Fraud In The Banks

So, remember that huge mortgage crisis? The one that caused the biggest economic fallout since the great depression. The one that turned this country upside down and cost millions of people their jobs. Well as it turns out, those big business that actually benefited (The banks) also caused the issue. On Wednesday a federal jury found Bank of America liable for fraud due to an intentional flood of defective mortgages. These mortgages are traced directly to the cause of the financial crisis.

Thankfully this has begun a healing resolution in cleaning up the stains in our economy. This has been a tremendous victory for the Government in the fight to show the criminal acts of Wall Street. The point of the attack was found in a plot scheme of Countrywide Mortgages. The scheme had been code named "The HUSTLE" which was a program that actually gave bonuses to how quickly bankers could originate loans. As a result the credit quality of each borrower was short shifted, leading to the eventual failure of the loan. This was luckily uncovered by the feds, and now Bank of America is receiving a real civil suit that is claiming upwards of $848 million dollars in damages.

What is most rewarding about this case, is that the federal government now has a focused plan of attack to fight the sins of giant corporations. We are now on a great track to recovery and we can hone in on the even greater plots that caused this economic break down.

Link http://www.washingtonpost.com/business/economy/bank-of-america-is-found-liable-for-countrywide-fraud/2013/10/23/60ce89fe-3c27-11e3-b6a9-da62c264f40e_story.html