Of course it was fraud

Financial crisis: Maybe it was fraud after all

Oct 13th 2010, 19:06 by M.S.

BACK when the global financial crisis first broke, there was a lot of debate over whether blame should be assigned to deliberate fraud by financial-industry actors, or whether the whole phenomenon was simply an unfortunate catastrophe based on systemic miscalculations. General opinion settled on the unfortunate-catastrophe thesis. But Felix Salmon writes about one area in which fraud may in fact have played a substantial role, by deceiving the investors who ultimately purchased mortgage-backed securities. “There’s a pretty strong case,” Mr Salmon writes, that banks that put together mortgage-backed securities “lied to the investors in many if not most of these deals.” He focuses on Clayton Holdings, a company which performed due diligence on some 70% of the mortgages packaged into bonds by banks, checking them to see whether they in fact conformed to the standards the banks represented to investors.

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Managing Director’s Dick Won’t Suck Itself

Managing Director's Dick Won't Suck Itself

We Need More of This

Bear Stearns honchos arrested, but their willing minions remain free to prey on society.

Two former Bear Stearns managers were arrested on charges linked to the collapse of a hedge fund that bet heavily on subprime mortgages before the market collapsed, federal authorities said.

Y-Bum

Has anything changed since then? “A revolution without firing squads is meaningless.”

“My work is done here,” said Yaniv Blumenfeld.

FBI agents escort handcuffed Bear Stearns hedge fund managers

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Yuck Truck

Some thinking of Yaniv Blumenfeld. Here is truck opinion for deadbeater of Yaniv Blumenfeld in Glacier Global Partners