Housing bust still haunts the banks

The article says "banks gave out mortgage loans without checking for documents that proved the borrowers had jobs, or could even pay their monthly bills." We're talking the really big banks people. Either they were stupid, corrupt or both. I say it were both.

the scary part is that nothing has been done to fix our financial system. the feds just poured trillions into it to keep the economy floating but it's fundamentally the same unregulated, corrupt financial system and susceptible to yet another identical crash.

Investors screwed up the housing market coupled with the recession. A new federal report shows that speculative real estate investors played a larger role than originally thought in driving the housing bubble that led to record foreclosures and sent economies plummeting in Nevada, California, Arizona, Florida and other states.
Researchers with the Federal Reserve Bank of New York found that investors who used low-down-payment, subprime credit to purchase multiple residential properties helped inflate home prices and are largely to blame for the recession. The researchers said their findings focused on an "undocumented" dimension of the housing market crisis that had been previously overlooked as officials focused on how to contain the financial crisis, not what caused it.
More than a third of all U.S. home mortgages granted in 2006 went to people who already owned at least one house, according to the report. In Arizona, California, Florida and Nevada, where average home prices more than doubled from 2000 to 2006, investors made up nearly half of all mortgage-backed purchases during the housing bubble. Buyers owning three or more properties represented the fastest-growing segment of homeowners during that time.
"This may have allowed the bubble to inflate further, which caused millions of owner-occupants to pay more if they wanted to buy a home for their family," the researchers noted.
Investors defaulted in large numbers after home values began to drop in 2006. They accounted for more than 25 percent of seriously delinquent mortgage balances nationwide, and more than a third in Arizona, California, Florida, and Nevada from 2007 to 2009.
As a result, millions of homeowners saw their home values decline so that they were worth less than the original purchase price. Foreclosures skyrocketed as people couldn't or refused to pay their underwater mortgages. Residential construction also languished, putting hundreds of construction workers in the hardest-hit states out of work.
The report concludes that lenders and regulators must limit speculative borrowing to avoid future housing busts. For example, in China, government officials are now requiring higher down-payments and mortgage rates on investment homes, according to the report.

Poor Chase, crying about spending 3.2 billion on law suits but still making a record 19 billion profit.Can anybody tell me how they pay their bank tellers ? They still have tellers don't they ?

"Corporate customers took out $110 billion in loans, 12 percent more than a year earlier. That suggests businesses are feeling more confident that demand for their products is picking up. The loans could be used to build factories, expand plants and open warehouses. Often that translates to job creation. "

Translated they are using free government money to buy back their stock and making money on it.

He!! of a hangover when the mortgage people who quit started private funds to buy up these properties for less than 10 cents on the dollar. Then sell them to foreign investors.
What a racket.

The banks are not hurting from "Housing Hangover".
Ask yourself this did the banks take bonuses and stock options (printed paper) and turn them into personal wealth CASH during this hangover?
If they laid off workers yet took bonuses, then they are not hurting just milking the system.
The Board of Directors design is a cancer, since they sit on multiple boards spewing upper management bonuses, stock options, multimillion dollar payouts if the CEO leaves?
Boy thats a he!! of a hangover I want.

Love those Obama failure excuses on the "Blame Game Show"......featuring:
Tsunami's, earthquakes, snow storms, Hurricanes, cow emissions, tornadoes, ATMs, drought, oil spills, Rich American Citizens, Mid-East, Extremists, Europe, Libya, Israel, No more Stash, Racism, Mean S&P downgrade, FoxNews, Ex-Military terrorists, Capitalism, Bush, not enough Stimulus, Wall Street, Corporate Jets, Kiosks, McDonald's Happy Meals, Tea Party non-violent Protests, Cambridge Police, Balanced Budgets, The Obama Debt Commission, Obama Jobs Commission,Pro America Leaders,States' Rights, Wall Street, Property Rights,Farmers,"Lazy" Americans, Not Enough on Welfare or Food Stamps,
Successful Corporations and Workers, Earned Income, Fiscal Responsibility, Not Enough Social Security and Medicare Funds to Pillage, Private Small Business, Voter IDs, Text Books, White American Citizens Racism, Strong Military and Economy, Oil, Gas and Coal American Jobs, Internet,Religion, Pro Life, Legal Gun Owners, Congress, 401Ks, Doctors, Too Many GOP Jobs Bills For the Senate, Low Tourism, American
Patriots, Fair Justice System, Citizen Freedoms and America's Constitution.
Last week's winner.............................Bad Food Choices!

AUDIT / END THE FED!!!

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." - Thomas Jefferson

"The modern banking system manufactures “money” out of nothing; and the process is, perhaps, the most, astounding piece of “sleight of hand” that was ever invented. In fact, it was not invented. It merely “grew”. ... Banks in fact are able to create (and cancel) modern “deposit money”, just as much as they were originally able to create, or call in, their own original forms of private notes. They can, in fact, inflate and deflate, i.e., mint, and un-mint the modern “ledger-entry” currency." - Angas, Major L. L. B

record unemployment, record forclosures, record homeless, record deficits.

that is the Obama record.

record unemployment, record foreclosures, record homeless, record deficits. But the banks make RECORD PROFITS and pay $MILLIONS in BONUS to EXECS

B of A is a crook

Romney: "Look I'm not going to spend my time going after Ben Bernanke, I'm not going to take my effort and focus on the FED." "I think he's doing a good job...and I think it's important to have the FED as an independent agency." ***Get to Know Mitt Romney*** youtu.be./watch?v=rJzrZX528nQ

Credit Default Swap insurance obligations of US banks is $19 Trillion, more or less. Banks are remarkably non forthcoming liars about the issue.

The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. - Thomas Jefferson

Poor poor JPMorgan. Having to spend money fighting lawsuits that they caused. All of the banks should have to pay restitution to all the people that they scammed into buying a home when the obviously couldn't afford to. Not one single banking official has been held accountable for this. It goes to show you that bank executives can commit a crime of this magnitude and proffit from is without any accountibility or the industry having to pay any form of restitution to the people of this country. All of that bail out money should have gone to the people and not the banks.

The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. - Lord Acton

Obama and the rat, liberal, lunatic, lying democrats will not rest until they nationalize the banks. That Queer Frank and #$%$ Dodd ran the backing committees and all they took were male #$%$ / graft. THOSE 2 IDIOTS CAUSED THIS.

It seems that everyone is blaming the banks for the housing crisis that came crashing down in 2008. I seem to recall a certain Democrat President named Bill Clinton, making a statement very emphatically, that "every american should be able to own a home". Shortly after that, the "madness" began. Mortgage loans were made at 125% of home values, ARM's were used with very little interest for the first few years, no down-payments required, just anything necessary to put people into homes that they could not afford. When reality finally took over, many of these people who took advantage of the easy credit terms, realized that there was no way to make the payments, that by now, in many cases had doubled after the ARM changed to the rate they should have been charged up front.
Put all the blame on the "greedy bankers" if you want if it makes you feel better. However most of the blame belongs in the hands of the politicians that WE voted into office in Washington DC. As usual, they worked hard at giving people (houses in this case) something they did not earn just to buy their votes for re-election purposes. Face the facts folks, people do not respect things that are given to them that they don't earn..This has never worked in the past and will not work now.