FBI Operation Malicious Mortgage: Subcrime goes to jail!

There are two distinct breaking GOOD news on today’s media, about Subcrime and US Justice:

1. FBI “Malitious Mortgage” has arrested 70 brokers yesterday, for frauds in subcrime\subprime. SHOCK at Wall Street. This adds up to 1400 ongoing FBI cases under that operation; since March ’08: 406 people under  inquiry in 144 cases, 283 people arrested and 173 already condemned.

2. Former Bear Stearns hedge funds managers Ralph Cioffi and Matthew Tannin, are federal guests from yesterday morning, due to be arraigned in a Brooklyn court.

Morale: the US institutions surprise us again, as they did already in the Enron scandal years ago (ASHAME ON BERLUSCONI’s ITALY, where at the same time budget lying was de-penalised, and still is).

Shall we revise our evaluation, taking also Obama and the alive Primaries into account?

Are the US, one of the liberal Biopolitical régimes with the highest level of democracy?

For sure, putting subcriminals in jail, the people that broke so many LIVES, makes democracy alive.

Details:

1. Since March 2008, the FBI is dealing with 3 types of subcrime frauds, in “Malitious Mortgage”, in coop. with the SEC and Justice Dept. They  already discovered frauds adding to more than $1 billion.

http://www.ft.com/cms/s/0/182b2ede-3e42-11dd-b16d-0000779fd2ac.html

Financial Times oL (yesterday June 19, 22:09): FBI eyes big business in mortgage fraud probe

By Stephanie Kirchgaessner in Washington and Hal Weitzman in Chicago

(The FT missed to put in on paper this morning, while the news took the 1st page of Italian newspapers)

Federal investigators are homing in on 19 “large corporations” – including investment banks, credit rating agencies, accounting firms and hedge funds – as part of a broad probe into mortgage fraud.

Robert Mueller, director of the Federal Bureau of Investigation, did not identify the companies on Thursday, but said the majority of the large corporate cases involved accounting fraud, insider trading and failures to disclose – with criminal intent – the proper evaluation of securitised loans and derivatives

Marco Onado, at radio 24 broadcast “Focus Economia”, tells that PREDATORY LENDING is now considered, since the victimes of subcrimes and foreclosures were literally forced and stolen; the US justice has adandoned a previous attitude of considering such practices just as private affairs beween “consenting adults”.

2. paper FT today, p. 15 (frot page of Companies and Markets)

Former Bear fund duo charged

By Joanna Chung in NY

Two former Bear Stearns hedge fund managers were yesterday indicted on federal charges that they intentionally misled investors about the financial condition of the investment vehicles that collapsed last year.

WSJ

Bear Fund Managers Indicted

Two former Bear Stearns hedge-fund managers were arrested and charged with securities, wire and mail fraud, among other counts.

It’s about High-Grade Structured Credit, and Enhanced Leverage funds: investors lost $1.6 billion, while the two executives were saying in their private emails the crack was forthcoming, and Mr Cioffi secretly retired his money, $2 million, from one fund before the crisis. ENJOY THIS PAGE FROM THE PROSECUTION doc (Tannin: “believe it or not, I’ve been able to convince people to add more money”).

I hope my grab picture is ALMOST readable: otherwise go to the official document http://www.docstoc.com/docs/801755/Bear-Stearns-Indictment

 

 

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