http://market-ticker.denninger.net/archives/2189-Gee,-It-Took-The-Senate-THREE-YEARS-WaMu.html
Yeah it took them three years Karl, they were hoping that people would forget about it. Why you ask? Because the WHOLE god damned financial system and every bank that plays in it, books look just like Washington Mutual's.
Now that's a lot of WHITE COLLAR crime Karl, and we probably don't have enough federal penal institutions to house them all.
So Congress with all of their brilliance prefers to sweep it under the rug, because god forbid that they should look to deeply and actually have to prosecute their own meal tickets. It's just not the political way. Lobbyists of the banks are forking over BIG BUCKS to make sure that there is NO finacial reform to speak of, so that business goes on as usual.
In a pair of articles that outline exactly how outrageously corrupt our government's so-called "regulators" really are, The WSJ points to the Senate investigation on Washington Mutual:
WASHINGTON–Officials at the failed banking operations of Washington Mutual Inc. securitized substantial volumes of risky, fraudulent loans in the run-up to the financial meltdown despite repeated internal warning signs, according to a Senate probe.
Got that? Not just dangerous loans, fraudulent loans.
The subcommittee has obtained documents showing that "at a critical point Washington Mutual included loans in its securities because they were likely to suffer a high rate of default, and they failed to disclose that to the buyers," Sen. Levin said. "They also allowed loans that had been identified as fraudulent to be sold to buyers, again without alerting buyers when the fraud was discovered."
Got that again? The bank intentionally included defective loans in securities it sold to investors.
