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DOJ Calls It A Hit Piece: Frontline - The Untouchables

FRONTLINE investigates why Wall Street’s leaders have escaped prosecution for any fraud related to the sale of bad mortgages.

Justice not a consideration.

Watch The Untouchables on PBS. See more from FRONTLINE.

http://www.pbs.org/wgbh/p...




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Hit piece? While this Report

Hit piece?

While this Report is light years better than what is typically seen in the mainstream it stops short. It doesn't really go into why the government has been standing down. It allows the viewer to get the idea that it is just government incompetence again. Sure it's not good being seen as incompetent but it's better than the truth. The truth being the revolving door between the regulators and enforcers in the government and the people working at the wall street banks. Far too often they are the same people just at different times.

Then there is of course the neglect on the government interferences. But those were often part of banker lobbying too...

Calling this a 'hit piece' is a stretch. It doesn't do just enough for american viewers to keep their illusions.

I'd also love to know why

I'd also love to know why this site is seemingly infested with Occupy socialists that wannabe libertarians. Greed isn't a crime, so why are you upset with Wall Street or banks? They're in the business of making money, like everyone on this planet, and last I checked they didn't defraud anybody en masse.

Go after your government that induces malinvestment in the secondary mortgage market (loan purchasing, Fannie & Freddie), which then trickles down and induces malinvestment in the primary mortgage market (loan origination). The primary mortgage market would NOT GO BELOW their institution's debt-to-income ratio UNLESS IT WAS A GUARANTEED PAYOUT, and it was. If Fannie and Freddie didn't lower their standards, and buy this junk paper, the loan origination market wouldn't make the loans, plain and simple.

You jest

Because we've been warning about massive systemic fraud since 2006. And if I'm not mistaken, Lehman, Bear Sterns, Goldman (the list goes on) have something of a Wall St. Presence. Too big to fail, too big to jail.

I'm afraid I can't answer your question as to why this site is seemingly infested with Occupy socialists. Keep a careful eye out so we don't try and socialise your morning coffee. Also I think I saw an Occupy socialist using your tooth brush. And I think there might be one hiding in your closet.

Get your preps together! Learn historic food storage and preservation methods and the science that makes them work now, start saving money and the future

Prove it.

Prove it.

BOO!

Look at me with my long hair I'm a scary liberal socialist and I'm smoking pot and mishandling your record collection!

Scared you didn't I?

Admit it you were scared there for a sec.

Get your preps together! Learn historic food storage and preservation methods and the science that makes them work now, start saving money and the future

TwelveOhOne's picture

Please read "Creature from Jeckyll Island"

You said "last I checked they didn't defraud anybody en masse." They did so 100 years ago. This is the third time they've attempted it here in the USA; the previous two times were stopped after only about 20 years or so. This one (Federal Reserve) is apparently here to stay, for now (ponzi schemes always end).

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

I don't equate the Federal

I don't equate the Federal Reserve with "Wall Street" or "Banks" in the context to which I'm referring (i.e. not a quasi-governmental institution). You do? Good luck.

What this video fails to

What this video fails to mention, or at least that excerpt, is that they took these risks while originating loans because the government was guaranteeing each and every single one.

Not only that, but they lowered the minimum standards of a qualified mortgagee at Fannie Mae and Freddie Mac, who bought these pieces of junk by the truck load.

This was caused, at its very essence, by the Federal government. No one asks, "why would they risk it all?" They just say they took "excessive risks." Fact is, they didn't take any risks, because it was all guaranteed. The only one taking the risk was the tax payer, holding the bag for decisions made by Mr. BagOfShit Frank and subsequently imposed on the quasi-governmental agencies Fannie&Freddie.

@47 sec. looks away as he says "top priority"

Liar, liar!

If men are good, you don't need government; if men are evil or ambivalent, you don't dare have one.

Hey, it's a monopoly on fraud!

Governments love monopolies! Monopolies must be good!

=======
RON PAUL 2012

Thanks for the link.After

Thanks for the link.

After being interrogated Lloyd Blankfein (Goldman Sachs) got into the car and laughed really nasty.

Reminded me of Hillary.
Especially when she smirked all through the questions of Rand Paul.

They are never being held accountable, unfortunately.

Somebody should make a video about this. The arrogance.

Wasn't Bill Clinton the one who started all this with Glass-Steagall?

the link...

...should you wish to encourage them to do more pieces like this.
http://www.pbs.org/wgbh/pages/frontline/contact-us/

Corruption..

at this point the bankers and DOJ just dont give a fuck.

'Peace is a powerful message.' Ron Paul

...and what's changed?

...someone I know just came within days of securing a $104,000 mortgage on a short sale.

He makes $14/hour ... Has never paid rent in his life(moving out of his parents at age 43)..got a 17% car loan from Toyota some 4 years ago .... But with property taxes, his payment was gonna be like $1100/month!

He was only gonna bring the FHA minimum to closing. His net two week paycheck is about $855.00

The bank had just soaked him for $500 for an appraisal, and it panned out....he has $2,000 in earnest money still out there....but...he is gonna eat the $500, and maybe some of the earnest money as a "not showing good faith" penalty, because he is backing out of the deal since a similar house just went on the market right down the street for $73,000.

The only condition on this loan, almost approved; keep a $3100 balance in your checking account.

How the hell can a bank give out a loan, when the payment exceeds 50% of a man's net pay???

It is a contract.

Who is scamming who? Seems to me that both sides are making a bad deal, but neither is defrauding the other.

Your friend seems to have particularly bad money sense. So bad it makes me suspect you friend is not real, and you may be spreading a fake story. First of all who gets a 17% car loan? No one that is who, and someone who does is supremely unlikely to have made payments for four years. Then again your friend must've made the payments, or no bank would consider him for a loan.

Now as to this house loan, no bank will give a mortgage that costs more than 50% of net income, because FHA will not buy the loan after the fact. Banks do not generally hold mortgages themselves, but rather repackage them and sell them to Fannie and Freddie who will not buy unless certain minimum qualifications are met. The listed income is nowhere near close. Nor could this short sale house be similar to the other house listed at 73K. A short sale will generally sell at most 30% below market value which would mean the market value of the house is somewhere lower than 137K, but not higher than 104K or it would not be a short sale. Why would another house list at between 50-70% of true market value? Why would an appraiser appraise a house at 130-200% of market value? One of these conditions must be true in order for your story to be true.

In short, your story is almost certainly a fallacy. If it is true then your extremely financially challenged friend should thank his stars he has a chance to buy a similar house for 40K less. Even if he eats the appraisal and the earnest money he will be 37K ahead. If your friend is real sit his stupid 43 year old ass down and teach him how to value a property by comparing similar listings online prior to making an offer.

Josh Brueggen
Engineer
Entrepreneur
Gardener
Jack of all Trades
Precinct Commiteeman Precinct 5 Rock Island Co Illinois

There is no true market value

The mortgage banking lobby campaigned to change the rules. Where once FHA appraisers were picked from a roster, the rules were changed permitting the mortgage broker to pick the appraiser. How many stories have been told by appraisers of being threatened with their livelihood by mortgage brokers who informed them they either appraise the house at or over the selling price, or they would be replaced by another appraiser more willing to cooperate? The article below is only one business in one state, it happened on a immense scale all over the country:

"The two appraisers have settled the mortgage fraud claims via consent orders approved by U.S. District Judge P. Kevin Castel. Under these consent orders, the two appraisers will pay a total of $100,000 in penalties and damages to the United States, and will be barred from performing appraisals in sales involving federally-insured mortgage loans for several years."

"Manhattan U.S. Attorney Preet Bharara stated: "Appraisers serve as gate-keepers who ensure that mortgage loans are not based on inflated valuations. It is troubling when they disregard this important duty in order to ‘hit the numbers' and help facilitate unlawful real estate transactions. I applaud the efforts of our Civil Frauds Unit and HUD-OIG for uncovering this fraud and holding these appraisers accountable."

http://mortgagefraudblog.com/perp-walk/item/14026-2_appraise...

I've had a front row seat to this for a month now...

I have the emails from the bank he forwarded me...is the bank doing whatever on behalf if FHA? The payment was going to be that high because the property taxes were $4800 and they were selling him mortgage insurance too..

Here; you think I'm making this up? He was asking my advice! And yes Toyota did pull a usury stunt on him because he was desperate for a car, I saw the loan paperwork...he did finish paying it off with making double payments almost a year and a half ago.

From emails:

"I have received a conditional loan approval for your purchase loan application, and we do need to address several conditions and provide updated documentation to underwriting before we will be able to obtain the clear to close.....(conditions)

....Your appraisal has come in and the purchase price is supported in the valuation. There is a minor repair that is needed (peeling paint to be fixed) to be up to FHA standards before we will be able to close. If you have any questions on the conditions list above, please do not hesitate to contact X or myself."

The other bank would probably settle for under $80,000 .... They were asking $109,000 ... His realtor said offer them $104,000. My friend still lives at home at 43, he drinks 6-10 beers a night to put himself to sleep....he's not real bright, he is a neo-con, and his family has told him to "move on"

My point; seems like "they're" still taking risks...whomever....trying to dump properties, catch up on loans gone bad, and get some property taxes paid again....

Tell your friend

To get his own appraiser and pest control inspection. That "peeling paint to be fixed" might turn into thousands of dollars in "undetected" termite damage or "undetected" water damage.

This is the largest purchase in a lifetime for most people. When you purchase a house, don't trust anyone. Do your own homework, hire your own contractors and seek out multiple banks and brokers for a loan. If you can't afford to do this my advise is, don't buy a house.

If "Untouchable" Was A Hit Piece

It hit the nail on the head.
By failing to prosecute Wall Street crooks, the Justice Department is complicit with the crime and the subsequent coverup of financial fraud.

Bernie Madoff was the only ponzi scammer to go to jail

Ask your self why did he get prosecuted and no one else, for crimes much bigger than his?

"The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first." -Thomas Jefferson

____

"Take hold of the future or the future will take hold of you." -- Patrick Dixon

Federal Reserve Member companies are immune.

All regulation is written for their benefit and to the detriment of any potential competitors.

Free includes debt-free!

No wonder!

No wonder romney had defunding PBS scripted into his talking points.

DOJ Criminal Chief Lanny Breuer Stepping Down

Announced the day after the episode aired.

http://www.pbs.org/wgbh/pages/frontline/business-economy-fin...

A little late

Lanny never should have been hired. He had neither the brains, guts or will to do his job and prosecute the fraudsters.

No brains...

That's why he was hired.

he was more concerned about the banks

and what would happen if he prosecuted them. He actually states this in the PBS video.

Wall Street owns the DOJ.

.

Wall Street owns Washington

as in the White House and Capitol Hill