Bloomberg reports today that Citi, BAC, WFC, and CIT made 9% secured loans to Tousa Inc six months before Tousa was to file for bankruptcy.
Florida Judge Olson ruled that the lenders “did not act in good faith and were grossly negligent when they made the loans. The had more than sufficient knowledge to understand Tousa’s precarious situation.”
No doubt, these criminals at Citi, BAC, WFC, and CIT all knew that they could turn around tomorrow and securitize those loans into some CDO package they could offload onto unsophisticated investors. These unsophisticated investors would include pension funds and such. These are the kinds of intermediaries that are costing taxpayers trillions of dollars. And we need them why? Remind me Mr. Paulson, remind me, Mr. Geithner and Bernanke?
So, why hasn’t our gov’t, our elected officials shit-canned the managements at these criminal banks yet? Could it be the revolving door between Wall Street and Washington? Could it be lack of political will? You betcha!
Total cost to us the taxpayers for these fraudulent loans is more than $688. What I want to know is why are taxpayers paying for the banks acts of fraud? Why aren’t these bad boys going to do some hard time for their fraudulent acts. More than 1000 S&L executives went to jail in the 1990’s for their fraudulent activities. Why not some of Robert Rubin’s boys at Citi, or Ken Lewis’s boys at BAC?
Why is Judge Olson stopping short of criminal prosecution? Is that to be found in his 182 page ruling? Or is he too lacking the courage to prosecute criminal behavior.
BAC plans to appeal.