,
5 tweets,
3 min read
Read on Twitter
I missed this Friday, GE agrees to $1.5 Billion penalty for subprime mortgage securities. Related to financial crimes committed in 2005-07 that were revealed in the market collapse in 2008-09. So ignored for more than a decades, but not anymore. #ButNothingsHappening
Making junk loans, selling them on to banks as securities, ignoring signs of fraud & abuse even when banks pointed them out.
Rather than doing something about it, they just tried to find another sucker to buy it without telling them about the fraud issues.
Rather than doing something about it, they just tried to find another sucker to buy it without telling them about the fraud issues.
In a sampling in 2006, they found 78% of loan files had at least one piece of false information in the package.
We are likely past the statute of limitations on any of these crimes so a criminal prosecution would likely fail. But a civil suit opens the door to evidence & $1.5B
We are likely past the statute of limitations on any of these crimes so a criminal prosecution would likely fail. But a civil suit opens the door to evidence & $1.5B
It allows DOJ & FBI to access the evidence in this case. Allowing them to check the receipts to identify other issues & transactions. Some buyers may have bought these knowing they would lose money, it is a common way to launder money, buy something for more than it's worth.
Wonder what else the DOJ will find in the receipts for $65 Billion dollars in shady mortgage security trading...
Trading that crashed the banking industry & economy in 2008. Conveniently allowing the Swamp to bail them out with tax payer dollars. #ButNothingsHappening!
Trading that crashed the banking industry & economy in 2008. Conveniently allowing the Swamp to bail them out with tax payer dollars. #ButNothingsHappening!
