by Moe @ Whatever Works
You may recall that the world-wide financial collapse four years ago was entirely the fault of irresponsible mortgage seekers who demanded houses they couldn’t afford. In other words, the little people did it. Remember that?
Since then – and while a whole passel of criminals who posed as investment bankers, ripped off their investors and made themselves obscenely rich, continued to enjoy their summers in The Hamptons - our Justice Department has been distressingly silent.
But lo, at last.
Federal prosecutors hit Bank of America with a $1 billion-plus civil mortgage fraud lawsuit Wednesday, accusing the banking giant of engineering a scheme that defrauded federally-backed agencies during the national financial crisis.
The complaint . . . accuses the bank of using a loan-origination program called the “Hustle” to process mortgage applications at high speed with little financial checking . . .
The result was defective mortgage loans that defaulted after Bank of America sold them to federal mortgage loan guarantors Fannie Mae and Freddie Mac, causing more than $1 billion in losses and thousands of foreclosures . . .
“Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill,” said Manhattan U.S. Attorney Preet Bharara . . . [they] systematically removed every check in favor of its own balance – they cast aside underwriters, eliminated quality controls, incentivized unqualified personnel to cut corners and concealed the resulting defects,” said Bharara.
Yeah……
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“engineering a scheme that defrauded federally-backed agencies”
This is interesting because if BOA didn’t give the loans, they would have been sued by the feds.
And Fannnie mae was sound. Barney Frank’s longtime lover Herb Moses worked as a top official responsible for relaxing mortgage standards at Fannie Mae, an enterprise that was subject to oversight authority by the House Financial Services Committee upon which Frank served.
Also the corperation is being sued, not the people who made the money and ran, so the “little people” get hit again if there is a fine which there will be just so long as it’s cheaper to settle than fight.
I mean, who cares!
Countrywide WAS a Mess….
Bank of America in taking over Countrywide has gotten to be a VERY HUGE company that has trouble with its left side knowing what it right side is doing…….
Once B of A assumed Countywide ….It assumed it’s liabilities….Period…
This IS a Civil Case…
Oversight of Fannie Mae in NO WAY would make Congress liable…..
And YES….
The scoundrels who did this shit are gonna skate
I see Manila’s obsession with Barney Frank continues…..