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View Diary: The Commercial Real Estate Bust Spells Problems for Foreclosure Fraud Settlement Cheerleaders (50 comments)

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  •  I have been following this story for literally (6+ / 0-)

    years. Closely.

    The lack of coverage and the superficiality of the coverage  in the MSM has always been pitiful. Much of the story of the seamy underbelly of foreclosure fraud was birthed on websites of homeowners seeking help and assistance from one another and the few sympathetic legal ears they could find - sites like foreclosurefraud and foreclosurehamlet and others would actually post the court cases and arguments being made by homeowners caught in the maws of the servicers and foreclosure mills. The websites firedoglake and nakedcapitalism have done more heavy lifting on the topic than any others I have been aware of.

    These stories and these sites were never founded based on the  power struggle of left vs. right or Dem vs. Repub, they were based in a search for JUSTICE, and the battle between right and wrong and legal and illegal. Unfortunately, the Dems were at bat when this struggle hit the mainstage and when FRAUD became an open secret in the mortgage, mortgage securitization, mortgage servicing, and foreclosure industries.

    Has the response of the Obama administration to the crisis unfurling before it been adequate or even close to adequate in investigating, prosecuting, correcting and redressing the historic crimes perpetrated on the American homeowner and the entire global economy?

    Any objective person would have to say no. How many homeowner rescue programs have been rolled out by Treasury and HUD, all based on the voluntary participation of the miscreants? HAMP,HELP, HARP, HARP 2, etc. all failing and falling  miserably short of the goals trumpeted when they were each launched. They were "carrot" programs for the banks and the banks didn't bite.

    What should be completely  separate from the failed carrots of HUD and Treasury is the stick that is wielded by the United States Department of Justice. How has the Justice Department performed in the origination, securitization, servicing, and foreclosure frauds? These frauds have been public knowledge from the very beginning of this administration. DOJ has had THREE COMPLETE YEARS to fulfill their obligation to investigate and prosecute crimes.

    When they trumpet their own successes, strangely enough they seem all to be concentrated in areas of consumer mortgage fraud where the bank was the victim. While this is crime, it's economic impact is the veritable drop in the ocean when compared to the wide-ranging, systemic, economy collapsing "control fraud" that the interlocking parts of the housing finance fraud exposed us all to - every single frickin one of us.

    In this latest mortgage "settlement" I question the involvement of HUD in what was supposed to be a law enforcement action. I raised that question on naked capitalism and the commentator after me phrased what I had been thinking, but had not been able to articulate - that it was the intrusion of the executive branch into a Justice initiative in order to enact policy goals that had nothing to do with "Justice".  

    The Justice Department under Eric Holder has demonstrated no desire or will to pursue seriously any portion of the combined frauds of the housing crisis. I personally think Holder should have recused himself from the getgo, now that one knows he was a partner in the law firm that provided the legal opinion for the creation of MERS, which was the very first card produced in the house of cards factory. The same goes for Lanny Breuer, the co-chair of the new new this-tme-we're-gonna-gettem-Task-Force.  I personally think we're long past the stage when a Special prosecutor or several Special Prosecutors should have been appointed and multiple grand juries going simultaneously to address the multi-prongs of the frauds.

    Then there's this: American Banker Shows DOJ Sat On a Bank-Kickback Scandal

    and then there's this: Responding to Critics, SEC Defends 'No Wrongdoing" Settlements - NYTimes.com

    Even if someone is the most devout Democrat in the country, this inability of Treasury, HUD, Justice and the SEC to address and deal with the fundamental rot at the core of our financial systems will have to wear thin. Where is our Justice? Where is the Justice for the 99%?

    Thank you, priceman for writing this diary. I was working on one myself, and yours is far superior.

    “Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough.” FDR

    by Phoebe Loosinhouse on Thu Feb 23, 2012 at 01:01:45 PM PST

    •  Well this comment is a great diary, Pheobe (4+ / 0-)

      Thank you for writing it.

      Holder and "we enforced Sarbanes Oxley but not really" Bruer should recuse themselves an they have no desire to go after this fraud with prosecutions as we see from the lack of referrals and the mortgage fraud they tout is mostly where the bank is the victim as you say, which is a drop in the bucket economically.

      Great point on HUD's involvement: that it was the intrusion of the executive branch into a Justice initiative in order to enact policy goals that had nothing to do with "Justice".  

      Coverage by the MSM has been abysmal, and the websites firedoglake and nakedcapitalism have done more heavy lifting on the topic than any others  as you say. Stopforeclosuredfraud.com and others have also been great.

      This administration and this justice department are providing all the incentives for this to happen again. There are no excuses. All state AGs have been coopted somewhat.

      Thank you for the insight, links, and info.

      Pro Life??? Conservatives want live babies so they can raise them to be dead soldiers!- George Carlin - I Illustrate #OWS protest T-shirts you can buy at priceman political prints

      by priceman on Thu Feb 23, 2012 at 05:27:26 PM PST

      [ Parent ]

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