FBI Saw Mortgage Fraud Early, Did Nothing
The FBI was aware for years of "pervasive and growing" fraud in the mortgage industry that eventually contributed to America's financial meltdown, but did not take definitive action to stop it.
"It is clear that we had good intelligence on the mortgage-fraud schemes, the corrupt attorneys, the corrupt appraisers, the insider schemes," said a recently retired, high FBI official. Another retired top FBI official confirmed that such intelligence went back to 2002.
The problem, according to the two FBI retirees and several other current and former bureau colleagues, is that the bureau was stretched so thin that no one noticed when those lenders began packaging bad mortgages into bad securities.
"We knew that the mortgage-brokerage industry was corrupt," the first of the retired FBI officials told the Seattle P-I. "Where we would have gotten a sense of what was really going on was the point where the mortgage was sold knowing that it was a piece of dung and it would be turned into a security. But the agents with the expertise had been diverted to counterterrorism."
Yet more evidence of how disruptive this "war on terror" has been.
output
sure, triple the size of FBI
sure, triple the size of FBI will sure save these numbskulls who believe they can buy houses without down payment.
Fraud is fraud, not
Fraud is fraud, not deregulation. Allowing fraud is corruption
This is why Spitzer may have been thrown under the bus.
I read here on Daily Paul an article that Eliot Spitzer wrote about the corruption in the mortgage business. No doubt many people knew about it, why not the FBI. The problem is, how can you deliver the information when it is protected very far up the food chain.
Just like 9/11
They knew, yet did nothing, over and over again....
"There can be only one permanent revolution - a moral one: The regeneration of the inner man."
—Tolstoy
Misdirection
is a wonderful tool...
No Surprise There...
Standard procedures, right?
"Do you want to know who you are? Don't ask. Act! Action will delineate and define you."
Thomas Jefferson
www.LibertySpammer.com
You know why the FBI was formed?
It is the enforcement arm of the FED! Their main focus is tax evasion and counterfeiting, and any other scam that "robs" the bankers ... which is why they went after the mafia.
I was never an FBI agent, but I was a real estate agent and ...
... an appraiser more than a decade ago, and from the moment this bubble started, (I think it was part of the "jobless recovery") I could have told ANYBODY that the whole thing was a blatant screaming scam that was going to end very badly.
Poor FBI ... they needed more money! Yea, right! What they need is to be shut down and and half of them -- starting at the top -- prosecuted for corruption. When everybody wrings their hands but nobody gets in trouble, you can bet the farm that everything happened exactly as planned.
Even if these govt agencies
Even if these govt agencies had good intentions (which they don't), they are to bloated, overweight, and inflexible to respond appropriately to anything. How many times have we seen it?
SEC - turns a blind eye to just about everything
FDA - repeatedly screws up food warnings
FEMA - enough said
CIA - "intelligence gathering" is a joke
Washington's solution is, of course, to make these organizations bigger and provide them with increased funding in which they can promptly waste.
http://federalfallacy.com
How many times are they going to use the same excuse?
This is the same BS they spit on us with 9/11.
The reality is the FBI is just another arm of the oligarchy and they were told to look the other way.
You can't tell me stopping a Great Depression just never made their 'to-do' list, but Blago and Spitzer was more important...plzzzz
This is huge story
glad to see it on the front page here.
*But the agents with the expertise had been diverted to counterterrorism.*
Ron is right Osama(if still alive)is laughing in his cave.
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