New York (CNNMoney) – The Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac with securities fraud on Friday for misrepresenting their holdings of high-risk mortgage loans.
OK, so the FIRST people the feds go after for the 2008 crash are at Fannie and Freddie. BUT both of these groups were excluded from the Frank-Dodd bill. So was that bill nothing but a sham and a fraud? One has to lean in that direction given this news.
It also really shoots down the leftists claims about Wall St. causing the crash. This should get real interesting....
Sounds like Newt Gingrich is going to get his wish. Send folks to jail.
uh-oh – now maybe we will find out how their historian, Newt, really helped them out.
I am glad that Financial Reg. Reform is passed and it is a net result thereof.
> Sounds like Newt Gingrich is going to get his wish. Send folks to jail.
What are the odds of any politicians going to jail since they were in charge of over seeing these quasi-government organizations? Barney Frank really stands out for his ardent support for their actions in the face of a lot evidence that what they were doing was extremely risky. Lots of You Tube video out there to prove the governments case. But I somehow doubt we'll see him in handcuffs.
"It also really shoots down the leftists claims about Wall St. causing the crash."
How? Please...do explain...since these charges really have nothing to do with the insane Wall Street gambling games that functionally caused the crash, and we would absolutely love to hear your wildly delusional conspiracy theories as to how these charges magically prove that it was all Fannie and Freddie's fault and that Wall Street firms like Lehman and AIG somehow have no responsibility.
What about the guys who sliced and diced these high risk mortgages up in the first place, and the bond companies that rated them triple A. We need Glass Steagall reinstated, or a similiar law, so this can't happen again. It could still be going on, and no one in DC is doing a darn thing about it. Good God when will we learn to stop electing millionaires to represent our interests?
@Truth and Nothing but the Truth – Wall Street did cause the crash – and now with austerity looming in Europe and America, they'll be in charge. Google CDOs and find out just exactly how we were gamed, from knowingly giving people mortgages they could not afford to breaking those mortgages up, rating them AAA, and selling them as assets in portfolios, all while making lots of money in a frenzy feeding heist.
> it was all Fannie and Freddie's fault
It wasn't all their fault. It was the federal government's fault and theirs. Federal policy over driving people to buy homes, lowering lending standards and getting a mortgage GUARANTEED by Uncle Sam, thanks to these quasi-government agencies. Without that guarantee, do think ANY of these mortgages would have been made? of course not.
So government interference to eliminate risk in the free market system and bring the risk into the government drove it. And guess what? The federal government knows diddly about managing risk because they don't care. And why don't they care about risk? Because the taxpayers wallet is bottomless to make up those losses. Barney Frank and the Dems were warned repeatedly about this huge accumulation of risk, yet they declared it all hyperbole and continued down the road to 2008.
Will they get a slap on the wrist, yes
It's a start.
@ Truth and Nothing But the Truth
Thank you for clearly illustrating that yuo truly truly have no idea what you're talking about and are doing nothing more than regurgitating talking opint memes you learned at Red State and Beck's blackboard.
>Google CDOs and find out just exactly how we were gamed, from knowingly giving people mortgages
> they could not afford >to breaking those mortgages up, rating them AAA, and selling them as assets
>in portfolios, all while making lots of money in a frenzy feeding heist.
OK, your basic problem is that you don't understand how the whole mortgage market works. You're mashing together several unrelated topics and that is why you arrive at a bogus conclusion.
Almost ALL mortgages are bundled and sold as investments. They were all written to meet the lending standards that both Fannie and Freddie set because if they weren't they would not have been guaranteed and would not have been saleable on the market. The people writing them would have had to hold onto them. In short, Fannie & Freddie define the mortgage world. And as a quasi-government organization, they were able to lavish millions upon millions in donations to politicians, who let them do whatever they pleased. One hand scratching the back of the other, all guaranteed by OUR paycheck. A very toxic mixture of politics, money and the entire financial world.
THAT is why they were the source of the 2008 crash.
Sniffit - Thank you for clearly illustrating that yuo truly truly have no idea what you're talking about and are doing nothing more than regurgitating talking opint memes you learned at Red State and Beck's blackboard
And thank you for showing by your complete lack of facts to rebut what I have said (just the typical lefty name calling) that you have no clue about what you are talking about, just left wing BS not based in reality.
@Truth and Nothing
You blame Frank and Dodd for mismanaging a Fannie and Freddie when the Congress was controlled by Republicans. Wall Stree blew itself up. Mortgages could not be bundled as investments until Republicans repealed Glass-Steagall. Fannie and Freddie did not create derivatives, nor the entire under the table trading floor on which they were dealt. None of was done out in the open because it was immoral. Wall Street was betting against Fannie and Freddie and set them up to fail.