Government needs those behind mortgage mess to fix it

A former Bank of America mortgage executive who is a defendant in an FHFA lawsuit over MBS and named in a DOJ lawsuit is now plying his trade for Fannie Mae (FNMA.OB).

"There aren't that many people out there with expertise that don't have a potentially tainted background," says one lawyer. "It's consistent with their policy that they no longer prosecute elite bankers," says William Black, who helped clean up the S&L crisis 20 years ago. Executives "can go next door and ever walk into an entity that is supervised and owned by the U.S. government."

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Comments (5)
  • nahsa
    , contributor
    Comments (29) | Send Message
    We don't believe it likely private capital will step in to finance fixed rate 30 year mortgages.


    Would you?


    If F&F were liquidated so would the congressperson that voted for the bill because it would put the final kibosh on the middle-class.


    Since our president is so concerned over the well being of the "middle-class", if you believe all his rhetoric, why is he promoting this idea?


    F&F are the two most profitable business models in the United States! Because they were defrauded by the very banksters that the taxpayers bailed out with TARP and dragged them down as a result of those frauds, this is no reason to end their operations.


    Because the Government had to actually backup FNMA and FMCC because they were GSE's seems to be the reason they require that means that GSE's in name only.


    F&F's contribution to our consumption economy is immeasurable.


    It doesn't need disbanding, it needs better monitoring of its counter-parties.
    14 Aug 2013, 08:21 AM Reply Like
  • philipmax
    , contributor
    Comments (421) | Send Message
    It is both tragic and sad that a prominent prosecutor admits that the whole system is rife with corruption and that it is hard, even today, to find qualified administrators who have a clean record.
    This is the stain that will forever blot the 2000-2008 banking era in America.
    14 Aug 2013, 08:21 AM Reply Like
  • nahsa
    , contributor
    Comments (29) | Send Message
    Obama is a pitchman for the fraudsters...and it is they he'd like to see in charge of the chicken coop.


    Under the Obama plan "... all the profits go to the banks, while 90 percent of the losses–which will surely amount to trillions of dollars–will be shrugged off onto working people. This is Obama’s housing finance reform plan in a nutshell. And don’t expect the Consumer Financial Protection Bureau’s new rule on “Qualified Mortgage” to prevent another catastrophe. The QM rule does not require a down payment or high credit scores. It also allows loans “to be deemed qualified mortgages if borrowers are spending up to 43% of their pretax income on monthly debt payments” which is way too high. In other words, the loopholes in the CFPB’s qualified mortgage rule are big enough to drive a truck through. The banks would never issue a mortgage using these absurd underwriting standards, but their lawyers and lobbyists fought tooth and nail to make sure the standards were adopted by the CFPB. The reason for this is obvious; the QM rule creates vast opportunities for abuse and fraud. Expect more predatory lending, more mass defaults, and another housing bubble...."

    14 Aug 2013, 08:53 AM Reply Like
  • pankaj123
    , contributor
    Comments (104) | Send Message
    There aren't many people with expertize,does this seem heard before? just before the financial crisis financial institutions used to pay lots of money to these financial managers with the same explanation.Now they have laid off lots of them and still they claim they don't have enough people with expertize? May be they don't have people make changes they want so that they know how to do it all over again.If the biggest looser GMAC can survive by changing name to Ally why the winner F & F can not survive? Hire some of the most tainted managers.
    14 Aug 2013, 11:25 AM Reply Like
  • jimmywumsn
    , contributor
    Comments (29) | Send Message
    Artists use lies to tell the truth, while politician use lies to cover the truth up.
    14 Aug 2013, 11:34 PM Reply Like
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