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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  Statute of limitations is 5 years (18+ / 0-)

    Which means a lot of the fraud cases will be lost due to that.

    I don't have a time line on the mortgage sales but the securities part of it took off in 2003 and was still roaring along in 2006 and 2007. That exposes a lot of the worst of it.

    I use this article as reference:

    Banks Sell 'Toxic Waste' CDOs to Calpers, Texas Teachers Fund
    By David Evans - June 1, 2007 00:03 EDT

    Excerpt:

    Worldwide sales of CDOs -- which are packages of securities backed by bonds, mortgages and other loans -- have soared since 2003, reaching $503 billion last year, a fivefold increase in three years. Bankers call the bottom sections of a CDO, the ones most vulnerable to losses from bad debt, the equity tranches.

    They also refer to them as toxic waste because as more borrowers default on loans, these investments would be the first to take losses. The investments could be wiped out.

    http://www.bloomberg.com/...

    The Bankster specifically targeted pension funds starting in 2006

    •  And there's the reason why I can't be more than (6+ / 0-)

      cautiously optimistic.  An investigation opened/ongoing after the statute of limitations has passed for a lot of the criminal behavior?  I don't see much to be happy about.

      "He who fights monsters should see to it that he himself does not become a monster. And if you gaze for long into an abyss, the abyss gazes also into you."

      by Hayate Yagami on Thu Feb 09, 2012 at 10:57:42 PM PST

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    •  And what about SoL on RICO? (3+ / 0-)
      Recommended by:
      ericlewis0, mightymouse, TimmyB

      Geez, with the pattern of fraud reaching through all the major banks through every step of the process from "liar loans" through, robo-signing, through the drug-money laundering (oh, wait, that's another criminal activity) ... what is "bank" but a new synonym for "organized crime"?

      But RICO is federal, isn't it?


      Today, if you exist... that's already suspicious.

      by Jim P on Fri Feb 10, 2012 at 01:04:44 AM PST

      [ Parent ]

    •  But it's an ongoing crime, especially (3+ / 0-)
      Recommended by:
      ericlewis0, TimmyB, CuriousBoston

      the cover-up part, so can there even be a statute of limitations set?

      •  Yes, good point (4+ / 0-)

        There is also a concept in SOL law that it only begins running from when the crime (or tort) was discovered, or should have been discovered.

        For example, if a missing person case becomes a murder case after a body is found 50 years later, and the SOL for murder is 50 years, then you are not off the hook.

        So, a similar analysis could apply to the securitization of shitty loans, but time will tell.

        You never trust a millionaire/Quoting the sermon on the mount/I used to think I was not like them/But I'm beginning to have my doubts -- The Arcade Fire

        by tomjones on Fri Feb 10, 2012 at 07:29:19 AM PST

        [ Parent ]

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