasons why the people who perpetrate fraud should pay for it. To pick two often voiced by conservatives, take “personal responsibility” and “property rights.”

    The personal responsibility part is that individuals and companies that signed fraudulent securities filings are responsible for the fraud. That punishes fraud, and deters the next generation of Wall Street financiers when they get tempted to do it again.

    read more Wall Street Bankers Whine That They Shouldn
     
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  2. martybegan
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    martybegan Gold Member

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    So, the obvious solution is to make sure the banks only loan to those people who meet stringent financial requirements.....oh wait, the government called that racist.

    Proving fraud is very difficult, and the government may not like what happens during the discoveries the banks will perform.

    ALOT of people hands will be caught in the cookie jar, not just the banks you seem to have an obsession about.

    Also HV, how about posting an original thought for once?
     
  3. uscitizen
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    uscitizen Senior Member

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    good ALL guilty partys should be caught and punished.
     
  4. CrusaderFrank
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    CrusaderFrank Diamond Member

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    It's ironic how "Wall Street" does trillions of dollars of business in every conceivable line of business but the one that tanked was the one where the Federal Government set the underwriting standards and was the largest lender

    Must be a coinkydink
     
    Last edited: Sep 10, 2011
  5. martybegan
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    martybegan Gold Member

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    At what point do you see deliberate fraud being perfomed? Optimistic stupidity is not criminal.

    Everyone was making money on this, from people working as real estate brokers to the government making more in tax income, with the banks, the brokers and the homeowners in between.
     

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