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.