candooman

Judge's Message to Rating Agencies: Free Speech Not Freedom to Defraud

Let us start from the beginning. Ex-President Carter, in his desire to help the poor, pushes the banks to lend to the poor. The banks refuse to go along - unsound banking practice. With the help of a Democratic congress, Community Redevelopment Act was enacted and banks were allowed to start securitizing loans. Fannie Mae and Freddie Mac refuse to buy the loans - again unsound banking practice - but agreed after Democratic appointees were put in management positions. The appointees saw this as an opportunity to get sky high bonuses. The Fed (Greenspan) with his myopic vision (we did not know this then) went along and allowed securitization and derivatives to florish. The laws enacted after the 1907 and 1929-33 financial disasters (Glass-Steagall among others) were slowly whithered away, first by the Democratic congress and later by the Republicans and now the Democrats again - because they were getting millions in campaign money from the financial institutions and wall street --- same institutions that caused the 1907 and 1929-33 crisis.

All this could have been stopped at the doors of the rating agencies, the last barrier. But again, big money (large executive bonuses) came into play. Those insider who had the moral turpitude recognized the scam and refused to go along...and as expected, were fired.

All these events and actions were clearly explained and discussed on several programs for the last six months on 60 Minutes, NOW, Bill Moyers, Newshour with Jim Lehrer and even the 3 networks. I hope ... this is a big hope ... those who were fired would all be put on the witness stand to testify on what went on inside the CRA agencies and bring down this free speach defense. We shall see in the next few months if this Judge and the other one (can't remember his name) who is not accepting the BofA/SEC bonus case settlement can really do justice for the American people.