Wednesday, April 14, 2010

Washington Mutual Fraud

Here is yesterday's Opening Statement of Senator Carl Levin, U.S. Senate Permanent Subcommittee on Investigations Hearing on Wall Street and the Financial Crisis: The Role of High Risk Home Loans. It's more a summary of a year long investigation by a Senate subcommittee. Most of it is a fascinating case history of Washington Mutual and their fraudulent mortgages.

"WaMu built its conveyer belt of toxic mortgages to feed Wall Street’s appetite for mortgage backed securities. Because volume and speed were king, loan quality fell by the wayside, and WaMu churned out more and more loans that were high risk and poor quality. Once a Main Street bank focused on financing mortgages for its customers, Washington Mutual was taken in by the short-term profits that even poor quality mortgages generated on Wall Street."

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