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Article: SEC to Hold Rating Agencies Accountable...

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eastmn
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Article: SEC to Hold Rating Agencies Accountable...  Reply with quote  

Article: SEC to Hold Rating Agencies Accountable...

It's easy to understand that the investment banks couldn't bite the hand that feeds them.
"Justice is slow, but justice is Just" (yea right)...

Article:
http://www.gobankingrates.com/mortgage-rates/sec-top-credit-rating-agencies-accountable-mortgage-crisis/

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Last edited by eastmn on Thu Sep 29, 2011 9:36 pm; edited 2 times in total
Post Wed Sep 14, 2011 9:14 am
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dangtrung
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I'll try it. Thank you for sharing
Post Wed Sep 14, 2011 12:04 pm
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eastmn
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Follow Up:

SEC mulls charges against S&P in CDO case
http://reut.rs/p75cy6

Their recent downgrade of the major banks had me thinking that these same banks might be suing them to recover damages from the faulty sub-prime ratings. How does the statute of limitations laws work in such cases (contractual)? Looks like justice may finally be coming around.

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Post Mon Sep 26, 2011 9:58 pm
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eastmn
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Follow Up:

AP News Article Too:
Possible SEC move vs. S&P may be first legal shot
http://finance.yahoo.com/news/Possible-SEC-move-vs-SampP-apf-205352855.html?x=0

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Last edited by eastmn on Thu Sep 29, 2011 9:37 pm; edited 1 time in total
Post Mon Sep 26, 2011 11:08 pm
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coaster
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quote:
Originally posted by eastmn
Looks like justice may finally be coming around.

???
The banks got what they deserved, IMO. If the SEC makes it legal to jump off a cliff that doesn't mean I'm going to do it.

Unfortunately, a whole heck of a lot of people who thought the banks were smarter than that got hurt; even more that thought the government was smarter than that. Wrong in both cases.

So, I don't know about justice. Justice seems to be somewhat misguided at times. Maybe that's why she's blindfolded .... so she doesn't see the cliff. Laughing

~Tim~
Post Tue Sep 27, 2011 6:03 am
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eastmn
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Rating these loans properly would have kept them down to a minimum, where the banks would have been stuck with them. I saw a few deals go down here, where the loan originator and the appraiser would quite literally give you "anything you want".

One example, a repo rental property is purchased dirt cheap. Fixed and painted, then equity loan taken out to the max. Then rented out for $600 month. Then sold to the same renter for the same $600 month. Is there a name or phrase for this particular sub-prime "flipping" trick? The guy I saw doing this is a local minister, by the way.

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Post Tue Sep 27, 2011 12:56 pm
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coaster
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I had my original home mortgage with BAC (then Countrywide). My first refi was with BAC (after the aquisition). This was not too long before the meltdown. I was just agog at the laxness with which they underwrote that first refi. When I questioned things, I got answers like "don't worry about it" or "it's not a problem" or "it'll be fine" or just "leave it blank and we'll fill it in later". I had to go to the manager of that unit to get my questions answered. The loan officers didn't know and worse yet, nobody cared.

That's the kind of attitude toward doing business they had back then, and IMO, the kind of attitude toward doing business that got them in trouble. They got what they deserved: trouble.

~Tim~
Post Wed Sep 28, 2011 6:10 am
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eastmn
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An old friend of mine was running one of those online colleges. He was paying for accreditation by passing courses through a state college. Cold calling, they'd make loans for the tuition, and would immediately sell the paper for 85%. $10M strong, the Feds caught up with him and then a freak fire destroyed the building and records. His partner had already served time for Federal tax evasion (bogus invoicing).

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Post Thu Sep 29, 2011 10:08 pm
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