As the rich were getting richer, the subprime market was ripe for greed. Cheap interests rates were not enough, bogus bank ratings were needed. No collateral, no income? No problem. Now the truth comes out how illegal and deceptive things were. The Department of Justice and Federal Bureau of Investigation announced today a national takedown of mortgage fraud schemes, the culmination of substantial coordinated efforts during the last three and a half months to identify, arrest and prosecute mortgage fraud violators through the United States. Two former Bear Stearns managers have been arrested, federal authorities said Thursday, becoming the first executives to face criminal charges in the wake of the subprime market debacle.
"The FBI estimates that approximately $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases."
More here.
White collar crime at it again.
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