Senate subcommittee on WaMu: failure led by greed and fraud

Doesn’t the Senate subcommittee know that they’re not allowed to blame anyone for any failure, ever? That’s the new model that has been in high gear in recent years. Remember how 9/11 wasn’t really the fault of anyone? Heck, they even handed out a medal. The economic crisis? Bah! Bring on the Wall Streeters and let them write the watered-down “reform” using the billions that were handed over to them.

This pointing the finger thing is really not the way but there’s still time to soften the blow and make sure nobody from WaMu gets upset. Double check that none of the “greed team” have moved over to JP Morgan Chase though. Heaven knows we wouldn’t want to criticize any of those folks who are happily hiding behind their protective lobbyists. As they say, you never want to step in between a lobbyist and a re-election campaign fund donation.

“Using a toxic mix of high risk lending, lax controls and destructive compensation practices, Washington Mutual flooded the market with shoddy loans and securities that went bad,” the subcomittee’s Chairman Carl Levin (D-Mich), said in a statement.

Levin said his subcommittee looked at the Seattle-based thrift as a case study.

He described it as the story of a 100 year old traditional lender that turned away from safer lending practices to pursue the higher profits reaped from selling high risk mortgages to Wall Street firms.

As it did, the thrift failed repeatedly to bring the hammer down on fraudulent practices rampant in some of its most profitable mortgage centers.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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