On this week’s Le Show, Harry Shearer interviews Bill Black, one of the men who untangled the Savings and Loan frauds in the 1990s, on the mechanisms by which the banksters corrupted the home mortgage industry and the mortgage process and crashed our economy–and why no one has gone to jail.
They examine how the pay structure for the bankster bonus babies and deregulation of mortgage banks in particular and of the securities industry in general both allowed and encouraged CEOs of banks to make the biggest bad loans they could as fast as they could, so that they could take the money and leave the mortgage investors (read: the people who bought the mortgage-backed
insecurities) holding their empty bags of air.
Here are just two quotes I caught:
The anti-regulators cost 10 million Americans their jobs and 10 million others the ability to work full-time, and they did so by creating an environment that . . . was an open invitation to fraud.
The Mortgage Bankers Association is the trade association of the perps . . . . (The bankers were) looting bankruptcy for profit.