Subprime fraud Arrests

[chinaco]

It is beginning. This looks a lot like past recent fraud situations. Last time was stock market manipulation. Now mortages (and securities)... The next one is going to be the futures market and commodities.

Hopefully the justice department is more proactive on the futures market.

ABC News: Hundreds Arrested in FBI Subprime Sting

 

[lazygood4nothinbum]

local news tonight reported that the miami fbi office increased mortgage fraud investigative staff from 2 to 10 people this year and says in a year or two they will still be just as busy.

in related news:

Condo bust draws scams and squatters - 06/19/2008 - MiamiHerald.com

Among the decidedly low-rent problems plaguing South Florida's luxury condo market, squatters are the latest headache to arise from the glut of vacant foreclosures in some of Miami's toniest condominiums.

 

[W2R]

It is strangely, yet intensely satisfying to see a horde of people getting nailed like this for the subprime mess.

Now, let's just hope they got the right ones (oh skeptic that I am).

 

[Texas Proud]

It is strangely, yet intensely satisfying to see a horde of people getting nailed like this for the subprime mess.

Now, let's just hope they got the right ones (oh skeptic that I am).

More than likely the ones they get will be 'the right ones'.... the problem will be if these are the one who did the worse things?

Getting a bunch of low level people who wrote loans for people and lied about their income is not like the head of a mortgage company who lied to investors and cost millions.... OH, and taking millions with him when he left....

 

[Buckeye]

There is an episode of "This American Life" called "The Giant Pool of Money." The subject is the subprime mess and what some of the forces were that created it. I found it fascinating. You can purchase the podcast on iTunes or their website for about a dollar.

 

[chinaco]

Some people that were responsible will not be prosecuted... No one is responsible and no one broke a law. It was lack of enforcement, lax regulations, and easy money from investors. Some of that money was not from investors but from bank depositors.


New Technology (ease of money movement), speculative money, corporate manager willing to take large risks with others money coupled with lax regulations breeds an environment that corporate opportunist will try feed on until it falls apart.

I hope they all get 30 years in a federal pen.


The government needs to pass sweeping finance reform and regulators need to be more proactive.