Too Big To Jail? Executives Unscathed as Regulators Let Banks Report Criminal Fraud

Tom Usher wrote or added | William K. Black, former Office of Thrift Supervision official, a "white-collar criminologist and law professor at the University of Missouri-Kansas City,...argues that there's ample evidence of fraud. Insiders working for lenders openly referred to loans they made without proof of income as "liar loans." Many banks actively sought inflated appraisals in their rush to make as many loans as possible. As previously reported by the Investigative Fund, such lending practices contributed to the demise of Washington Mutual.

"Not everyone agrees that such a case can be successful. Benjamin Wagner, a U.S. Attorney who is actively prosecuting mortgage fraud cases in Sacramento, Calif., points out that banks lose money when a loan turns out to be fraudulent. An investor in loans who documents fraud can force a bank to buy the loan back. But convincing a jury that executives intended to make fraudulent loans, and thus should be held criminally responsible, may be too difficult of a hurdle for prosecutors."

"...banks lose money when a loan turns out to be fraudulent." That's hogwash.

The loans were fraudulent, and the banks didn't lose money. They've made record incomes via the fraud. It's been nothing but pure evil, pure theft.

The loans were bundled, rated fraudulently as AAA, and sold to unsuspecting investors, including huge pension funds and governments, etc., who trusted the rating agencies that were unregulated and paid and chosen by the banksters in the first place. It's been one huge swindle, and Barack Obama's administration has done nothing good about it. All he's done is keep on the same team that designed and carried out the scam.

Obama doesn't want to look backwards he says. That's a saying designed for the naive and gullible, meaning those who are easily conned or duped (aka, "suckers" or "marks").

  • Subscribe
  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
    This entry was posted in Uncategorized. Bookmark the permalink.