02.26.09

What the FBI knew in 2004

Posted in Accountability, corruption, Fraud at 12:13 pm by angela

About problems in the mortgage market, of course.

Note: Sorry I have not been writing lately. I have been distracted by trying to get my site going, and learning all this programming is having an effect on my brain. I will try to be better about it, because there really is so much more to write about.

The FBI and Standard & Poor’s knew that:

  • The majority of the mortgages they looked at were fraudulent;
  • 80% of the fraud was on the part of the lender;
  • All of the fraud could have been easily found with due diligence;
  • The investment firms involved with securitizing the mortgages and repackaging them as top quality investments deliberately avoided scrutinizing them to see what they were;
  • The Bush administration made a decision not to do anything about this.

Okay, there are a lot more bullet points at the article. It is damning, as well it should be.

The article