SEC Charges Former Freddie, Fannie CEOs with Fraud

[svelte]

So – on a site where posters have been hyper critical of everyone contributing to the housing bubble, including Freddie and Fannie Mae, why has a week gone by with absolutely no mention of this?

http://www.businessweek.com/ap/financialnews/D9RLP51O0.htm

[UCGal]

I wish it were the DOJ.
SEC will fine them and not make them admit wrongdoing. They’ll walk away with a slap on the wrist.

DOJ could throw them in jail.

[Vod-Vil]

Why did it take them 5 years to press charges?

[SD Realtor]

Because most all the posters bought houses?

[Coronita]

[quote=svelte]So – on a site where posters have been hyper critical of everyone contributing to the housing bubble, including Freddie and Fannie Mae, why has a week gone by with absolutely no mention of this?

http://www.businessweek.com/ap/financialnews/D9RLP51O0.htm%5B/quote%5D

Because we were all to busy adding people to our ignore lists and discussing Ron Paul and the GOP.

[moneymaker]

Wasn’t the SEC knocking on Countrywides door about 5 or 6 years ago. I vividly recall a representative of Countrywide telling me then that low income people could get a better rate than middle income people and I of course pointed out to her that that is not right/fair. Lately I’ve been paying more attention to stocks,yes I’ve crossed over to the dark side, I’m now a registered Republican.

[briansd1]

In 2008 Secretary Paulson and the Bush Administration arranged the takeover of Countrywide by BofA. They wanted to make sure the merger did not fall through.

BofA shareholders got screwed.

[briansd1]

[quote=UCGal]I wish it were the DOJ.
SEC will fine them and not make them admit wrongdoing. They’ll walk away with a slap on the wrist.

DOJ could throw them in jail.[/quote]

I agree UCGal.

Looking at the big picture, there have been prosecutions of financial executives for malfeasance — not enough IMO, but still justice is being done.

Other political appointees would have been even more lenient. I believe that a reversal of political winds would be of great benefit to the big banks.

[UCGal]

[quote=threadkiller]Wasn’t the SEC knocking on Countrywides door about 5 or 6 years ago. I vividly recall a representative of Countrywide telling me then that low income people could get a better rate than middle income people and I of course pointed out to her that that is not right/fair. Lately I’ve been paying more attention to stocks,yes I’ve crossed over to the dark side, I’m now a registered Republican.[/quote]
SEC made Angelo Mozillo pay a huge fine (but admit no wrong doing. It was something like 65 Million – of which Countrywide covered 20 million – and Angelo had to dig up 45 million from his estimated 600 million fortune.

Ironically – BofA just settled a countrywide related suit for $335 million. Not for lending to lower income people with more favorable terms than middle class people – but for being discriminatory in their lending to minorities… pushing minorities into crappier loans. Kind of runs contrary to what you were told by that countrywide rep.

[svelte]

Two thumbs up for SDR and flu! I chuckled!

And I agree, UCGal…

[Allan from Fallbrook]

[quote=UCGal]I wish it were the DOJ.
SEC will fine them and not make them admit wrongdoing. They’ll walk away with a slap on the wrist.

DOJ could throw them in jail.[/quote]

UCGal: DoJ is a little busy right now stonewalling any investigation into “Fast and Furious”.

You’re right, though, SEC will make a little noise, and a few threats, and ultimately settle for a pittance fine.

[Allan from Fallbrook]

[quote=briansd1]
Looking at the big picture, there have been prosecutions of financial executives for malfeasance — not enough IMO, but still justice is being done.

Other political appointees would have been even more lenient. I believe that a reversal of political winds would be of great benefit to the big banks.[/quote]

Brian: Justice is being done? Whaaaaaat? Where? Have you been playing with your Alternative Reality Barbie doll again? (available at a soon-to-be-bankrupt Sears store near you!).

You think this adminstration is truly being tougher on financial crime than, say, a GOP administration? What a joke. Obama is just as much in Wall Street’s pocket as any of those plutocratic GOP assholes. The WHOLE game is fixed, Brian, don’t you get that? Or is it simpler to delude yourself into believing that svelte, fit Obama is really in this for the “common man”? Dude, please.

[SK in CV]

[quote=Allan from Fallbrook][quote=briansd1]
Looking at the big picture, there have been prosecutions of financial executives for malfeasance — not enough IMO, but still justice is being done.

Other political appointees would have been even more lenient. I believe that a reversal of political winds would be of great benefit to the big banks.[/quote]

Brian: Justice is being done? Whaaaaaat? Where? Have you been playing with your Alternative Reality Barbie doll again? (available at a soon-to-be-bankrupt Sears store near you!).

You think this adminstration is truly being tougher on financial crime than, say, a GOP administration? What a joke. Obama is just as much in Wall Street’s pocket as any of those plutocratic GOP assholes. The WHOLE game is fixed, Brian, don’t you get that? Or is it simpler to delude yourself into believing that svelte, fit Obama is really in this for the “common man”? Dude, please.[/quote]

I’ll go a step further and say that it’s very possibly been worse than a Republican administration. At least with respect to expectations v. reality.

And this particular prosecution annoys the crap out of me. I have no idea whether they’re guilty. I’ve read some arguments that may be sound, with reasonable defenses for these two schmucks. The bigger problem isn’t these prosections, it’s the prosecutions that aren’t happening. Out of the scores of financial institutions that comitted violations of dozens of laws and regulations over the last 8 years, these are the two that Holder chooses to prosecute? And for these wimpy charges? It’s rediculous. And disgusting.

[scaredyclassic]

Well on the bright side, they have plenty of prosecutors working on shutting down med marijuana clinics

[svelte]

[quote=Allan from Fallbrook]
The WHOLE game is fixed, Brian, don’t you get that? [/quote]

Man do I like that line. It really is. Neither the Dems nor the Reps are really for the little guy. They do what it takes to get re-elected, period.

Kind of depressing when you think about it. But then, I don’t have a solution to offer either.

Sigh. And with that thought, I wish everyone a very pleasant year end – it is time to spend time with family and friends and reflect on the year that was. Best wishes to all…

[Author]

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