[emilylynn]

Quote:

Originally Posted by brewer12345 What on earth are you talking about? Only fraud I am aware of is borrowers lying about their income and occupancy status in order to get a loan they shouldn't have.

How about the lenders who knowingly inflated borrowers' qualifications, who obtained overblown appraisals, and who intentionally assumed risks that never would have been deemed commercially reasonable had it not been for the fact that these loans were destined for the securitization pipeline? How about the Wall Street wheelers and dealers who couldn't get enough of these loans and who tacitly approved and encouraged the practices of lenders? Or the bankruptcy-remote special purpose entities who, in concert with the lenders, managed through some feat of financial alchemy to package a single loan into multiple securitization pools? How about the ratings agencies who slapped AAA ratings on the resulting securities? How about the mainstream bond and money market fund managers who used this trash to boost returns, unbeknownst to the individual investor? This was a multi-layered fraud the success of which was attributable to the fact that when the whole thing blew up, it would be somebody else's problem.