U
Tug McGroin
Senior
The Bush administration frog-marched executives from Enron, Tyco, and Worldcom into federal prison for their financial shenanigans, in collapses that look positively microscopic in the wake of the failure of Fannie Mae and Freddie Mac.
Why hasn’t anyone in the recent failure received the same treatment?
Enron, Worldcom, Tyco vs. Fannie/Freddie
Bernard Ebbers, Worldcom: 25 years in prison
Ken Lay, Enron: Convicted on 10 counts, died before serving sentence
Jeff Skilling, Enron: 24 years in prison
Andrew Fastow, Enron: 10 years in prison
Dennis Koslowski, Tyco: 8 years in prison
Mark Schwartz, Tyco: 8 years in prison
So how about the officers of Fannie Mae, who conducted similar kinds of fraud in their financial statements in order to pad bonuses and keep regulators from discovering their precarious position until it was too late? Franklin Raines never faced criminal charges, and instead settled a civil suit with a $2 million payoff — which came from Fannie Mae’s insurance company. Jim Johnson didn’t even have to do that much.
And where are they now? The Washington Post reported twice that Raines was advising the Barack Obama campaign, although they denied it. Jim Johnson still advises the Obama campaign and had briefly led the search for a running mate.
Supposedly the FBI has begun a criminal probe into the actions of Fannie Mae management over the years, but we’ll see if that proceeds.
Why hasn’t anyone in the recent failure received the same treatment?
Enron, Worldcom, Tyco vs. Fannie/Freddie
Bernard Ebbers, Worldcom: 25 years in prison
Ken Lay, Enron: Convicted on 10 counts, died before serving sentence
Jeff Skilling, Enron: 24 years in prison
Andrew Fastow, Enron: 10 years in prison
Dennis Koslowski, Tyco: 8 years in prison
Mark Schwartz, Tyco: 8 years in prison
So how about the officers of Fannie Mae, who conducted similar kinds of fraud in their financial statements in order to pad bonuses and keep regulators from discovering their precarious position until it was too late? Franklin Raines never faced criminal charges, and instead settled a civil suit with a $2 million payoff — which came from Fannie Mae’s insurance company. Jim Johnson didn’t even have to do that much.
And where are they now? The Washington Post reported twice that Raines was advising the Barack Obama campaign, although they denied it. Jim Johnson still advises the Obama campaign and had briefly led the search for a running mate.
Supposedly the FBI has begun a criminal probe into the actions of Fannie Mae management over the years, but we’ll see if that proceeds.
U
UAL_TECH
Guest
IMHO View attachment 7975
I will be surprised if ‘anyone’ does time over this mess simply due to the fact that the regulators left so many loop holes in their ‘regulatory duty’ that banks/lenders were just following the law. I remember reading from one idiot senator that he was happy to see low income families finally being able to purchase a home, but now regrets his elation as this ‘program’ has put everyone else in a world of hurt (he is probably an exception).
When you have people buying homes with little/no stated income documentation, little to no savings, credit score at or under 600, interest only, 100% financing with a 3 or 5 year ARM, purchasing (and over bidding each other!) on a property that is inflated because every other looser is doing the same thing, ‘speculating’ that their job will not be lost and home prices will continue to rise at such a ridiculous rate.
Realtors loved it because with bigger price tags produce a larger commission. Loan officers loved it because they received a big chunk of the loan as a commission. Banks and lenders loved it because their holdings grew (on paper).
Home builders also jumped on this scam and overbuilt properties in the dream that they will make a fortune. And they did for quite some time.
Now all of this ‘voodoo’ regulation is coming to roost and there will be finger pointing enough that no one will be accountable. :down:
Hell, Johnny Paycheck had nothing to loose. Did not have crap at the beginning and does not have crap now, but all of the sudden we are the ‘bag holders’ for the ‘regulators’ incompetent and short sighted decisions. Sheeeeet, in some cases, Johnny Paycheck also ran up their credit, pulled out ‘equity’ loans and when the crap hit the fan, stopped paying anything and still lived in the property! When the property went into foreclosure, they sold the appliances, bathtubs, toilets, cabinets and in some cases, the copper plumbing and wiring! 😛h34r:
Don’t believe me? Go check out some of the REOs on the market today.
Enough Rant! :rant:
The charlatans and plutocrats being bought off with lobbyist money are the ‘TRUE’ criminals in this debacle. As long as we allow the ‘lobby’ system to be in effect, then we are doomed by or own stupidity!
B) xUT
I will be surprised if ‘anyone’ does time over this mess simply due to the fact that the regulators left so many loop holes in their ‘regulatory duty’ that banks/lenders were just following the law. I remember reading from one idiot senator that he was happy to see low income families finally being able to purchase a home, but now regrets his elation as this ‘program’ has put everyone else in a world of hurt (he is probably an exception).
When you have people buying homes with little/no stated income documentation, little to no savings, credit score at or under 600, interest only, 100% financing with a 3 or 5 year ARM, purchasing (and over bidding each other!) on a property that is inflated because every other looser is doing the same thing, ‘speculating’ that their job will not be lost and home prices will continue to rise at such a ridiculous rate.
Realtors loved it because with bigger price tags produce a larger commission. Loan officers loved it because they received a big chunk of the loan as a commission. Banks and lenders loved it because their holdings grew (on paper).
Home builders also jumped on this scam and overbuilt properties in the dream that they will make a fortune. And they did for quite some time.
Now all of this ‘voodoo’ regulation is coming to roost and there will be finger pointing enough that no one will be accountable. :down:
Hell, Johnny Paycheck had nothing to loose. Did not have crap at the beginning and does not have crap now, but all of the sudden we are the ‘bag holders’ for the ‘regulators’ incompetent and short sighted decisions. Sheeeeet, in some cases, Johnny Paycheck also ran up their credit, pulled out ‘equity’ loans and when the crap hit the fan, stopped paying anything and still lived in the property! When the property went into foreclosure, they sold the appliances, bathtubs, toilets, cabinets and in some cases, the copper plumbing and wiring! 😛h34r:
Don’t believe me? Go check out some of the REOs on the market today.
Enough Rant! :rant:
The charlatans and plutocrats being bought off with lobbyist money are the ‘TRUE’ criminals in this debacle. As long as we allow the ‘lobby’ system to be in effect, then we are doomed by or own stupidity!
B) xUT
U
UAL_TECH
Guest
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