Wall Street Fuckery Expanding!

[JackLuis]

Whistleblower: Wall Street has engaged in widespread manipulation of mortgage funds

Among the toxic contributors to the financial crisis of 2008, few caused as much havoc as mortgages with dodgy numbers and inflated values. Huge quantities of them were assembled into securities that crashed and burned, damaging homeowners and investors alike. Afterward, reforms were promised. Never again, regulators vowed, would real estate financiers be able to fudge numbers and threaten the entire economy.

Twelve years later, there’s evidence something similar is happening again.

Some of the world’s biggest banks — including Wells Fargo and Deutsche Bank — as well as other lenders have engaged in a systematic fraud that allowed them to award borrowers bigger loans than were supported by their true financials, according to a previously unreported whistleblower complaint submitted to the Securities and Exchange Commission last year.

Remind you of someone? The SEC does NOTHING!

 

[bodysong]

bodysong comment- Did someone remove the safety rails installed by Obama, to prevent this ?


Whistleblower: Wall Street is bundling toxic loans again, and it could be about to collapse

May 18, 2020

Briefly interrupting ever-bleaker pandemic news, we momentarily turn our attention
to Wall Street, which has been clamoring for a hasty economic reopening regardless
of expert advice to the contrary. A new ProPublica investigation examines whistleblower
charges that some of the largest banks in the world have been "engaged in a systemic fraud"
to inflate the value of commercial mortgages bundled into securities then sold to other investors.

If that sounds like precisely the sort of industry-wide fraud that led to the 2008 financial
near-collapse, except that bundled residential mortgages have now been replaced with
bundled commercial ones—you're right.

We may be witnessing the seeds of the Great Recession Part II, hastened along this time
by the pandemic that is threatening the entire world's commercial sectors even without
banks playing Investment Jenga behind everyone's back.

https://www.dailykos.com/stories/20...ed-loan-values-again-it-looks-like-he-s-right