[usconservative]

The biggest killer was the so call good conventional loans that were suppose to be vetted by the banks, where the the loan applicant lied about his income and qualification at the encouragement of the mortgage bank whose main goal was collect fees from the largest number of loans originated and selling it off to investors (after Moody is threaten by the bank for asking for the loan data for analysis and relent giving high risk portfolio a AAA rating to preserve future business from the banks) and leaving them holding the bag when the bad loans manifest. This is the chokepoint of the fraud and malfeasance by the banks. We do not need more regulations

Bingo!! While this was one of the practices that Glass-Steagall was supposed to prevent, the problem was we had a Fed looking the other way via an 'easy money policy' in the interest of keeping on kicking the housing bubble down the road (among other things.)

we need more investigations and prosecution of mortgage orginators, loan applicants, mortgage managers and management as well as Moody and the rating agencies.

Here's where I disagree. The mortgage originators, applicants etc.. were simply taking advantage of the "rules" set forth by liberals in the U.S. Congress who blocked every attempt at regulating Fannie Mae/Freddie Mac and created the conditions under which the housing bubble for example was allowed to exist. My solution is rather than clog the courts with mortgage originators, loan applicants etc.. we the voters in this country take charge of the situation and vote out the very members of Congress who not only allowed, but encouraged this situation to happen, they're the root cause of this mess.

[Fee]

I disagree with your characterization of the loan applicant, mortgage originator and etc as innocent participants taking advantage of loose requirements. The CRA and other fed programs allow the banks to overlook some of the loan applicant’s qualifications if the person is low income and etc. This did not apply to high income investors or people who do not fall under the CRA. Nor does it mean Moody can assign false ratings to mortgage backed securities or the bank can bundle liar loans into portfolios and label them as conventional high quality loans and sell it to the re investor market. These people already made their money and if not investigated and punished are laughing to the bank and will repeat this scheme in the near future. If you do not punish white collar criminals they will return to repeat the crime again.