A slap on the wrist for mortgage fraud

posted by
April 17, 2011
The American Prospect
by David Dayen  
Posted in Commentary, PND Commentary

"On Wednesday, three federal regulators (the Federal Reserve, the Office of Thrift Supervision, and the Office of the Comptroller of the Currency) released an enforcement order against 14 of the nation's largest banks and two third-party service providers for persistent irregularities and outright fraud in the way they process mortgages. These regulators are, respectively, the gang that missed the housing bubble, American International Group's overseer (whose colossal lapses caused it to be disbanded in last year's financial-regulatory law), and an entity most recently headed by a former bank lobbyist. The product of their deliberations, then, is no surprise: a toothless federal consent decree that essentially lets the offending banks off the hook and puts them in charge of their own prosecution." [editor's note: This writer seems almost surprised at this outcome. DUH! - SAT] (04/15/11)


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