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Was Sec. Treas. Paulson Aware of Mortgage Fraud?
This opinion piece address several facets of the mortgage crisis. The hint that Henry Paulson knew of fraud in the securitizing of mortgages while at Goldman is especially striking, given that Goldman Sachs, Paulson's old firm, came out of August's credit crunch with the largest profit by far of any investment bank.From TFA: Goldman Sachs is the only major investment bank in the United States that has emerged as yet unscathed from this debacle. The success of its strategy must have resulted from fairly substantial bets against housing, mortgage banking and related industries, which also means that Goldman Sachs saw this coming at the same time they were bundling and selling these loans. If a mortgage bond investor sues Goldman Sachs to force the institution to buy back loans, could Paulson be forced to testify as to whether Goldman Sachs knew or had reason to know about fraud in the origination process of the loans it was bundling? Dunno... Anyway, the way this may well play out is that the coming problems from mortgages is so massive 2008 will be a massive turning out of politicians at every level,as voters come to grips with the behavior of our bankers.
Posted by: badanov 2007-12-10 |
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| http://www.rantburg.com/poparticle.php?ID=212410 |