Thursday, October 25, 2012

Wow. Now THAT Is What You Call Brazen...

US sues Bank of America for $1B+ for mortgage fraud in Countrywide loans
NEW YORK – The top federal prosecutor in Manhattan sued Bank of America for more than $1 billion on Wednesday for mortgage fraud against Fannie Mae and Freddie Mac during the years around the financial crisis.

U.S. Attorney Preet Bharara said Countrywide Financial, which was later bought by Bank of America, churned out mortgage loans from 2007 to 2009 without making sure that borrowers could afford them.

We'll even leave aside the debate over whether or not the Community reinvestment Act of 1977 (Thanks Jimmy Carter) that Bill Clinton pushed heavily had anything to do with the mortgage collapse. No, the brazen part comes in with the fact that the Obama campaign just took a $15 million loan out to cover their re-election - FROM BANK OF AMERICA.

Now, I don't know about you, but that just practically SCREAMS conflict of interest to me. They take out a $15 million loan to cover the cost of the campaign, and then weeks later file suit? I mean, I'm sure that there are completely different groups here, but you can't tell me they didn't know the lawsuit was happening.

At the very least, this shows shocking ignorance or arrogance (or both) on the part of the Obama administration. They had to have been aware of the pending lawsuit, and then to go ahead and take such a sizable loan from the same bank? It's hard to imagine that - given the amount of time, energy, and rhetoric used against "big business" and Wall Street, etc. - that they wouldn't have realized that, at the very least, this might be seen as somewhat of a conflict of interest.

At least Obama didn't testify in a divorce proceeding, though - that would be serious!

That is all.

4 comments:

Bubblehead Les. said...

This is very strange to me, and very confusing. Didn't this whole Mortgage Melt-Down come about because of Barney Frank and Chris Dodd getting New Laws passed when the Dems seized control of the Congress in the '06 Elections? I recall "Sweetheart" Home Loans to Dodd in there. Didn't EVERY Bank in the Country jump on the Bandwagon when the Laws went in effect? Weren't Fannie and Freddie told to back up all those Bad Loans, and the Upper Level Management of both got Millions in Bonuses to ensure that "Free Housing!" Loans were moved through like Grass through a Goose? Didn't the Gooberment turn a Blind Eye and do nothing to stop the sale of "Mortgage-Backed Securities" World Wide? Didn't the whole House of Cards come crashing down when it turned out that those "Securities" weren't worth the Paper they were printed on? Didn't the Taxpayer get shafted when we started Bailing Out all those "Too Big to Fail" Banks, one of which is BoA?

So why is the Obama Admin going after the very People who did what they were told to do by the same Gooberment who is now going after them because they did what they were told to do?

And yet, I've yet to hear of ONE Single Politician being Prosecuted for the mess that their "Free Housing in the Name of Social Justice" caused.

Very Confusing.

Geodkyt said...

I also seem to recall that, during the stimulus effort, BoA was "encouraged" by the feds to buy Countrywide. . .

Anonymous said...

Hmm - any one want to bet that somewhere down the line (and well below the radar - or under the table) that the suit will be administratively dismissed - in return for the loan being 'forgiven'? Especially if barry loses and doesn;t have the resources to repay it.....

Larry said...

I don't believe a word of it. Everyone knows that Teh Oracle has raised so much money that he doesn't need a loan to finance his campaign!

/snark