Tonight's Rock center took a hard look at America's two tier system of justice, and how it has responded to the collapse of the Housing Market. Letting the big fish swim away unmolested while chasing after the smaller fish. They examine the case of Charlie Engle a man who lied on a couple of mortgage applications.
Borrower targeted for mortgage fraud, while bankers got bailoutsThe segment also did an outstanding job of refuting GOP Historical Revisionists blame shifting for the housing crisis. It laird out how banks cultivated high interest high risk loans by turning a blind eye to due diligence in qualifying borrowers, then bundling the mortgages of uneven quality into securities to sell to unwary buyers.
By Sopan Deb
The big banks that handed out those liar loans by and large escaped criminal prosecution, said Neil Barofsky, who was the inspector general for TARP, the government’s program to bailout the banks. Barofsky told Rock Center that while it is easier to prosecute the smaller fish involved in the financial crisis, that does not justify ignoring the bigger ones.
“And it doesn't really accomplish the broader goals that you want from your Department of Justice in the aftermath of a crisis, and that's to make it very clear, that if you break the law, if you do this type of unethical behavior, that you'll be held accountable,” Barofsky said. “And all the Charlie Engle’s in the world rotting in jail aren't going to accomplish that goal.”
Our system of justice is only capable of catching the minnows, while the barracudas swim off looking for more prey.