Washington’s Blog makes an air tight case that the entire foreclosure disaster was just the tip of the iceberg. The largest fraud in history has been perpetrated by the criminals on Wall Street and not one person has been taken away in cuffs. How could all of these bankers, appraisers, mortgage brokers, rating agencies and politicians committed these crimes and no one goes to prison?
Tuesday, October 12, 2010
“At the Root of the Crisis We Find the Largest Financial Swindle in World History”, Where “Counterfeit” Mortgages Were “Laundered” by the Banks
The tidal wave of evidence showing that the giant banks have engaged in fraudulent foreclosure practices is so large that the attorneys general of up to 40 states are launching investigations.
People’s homes are being taken when they didn’t even hold a mortgage, and the big banks have been using “robo signers” to forge mortgage related documents. Indeed, even president Obama has been hit by robo signers (see this and this).
Its so blatant that foreclosure mills have published price lists for forging documents, including such gems as:
“Create Missing Intervening Assignment” $35
“Cure Defective Assignment” $12.95
“Recreate Entire Collateral File” $95
But let’s take a step back. Only with some context will the actions of the banks with regards to these “defects” make any sense.
As I pointed out last year:
Simon Johnson confirmed what William K. Black has said about fraud by the financial sector, booms and busts.
As I previously wrote:
Black explained that fraud by a financial company usually involves the company:
1) Growing like crazy
2) Making loans to people who are uncreditworthy, because they’ll agree to pay you more, and that’s how you grow rapidly. You can grow really fast if you loan to people who can’t you pay you back
3) Using extreme leverage.