FBI investigation of mortgage fraud could have been acted on by the Bushies

[eridani]

http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html

the FBI accurately described mortgage fraud as "epidemic"

nonprime lenders are overwhelmingly responsible for the epidemic


the fraud was so endemic that it would have been easy to spot if anyone looked


the lenders, the banks that created nonprime derivatives, the rating agencies, and the buyers all operated on a "don't ask; don't tell" policy


willful blindness was essential to originate, sell, pool and resell the loans


willful blindness was the pretext for not posting loss reserves


both forms of blindness made high (fictional) profits certain when the bubble was expanding rapidly and massive (real) losses certain when it collapsed


the worse the nonprime loan quality the higher the fees and interest rates, and the faster the growth in nonprime lending and pooling the greater the immediate fictional profits and (eventual) real losses


the greater the destruction of wealth, the greater the (fictional) profits, bonuses, and stock appreciation


many of the big banks are deeply insolvent due to severe credit losses


those big banks and Treasury don't know how insolvent they are because they didn't even have the loan files


a "stress test" can't remedy the banks' problem -- they do not have the loan files

[Historic NY]

1. Only if the Justice Dept, wasn't working for a Repuke Majority forever case.