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Former bank CEO gets 11 years in prison for fraud

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Mortgage Professional America | 24 Mar 2016, 01:06 PM Agree 0
A former bank CEO is headed to federal prison for orchestrating a scheme to conceal more than $100 million in losses on mortgages and real estate during the financial crisis
  • Anonymous | | 24 Mar 2016, 01:51 PM Agree 0
    A step in the right direction but this is peanuts compared to what went on all over Wall Street and none of those folks, all the way up and down the food chain, have anything to worry about. Some guy at a small bank that nobody has heard of gets caught for hiding losses within his own bank's portfolio. Big deal. What about Goldman, Citigroup, BofA, Chase, Morgan Stanley, and others who intentionally defrauded investors worldwide and brought down the whole system? Bueller? Bueller?
  • Equally Anonymous | | 24 Mar 2016, 02:04 PM Agree 0
    You said it perfectly. Angelo Mozilo, Jamie Dimon, etal are American Gangsters that walk free...but we're all safer now that they sent this 74 year old from Nebraska to the clink...what a joke.
  • | | 24 Mar 2016, 02:05 PM Agree 0
    What a joke. Leave him alone.
  • Cheryl M | | 24 Mar 2016, 02:28 PM Agree 0
    Don't forget folks, when the DOJ prosecutes a case there are several and many agencies involved. The SEC investigators, FBI, get it. They all have by US Code 5 years to investigate a crime and here they used all of those 5 years. So, think of all the cases there might be out there from 5 years ago (and/or prior/after) that are just seeing the "end of days." There are more to come than just this one's a matter of MPA keeping up with them from State to State to report them. However, I do believe these investment moguls Goldman, Stanley (Angelo & Jamie) are thugs.
  • Mtg princess | | 24 Mar 2016, 02:31 PM Agree 0
    big deal. I was looking for a "bank that can't fail". When you have someone from a large institution then let us know. Otherwise who cares
  • Rikard Kilgaren | | 24 Mar 2016, 02:37 PM Agree 0
    Do you really think it was Angelo Mozilo, Countrywide; New Century Mortgage, Brad Morice and Frederic J. Forster; and Mortgage IT and others that actually created the subprime debacle?

    No. It was the Wall Street sewer rats (including the likes of Jamie Dimon). Without the Wall Street sewer rats, Mozilo and crowd would have no one to sell the mortgages to. Duh.

    Wall Street sewer rats know that with a certain level of “credit support” they may underwrite mortgages such as the no-doc mortgage, the “liar mortgage” and any other type of mortgage regardless of each borrower’s qualification(s).

    Certainly lenders—local and national—mortgage bankers, banks, savings and mortgage associations, and credit companies originated subprime mortgages and pay-option arm mortgages. Some claim that many of these mortgage originators were operating “outside the realm or jurisdiction” of federal regulators. Simply not true, as every lender of any type is required to make certain disclosures and operate under RESPA, FCRA, Regulation Z, Regulation B and any other regulation as required, without respect to whether they are “Federally Regulated.”

    And with the wonderful history of FNMA and FHLMC, the statement that many lenders were operating “outside the realm or jurisdiction” of federal regulators is preposterous. FNMA and FHLMC are just as culpable in poor underwriting of various residential mortgages as any other investor except for the Wall Street sewer rats. Their motivation was strictly greed, greed, and greed, oh, and greed.
  • B. Walker | | 24 Mar 2016, 02:42 PM Agree 0
    They all should be in prison serving time. Many of the big shot CEO's got off with nothing and boatloads of cash after screwing the public and left us small guys to pay the price of putting it back together, rebuilding, paying the extra fees, going through the extra licensing, and struggling to get back in our feet. I guess we were to small to save.
  • Shredder | | 24 Mar 2016, 03:06 PM Agree 0
    One down - one hundred to go! But like previous poster said - why are they picking on this outsider old man? Wall Street criminals are still free to bilk the public again. They should all go to the "big house".
  • Charles Stidham | | 24 Mar 2016, 03:23 PM Agree 0
    Who cares? Why are we still beating these dead horses to death? The real joke is that everything is happening all over again. I mean, JMAC has a 24 month bank statement program now. That means no tax returns. Doesn't everyone remember how Aurora Loan Services started out with a 20% down, stated income 740 fico program for self-employed only in 1999? 6 years later New Century was doing no income, no asset 0% down mortgages on 4-plex investment properties? It's all starting again. The poor slob who worked at the bank that is now going to prison looks like an FBI candidate compared to Jamie Dimon and the whorehouse AKA Goldman Sachs.
  • Caveat Emptor | | 24 Mar 2016, 03:34 PM Agree 0
    “The NCAA is so mad at Kentucky it will probably slap another two years probation on Cleveland State.’’ Jerry Tarkanian
  • lnkd | | 27 Mar 2016, 02:06 PM Agree 0
    Yes what about the rest of them thieving crooks like Dimon? Throw his ass in jail.
  • Tom Zeus | | 05 Apr 2016, 12:47 PM Agree 0
    Its who ya know and whose palm you greased.
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