hvactec
VIP Member
Heres 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 dont 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
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 dont 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