Unexpected downside risk: prison
By Matt Carter, Thursday, June 19, 2008.Bookmarking Sites
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 Justin Britt 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 Matthew Dollinger 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.
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