Former Regulator: Clear Fraud in Financial Crisis -- Why Isn't Anyone in Jail?

...Time stays long enough for anyone who will use it.

And where is has the 'main stream media' been since 2004? Remember folks, the airwaves belong to us!?!

Let's not get carried away with the corruption thing. I am sure some people are corrupt on Wall St. just as some people are corrupt on Main St. But the greed was not just on Wall St. People who paid ridiculous amounts of money for houses they couldn't afford thinking they would continue to appreciate in value share some blame. Real Estate people who kept claiming that housing prices would continue to climb forever, even though 25% of new homes sales were 2nd, 3rd and 4th homes purchased by speculators just before teh bubble burst. Banks are to blame for creating the pyramd scheme backed by sub-prime mortgages. They were buying this crap without even looking at it. Most of all, congress is to blame for pushing banks to lend money in ways it would never have done in the past. 90% and 100% financing of over-priced homes, affordable housing for everyone, Fannie and Freddie buying trillions in bad mortgages, etc. Its easy to point to one person and then hang that person, but the blame for this one is spread among a lot of people. Something this catastrophic required a numbers of things to happen all at the same time and those things were teh responsibility of different people. That's why putting the stuff back in the horse is so complicated now.

Wilt, get over it...it's not the end of the world. Quit being such a victim. Corruption in all levels of government and financial instruments such as subprime have existed as long as prostitution has. in simple terms, most of you who cry about corporate greed and high CEO incomes work for these very companies. There is a reason why you make 50K a year pushing paper or assembling door handles on a new chrysler. It's because you lack the acumen to run a company like this, otherwise you would be.

Wilt, get over it...it's not the end of the world. Quit being such a victim. Corruption in all levels of government and financial instruments such as subprime have existed as long as prostitution has. in simple terms, most of you who cry about corporate greed and high CEO incomes work for these very companies. There is a reason why you make 50K a year pushing paper or assembling door handles on a new chrysler. It's because you lack the acumen to run a company like this, otherwise you would be.

hi

I'm living in a "Van down by the river!". Paulson should be here instead if not in jail.

I saw lots of easily detectable fraud when I worked at a subprime lender. The applications and collateral files are still there, and they have peoples' names on them. Bust the borrowers and the brokers and account executives who falsified the numbers.

We assume that "change" is going to be difficult, .......which creates a self-fulfilling prophecy.

Take'em out! The greed of corporate executives is disgusting in America.Not only do these people reap hugh financial gains at the expense of stockholders and the common guy, there are all the other "perks" that they take (private jets, fancy retreats, etc.) They have been caught - let them serve time - they all ready have their finances put away, while the common person will suffer because of their "take the bucks" mentality.

I'm waiting for some laid off worker to "go postal" on some of those greedy, overpaid, useless CEOs. Just a matter of time. And then the jury should OJ him/her. And we all could cheer.

Let the Crooks serve in Soup Kitchen or Food Bank until this crisis is over.

How does this explain the housing bubble in Spain or England or Denmark? Yes, lots of people lied. And, yes, you could have created a number of poster children. And maybe still can. But to what effect? More useful might be some cultural introspection, and what appears to be a broad decline in rectitude as exemplifiied in the disintegration of the family and the absolute and relative decline in educational achievement. In the case of the latter, this is the first generation in American history that is less well educated than the one that preceded it. We have a very active judicial system. It's the internal self-controls that could use some shoring up.

I agree with the premise, However, if this guy is a former regulator why doesn't he give a few examples for the DOJ to "go by." I further suspect that with the accumulated hubris demonstrated by the financial industry and their friends in Congress , the Fed, the SEC, and the Executive branch they have been so unbelievably sloppy in ignoring existing law, regulations, and accepted accounting practices that an eager beaver regulator could earn his spurs in short order.

Why isn't anyone asking about the continual reduction of interest rates, year after year, that fueled the refinancing bubble? Wasn't this fraud? I remember shoppers laughing cynically in supermarket checkout lines about the CPI; (way before the price increases due to higher fuel costs)... It was a JOKE! Those in power manipulated the CPI in order to reduce interest rates, basically lying about the economy in order to keep the party going. If our govt had been more honest and started increasing rates several years earlier, this would have been a much smaller problem.

hmm....I think a lot of people are respronsible...Paulsona and Bernanke will save us.

Let's go FBI!! Put your muscle where your lip service is. There should be an upper tier of those who need prosecution for fraud and a lower tier of those who should be fined severely. The numbers should be staggering - as staggering as the stampede created by the entire affair - no less damaging than an arsonist who set fire to a California forest or a moron who yells "fire" in a crowded arena when there is no fire. Capitalism begets greed. Obviously, the dogs who run Wall Street should be put on a leash so the rest of us don't ever get bitten again.

The Democrats would also go to jail. That is why there are no perp walks for FNMA.

Gee I thought it was ACORN. Looks like the real crimes were going on for a very long time by the biggest thieves ever. SEND THEM ALL TO JAIL INCLUDING THE POLITICIANS WHO ENABLED THIS.

Shawn W. - "Are you a 'Yes' man?" "I hate 'Yes' men." Can you say "Splunge"?