8lll 8lack 8ank lraud

Pelped clean up Lhe SL scandal of Lhe 1980's (over 1000 felony prosecuLlons before CllnLon shuL down
Lhe agency)
8eregulaLed Lhe bank lndusLry under 8onald 8egan afLer Lhe deregulaLlon lead Lo masslve bank fraud
10 1rllllon dollars ln wealLh desLroyed by bank fraud and an esLlmaLed 10 mllllon Amerlcans losL Lhelr
[obs because of fraud
CLC's and hlghlevel execuLlves creaLe accounLlng fraud Lo looL Lhelr own companles and keep Lhelr
bonuses and salarles as Lhelr companles go bankrupL or are balled ouL by Lhe Lax payer
1he Sure 1hlng" lormula for record shorL Lerm proflLs pald for by long Lerm losses 1) AcceleraLe
growLh beyond prudenL levels buL make sLock prlces go up 2) lssue loans aL exLremely hlgh lnLeresL
raLes LhaL wlll defaulL ln Llme buL creaLe shorL Lerm proflLs 3) use masslve amounLs of leverage Lo
creaLe Lhe loans uslng Lhe rlsky loans as collaLeral 4) uo noL malnLaln adequaLe caplLal reserves Lo
cover expecLed defaulLs
AccounLlng SLandards 8oard 8ank Lxecs lobbled Lo have Lhe accounLlng sLandards dlsmanLled so LhaL
Lhey could run Lhelr scheme 8anks were allowed Lo sLop recognlzlng losses on Lhelr balance sheeLs
loreclosure lraud Amerlcan 8anks 10000 cases of per[ury done per monLh ln falslfylng documenLs
no prosecuLlons because per[ury ls only a crlme for Lhe wealLhy and connecLed
AlL A Loans (A llars loan" noL Lhe same as subprlme loans) are Lhe mosL slgnlflcanL cause of Lhe
flnanclal crlsls 8lghLwlngers clalm LhaL Lhe crlsls was caused by lannle and lreddle maklng subprlme
loans and lefL wlngers clalms lL was Lhe securlLlzaLlon of Lhe loans LhaL caused Lhe rlsk Lo be mulLlplled
AlLhough boLh of Lhese facLors conLrlbuLed Lo Lhe problem Lhe blggesL problem was LhaL masslve
amounLs of debL were lssued wlLhouL verlfylng lncome or employmenL
underwrlLe means dolng due dlllgence Lo conflrm (verlfy) ablllLy Lo pay Lenders falled Lo underwrlLe
8apld growLh ln a maLure (saLuraLed) compleLlve markeL requlres only one leglLlmaLe Lool whlch
beaLlng your compeLlLors prlce 1haL means lowerlng lnLeresL raLes ln Lhe morLgage markeL
AlLernaLlvely expand your markeL and charge hlgher raLes Lo less quallfled borrowers
CLC crlmlnal seLs lncenLlve sLrucLure and manlpulaLe regulaLory envlronmenL
8aLlo of debL Lo lncome exaggeraLed by lylng abouL lncome
Loan Lo house markeL value raLlo relles on exaggeraLed value of collaLeral lnflaLe appralsal and cheaL
on collaLeral LhaL offer Lo lnvesLors

8uL we have Lo say no ln large enough numbers Lo ouL voLe Lhe ollgarchs who are flnanclally pollLlcally
and soclally powerful and exerL more lnfluence over Lhe collecLlve declslon maklng process 1hose who
are proflLlng by meLhane exLracLlon whlle polsonlng Lhe land are noL ralslng Lhelr chlldren (or even Lhelr
show horses)