3 ms·
Fraud: every liar's loan which was sold on in a mortgage-backed security was a fraud. Arguably, any liar's loan, where the lending officer knew that it was a li
by MaysonL 11y ago
Fraud: every liar's loan which was sold on in a mortgage-backed security was a fraud. Arguably, any liar's loan, where the lending officer knew that it was a liar's loan, was a fraud.
See Bernanke's take: http://www.usatoday.com/story/news/politics/2015/10/04/ben-b.. http://www.usatoday.com/story/news/politics/2015/10/04/ben-b....
- yummyfajitas 11y agoYes, liar's loans enabled a lot of fraud to be perpetrated against the banks. Apparently you believe we should jail bankers because the banks were the victims of fraud? It seems like the right person to jail in this case is the person who lied to the bank.
- greyboy 11y agoYou are absolutely right, and they should have been punished. But those loans also shouldn't have been granted, which was the bank's responsibility. Most of them should have been caught during underwriting and verification. What, exactly, were they doing? This is a deception or failure on both parts.
- MaysonL 11y agoDid the banks know that these loans were fraudulent? Yes. Did they sell them on anyway? Yes. Did their executives encourage these fraudulent loans? Yes.