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Some success for Geithner on world stage debut

A

Anonymous

Guest
The final communique spoke of the need to "facilitate the orderly resolution of impaired assets" weighing down banks' balance sheets. But it offered no more insight than Geithner did on Tuesday of how the G-7 countries planned to accomplish this.

From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......
 

Sandhusker

Well-known member
Oldtimer said:
The final communique spoke of the need to "facilitate the orderly resolution of impaired assets" weighing down banks' balance sheets. But it offered no more insight than Geithner did on Tuesday of how the G-7 countries planned to accomplish this.

From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......

I just have to ask, OT; Do you ever consider facts before forming an opinion?
 
A

Anonymous

Guest
Sandhusker said:
Oldtimer said:
The final communique spoke of the need to "facilitate the orderly resolution of impaired assets" weighing down banks' balance sheets. But it offered no more insight than Geithner did on Tuesday of how the G-7 countries planned to accomplish this.

From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......

I just have to ask, OT; Do you ever consider facts before forming an opinion?

Yes Hoppy :wink: :p YAP YAP YAP...
 

Tam

Well-known member
Oldtimer said:
The final communique spoke of the need to "facilitate the orderly resolution of impaired assets" weighing down banks' balance sheets. But it offered no more insight than Geithner did on Tuesday of how the G-7 countries planned to accomplish this.

From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......

Who is to blame for the de-regulation and greed and not knowing how bad the debt is Oldtimer? Since you think KOS is a reliable news source on Palin maybe you will believe them about Geithner's role in all of this mess. :wink:
My LEAST FAVORITE Member of Team Obama is...
Fri Jan 23, 2009 at 02:13:55 AM PST
Obama has picked people to fill most of the important positions in his new administation which we all wish the best success. Some are clearly better than others from both an experience and an ideological perspective. Some are Republican holdovers (Gates) or Republicans put in a new position (LaHood); many others have ties to the Clintons; or, to Obama himself. Your task is to identify the lemon of lemons, the dredge of dregs in the following poll (or identify your own nominee).

Everyone makes a mistake (just ask Justice Roberts or for that matter, Obama who both seemed to have muffed the oath of office on inauguration day). And Obamamaniacs are sure to criticize me for saying this, but I think that Obama has picked several people who are not only not qualified but should be disqualified in any forward thinking, change oriented administration such as his.

My own top lemon in Team Obama is Geithner, the tax dodging, illegal nanny hiring head of the New York Federal Reserve Board who failed to see the oncoming storm in the financial markets, and indeed helped to precipitate it. As late as March, 2007, Geithner made this pie in the sky analysis in a speech at the Credit Markets Symposium hosted by the Federal Reserve Bank of Richmond, Charlotte, North Carolina:

The latest wave of credit market innovations has elicited some concerns about their implications for the stability of the financial system, concerns similar to those associated with earlier periods of rapid change in financial markets. Will the most recent credit market innovations amplify credit cycles, contributing to "excessive" lending in times of relative stability, and then magnify the contraction in credit that follows? Will they introduce greater volatility in financial markets? Will they create greater risk of systemic financial crisis?

These concerns have been heightened in some quarters by the problems currently being experienced in the subprime mortgage sector. It will take some time before the full implications are understood and the full impact can be assessed. As of now, though, there are few signs that the disruptions in this one sector of the credit markets will have a lasting impact on credit markets as a whole.

Indeed, economic theory and recent practical experience offer some reassurance against both these specific concerns and more general worries about the implications of credit market innovations for the performance of the financial system... .
http://72.14.235.132/...

Moreover, a ProPublica investigation this month found that the Fed had lifted some restrictions on Citigroup, allowing it to engage in risky ventures with insufficient capital. In the 1990's Geithner worked for Rubin who headed Citi during the crisis. In answers released today to the Senate, acknowledged that "Citigroup's supervisors, including the Federal Reserve, failed to identify a number of their risk management shortcomings and to induce appropriate changes in behavior." www.propublica.org/article/more-mea-culpas-from-geithner-as-regulator-090122

This guy that is coming up with "no precise plan" as Sec of Treasury is the same guy that failed at FED to regulate the fat cat banks which lead to the crisis. AND He was also in on writing the first bailout plan that wasted $350 billion. But Obama claimed Geithner was the Only guy smart enough to come up with a plan. :wink: :roll:
 
A

Anonymous

Guest
Tam said:
Oldtimer said:
The final communique spoke of the need to "facilitate the orderly resolution of impaired assets" weighing down banks' balance sheets. But it offered no more insight than Geithner did on Tuesday of how the G-7 countries planned to accomplish this.

From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......

Who is to blame for the de-regulation and greed and not knowing how bad the debt is Oldtimer? Since you think KOS is a reliable news source on Palin maybe you will believe them about Geithner's role in all of this mess. :wink:

What seemed to be arising out of the Bank hearings- coming from the Bankers and Congressmen (both Repubs and Dems) was that it was not only the years of deregulation- but especially the years of the "8 year coffee break" where no one in the Federal government enforced any laws or did any regulating or oversight....

The Bankers/Financial System is actually looking for and asking for more Regulation- and are especially looking for a National and Global Risk Assessment positions to be created- since anymore the Independent Auditors- Independent Credit Risk/Ratings auditors have also put GREED over ETHICS and as has been shown with a little shopping will give you what every rating you want to pay for.....

These false Ratings led to many of these banks problem loan purchases and much of the reason it was not discovered earlier....
 

Sandhusker

Well-known member
Your 8-year coffee break is not factually based. As a matter of fact, it is complete nonsense. More nonsense is not recognizing what really caused this problem, the mismanagement of Fannie and Freddie.
 

Tam

Well-known member
Oldtimer said:
Tam said:
Oldtimer said:
From watching the Banking hearings the other day- I think much of the reason for this "no precise plan" is that it is a day to day still developing situation- and with the years of no oversight/regulation enforcement and runaway greed over ethics in the Financial system- no one has any idea how much bad debt they hold- or how much insurers like AIG guaranteed....
That was the reason Congressmen were questioning how badly the credit card debt is going to impact if the Domino theory keeps rolling on- and major credit card debt is defaulted upon....They testified that could amount to Trillions $......

Who is to blame for the de-regulation and greed and not knowing how bad the debt is Oldtimer? Since you think KOS is a reliable news source on Palin maybe you will believe them about Geithner's role in all of this mess. :wink:

What seemed to be arising out of the Bank hearings- coming from the Bankers and Congressmen (both Repubs and Dems) was that it was not only the years of deregulation- but especially the years of the "8 year coffee break" where no one in the Federal government enforced any laws or did any regulating or oversight....

The Bankers/Financial System is actually looking for and asking for more Regulation- and are especially looking for a National and Global Risk Assessment positions to be created- since anymore the Independent Auditors- Independent Credit Risk/Ratings auditors have also put GREED over ETHICS and as has been shown with a little shopping will give you what every rating you want to pay for.....

These false Ratings led to many of these banks problem loan purchases and much of the reason it was not discovered earlier....

Current functions of the Federal Reserve System include:[13][15]

To address the problem of banking panics
To serve as the central bank for the United States
To strike a balance between private interests of banks and the centralized responsibility of government
To supervise and regulate banking institutions
To protect the credit rights of consumers
To manage the nation's money supply through monetary policy to achieve the sometimes conflicting goals of
maximum employment
stable prices, including prevention of either inflation or deflation[16]
moderate long-term interest rates
To maintain the stability of the financial system and contain systemic risk in financial markets
To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system
To facilitate the exchange of payments among regions
To respond to local liquidity needs
To strengthen U.S. standing in the world economy

Government regulation and supervision
The Board of Governors is the part of the Federal Reserve System that is responsible for supervising the private banks. A general description of the types of regulation and supervision involved is given by the Federal Reserve:[12]

The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks that are members of the Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks, and Edge Act and agreement corporations (limited-purpose institutions that engage in a foreign banking business). The Board and, under delegated authority, the Federal Reserve Banks, supervise approximately 900 state member banks and 5,000 bank holding companies. Other federal agencies also serve as the primary federal supervisors of commercial banks; the Office of the Comptroller of the Currency supervises national banks, and the Federal Deposit Insurance Corporation supervises state banks that are not members of the Federal Reserve System.

Some regulations issued by the Board apply to the entire banking industry, whereas others apply only to member banks, that is, state banks that have chosen to join the Federal Reserve System and national banks, which by law must be members of the System. The Board also issues regulations to carry out major federal laws governing consumer credit protection, such as the Truth in Lending, Equal Credit Opportunity, and Home Mortgage Disclosure Acts. Many of these consumer protection regulations apply to various lenders outside the banking industry as well as to banks.

Members of the Board of Governors are in continual contact with other policy makers in government. They frequently testify before congressional committees on the economy, monetary policy, banking supervision and regulation, consumer credit protection, financial markets, and other matters.

The Board has regular contact with members of the President’s Council of Economic Advisers and other key economic officials. The Chairman also meets from time to time with the President of the United States and has regular meetings with the Secretary of the Treasury. The Chairman has formal responsibilities in the international arena as well.

Who was the President of Fed. in New York Oldtimer. who de- regulated when his job was to supervise and regulate banking institutions? Who was destablizing the financial system when it was his job to maintain the stability of the financial system and contain systemic risk in financial markets?
WHO Said this
These concerns have been heightened in some quarters by the problems currently being experienced in the subprime mortgage sector. It will take some time before the full implications are understood and the full impact can be assessed. As of now, though, there are few signs that the disruptions in this one sector of the credit markets will have a lasting impact on credit markets as a whole.

Can you say Geithner the PRESIDENT of Fed in New York.. :wink: And he is trying to come up with a precise plan on how to regulate and minimize risk NOW :???:
 
A

Anonymous

Guest
Tam- I don't know that much about the NY Fed or their responsibilty compared to the US Fed... I do know that each state has individual laws and that some states weren't hit as bad as some others of the speculating/trading bubble break because part of the financial institutions trading wasn't allowed for quite some time as it was ruled illegal under those states "Gambling" laws....

Quite a financial system we let operate in this country- with retirees and investors money- when the courts are ruling its "gambling"- the same as a Vegas slot machine.... :roll:

Canada ended up with having the most sound credit- and now has the strongest banking system in the world because of two reasons - Regulation and strong enforcement.....They didn't have GW telling regulators to "go on an 8 year vacation"- or like the USDA's GIPSA Investigation/Enforcement Head, JoAnn Waterfield telling Investigators to " shuffle papers- look busy- but don't do anything"....
 

Sandhusker

Well-known member
Oldtimer said:
Tam- I don't know that much about the NY Fed or their responsibilty compared to the US Fed... I do know that each state has individual laws and that some states weren't hit as bad as some others of the speculating/trading bubble break because part of the financial institutions trading wasn't allowed for quite some time as it was ruled illegal under those states "Gambling" laws....

Quite a financial system we let operate in this country- with retirees and investors money- when the courts are ruling its "gambling"- the same as a Vegas slot machine.... :roll:

Canada ended up with having the most sound credit- and now has the strongest banking system in the world because of two reasons - Regulation and strong enforcement.....They didn't have GW telling regulators to "go on an 8 year vacation"- or like the USDA's GIPSA Investigation/Enforcement Head, JoAnn Waterfield telling Investigators to " shuffle papers- look busy- but don't do anything"....

The difference is that Canada didn't have Bend-over Barney Frank, Chris "friend of Angelo" Dodd, and other liberals throwing out banking rules to make crappy mortgages and create a housing value bubble.
 

Texan

Well-known member
Oldtimer said:
What seemed to be arising out of the Bank hearings- coming from the Bankers and Congressmen (both Repubs and Dems) was that it was not only the years of deregulation- but especially the years of the "8 year coffee break" where no one in the Federal government enforced any laws or did any regulating or oversight....

How do you think they doubled the number of investigations when you keep claiming that they were on an "8 year coffee break"? Did you miss this part when you were watching the hearings or did you just choose not to tell us about it?

The Federal Bureau of Investigation has more than 1,800 open investigations into mortgage fraud, more than double the number in fiscal 2006, Deputy FBI Director John Pistole told a U.S. Senate hearing today in Washington.

If "no one in the Federal government enforced any laws or did any regulating or oversight" as you claim, wouldn't we be seeing fewer cases instead of more?


‘Exponential Rise’ in Mortgage Fraud Seen by FBI

Feb. 11 (Bloomberg) -- The economic crisis has sparked an increase in criminal fraud, including an “exponential rise” in mortgage scams that is straining the FBI’s resources, a leader of the agency said.

The Federal Bureau of Investigation has more than 1,800 open investigations into mortgage fraud, more than double the number in fiscal 2006, Deputy FBI Director John Pistole told a U.S. Senate hearing today in Washington. The FBI also has more than 530 open corporate fraud investigations, including 38 linked to the financial crisis, he said.

“The FBI has experienced and continues to experience an exponential rise in mortgage fraud investigations,” Pistole said in prepared testimony. “The increasing mortgage, corporate fraud and financial institution failure case inventory is straining the FBI’s limited white-collar crime resources.”

Today’s Senate Judiciary Committee hearing focused on whether there should be beefed-up enforcement to cope with the economic decline. The panel’s chairman, Senator Patrick Leahy, a Vermont Democrat, is pushing legislation to authorize funds to hire fraud prosecutors and investigators. The bill, backed by the Justice Department, also would strengthen financial crime laws.

The 38 cases linked to the financial crisis have the potential to be as complex as the one involving Enron Corp., which collapsed in 2001, and the number of them could increase into the hundreds, Pistole said. The cases involve companies that “everybody knows about,” Pistole said without naming them.

Fraud, Insider Trading

The corporate investigations include possible manipulation of financial statements, accounting fraud and insider trading, he said.

The FBI has reassigned some agents from terrorism cases to financial crimes.

The government’s $700 billion Troubled Asset Relief Program, and proposed economic stimulus legislation, likely will result in increased criminal activity, said Neil Barofsky, special inspector general of the TARP program, in prepared testimony.

“History teaches us that an outlay of so much money in such a short period of time will inevitably draw those seeking to profit criminally,” he said.



http://www.bloomberg.com/apps/news?pid=20601103&sid=aitpF.1mEoTc&refer=us
 
A

Anonymous

Guest
Texan said:
Oldtimer said:
What seemed to be arising out of the Bank hearings- coming from the Bankers and Congressmen (both Repubs and Dems) was that it was not only the years of deregulation- but especially the years of the "8 year coffee break" where no one in the Federal government enforced any laws or did any regulating or oversight....

How do you think they doubled the number of investigations when you keep claiming that they were on an "8 year coffee break"? Did you miss this part when you were watching the hearings or did you just choose not to tell us about it?

The Federal Bureau of Investigation has more than 1,800 open investigations into mortgage fraud, more than double the number in fiscal 2006, Deputy FBI Director John Pistole told a U.S. Senate hearing today in Washington.

If "no one in the Federal government enforced any laws or did any regulating or oversight" as you claim, wouldn't we be seeing fewer cases instead of more?


‘Exponential Rise’ in Mortgage Fraud Seen by FBI

Feb. 11 (Bloomberg) -- The economic crisis has sparked an increase in criminal fraud, including an “exponential rise” in mortgage scams that is straining the FBI’s resources, a leader of the agency said.

The Federal Bureau of Investigation has more than 1,800 open investigations into mortgage fraud, more than double the number in fiscal 2006, Deputy FBI Director John Pistole told a U.S. Senate hearing today in Washington. The FBI also has more than 530 open corporate fraud investigations, including 38 linked to the financial crisis, he said.

“The FBI has experienced and continues to experience an exponential rise in mortgage fraud investigations,” Pistole said in prepared testimony. “The increasing mortgage, corporate fraud and financial institution failure case inventory is straining the FBI’s limited white-collar crime resources.”

Today’s Senate Judiciary Committee hearing focused on whether there should be beefed-up enforcement to cope with the economic decline. The panel’s chairman, Senator Patrick Leahy, a Vermont Democrat, is pushing legislation to authorize funds to hire fraud prosecutors and investigators. The bill, backed by the Justice Department, also would strengthen financial crime laws.

The 38 cases linked to the financial crisis have the potential to be as complex as the one involving Enron Corp., which collapsed in 2001, and the number of them could increase into the hundreds, Pistole said. The cases involve companies that “everybody knows about,” Pistole said without naming them.

Fraud, Insider Trading

The corporate investigations include possible manipulation of financial statements, accounting fraud and insider trading, he said.

The FBI has reassigned some agents from terrorism cases to financial crimes.

The government’s $700 billion Troubled Asset Relief Program, and proposed economic stimulus legislation, likely will result in increased criminal activity, said Neil Barofsky, special inspector general of the TARP program, in prepared testimony.

“History teaches us that an outlay of so much money in such a short period of time will inevitably draw those seeking to profit criminally,” he said.



http://www.bloomberg.com/apps/news?pid=20601103&sid=aitpF.1mEoTc&refer=us

Yep- Trying to close the barn door-after all the hogs have escaped.....
 

Texan

Well-known member
Aren't these federal agencies:

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.


This article is from last summer. I guess those guys didn't get the memo about the "8 year coffee break."



Mortgage fraud inquiry nets hundreds
Government official says losses in the fraud cases total about $1 billion.

Last Updated: June 19, 2008: 2:08 PM EDT

WASHINGTON (CNN) -- Hundreds of people across the country have been arrested by law enforcement officials targeting crooked mortgage brokers, real estate agents, and other industry officials, the head of the FBI and a top Justice Department official said Thursday.

FBI Director Robert Mueller and Deputy Attorney General Mark Filip announced the arrests the same day two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin, surrendered to the FBI. The men are expected to face federal charges that they intentionally misled investors in two funds that collapsed last summer under the weight of wrong-way bets on mortgage-backed securities.

More than 400 people have been charged in the mortgage fraud probe, of whom nearly 300 have been arrested, including 60 in a coordinated sweep Wednesday, the Justice Department said.

The losses in the mortgage fraud cases cost consumers more than $1 billion, Mueller said.

"We will, as appropriate, seek prison terms," Filip said. "It is a very, very serious matter."

"Operation Malicious Mortgage," the investigation by the FBI and Justice Department, began March 1, government officials said. It resulted in 144 fraud cases in which 406 defendants were charged.

The FBI is investigating about 1,400 more cases of potential fraud, Mueller said, calling it "a substantial number of investigations, unfortunately."

The agency has 42 mortgage fraud task forces in operation, employing 180 agents, Mueller said.

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.

Most of the arrests came Wednesday, federal law enforcement officials said, in Miami, Houston, San Antonio, Baltimore, Chicago, and other cities.

Officials indicated the suspects were involved mostly in small-scale schemes.

CNN Justice Department producers Terry Freiden and Kevin Bohn contributed to this report.


http://money.cnn.com/2008/06/19/real_estate/mortgage_fraud/index.htm
 

Texan

Well-known member
Oldtimer said:
Yep- Trying to close the barn door-after all the hogs have escaped.....

You think they should have done something sooner? How about 2004?

The number of open FBI mortgage fraud investigations has increased more than five-fold in the past three years, from 102 probes in 2001 to 533 as of June 30 this year (2004), the FBI said.

Guess these guys didn't get the memo about the "8 year coffee break," either?


FBI warns of mortgage fraud 'epidemic'
Seeks to head off 'next S&L crisis'

From Terry Frieden
CNN Washington Bureau
Friday, September 17, 2004 Posted: 5:44 PM EDT (2144 GMT)

WASHINGTON (CNN) -- Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis."

Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions.

"It has the potential to be an epidemic," said Swecker, who heads the Criminal Division at FBI headquarters in Washington. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said.

In the 1980s, many Savings and Loans failed because of poor management, risky loans and investments, and in some cases, fraud. Taxpayers were left with a $132 billion tab to cover federal guarantees to S&L customers.

The FBI has dispatched undercover teams across the country in an urgent investigation into dealings by suspect mortgage brokers, appraisers, short-term investors, and loan officers, Swecker, flanked by FBI executives and Justice Department prosecutors, revealed.

In one operation, six individuals were arrested Thursday in Charlotte, charged with bank fraud for their roles in a multimillion-dollar mortgage fraud, officials said. The two-year investigation found fraudulent loans that exposed financial institutions and mortgage companies to $130 million in potential losses, they said.

Also Thursday, federal agents in Jacksonville arrested two people and executed seven search warrants in connection with an alleged scheme designed to defraud banks of $22 million, officials said.

The number of open FBI mortgage fraud investigations has increased more than five-fold in the past three years, from 102 probes in 2001 to 533 as of June 30 this year, the FBI said. The potential losses are staggering, and many financial institutions are cooperating with investigators.

Officials noted mortgage industry sources have reported more than 12,000 cases of suspicious activity in the past nine months, three times the number reported in all of 2001.

While the FBI described mortgage-related fraud as a nationwide problem, it said the levels of illegal activity are worse in some locations than in others.

States identified as the top 10 "hot spots" for mortgage fraud are Georgia, South Carolina, Florida, Michigan, Illinois, Missouri, California, Nevada, Utah and Colorado.

"It's bad in Georgia, the Atlanta area," said John Gillies, chief of the FBI's Financial Institutions Fraud Unit. "It was bad in the Charlotte area, but we've had a lot of undercover activity there that's helped push the problem into South Carolina."

Josh Hochberg, head of the Justice Department's Fraud Section, said some organized ethnic groups are becoming involved in mortgage fraud schemes, but he declined to identify the groups.

Officials said mortgage fraud is one prominent aspect of a wider problem of fraud aimed at financial institutions. The FBI said action has been taken against 205 individuals in the past month in what it described as the "largest nationwide enforcement operation in FBI history directed at organized groups and individuals engaged in financial institution fraud."

In addition to mortgage fraud, "Operation Continued Action" also targeted loan fraud, check kiting, and identity theft as major problems.

In one check-kiting scheme in Binghamton, New York, the operator of a recycling business wrote in excess of $1 billion in worthless checks over a 14-month period, officials said. Not all of the checks were cashed.

The FBI said last week the businessman, Adam Weitsman, was sentenced to one year in prison and forfeited $1 million in assets.



http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/
 
A

Anonymous

Guest
Texan said:
Aren't these federal agencies:

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.


This article is from last summer. I guess those guys didn't get the memo about the "8 year coffee break."



Mortgage fraud inquiry nets hundreds
Government official says losses in the fraud cases total about $1 billion.

Last Updated: June 19, 2008: 2:08 PM EDT

WASHINGTON (CNN) -- Hundreds of people across the country have been arrested by law enforcement officials targeting crooked mortgage brokers, real estate agents, and other industry officials, the head of the FBI and a top Justice Department official said Thursday.

FBI Director Robert Mueller and Deputy Attorney General Mark Filip announced the arrests the same day two former Bear Stearns hedge fund managers, Ralph Cioffi and Matthew Tannin, surrendered to the FBI. The men are expected to face federal charges that they intentionally misled investors in two funds that collapsed last summer under the weight of wrong-way bets on mortgage-backed securities.

More than 400 people have been charged in the mortgage fraud probe, of whom nearly 300 have been arrested, including 60 in a coordinated sweep Wednesday, the Justice Department said.

The losses in the mortgage fraud cases cost consumers more than $1 billion, Mueller said.

"We will, as appropriate, seek prison terms," Filip said. "It is a very, very serious matter."

"Operation Malicious Mortgage," the investigation by the FBI and Justice Department, began March 1, government officials said. It resulted in 144 fraud cases in which 406 defendants were charged.

The FBI is investigating about 1,400 more cases of potential fraud, Mueller said, calling it "a substantial number of investigations, unfortunately."

The agency has 42 mortgage fraud task forces in operation, employing 180 agents, Mueller said.

Many agencies were credited as contributing to the investigation, including the Internal Revenue Service, the Secret Service, the Department of Housing and Urban Development, immigration and customs agencies, postal inspectors and the Federal Deposit Insurance Corporation.

Most of the arrests came Wednesday, federal law enforcement officials said, in Miami, Houston, San Antonio, Baltimore, Chicago, and other cities.

Officials indicated the suspects were involved mostly in small-scale schemes.

CNN Justice Department producers Terry Freiden and Kevin Bohn contributed to this report.


http://money.cnn.com/2008/06/19/real_estate/mortgage_fraud/index.htm

Yep again- Trying to close the barn door-after all the hogs have escaped.....
CFTC went to investigating too- after oil was $150- and hoarding was creating undo hardships on the public and the economy- and the signs were on the wall that the whole economic system was going to break down- and GW told them they could do something....But as former CFTC commission Greenberger testified to Congress- before that the CFTC had been told "to take an 8 year coffee break"...

Its all evidence that UNREGULATED- with little or no oversight the socalled free market system- and the system of captialism that existed in this country under Bush- does not work....
GREED over ETHICS......
 

Tam

Well-known member
Oldtimer said:
Tam- I don't know that much about the NY Fed or their responsibilty compared to the US Fed... I do know that each state has individual laws and that some states weren't hit as bad as some others of the speculating/trading bubble break because part of the financial institutions trading wasn't allowed for quite some time as it was ruled illegal under those states "Gambling" laws....

Quite a financial system we let operate in this country- with retirees and investors money- when the courts are ruling its "gambling"- the same as a Vegas slot machine.... :roll:

Canada ended up with having the most sound credit- and now has the strongest banking system in the world because of two reasons - Regulation and strong enforcement.....They didn't have GW telling regulators to "go on an 8 year vacation"- or like the USDA's GIPSA Investigation Head, JoAnn Waterfield telling Investigators to " shuffle papers- look busy- but don't do anything"....

You don't know that much about the NY Fed or their responsibilty compared to the US Fed.
Your words, so if you don't know what the NY Fed's responibilities are then why are you so willing to blame Bush for everything?????? A lot of people say it was Geithner that was to supervise and regulate the Fat Cats in New York and HE FAILED.


And on the Canadian front they didn't have the likes of tax cheat Tim Geithner de-regulating banks the size of Citibank when it should have been his job to supervise and regulate and maintain the stability of the financial system and contain systemic risk in financial markets did we? :wink: I also don't remember our PM telling banks they had to loan money to people at sub prime rates that couldn't afford to buy houses like the US had Clinton doing. :wink: Face it there is enough blame to go around but you seem to forget the others due to your hate for Bush. :roll:
 

Texan

Well-known member
Oldtimer said:
Yep again- Trying to close the barn door-after all the hogs have escaped.....
CFTC went to investigating too- after oil was $150- and hoarding was creating undo hardships on the public and the economy- and the signs were on the wall that the whole economic system was going to break down- and GW told them they could do something....But as former CFTC commission Greenberger testified to Congress- before that the CFTC had been told "to take an 8 year coffee break"...
What about the article I just posted from 2004?

And we're not talking about the CFTC. The subject was banking and you said, "no one in the Federal government enforced any laws or did any regulating or oversight...."

And as I recall, when I challenged you to provide a link to that quote about the "8 year coffee break" that you keep wearing out, you couldn't do it. Could you help me find it now?
 

Texan

Well-known member
Granted, the FBI could have done much more if they had not had agents taken away for national security purposes after 9/11. And certainly if we had spent less money on Iraq and more for enforcement, we could have added many more agents. But let me ask you this question, Oldtimer:

How many new FBI agents does the Pelosi/Reid/Obama "stimulus" bill provide for? I'll give you a hint:

When the 1,071-page version came out of the conference committee, the FBI reinforcements had been wiped out.

http://www.kansascity.com/105/story/1034212.html
 

Tam

Well-known member
Texan said:
Oldtimer said:
Yep again- Trying to close the barn door-after all the hogs have escaped.....
CFTC went to investigating too- after oil was $150- and hoarding was creating undo hardships on the public and the economy- and the signs were on the wall that the whole economic system was going to break down- and GW told them they could do something....But as former CFTC commission Greenberger testified to Congress- before that the CFTC had been told "to take an 8 year coffee break"...
What about the article I just posted from 2004?

And we're not talking about the CFTC. The subject was banking and you said, "no one in the Federal government enforced any laws or did any regulating or oversight...."

And as I recall, when I challenged you to provide a link to that quote about the "8 year coffee break" that you keep wearing out, you couldn't do it. Could you help me find it now?

Can you get Oldtimer to tell you who openned the barn door that the FBI is trying to close as from what I read it was Clinton and Geithner. :?
 
A

Anonymous

Guest
Texan said:
Oldtimer said:
Yep again- Trying to close the barn door-after all the hogs have escaped.....
CFTC went to investigating too- after oil was $150- and hoarding was creating undo hardships on the public and the economy- and the signs were on the wall that the whole economic system was going to break down- and GW told them they could do something....But as former CFTC commission Greenberger testified to Congress- before that the CFTC had been told "to take an 8 year coffee break"...
What about the article I just posted from 2004?

And we're not talking about the CFTC. The subject was banking and you said, "no one in the Federal government enforced any laws or did any regulating or oversight...."

And as I recall, when I challenged you to provide a link to that quote about the "8 year coffee break" that you keep wearing out, you couldn't do it. Could you help me find it now?

It was posted on here- as well as the link to those Congressional Hearings..

I gave Bush the benefit of the doubt for years- starting with the USDA- non enforcement of the PSA or Anti- Trust Laws...Then GAO caught JoAnn "doing nothing, shuffling papers, making paperwork"-and I was hoping it was incompetence and not corruption-- but then as administrative ruling after ruling went to the Big Corporates over the producers and small business----and Bush actually told his people not to enforce laws Congress was passing- that the Transportation Secretary testified to about the TWICE passed law banning Mexican trucks- and more and more came out about nonenforcement/nonoversight in the last 2 years of hearings- I could see this was a PATTERN that permeated the whole administration....

Just like the Congressman told the Head of the SEC enforcement division the other day- after testimony showed that informants had not only reported Bernie Madoff 7 times between 2000 and 2007- but had layed out how the entire Ponzi scheme worked " the way you guys were looking, you couldn't find your own butt if you had both hands on it"....

That pretty well sums up Bush's entire oversight/regulation policy...
 

Texan

Well-known member
Tam said:
Can you get Oldtimer to tell you who openned the barn door that the FBI is trying to close as from what I read it was Clinton and Geithner. :?

:lol: That's kinda what it looks like to me, too, Tam. The articles I posted clearly state that FBI investigations have gone from 102 in 2001 to more than 1,800 currently. But Oldtimer still claims that "no one in the Federal government enforced any laws or did any regulating or oversight...." and that regulators were told to "take an 8 year coffee break."
 
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