July 31, 2009
In an encouraging move by the Senate, a panel is reportedly investigating a number of banks and brokerage houses including Goldman Sachs, Washington Mutual, Deutsch Bank for mortgage fraud. This is the best news homeowners have received during the housing crisis that was initiated when these financial concerns got too greedy.
It's being alleged that many financial institutions engaged in fraud when they knowingly allowed unqualified applicants to obtain mortgages. They subsequently "bundled" these "liar loans/no doc loans" with other more stable mortgages, misrepresented the quality of the mortgages for the rating agencies and then sold them as investment securities.
These greed-driven criminals were so confident that they had the perfect scam that they had the audacity to take out insurance against the securities they had sold to protect them from losses when their plan to destroy the real estate market came to fruition. The insurance company (AIG) couldn't pay when the claims came in and the taxpayer had to step in and actually pay these crooks AGAIN! Now, they'd like to get the property back through foreclosure so they can profit even further.
It's hard to believe they've been able to successfully divert attention from their guilt, but homeowners are beginning to put the pieces together. The picture that is developing implicates Congressional members such as Chris Dodd, Kent Conrad, and Barney Frank among others who will be fully exposed during the fraud investigation.
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