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Operation Malicious Mortgage, The Democratic Party IS As Corrupt As The Republicans

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posted on Jun, 19 2008 @ 08:21 PM
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Hi all,

I don't know if you have been following the whole Sub Prime lending scandal that closely, but 400 have been rounded up and/or charged so far....

So far 2 Democratic Senators have been linked to sweetheart "loans" from Angelo Mozilo, head of Countrywide Financial with a few more to follow I am sure.

Now what Angelo Mozilo was doing was making loans to the "little people" and the higher ups, at a cut-rate price, then selling the questionable mortgages to FannieMae, which is overseen by the government, and in charge of bailing out these loans if the people got behind in them....after they purchased them from Angelo Mozilo. So in essence, he loaned money out to anyone and everyone and sold the mortgages to FannieMae, knowing that the government would be screwed, if they defaulted, and not caring, since FannieMae, IMO, is much like a huge Democratic slush pile of cash they can operate from...much like the oil companies, and war contractors etc are for the Republicans....

Now just because senators got low interest loans from Mozilo, who, both claim they didn't even know him and "just called him up", is not really news in itself, what IS news is these 2 senators, so far only 2, are the Democrat chairman of the Senate Banking Committee, and the Democrat chairman of the House Budget Committee!!! HOW CONVENIENT!!!


They are Senators Dodd and Kent Conrad, the Democrat chairman of the Senate Banking Committee, the Democrat chairman of the House Budget Committee. They are the prime authors of this bailout bill. They got sweetheart deals.


www.foxnews.com...

Now couple this with Obama's right hand Vice President picker....Jim Johnson, a FannieMae EXECUTIVE, steps down, under scrutiny that he gave "preferential mortgages" to a lender now linked to the foreclosure crisis....


In a sudden setback that could slow the Democratic nominee's search, Obama lost his top Veep hunter, Jim Johnson, after the former Fannie Mae executive came under scrutiny for accepting preferential mortgages from a lender linked to the foreclosure crisis.


www.time.com...

And now, what happened today....


U.S. Charges 400 in National Mortgage Fraud Crackdown

Federal prosecutors have charged more than 400 people across the U.S. in a crackdown against mortgage fraud, as the government stepped up efforts to address the subprime loan crisis.

FBI Director Robert Mueller and Deputy Attorney General Mark Filip said the campaign, called Operation Malicious Mortgage, was designed to send a message that housing crime is a national problem. Almost 300 people have been arrested since March in such major cities as Chicago, Dallas and Miami.


www.bloomberg.com...

This is a HUGE scandal, filled with corruption to the highest level, and probably will be an ongoing investigation for the next 10 years, politicians, CEOS etc are going to go down in a huge blaze of glory, as they should....

And all without ANY mention, in the MSM hardly at all!!! Is this not unbelievable???




[edit on 19-6-2008 by LateApexer313]

[edit on 19-6-2008 by LateApexer313]

[edit on 19-6-2008 by LateApexer313]

[edit on 19-6-2008 by LateApexer313]




posted on Jun, 19 2008 @ 08:45 PM
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Here's more on this subject that I guarantee, will NOT fade away, if it even gets NO play in the MSM!


Two U.S. senators, two former Cabinet members, and a former ambassador to the United Nations received loans from Countrywide Financial through a little-known program that waived points, lender fees, and company borrowing rules for prominent people.


www.portfolio.com...

I have no axe to grind, I think ALL politicians are corrupt regardless of party affiliations, and here's another list of people caught up in this scandal:


Other participants in the V.I.P. program included former Secretary of Housing and Urban Development Alphonso Jackson, former Secretary of Health and Human Services Donna Shalala, and former U.N. ambassador and assistant Secretary of State Richard Holbrooke. Jackson was deputy H.U.D. secretary in the Bush administration when he received the loans in 2003. Shalala, who received two loans in 2002, had by then left the Clinton administration for her current position as president of the University of Miami. She is scheduled to receive a Presidential Medal of Freedom on June 19.




[edit on 19-6-2008 by LateApexer313]



posted on Jun, 19 2008 @ 09:48 PM
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Wow, one of the biggest breaking scandals going and not 1 taker! Simply amazing....guess I haven't done my job in posting the information in a sensational format, or, no one cares


All cool, in Love, Politics and Breaking Scandals I guess....So much corruption out there and such malaise I guess....guess I will just update this thread when new breaking news comes out, regardless of the amount of comments.

I think it warrants closer scrutiny, so I am on it



posted on Jun, 19 2008 @ 09:52 PM
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The problem is that it took too long for this developments to happen, see we here in ATS debated the corruption over and over again and nobody back then when the market crashed got indicted on any charges.

How about all the corrupted CEOs that go away during the fed bail out of bankers, when those will be held accountable.

I guess the fall guys are just hand picked as usual, the big rats get protection.

[edit on 19-6-2008 by marg6043]



posted on Jun, 19 2008 @ 09:53 PM
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I caught some of this on the radio today. I think it was Chris Dodd I heard playing innocent, like he didn't have any idea what his own involvement was all about.

And Jim Johnson not only was head of Fannie Mae, and booked something like $200 million in expenses in the wrong year so he could get a $1.9 million bonus.



posted on Jun, 19 2008 @ 10:00 PM
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Great work LA. I'll be keeping an eye on this thread.



posted on Jun, 19 2008 @ 10:06 PM
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reply to post by LateApexer313
 
I don't expect to see any of the top people behind the subprime mess brought to justice. They are all probably off counting their ill gotten gain and greedily licking their chops at the thought of buying someone's forclosed home cheaply. I wonder how many of the people who are facing jail time were pressured by higher ups into making bad loans. With all the unused land in America there is no reason for homes to cost as much as they do. Without zoning laws and building codes more people would build cheap little houses like our ancestors did,and there would be no need for huge mortgages. Without huge mortgages people would have more excess income which would be spread around ,so there would be less poverty.



posted on Jun, 21 2008 @ 09:22 AM
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Updated details on Operation Malicious Mortgage: Notice some of the names that went down in the FBI sweep in Chicago...this reads like an episode of the Sopranos



In Chicago, authorities said the centerpiece of their investigation involved one of the largest mortgage fraud schemes ever prosecuted in federal court here.

Charged in another case was Freddie "Knucklehead" Johnson, who controlled RM Developers, authorities said. Johnson, once the subject of a Tribune story on mortgage fraud, was charged with five loan officers, five fraudulent buyers and Chicago attorney Lorie Westerfield, authorities said.

Illinois is in the top 10 among states in mortgage fraud cases, investigators said as they promised to continue to pursue those inside and outside the industry who cheat the system.



Please visit the link provided for the complete story.


www.chicagotribune.com...


FBI Sweep Reveals New Twists to Mortgage Fraud

Please visit the link provided for the complete story.



The operation was a massive one. The FBI said more than 80 percent of their offices were involved. In all, more than 406 defendants were charged. A little less than half of those have been convicted so far, and more than 80 of them are already serving sentences.

Please visit the link provided for the complete story.


www.npr.org...


This is only the beginning of the avalanche of information we'll receive regarding mortgage fraud. Since Bear Stearns collapsed in March, many thought that FBI inquiries would yield evidence of criminal activity contributing to all of this financial tumult. It has, and it's certain that the FBI will be arresting hundreds more and revealing many fraudulent practices that have contributed to the subprime meltdown.

Please visit the link provided for the complete story.


losangeles.injuryboard.com...

[edit on 21-6-2008 by LateApexer313]



posted on Jun, 21 2008 @ 09:29 AM
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More on Jim Johnson and the Fannie Mae, Countrywide sweetheart deals:


Last week, Jim Johnson, former chief of staff for Vice President Walter Mondale and CEO of the federally chartered banker Fannie Mae, which buys and resells mortgages, had to resign from his position as head of the task force looking for Barack Obama's running mate. The Wall Street Journal reported that Countrywide -- Fannie Mae's largest mortgage provider -- gave him preferential treatment for millions of dollars in personal loans.

Thus Senator Conrad did become an FOA -- Friend of Angelo's -- part of an elite who received the occasional favor from Countrywide. For the North Dakota senator, it was help with a million-dollar loan for improvements to his vacation home on the Delaware shore. In a March 2007 e-mail, Mozilo told one of his loan officers to, quote, "Take off one point," for Conrad.

In addition, Conrad was given a mortgage for an eight-unit apartment building back in Bismarck, even though Countrywide had a policy against loans for anything larger than four units. In another e-mail, Angelo Mozilo wrote, "Make an exception due to the fact that the borrower is a senator." Waiving the rules was SOP for an FOA.

Please visit the link provided for the complete story.


www.buzzflash.com...



posted on Jun, 21 2008 @ 09:34 AM
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Where was congress in all of this? Dipping their muzzles into the honey pot of course:


In turn, Countrywide's handouts to pols were just part of a bigger DC jackpot. As per Kathleen Day, "The financial services and real estate industries are far and away the largest federal campaign donors, giving more than $247 million in the 2007-08 cycle alone. Between 1999 and the end of 2006, the mortgage industry and its trade groups spent $187 million lobbying Congress, blocking efforts to ban abusive practices at the national level." No wonder so little has been done so far to help those whose savings have been lost. Campaign cash registers and the politicians who love them rule.

Please visit the link provided for the complete story.


www.buzzflash.com...



posted on Jun, 21 2008 @ 09:44 AM
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It appears that the Republicans CAN work together with the Democrats when it comes to lining their pockets. Meanwhile the BBC shows videos of citizens living in tent cities all over Los Angeles and throughout the country, news articles from papers throughout the US write articles on the "housing bubble" yet as usual, do not report the true story of how the mortgage fiasco even came about:


Republican Study Committee Chairman Jeb Hensarling (R-TX) called for an investigation into the sweet deals given to Dodd and Conrad, but his fellow Republicans are loath to leap at the opportunity, signaling that this scandal could spread beyond just one party. Why else pass up a great opportunity to expose the Democrats’ hypocrisy in an election year? Democrats had been hoping to plow a mortgage bailout through Congress before this whole mess gets exposed, but President George W. Bush has threatened a veto because of the overly generous terms for Countrywide and similar lenders. Now we will have to wait and see if Republicans have the courage to take this issue to the bank, as it were, and call the Demos out before the story gets swept away.


archive.patriotpost.us...



posted on Jun, 21 2008 @ 10:35 AM
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Reply to LateApexer313


I know Democrats are corrupt, that is a no-brainer. and I have known that for a long time. What I don't understand is you comparing corrupt Democrats to Republicans. What corruption on the Republican side are you talking about?

Democrats corruption has been around for a long time, go all the way back to FDR. Has it took you this long to figure this out? How did you make the assumption that Republicans are corrupt? I guess the media has trained you well?



posted on Jun, 21 2008 @ 10:44 AM
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WOW! You must have read "DUH!" magazine.

Seriously though:
The major parties have been two heads of the same snake for years and years.



posted on Jun, 21 2008 @ 10:48 AM
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Hallelujah!!!!!!!!!!!!!!!

I have been like a broken disk in this board telling about how corrupted our political system is, still we have people that will with blind devotion to their political parties that see not wrong doings.

Actually congress is so deep knee into ca-ca that now people that wants to see can understand why we are been gouged by our own government.

Is not such thing as honest politicians but a whole bunch of greedy butts holes kissing up to corporate American and taking their hand outs.

Wake up America is all in front of your eyes to see.


BTW RRconservative they all cut by the same dirty scissors and worship the same gods, Republicans and Democrats only difference is in their party affiliations.



posted on Jun, 21 2008 @ 01:48 PM
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Of course I am not so naive to think that one party over the other is more or less corrupt, bismarcksea.

This thread was for the people on here that seem to think that the Democrat party is the party of "the little man" as if ANY politician is out for anything but lining their pockets with the "little man's" tax money lol.

I have always said..."Democrats or Republicans? Same crap different piles." They are equally corrupt, but this is for the Democrat lovers out there who of course won't see any of this on the MSM.

And to RRconservative:


How did you make the assumption that Republicans are corrupt? I guess the media has trained you well?


I don't watch the MSM, so no I didn't learn that from them...I have a brain, and I use it, where people who obviously think that both sides AREN"T corrupt, obviously need to educate themselves a little more.

I guess you didn't bother to read this, which I posted, concerning the Republicans FAILING to help Jeb Hensarling, Republican Study Committee Chairman, investigate this mess here....which, when has EITHER side ever stopped slinging mud at the other?? When they are KNEE deep in the sewage as well!


Republican Study Committee Chairman Jeb Hensarling (R-TX) called for an investigation into the sweet deals given to Dodd and Conrad, but his fellow Republicans are loath to leap at the opportunity, signaling that this scandal could spread beyond just one party. Why else pass up a great opportunity to expose the Democrats’ hypocrisy in an election year?


archive.patriotpost.us...

marg6043 : You said it!



BTW RRconservative they all cut by the same dirty scissors and worship the same gods, Republicans and Democrats only difference is in their party affiliations.



posted on Jun, 21 2008 @ 02:53 PM
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Operation Malicious Mortgage stage II.

Allow Bank of America to write the housing bailout bill currently working its way through the Senate. Putting the taxpayer on the hook for hundreds of billions of bad loans. See my post here.

They are wanting to use Ginnie Mae as the underwriter for all the bad mortgages. Ginnie Mae is the only GSE (Government Supported Enterprise) that has an EXPLICIT backing from the government i.e. taxpayer. Fannie Mae and Freddy Mac have vague and implicit government backing. It seems to me if this gets passed as written we'll have an imediate increas of a 1/4 trillion dollars in the national debt overnight.



posted on Jun, 28 2008 @ 06:34 PM
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Another one is biting the dust, UBS Financial Services going down for the mortgage debacle amidst civil fraud charges.

175,000 jobs expected to be lost due to this huge scandal...hard to feel sorry for them when they brought it on themselves....Sad but true, probably a lot of collateral damage going on, and people that had nothing to do with the fraud and greed will be out on the street as well though....



Upping the ante toward prosecuting banker corruption in the mortgage debacle, regulators filed civil fraud charges against UBS Financial Services for selling investments that were known to be extremely risky, but portrayed as safe. Banking customers have now discovered that they have been blindsided by the very people who were supposed to have their best interests at heart.

The complaint alleges that even though executives were calling the program an “albatross” and knew their program was near collapse early this year, UBS continued to sell the securities to individual investors. It presented them as a good value, in order to reduce its own inventory. Investors were never told the auctions weren’t true auctions. UBS stepped in when buyers abandoned the auction program to underwrite the products and set the interest rate so the program wouldn’t fail. That sounds like fraud clean and clear.

Citigroup, the global bank holding company, is being pounded by running investors. Goldman Sachs has recommended to its clients that clients sell their shares of Citibank in light of huge continued write-offs. The news today is that 175,000 financial sector jobs will be lost in the U.S. over the next year. Life is gloomy indeed for the banking and finance community.

Please visit the link provided for the complete story.


digitaleconomy.wordpress.com...

[edit on 28-6-2008 by LateApexer313]



posted on Jun, 28 2008 @ 06:44 PM
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Here's an interesting summary of how it all happened in the first place...and why so many BORROWERS were lulled into signing these ridiculous loans knowing full well they were never going to be able to afford these houses....and how everyone involved made out like pirates. It's a PDF document from the Federal Reserve....written by Christian Spano:



What did the sub-prime market exactly do? It relaxed traditional lending policies to allow for more homeownership. Coupled with down payment assistance programs, borrowers didn’t need any cash, good credit or even much salary to buy giant luxury homes with these programs. It was absolutely conceivable for a young couple making around $50,000 a year in combined income to purchase a $300,000 home with initial mortgage payments totaling less than $1000 a month. Since the initial payment was so low, the normal rental history requirement was no longer applicable.

To further bring down the initial payment and squeeze more home into the loan, Builders were even paying down the interest on the borrower’s loans so that they could move units faster. Loaded with pre-payment penalties and other devices that delay the inevitable, these products were designed to sell homes…quickly.

The politicians and local governments did pretty well from the sub-prime market. For six straight years property values soared nationwide. Tax revenue was at record levels. The builder boom’s exponential effect of raising the existing values as well as adding more contributors to the tax base brought the public coffers to the highest levels in recent memory. No politicians were worried about where it was coming from or what was generating the income at the time.


www.federalreserve.gov...



posted on Jun, 28 2008 @ 06:53 PM
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reply to post by jefwane
 


Hiyah jefwayne,

Yes it's absolutely sickening....and what makes me sicker is one of the senator's that got one of these juicy loans from the crook at Countrywide is trying to push this bill forward...the one that I think you're talking about...to absorb all the bad loans through Ginnie Mae, thereby making us taxpayers responsible....

And look who's probably behind this bill??? Bank Of America is the one who basically had a hand in twisting this Democrat Dodd's arm to even try to get this thing passed...


The staffer was referring to the Dodd-Shelby bill that would let mortgage lenders off the hook for bad loans, ultimately shifting the burden to taxpayers.

The Bank of America paper referenced is this document, a PDF marked Confidential and Proprietary, titled the "FHA Housing Stabilization."

This was first picked up by the NY Examiner, followed by the National Review Online, who noted that "the similarities between BofA's ideal bill and the bill before the Senate are obvious." Then lastly, an LA Times blog, LA Land, put all the separate pieces together with this post: Did Bank of America write the Dodd bailout bill?


bigpicture.typepad.com...



posted on Jun, 28 2008 @ 07:09 PM
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Mozillo is widely recognized in the industry as the most corrupt CEO of any major lender on the market. He has taken a lending giant like Countrywide and turned it into the poster company for predatory and unethical lending.


The only man in the game who could even compare to Angelo would have been Roland Arnall, the most dispicable man to ever head up a mortgage company.

If you want a real TRUE conspiracy try this one on for size. Arnall was the owner and operator of Ameriquest Mortgage Capital, which was the front runner in predatory lenders. After settling over 100 individual class action lawsuits at over $300 million he was G.W. Bush's appointee as ambassador to the Neatherlands. Arnall and Ameriquest were the largest private contributor to the Bush campaign during the 2004 presidential race.

As soon as congress and federal prosecutors began uncovering the fraud and began going after the CEO's criminally, Arnall suddenly develops terminal cancer and abruptly "dies" within a week of being diagnosed earlier this year. Strangely enough no autopsy was performed and he was allegedly buried within two days of his passing in a private closed casket service (before anyone could investigate), per Jewish tradition.

It is yet to be proven as fact, but there is a huge consensus among mortgage people that Arnall faked his own death and fled to Israel, where he is able to avoid litigation or future prosecution once his role in the sub prime meltdown is ultimately determined.

Ameriquest was king of the sub prime lenders and single handedly caused tens of thousands of home owners to lose their homes. The company was settling law suits for fraud and predatory lendeing a full two years before anyone had even heard of a mortgage melt down and before the average consumer even knew what a sub prime loan was.

Do a little investigating, if what you find doesn't stink to high hell I will be shocked




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[edit on 6/28/08 by BlackOps719]




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