Didn’t the government bail these suckers out?
June 20th, 2008 | by Dusty |
Seems a couple of the executives at Bear Stearns got arrested Thursday. Matthew Tannin and Ralph Cioffi are not happy campers..or happy hedge fund operators. From the Marketwatch link:
They were charged in a nine-count indictment that alleged the two engaged in wire fraud, conspiracy and securities fraud in misleading investors about the rapidly tanking value of the two funds.
Ah..so it was only misleading the investors..no big deal..folks do it all the time right?
Well the Justice Department is making it a big deal, along with mortgage fraud..arresting hundreds possibly. Four, count em, four hundred of these folks were indicted Thursday. Said Deputy Attorney General Mark Filip about the indictments of all these real estate/securities folks:
“Mortgage fraud and related securities fraud pose a significant threat to our economy, to the stability of our nation’s housing market and to the peace of mind to millions of Americans,”
Mortgage fraud, as you can imagine..is up substantially in the past twelve months. From the MSNBC link:
The most common type of mortgage fraud was misstatement of income or assets, followed by forged documents, inflated appraisals and misrepresentation of a buyer’s intent to occupy a property as a primary residence.
Somehow, I think this is just the tip of the iceberg..and yes, it probably will get a whole lot uglier.
H/T to John Amato at C&L for the 411 on this fiasco.
5 Responses to “Didn’t the government bail these suckers out?”
By Mateo Giovanni on Jun 20, 2008 | Reply
Hi,
I am want to point out a few things. First, and foremost like the MSM commonly uses the phrase Power Broker’s, Why? I believe that “We The People” are being tested by these commonly now known Power Brokers. To see what we’ll do in crisis.
As far as the mortgage crisis. Ha!! I’ve got a couple of lawsuits waiting in the wings. The different banks, again have different veiled corps. This means it truly is difficult to track profit, and losses. As a home buyer your required to use their appraiser. That person wanted to do what ever it took to get the value up; in order to recieve their check for $500. Not to mention the fact that most of the Note trading cannot legally be traced; because the lazy bastards got tired of paying to keep original documents in storage…What does it mean? They legally in court can’t prove ownership of the lean. This means you get your property for free; minus property taxes. All in all there are a million ways to fight these greedy power broker’s, and win! Whether it is on the front end, or the back!.. Let US show them that we are still a united people…Just think how this ties into the rental issues. It was all planed!! Believe me, or look it up with dormant Critical Thinking Skills…..I know one thing that all should be able to agree on is:
Peace and Freedom
By Dusty on Jun 20, 2008 | Reply
Good evening Mateo,
First, many of the home buyers were willing participants in the mortgage fraud end of this debacle. They provided bogus information in order to obtain the property such as misstatement of income or assets or misrepresentation of their intent to occupy a property as a primary residence. Sure, they were probably coerced by the guy behind the desk..but they knew what they were doing, lets not kid ourselves.
So the home buyer does not walk away from this fraudulent purchase as a victim..not in my book.
By rube cretin on Jun 20, 2008 | Reply
i recommend the gallows for a few of these guys before a nation wide TV audience. Fortunately, those who lost big money in these schemes were wealthy investors. The duped home owners, including real estate investors and many greedy middle class families in search of the American dream, are just loosing their homes. Not to worry, the American tax payer stands ready to shoulder any additional costs through rising inflation, declining home values, and declining value of the dollar.
By Mateo Giovanni on Jun 20, 2008 | Reply
Dusty,
Don’t get me wrong. I agree. However, the amount of advertising about refinance, and all that crap certainly didn’t help. Now what is absolutely unforgivable is the fact that these companies made billions with their bubble, and hid the money in veiled corps. Now they’re getting bail out money, and their CEO’s are getting huge bonuses!! For what a job well done???
Peace and Freedom
By Dusty on Jun 20, 2008 | Reply
Rube, I might be able to stomach watching a little of that. Dunno for sure.
Mateo, That is the most hosed up part..the rich will get bailed out the regular folks just a pat on the back and sent on their way to find a box to live in under a bridge somewhere.