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The Barclay's Bank LIBOR Scandal-Finally Some Mega Bank Executives May See Jail
2012 Jul 6, 6:46am 11,435 views 29 comments
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Acts of govt like repealing Glass Steagall. Where in the world do you suppose that idea came from?
parts of Glass Steagall were dismantled over many decades past... if you want GS back.. fine.. but that would have not prevented having a Housing Bubble !
http://en.wikipedia.org/wiki/Glass–Steagall_Act#1966_to_1980_developments
Which banks didn't play the game and got taken to the cleaners? Which acts were these? What are acts of govt anyway?
Andrew Cuomo: CRA Should be Abused to Force Banks to Give Risky Loans
Where in the world do you suppose that idea came from? The common people sitting around their kitchen tables writing to congress begging to allow their commercial banks to get into risky investments?
Sort of.. which if reported to the FDIC can as in the NYC case above with Cuomo leave a $2+BILLION in penalties.
http://articles.chicagotribune.com/keyword/community-reinvestment-act
freak80
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2012 Jul 8, 7:00am
It's entirely possible that the CRA contributed to the housing mess. But I don't think impoverished inner city residents were buying $500k shacks in Marin county.
It's entirely possible that the CRA contributed to the housing mess. But I don't think impoverished inner city residents were buying $500k shacks in Marin county.
perhaps Strawberry pickers making .. what $15K a year buying $600K home in CA Central valley!
THE VAST majority of the insanity was from common people who infact inflated prices.. WAY WAY OVER THE TOP! Yes, they could afford it, but it didnt make sense! Why would anyone think a house in a city say X which back in mid 90s was around $200K would somehow expect to be $1M in a few short years.
freak80
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2012 Jul 8, 7:14am
Yeah, "liar loans" and "ninja loans" are always a bad idea.
But was it the CRA that required the practice? Or just fraudsters that knew they could pass off the toxic loans to "investors."?
I have no idea how accurate the following description is, but hey, it's funny. So it must be true!
http://www.slideshare.net/guesta9d12e/subprime-primer-277484
Sort of.. which if reported to the FDIC can as in the NYC case above with Cuomo leave a $2+BILLION in penalties
Andrew Cuomo: CRA Should be Abused to Force Banks to Give Risky Loans
So riddle me this? How did Cuomo and the CRA create a world wide housing bubble and crash? Pretty powerful law that CRA, pretty influential man that Cuomo.
Anyway the idea of the CRA as the cause of the housing bubble has been so totally discredited everywhere but the extreme right wing tin hat web sites that I'm just amazed you would even bring it up.
So you are saying the banks had absolutely nothing to do with repealing the laws that kept them from running wild and creating the biggest economic disaster since the great depression, which just coincidentally was caused by banks and finance being allowed to run amuck also.
perhaps Strawberry pickers making .. what $15K a year buying $600K home in CA Central valley!
Provide one example of a 600k loan made under CRA. That's so absurd that you just moved into serious trolldom.
freak80
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2012 Jul 8, 7:44am
He can't provide an example.
Never let facts (or lack thereof) get in the way of a good ideology that blames poor people for everything.
He can't provide an example.
Never let facts (or lack thereof) get in the way of a good ideology that blames poor people for everything.
No, say it ain't so joe. I would have never guessed. :-)
freak80
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2012 Jul 8, 8:01am
It's a good think most rich bankers aren't black. Otherwise the far-right would be REALLY confused.
So riddle me this? How did Cuomo and the CRA create a world wide housing bubble and crash? Pretty powerful law that CRA, pretty influential man that Cuomo
you mean you didnt watch the video with Cuomo stating higher rates of default will actually happen, but per Cuomo Its OK!. You talk of Criminal Acts.. yet if someone like Clinton or Cuomo puts pressure on banks extend lending to far more risker homebuyers which would cause losses and ultimately the tax payer would be on the hook.. Both Clinton and Cuomo are immune and still allowed to have a political career.. We dont even hear that it was bad judgement!
And even the management of Fannie Fae and Mac havent been prosecuted.. why! they are juiced into the government.
And even today the GSE losses are over 100 Billion and still counting.. makes Enron look like a pimple!
Anyway the idea of the CRA as the cause of the housing bubble has been so totally discredited everywhere but the extreme right wing tin hat web sites that I'm just amazed you would even bring it up.
What caused the housing bubble! irrational pricing of RE by the public...
Thats what caused the bubble!
It certainly wasnt the bankers that were telling you Home Prices would go up 30-50% a year! At what point did Bankers proclaim everyone should be buying up RE.. if not one house make it 2 or 3.
Certainly Govt involvement in RE made it even worse.
It's a good think most rich bankers aren't black. Otherwise the far-right would be REALLY confused.
Frank Raines, was never prosecuted for similar SEC violations commited by Enron! Perhaps his ties to Clinton made that possible.
Vicente
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2012 Jul 8, 3:57pm
I expect this to go about as well as the Murdoch "phone hacking" scandal. Meaning a bunch of hot air expended, and in the end none of the big fish are wearing handcuffs.
freak80
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2012 Jul 8, 4:11pm
I tend to agree that loaning money to "anyone" is a bad idea. If ACORN and other groups played the "race card" to get banks to make toxic loans, then shame on them.
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I'm delighted to see that Britain's Special Fraud Office has opened an investigation into Barclay's Bank and the fraud with the LIBOR rate fixing scandal.
Finally a serious law enforcement agency has opened a criminal fraud inquiry into a megabank that is deemed "too big to fail." The British authorities long ago saw that a case against a big bank or corporation would be too complex to be understood by a jury of 12 men and women of normal education and abilities. The British set up a special court to hear such cases. A very senior judge presides with the assistance of two assessors who are MBA's, CPA's, etc. These three highly trained people conduct the trial, make a determination of guilt and innocence and set a sentence. We might see some senior bank officers found guilty of fraud and sent to a British prison. (The sentences will be far lower than they would get if found guilty of a similar crime in the USA.)
We are all upset that officers of megabanks here in the USA have escaped prosecution for their horrendous crimes here in the USA. We hear the lame excuses that the US Justice Department does not have the manpower and resources to pursue these cases. It is further argued that even if a case were put together, it could never be explained to a jury because it would be too complex. We also hear veiled warnings that a prosecution of bank officers would threaten the whole fabric of our economy and bring on another Great Depression.
The British have ignored all of these arguments and are courageously moving forward.
I suspect that the massive political contributions the megabanks hand out gives them "immunity from prosecution" in the USA.
#crime