Duck_dodgers007 Posted October 27, 2012 Posted October 27, 2012 http://www.washingtonpost.com/business/economy/government-crusade-against-mortgage-lenders/2012/10/24/42b8b136-1df8-11e2-b647-bb1668e64058_story.html "On Wednesday, the Justice Department filed a civil lawsuit alleging that Bank of America stripped safeguards designed to catch mortgage fraud and then peddled the loans to government-backed Fannie and Freddie in what officials called a “spectacularly brazen” scheme." Nothing will ever happen to the criminals themselves. But if they were poor people and they did 1/1000 of something these people are alleged to have done they would end up in jail.
TakeYouToTasker Posted October 27, 2012 Posted October 27, 2012 (edited) Ignoring the hyperbole, I have one question for you: Once you've acknowledged that a financial institution is "too Big to fail", what economic good comes from destroying consumer confidence in that institution? Who is hurt when massive punitive fines and settlements decimate the balance sheets, destroying the institution's ability to lend? When the invariable downgrade comes as a result, who is hurt when the nation's largest bank sees it's stock price tumble? Who is hurt when it begins a massive wave of layoffs out of a need to raise capital? Edited October 27, 2012 by TakeYouToTasker
Oxrock Posted October 27, 2012 Posted October 27, 2012 Not the Obama campaign. They already secured their $15m loan from BoA. http://www.google.com/search?q=obama+15+million+bank+of+america&ie=UTF-8&oe=UTF-8&hl=en&client=safari
Duck_dodgers007 Posted October 27, 2012 Author Posted October 27, 2012 Ignoring the hyperbole, I have one question for you: Once you've acknowledged that a financial institution is "too Big to fail", what economic good comes from destroying consumer confidence in that institution? Who is hurt when massive punitive fines and settlements decimate the balance sheets, destroying the institution's ability to lend? When the invariable downgrade comes as a result, who is hurt when the nation's largest bank sees it's stock price tumble? Who is hurt when it begins a massive wave of layoffs out of a need to raise capital? So, too big to punish?
DC Tom Posted October 27, 2012 Posted October 27, 2012 http://www.washingto...4058_story.html "On Wednesday, the Justice Department filed a civil lawsuit alleging that Bank of America stripped safeguards designed to catch mortgage fraud and then peddled the loans to government-backed Fannie and Freddie in what officials called a "spectacularly brazen" scheme." Nothing will ever happen to the criminals themselves. But if they were poor people and they did 1/1000 of something these people are alleged to have done they would end up in jail. The article's not even accurate. Bank of America's not being sued for Bank of America's lending practices. They're being sued for Countrywide's practices, which liability they took on when they bought the company. And you think BofA executives should do time for Countrywide executives' actions? You fool.
TakeYouToTasker Posted October 27, 2012 Posted October 27, 2012 So, too big to punish? Like I said, I'm ignoring the hyperbole (and a few outright fabrications). That's a conversation you can pursue with Tom, as he's chosen to comment on that portion. I asked you four questions. Answer them if you're able.
unbillievable Posted October 28, 2012 Posted October 28, 2012 (edited) What the government needs to do is to just mandate that everyone buy a house so the prices will go down and the economy will go up. ...also banks shouldn't be able to penalize you for a pre-existing credit score. Edited October 28, 2012 by unbillievable
Doc Posted October 28, 2012 Posted October 28, 2012 What the government needs to do is to just mandate that everyone buy a house so the prices will go down and the economy will go up. ...also banks shouldn't be able to penalize you for a pre-existing credit score. And you can live in your parents' house rent-free until age 26. Oh wait, that's already happening under Barry.
TakeYouToTasker Posted October 28, 2012 Posted October 28, 2012 (edited) What the government needs to do is to just mandate that everyone buy a house so the prices will go down and the economy will go up. ...also banks shouldn't be able to penalize you for a pre-existing credit score. ... So the government should force people to buy things they don't want, or can't afford; and the lenders shouldn't be able to gauge and establish a quality business by measuring the frequency and ability of borrowers to meet their prior contractual obligations? I am absolutely mystified as to how this absurdity fixes anything, much less how it wouldn't make conditions appriciably worse. Edited October 28, 2012 by TakeYouToTasker
Oxrock Posted October 28, 2012 Posted October 28, 2012 ... So the government should force people to buy things they don't want, or can't afford; and the lenders shouldn't be able to gauge and establish a quality business by measuring the frequency and ability of borrowers to meet their prior contractual obligations? I am absolutely mystified as to how this absurdity fixes anything, much less how it wouldn't make conditions appriciably worse. Your sarcasm meter is broke. See ACA
GG Posted October 28, 2012 Posted October 28, 2012 The article's not even accurate. Bank of America's not being sued for Bank of America's lending practices. They're being sued for Countrywide's practices, which liability they took on when they bought the company. And you think BofA executives should do time for Countrywide executives' actions? You fool. My guess is that he didn't get the latest talking point.
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