The United States Justice Department, Janet Reno, Bwany Fwank, Barack Obama, and the courts colluded to force lending institutions to make bad loans.
Fannie May and Freddie Mac didn’t have a choice here. They and banks and other lending institutions were forced to grant these non-repayable loans.
When court convictions started coming down, the industry was forced to stop red-lining, stop enforcing old lending guidelines, stop protecting the liquidity of their institutions.
The idea that these top executives somehow conspired to defraud folks is outlandish, pure evil. Here’s why.
When the government forced these institutions to grant mortgage loans to people who couldn’t pay them back, they were in effect saying that those loans were as justified as any other. Judges agreed. They said that the lending institutions were not being fair. They said there had been prior racial and economic bias, they were putting an end to.
Once these lending institutions had made loans they knew couldn’t be paid back, they bundled the paper and sold it to other entities. They sold this paper, just like they had the paper covering sound loans before.
The government stated there were no valid grounds to deny these loans. They made this finding.
Now they’re trying to say these executive should have known they were bad loans.
This would be comical, if it didn’t involve what verges on or actually goes over the line of Executive, Legislative, Judicial branch, and private sector criminality.
There was no justification whatsoever for making the case these lending institutions were acting in bad faith by not making the loans before. There is no justification now for claiming they were acting in bad faith by extending those loans. And if an institution is forced to make a certain type of loan over their objections, it’s insane for the government to state those who sold the paper to others, was acting in a criminal manner.
If they want to prosecute someone, they should round up the Executive Branch, Legislative Branch, Judicial Branch co-conspirators and their private sector comrades. Then prosecute away to their hearts content.
It is shameful what they are trying to do to these executives. This borders right up against gulag level activity here.
Don’t kid yourself that Fannie and Freddie were just innocently forced to do what they were made to do. Fannie Mae under James Johnson had regulations made just for them, the lobbying he did to grow the company was astounding. I wouldn’t be surprised if 90 percent of the blame for the housing debacle couldn’t laid at his feet.
Congress didn’t “force” them to loan money to losers, except in the sense that they lobbied Congress to “force” them.
You really need to read a book about this, it’s fascinating and eye opening how this all happened. Sort of a perfect storm of greed. “Reckless Endangerment” is a good one and there are others.
Merry Christmas to you and yours! W & BJ