Posted on 12/16/2011 1:19:10 PM PST by Doogle
WASHINGTON -- The Securities and Exchange Commission has brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust.
Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis.
Mudd, 53, and Syron, 68, led the mortgage giants when the housing bubble burst in late 2006 and 2007. The four other top executives also worked for the companies during that time.
The case was filed in federal court in New York City.
In a statement released through his attorney, Mudd said the lawsuit "should never have been brought" and said the government reviewed and approved all of the company's financial disclosures.
(Excerpt) Read more at foxnews.com ...
TS
Weren’t Clinton cronies Jaime Gorelik and Franklin Raines part of this mess as well?
...oh yeah, the Mistress of Disaster was in the middle of it all, making millions
I sure wish somebody had the authority and the nads to go after the Fast & Furious bunch too.
Hopefully this is just the beginning and depositions, investigations and maybe plea bargaining will lead to a good hard look at the real culprits; Franklin Raines, James Johnson and Jamie Gorelick who not only caused considerable disaster, but looted the place to pad their own pockets to the tune of almost $150 Million.
If Obma wanted to be real popular with the American people, in the first year he needed to do three things, stabilize the financial meltdown (unfortunately TARP and GM/Chrysler bailout was needed to do that to stem panic and adding 1 million to unemployment), two help businesses free up cash (less regs and less taxes) so they can pay down debt and employ people, and finally go after the Wall Street and gov officials responsible for the mortgage fraud and reckless behavior that caused the meltdown. Obama did the first because Wall Street bankers applied pressure and the unions applied pressure, but he made the second worst with more taxes and gov programs and finally hesitated to go after Wall Street and gov officials because he needed them for donations and under advisement from Treasury not to demoralize the banking industry with prosecutions in order to get their help to resolve the crisis. In the end we had higher unemployment and one hell of a pissed off public as the truth to the crisis unfolds.
Or Jamie Gorelick.
Franklin Raines is not among the fall guys, of course. That would be too close to you-know-who.
..personally, I think Gorelick was a funnel for Clinton, he had his mitts on everything that evolved $$$$$
” civil fraud charges “
CIVIL??? That means, what, a slap on the wrist and a small fine??
Question - does this preclude criminal fraud charges in the future??
8:}
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.
Yes, but you can’t expect leftist icons to be arrested
“...Yes, but you can’t expect leftist icons to be arrested...”
Of course not. That would be “racist” and bigotry. /s
Looks like Franklin Raines gets another affirmative action E-ticket....
That’s exactly what I as going to ask.
Does this mean the details of Gingrich’s “lobbying/history lessons” at Fannie Mae will be exposed?
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