The rush to settle the fraud claims against the major players in the mortgage meltdown is reminiscent of the rush to pass Dodd-Frank, prior to the completion and final report of the Financial Crisis Inquiry Commission chaired by Representative Phil Angelides. Could Congress effectively regulate the financial industry prior to the conclusion of the investigation into the causes of the crisis? Of course not, which is why Dodd-Frank was rushed through Congress. Likewise, the defendant banks will settle for billions of dollars, as long the amount represents pennies on the dollars of destruction they wrought through wrongdoing that will never be disclosed. That is the way Washington does and will continue to operate, regardless of who the temporary resident of the White House is, as long as the financial industry is a major player in the campaign finance racket.
Aug 25 2011 - 10:21am