Be prepared for a new round of “tanks in the streets if you don’t cut that crap out!“
The Federal Housing Finance Agency on Monday said it had issued 64 subpoenas to unnamed firms in an effort to uncover misleading statements that Wall Street banks and others may have made when they bought and packaged risky mortgages into securities. Fannie and Freddie were two of the largest investors in those securities.
And why would the FHFA have to issue subpoenas? I mean, couldn’t Fannie and Freddie just ask for the data they wanted?
The FHFA said that it had opted to issue the subpoenas after being rebuffed in earlier efforts to collect loan files.
Oh, I see. The banks were asked, and replied:
Well now why would they do something like that? You don’t think there might be something to hide, do you?
Like, perhaps, that they didn’t have good recordable titles? That they had endorsements-in-blank and thus couldn’t record them? That they either knew or had every reason to believe that the claimed levels of income and/or assets didn’t exist? That the appraisals were doctored?
Naw, none of that stuff happened, right? There weren’t any straw buyers, there weren’t any second-home riders executed on investment properties, why there wasn’t any fraud at all that was perpetrated during these years and then sold off to Fannie and Freddie, pocketing a spread and (attempting to) stick the taxpayer with a few hundred billion in losses, right?
This ought to get good.