If William K. Black and Janet would only team up to write a book?

HuffPO-

There were many factors that contributed to our recent financial bubble: deregulation, cheap money from the Fed, failure to enforce remaining regulations, crony capitalism, hubris, speculation, leverage, and fraud among other problems. While fraud wasn’t the only issue, it was and is a significant contributor to the credit bubble. Restraining fraud is a necessary but not sufficient condition for a sound financial system. Congressional investigations in recent years have put ample evidence of fraud in the public domain.

To illustrate just one type of malicious mischief, Senator Carl Levin (D. Mich.), Chairman of a senate investigative panel, issued a memo stating that Goldman ” magnified the impact of toxic mortgages.” The Wall Street Journal reviewed data showing that a $38 million subprime-mortgage bond created in June 2006 was referenced in more than 30 debt pool causing around$280 million in losses to investors by 2008. In other words, Goldman kept repackaging, reselling or protecting (buying credit default protection on) losers. It took the wrong kind of nerve for Goldman’s CEO to say he was doing “God’s work.”

[HUFFINGTON POST]

Related posts:

1. FULL COMPLAINTS | FHFA Sues 17 Firms to Recover Losses to Fannie Mae and Freddie Mac UPDATE : FHFA suit stops short of going nuclear, ignores...
2. U.S. banks offered deal over lawsuits – FT REUTERS- Big U.S. banks in talks with state prosecutors to...
3. Fannie-Freddie’s Hypocritical Suit Against Banks Making Loans that GSEs Helped Create Lets NOT forget both Fannie and Freddie, like most of...
4. FHFA puts out statement clarifying lawsuits For Immediate Release Contact: Corinne Russell (202) 414-6921 Stefanie Johnson...
5. FHFA Complaints: Can Control Frauds Recover for Being Defrauded by other Control Frauds? William K. Black- Reading the FHFA complaints against many of...