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Unexpected downside risk: prison

By Matt Carter, Thursday, June 19, 2008.
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Two former Bear Stearns hedge fund managers indicted (Reuters). Hundreds of people arrested by FBI in mortgage fraud sweep (AP). To commemorate what will likely go down as a historic day in the credit crunch/housing downturn, here again is the link to "The Subprime Primer," a PowerPoint circulated by Wall Street traders last year in which stick figures spouting obscenities explain how the "securitize and sell" model of mortgage lending fueled risky underwriting. Not as funny as it was in February, perhaps, when there were still some hopes of a recovery in 2008.

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Submitted by Eric Bouler on June 21, 2008 - 2:48pm.

Eric Bouler
Prudential Gardner
New Orleans,La.
www.neworleanscondotrends.com

Some that played with fire will get burnt. Why do illegal activities have to blow up for these guys to catch someone. This has been around for years while the regulators had a holiday. Why wait till it breaks!!

 
Submitted by Chris Frantz on June 24, 2008 - 7:07pm.

Why did it take this so long and why don't they look at some lenders who started this problem. Check this out about Penny Pritzker

Chris Frantz
Exit Success Realty
Hernando County Florida
Hernando County Real Estate
Spring Hill Real Estate

 
Submitted by on June 25, 2008 - 1:10pm.

There were several lenders arrested here in Hawaii. I believe most of the offenders were located in Oahu. I can't believe what some people would stoop too!

 
Submitted by on June 27, 2008 - 9:12am.

It's amazing that it has taken as long as it has to get to this point. I completely agree with the first comment.

I do love stick figures. Next to the "mortgage crisis by stick figures" http://www.wellcomemat.com/video/38BAC1820B I think that this is my favorite one.

Matthew Dollinger
Performance Coach
@properties, Chicago IL

 
Submitted by Joe Cline on July 5, 2008 - 6:57pm.

I'm glad the Feds are finally taking this whole white collar crime semi-seriously. Maybe some FPMITA prison time will do these guys some good.

Joe Cline
Austin Real Estate Blog | Blackhawk Real Estate, Pflugerville

 
Submitted by Ki Gray on July 8, 2008 - 7:14pm.

I think the regulators should pay more attention while things are going good instead of waiting for a meltdown and coming in. For one thing while the market is strong it can take some additional regulation. Implimenting stricter lending laws now while the market is down is not really ideal.

Site Austin Texas real estate.
Search Austin MLS

 
Submitted by taylor bob on October 17, 2008 - 8:45pm.

In my opinion this is an interesting article which imparts knowledge about valuable things.
=====================
Taylor

FSBO

 
Submitted by Larry Hotz on October 20, 2008 - 4:36pm.

It was interesting to see the local Greeley lender who fled to Mexico to avoid prosecution was recently captured in Playa Del Carmen. He's been extradited back to the United States to face criminal prosecution for mortgage fraud.

Greeley is in Weld County where one of the biggest problems was that illegal aliens were able to obtain mortgages using fraudulent documentation. As a result, Weld County now leads Colorado in mortgage foreclosures.

Denver Real Estate Blog | Denver Suburbs

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