Posted on 12/22/2011 5:02:03 AM PST by SeekAndFind
Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis.
That's the story revealed Friday by the SEC's civil lawsuits against six former Fannie and Freddie executives, including a pair of CEOs. The SEC says the companies defrauded investors because they "knew and approved of misleading statements" about Fan and Fred's exposure to subprime loans, and it chronicles their push to expand the business.
The executives deny the charges, and we hope they don't settle. The case deserves to play out in court, so Americans can see in detail how Fan and Fred were central to the bubble. The lawsuits themselves, combined with information admitted as true by Fan and Fred in civil nonprosecution agreements with the SEC, are certainly illuminating.
The Beltway story of the crisis claims that Congress's affordable housing mandates had nothing to do with it. But the SEC's lawsuit shows that Fannie degraded its underwriting standards to increase its market share in subprime loans. According to the SEC suit, for instance, in 2006 Fannie Mae adjusted its widely used automated underwriting system, "Desktop Underwriter." Fannie did so as part of its "Say Yes" strategy to "provide more 'approve' messages . . . for larger volumes of loans with lower FICO [credit] scores and higher LTVs [loan-to-value] than previously permitted."
(Excerpt) Read more at online.wsj.com ...
DEFUND & DISMANTLE domestic socialist (including social-engineering, and socialist money-laundering Government Sponsered Enterprises) collectives. DEPOPULATE socialists from the body politic. INCARCERATE these criminals when necessary.
Before 2008, the country class did not know what a GSE (government sponsored entity) or a MBS (mortgage backed security) was. But these ignoble acronyms are largely responsible for the housing bubble and burst.
Follow the....
http://www.campaignmoney.com/finance.asp?type=in&cycle=08&criteria=pritzker&fname=penny
Billionaire business mogul Penny Pritzker is a member of one of Americas richest families and was the Finance Chair for the presidential campaign of Barack Obama. It was Pritzker that led the prolific, and illegal, fundraising that helped power Barack Obamas presidential campaign. She was the chair of Chicago-based Superior Banks board for five years. Pritzker was into subprime lending before it became all the rage starting in around 2000. Prtizker's chairmanship was to concentrate on sub prime lending, principally on home mortgages, but for a while in subprime auto lending, too, after the Pritzkers' bank acquired its wholesale mortgage organization division, Alliance Funding, in December 1992. Superior Bank went belly up in 2001 with over $1 billion in insured and uninsured deposits; 1,406 depositors lost much of their life savings. This collapse came amid harsh criticism of how Superiors owners promoted sub-prime home mortgages. |
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Bwaney Fwanks lover indicted?
RE: Bwaney Fwanks lover indicted?
His name was Herb Moses and yes, Bawney helped him get a high up job at Fannie. But I don’t read any news saying Herb was indicted...
BIG story here. You will hear nothing from the Press.
That is if my memory is correct...
IMHO she is a bad Penny....
"I'm glad my opponent brought up the economy. Mr. Obama, isn't Penny Pritzker your National Finance Chairwoman -- and didn't her Chicago Family-owned Superior bank FAIL in 2001 from doing subprime loans for ACORN?"
The press won’t touch this except to turn the blame on the first repub they can.
Starting with Bill clinton, barney frank and Chris dodd at the leadership positions of all this mess and all the other good soviet dimrats who protected these entities.
Chris Dodd retired.
Bwarnee Fwank retiring.
Add to that holder will not open a case against any of them.
And they threw the book at madoff.
Kangaroo courtery at work.
Blaming the bankers instead of Fannie and Freddie as the prime source for the financial disaster of 2008 is like blaming the store that sold you the lemon instead of the company that manufactured it.
This article deserves a LOT of attention
Attention drawing Bump!
I’ll plug it again ....
Bump
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