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Mortgage Fraud Deserves Jail Time

Posted by Larry Doyle on November 3, 2009 10:34 AM |

Fraudulent actions must have consequences.

How is it that with trillions in financial losses and a variety of financial frauds readily apparent, very few individuals have been held accountable? FL, a loyal reader of Sense on Cents, has banged this drum repeatedly.

Why hasn’t this fraud been more aggressively combated? The influence of the banking lobby, primarily over the federal regulatory oversight of the financial industry.

What a shame. Are there some new sheriffs, those being state attorneys general, getting ready to ride into this mess? It would appear they are. I immediately thought of our friend FL upon reading The New York Times report, States Are Pondering Fraud Suits Against Banks.

The banking industry at large has worked in concert with its lobbyists and trade associations to keep regulators and law enforcement at bay. At the federal level, the banks have largely been successful. That success begs the question as to how deeply embedded the lobbyists are in the regulatory community.

How is the bottleneck at the federal level opening up? Thanks to former New York AG Eliot Spitzer for pursuing frauds perpetrated by nationally chartered banks. Current NY AG Andrew Cuomo followed up on Spitzer’s lead and fought a suit brought by the Office of the Comptroller of the Currency and The Clearing House Association, a consortium of national banks, to restrict states ability to oversee national lenders.

The financial industry and its federal regulator, the OCC, are showing their true stripes in fighting this case. Fortunately, lower courts have sided with the states.

Hopefully, the truth will out and those individuals and banking corporations which engaged in the perpetration of fraud will be dealt with in appropriate fashion.

The American public and especially FL deserve nothing less.


  • John

    The politicians & the banks are in bed together, remember Enron, Global Crossing, Author Anderson, etc, etc, all caught cheating after the collapse of the Y2K scam they ran on us.

    According to the Bill Moyer & William Black Investigative Reports on PBS, it was outright fraud. They were all receiving bribes/campaign contributions from the lobbyist.

    Our politicians from both parties did away with Glass Stegal & the rest of the regulations that protected ‘We The People’.

    Greenspan’s Fed lowered interest rates to 1 percent & Paulson’s Goldman Sachs & the rest of the investment banks pillaged our 401K & pension accounts with fraudulent investment scams. And the news media was a cheerleader & coverup artist for them.

    The surprising fact is that the majority of these people are Lawyers. Not one of them has stepped forward with class action law suits to get all that money that was stolen thru fraud. Just think of the payout for the lawyers. Trillions stolen, but the lawyers remain quiet. Protecting their brotherhood of lawyers who have ripped not just Americans off, but the whole worlds pension fund systems.

    The News Media keeps calling them the Best & the Brightest. Along with Too Big Too Fail.

    But the truth is they are corrupt & wicked individuals & their too big too fail corporations should have been broken up under our anti-trust laws.

  • fiscalliberal

    Build the scaffolds, Trial next day at 10:00, Hanging at 12:00 noon and let them twist in the wind


    • Larry Doyle

      How do you really feel??

  • fiscalliberal

    I realy have some aprehension regarding the states being able to get something done. However it is good to see the banks get nervous.

    After your last Sunday show I was amazed in terms of another psuedo government agency not doing its job. However I got the impression that blood was in the water and the legal sharks were circling.

    Could it be that there is a legal case for SPIC to go after the members for money to cover the legal cases. It would be like Shiela Bair going to the surviving banks to get funds to cover the bank closures.

    Thank the diety for greedy lawyers seeking truth and justice to counter the wall street greed. Your guest said 18 months to chase those pots of gold at the end of the financial rainbow. Stock up the popcorn.

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