Obama's DOJ: No Fraud Suit For Subprime Loans Debacle

Jun 2014
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LOS ANGELES — Federal prosecutors won’t file a fraud lawsuit against former Countrywide Financial chief executive Angelo Mozilo over the sale of billions of dollars’ worth of subprime loans before the mortgage meltdown, his attorney said Friday.

The decision not to file a civil case was announced to Mozilo’s attorneys by letter this week and followed a two-year investigation.

*Snip*

[The state of California declined to prosecute in 2011. This means the man walks without any consequences, even a civil judgment.)

Mozilo, 77, co-founded California-based Countrywide. The loan giant helped fuel the housing bubble by giving mortgages to people who were financially unqualified. The resulting defaults contributed to a housing market crash and a massive bailout of financial institutions by U.S. taxpayers.

In 2010, Mozilo agreed to pay $67.5 million to settle a lawsuit brought by the Securities and Exchange Commission. Mozilo didn’t acknowledge any wrongdoing and most of the money was paid by insurers and by Bank of America, which acquired Countrywide in 2008.


*Snip*
https://www.washingtonpost.com/national/feds-wont-file-fraud-suit-against-countrywides-mozilo/2016/06/17/4b5bfcf8-34f6-11e6-ab9d-1da2b0f24f93_story.html

As much as anyone, this man Anthony Mozila engineered the Great Recession.

Lack of drive, talent or simply direction from above not to pursue or win a case, Obama's DOJ is, hands down, the WORST in my lifetime and so is his SEC.

Your thoughts?
 
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TNVolunteer73

Former Staff
Nov 2014
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9,349
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https://www.washingtonpost.com/national/feds-wont-file-fraud-suit-against-countrywides-mozilo/2016/06/17/4b5bfcf8-34f6-11e6-ab9d-1da2b0f24f93_story.html

As much as anyone, this man Anthony Mozila engineered the Great Recession.

Lack of drive, talent or simply direction from above not to pursue or win a case, Obama's DOJ is, hands down, the WORST in my lifetime and so is his SEC.

Your thoughts?
you are shocked, over the last 7 years he has given these same people over 2 trillion in bailouts.. why would he charge them with fraud?
 
Jun 2014
52,518
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United States
Your thoughts?

It doesn't make sense to piss away taxpayer funds on a case that can't be won.

Excerpt from linked article:

The decision not to pursue a Department of Justice lawsuit against Mozilo follows a setback in the similar prosecution of former Countrywide executive Rebecca Mairone.

Prosecutors contended that she was part of an effort to push low-quality mortgages to the government-controlled Fannie Mae and Freddie Mac programs.

In May, a federal appeals court in New York overturned the civil fraud verdict against Mairone, saying the government had failed to show any fraudulent intent.
 
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Blueneck

Former Staff
Jun 2007
57,138
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It doesn't make sense to piss away taxpayer funds on a case that can't be won.

Excerpt from linked article:

The decision not to pursue a Department of Justice lawsuit against Mozilo follows a setback in the similar prosecution of former Countrywide executive Rebecca Mairone.

Prosecutors contended that she was part of an effort to push low-quality mortgages to the government-controlled Fannie Mae and Freddie Mac programs.

In May, a federal appeals court in New York overturned the civil fraud verdict against Mairone, saying the government had failed to show any fraudulent intent.
My feelings as well. It was all perfectly legal.
 
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Jun 2014
64,973
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Cleveland, Ohio
you are shocked, over the last 7 years he has given these same people over 2 trillion in bailouts.. why would he charge them with fraud?
The bailouts are universally considered wise by economic pundits. The failure to prosecute is a separate decision. They were never incompatible.

Fast and Furious. The IRS debacle. The goddamned mergers his SEC signed off on!

Everyone obsesses about the SCOTUS appointments of the next POTUS, but these federal agencies protect our economy -- when they function.

I can't see Trump letting lose the hounds of hell on economic criminals, either.

Can you?

And for sure, Hillary won't.

We are so fucked.
 
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Jun 2014
52,518
55,089
United States
The bailouts are universally considered wise by economic pundits. The failure to.prosecute is a separate decision. They were never incompatible.

Fast and Furious. The IRS debacle. The goddamned mergers his SEC signed off on!

Everyone obsesses about the SCOTUS appointments of the next POTUS, but these federal agencies protect our economy -- when they function.

I can't see Trump letting lose the hounds of hell on economic criminals, either.

Can you?

And for sure, Hillary won't.

We are so fucked.

Stop voting for Republicans.
 
Jun 2014
64,973
39,891
Cleveland, Ohio
It doesn't make sense to piss away taxpayer funds on a case that can't be won.

Excerpt from linked article:

The decision not to pursue a Department of Justice lawsuit against Mozilo follows a setback in the similar prosecution of former Countrywide executive Rebecca Mairone.

Prosecutors contended that she was part of an effort to push low-quality mortgages to the government-controlled Fannie Mae and Freddie Mac programs.

In May, a federal appeals court in New York overturned the civil fraud verdict against Mairone, saying the government had failed to show any fraudulent intent.
Just because it's hard to pursue these cases, doesn't mean it would be unwise to do so.

Personally, I think they're winnable, especially as criminal and not civil actions. What these people did is not terribly different from what Madoff did, and there's enough brains and brawn in and out of these agencies to put together a formidible legal attack force.

I think they lost because they were instructed to lose, else why the fuck have the USFOJ lawyers involved not been fired?

This is playacting to placate the public. Obama can say "we tried. It was too hard." And the public, who already doesn't understand how we got screwed, thinks, ya, it sounds hard. Thanks for giving it a shot.

It's a knife in the heart of our economy.
 
Jun 2014
52,518
55,089
United States
Obama is a DEMOCRAT.

This is not party politics. This is class warfare.

Don't get silly on me. Obama may be a Democrat, but it was Republicans who authored all of these "business friendly" laws, and the POTUS is obligated to uphold the law, whether he agrees with it, or not.
 
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