Banks fined in RE mess

mhammerman

I guess most forum readers that follow the RE story as it unravels have seen at least parts of this story. In a related story, GS got called out for shorting a housing fund that it was actively recruiting investors for the long side of the trade. Bad GS, and bad Banks for illegally ripping people out of their houses. Of course the four banks neither accepted nor denied any responsibility so none of the directors has to go to jail.

So, the banks get bailed out and then the story comes out that they are stealing homes from buyers (article attached) and when they get caught, the banks get a fine. The new capitalism is that you sell the long side to the public and internally buy the short side and it's a win-win. Excellent business plan, unless you are one of the investors. I'm suprised the fed sends Madoff and Sanford to jail (both busted by the SE C) for a relatively small fraud when compared with GS or the four banks, but then let the bank individuals that cooked up these investment scams run free...go figure. Seems like the GS and the mortgage bankers are as involved in profiting from fraud as Bernie and R. Allen. It appears that you have to have really big numbers to keep from getting caught up in the SE C net.

It is nice to have actual PM instead of investment paper. Investment paper is kind of Forrest Gump's quote on chocolates.

Article
Go short on longs

57loaded

thanks for the links

i think, too that more than a few reali$e GS, JPMC and a couple others are "at the joysticks and write their own software"

pf70collector

The SEC corrupt? I just don't think they have the talent. All the good lawyers from the SEC are paid big money to come work for GS, JPM. The SEC is just a revolving door for lawyers to work for these trading houses. There is an article in Rolling Stone about this.



Why isn't Wall Street in Jail

TheTalkingWalnut

I'll keep it short but I have 15 years as an honest appraiser in and let me tell you that the real picture is as cynical as you can imagine it to be. And don't believe any of the reform bs talk from any side; the bad guys have to be so egregious that it would make <insert your favorite villain here> blush just to get a small slap on the wrist and the new regs only hurt the good guys.

Bear

Until the scoundrels do hard time, for at least 10 years

there has not been, nor will there be, true financial reform.

All legislation has been watered down, if not written,by the

very institutions the legislation was intended to control.

Our representatives in Washington, almost without exception,

are tainted by big money , the instant they step inside Congress.



The distance between the haves and the have not people has never

been larger and the gap is getting bigger. The little people have no

expensive lobbyists with large slush funds,to look after our interests.

Further, we are gullible and all to willing to be led in directions, that are

definitely not in the best interest of the people or the Nation.

RGJohn

<< <i>The SEC corrupt? I just don't think they have the talent. All the good lawyers from the SEC are paid big money to come work for GS, JPM. The SEC is just a revolving door for lawyers to work for these trading houses. >>



Wasn't there recently a story about the SEC attorney who was to investigate Bernie Madoff ( B4 he blew up of course). After carefully and diligently doing his duty to his employers ( that would be the American taxpayer) he found nothing. Recently it has come to light that said attorney's late mother had invested with Madoff, and that attorney was to share in her $4 million estate. Profits from the Ponzi. He never mentioned any of this to anyone. Foxes? Hen House?
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We have a climate of theft, 'let's help ourselves', and 'anything for money' that permeates our entire society so thoroughly that most of the time we don't even notice or remark upon it any longer. Whether you're flashing your tits at the Super Bowl or burning other peoples' sacred books, it's all for the money and anything goes.