The latest federal lawsuit over alleged mortgage fraud paints an unflattering picture of a doomed lender: Executives at Countrywide Financial urged workers to churn out loans, accepted fudged applications and tried to hide ballooning defaults.
The suit, filed Wednesday by the top federal prosecutor in Manhattan, also underscored how Bank of America’s purchase of Countrywide in July 2008, just before the financial crisis, backfired severely.
The prosecutor, Preet Bharara, said he was seeking more than $1 billion, but the suit could ultimately recover much more in damages.
“This lawsuit should send another clear message that reckless lending practices will not be tolerated,” Bharara said in a statement. He described Countrywide’s practices as “spectacularly brazen in scope…”
But why no criminal charges?
Had Bill Clinton vetoed the law allowing for the repeal of the Glass-Steagall Act none of this crap would have happened. Had Clinton vetoed the Telecommunications Act of 1996, we would not have only 5 corporations controlling the media today. Bill Clinton may have been the worst president in history all things considered.
Its a close call. Reagan, Bush the Younger, Hoover, Clinton and Obama putting his nose in the tent with austerity and Grand Bargain plans. We get what they pay for and then we elect it!