Guidelines for safe and sound lending practices have been in existence for decades, but after the dot.com bubble were tossed aside. When such enormous and reckless deviations from existing regulation take place; those who benefited from the reckless and unlawful practices should be disgorged immediately and a full investigation should be initiated.
The President is charged with faithfully executing our laws and is failing miserably. This crisis is far from over and those responsible must be held accountable.
Trillions in fraudulent and deceptive loans were created so that those on Wall Street could make a few percent off the top. Now everyone is suffering regardless if they were involved or not.
Providing highly leveraged loans to consumers with NO income documentation were not bad business decisions, but a criminal enterprise. There is plenty of evidence that proves the executives knew the borrowers were not qualified, but continued to promote fraud; even certain executives at AIG were involved.
I have been writing/warning regulators, legislators, law enforcement, media, clients, etc. about lenders' fraudulent (liar loans) and deceptive lending practices/products (subprime / Option ARMs), but like Markopolis (Madoff) was completely ignored.
My numerous letters, phone calls, emails and faxes lead to the inter-agencies review and toothless guidance for non-traditional mortgage products.
My comments at #20
As you could see I was the ONLY industry insider with a dissenting view and the only insider who met face to face with the borrowers whose lives would be destroyed if they purchased from 2004-2007.
In the future when an industry insider has a conflicting view of products or practices that person should be sought out for a better understanding of their opinion.
This should be the case for wars or business. Clearly, the foot soldiers have a much better idea of what is going on in the trenches than the Generals or Executives who sit behind a desk.