That seems to be the message our government is sending. If you are going to be a crook, be a big time crook because they don’t go to jail. Four years after the biggest rip off in American history, the sub-prime mortgage debacle that sent America into the greatest recession since the Great Depression, Department of Justice has not put one crook behind bars. They had plenty of crooks to choose from, too. Although the mortgage lenders and the big banks didn’t create the housing bubble, our government did that, they did take advantage of it and their methods often went way beyond unethical. They were down right criminal. Oh some companies paid some fines in settling out of court civil charges brought by our Department of Injustice, no one is serving any time.
One of the people who, in my opinion, should be behind bars is Angelo Mozilo the then CEO of Countrywide Mortgage Investment. You can read about part of the Countrywide’s crimes here. When Countrywide was about to go bankrupt, Bank of America took them over and that champion of justice, Eric Holder, got them to agree to pay a 355 million dollar fine. CHUMP CHANGE! But not to fear, because Bank of America continued many of Mozilo’s practices, Eric The Great went after BofA again.
Today Fox News has the story that the US is sueing Bank of America for a billion dollars.
In court documents filed by the U.S. Attorney for the Southern District of New York, the U.S. alleges that a loan origination program in BofA’s Countrywide Financial unit generated thousands of fraudulent and defective home loans that were sold to Freddie and Fannie. The loans later defaulted and caused massive losses and countless foreclosures.
Where in the hell are the criminal charges? So, the big boys will have their multi-million dollar bonuses cut in half. BOO-HOO! The message is clear. If you steal a hundred dollars and get caught, you go to jail. If you steal a hundred billion dollars and get caught, you get a slap on the wrist.
Angelo Mozilo and Countrywide and Bank of America were not the only crooks taking advantage of the housing bubble. Goldman Sachs and others got some wrist slapping too. But what about Fannie and Freddie? They were the first to create Mortgage Backed Securities (MBS) not Countrywide. Sub-prime mortgage lending was pushed on Fannie and Freddie by our own government when Bill Clinton decided all poor people had a right to own a home. But, why didn’t the Republicans under Bush stop this nonsense? Well, they tried but there was a lot of push back by the Democrats, especially Barney Frank. After all his boy friend was the head of Fannie. I snagged this picture from Matt Ross of the great Conservative Hideout 2.0. I think it explains a lot.
How many times have you heard President Obama during the campaigns and the debates say “We can’t go back to the policies that got us into this mess in the first place.”? He is right, of course. Except the President wants people to think that it was the Bush policies that got us into this mess. Wrong, Mr. President. It was Democrat policies beginning with the Clinton administration that got us into this mess. And, it was people like Barrney Frank and others that kept the pedal to the metal. No, we do not want to go back to the policies that got us into this mess. Thank you very much, Mr. President!
Well, now you know what I’m thinking. What are your thoughts?