there's a great report released by the
Center for Public Integrity
and they look for where the Wall Street
executives are
that were largely responsible for the
lending practices that led to the
subprime mortgage crisis
and the Great Recession I N the answer
is that
their back on wall street. Andy pollack
is one example when these guys hero did
the last
subprime mortgage wave to the top where
he made a shitload of money
and then he got out as the industry
collapsed Pollock was the president and
CEO
up a company called first Franklin which
was one of the worst
subprime mortgage lenders and they
actually have gone bought
a bought out by I believe it was Merrill
Lynch
a in about 2006 and that her Merrill
Lynch obviously later big time
and after first Franklin closed in 2008
other goal was in no way pollack
remained
in his five-bedroom 2.4 million dollar
home
in Ritchie Monte sorry no California and
you let a consulting firm
that became a temporary haven for at
least 15 former first Franklin employees
by 2013 Pollock was Co CEO
love rushmore alone management services
which is a company that traditionally
collected payments on loans and is now
starting to originate loans and the
company offers get this
adjustable-rate mortgages and down
payments as low as 5 percent
it or as they are right back to doing
exactly the same shit
that got us into this mess in the first
place and called the Great Recession to
begin with
these guys don't learn man
but you know it's not even though they
don't learn is that
%uh they don't care because let me
explain to you how this scam works
what happens is I'll financial firm
will so all these horrific a subprime
mortgages adjustable rate mortgages
the bring in some suckers who don't have
the income and shouldn't be getting
well loans like this and also they are
or you don't need to prove your income
you need to show was anything
sometimes ain't what they used to do
they would help but you could put down a
negative amount of money
you know that means they give you money
to put down and they wonder how
things going wrong so and then they sell
you an adjustable rate mortgage
which and so the interest rate is trout
super lololol campaign a2 percent three
percent
and the ball what you up to 11 percent
and you're done you can pay it you have
to foreclose on the house you don't have
the money
right now but they did this and they
know these people can pay back these
mortgages
but they did it and then what they would
do is turn around
bono all these different toxic assets
these toxic mortgages and a packet into
packages and they would ship them often
sold to another company
so I became a hot potato with these
toxic assets are worth nothing
it was a huge house of cards there was
no actual welfare because people
stopping their payments almost
immediately
right but it didn't matter because in
this in the first company would
originate the loans
they would get to 20 turn to their boss
and say look boss I mean whatever their
raise a percent interest on this i mean
extra money for the company
then I do a fantastic job the Mac I get
the power back to get a fucking
promotion even though we did something
it's gonna take the economy and that's
exactly what's going on with this
company with this jackass and the right
back to doing the exact same it thanks
gee I wonder if the smart thing to do is
to bring back glass steagle and bring
back
other forms of affected an efficient
regulation the marketplace
common sense but of course we're not
doing that because our politicians are
bought by Wall Street
so you're actually try to regulate Wall
Street use
us some more people Amy Brandt are was
one other executives at WMC
Mortgage Corporation which was then
owned by General Electric
and branch properties include a two
million dollar a thirteen thousand six
hundred square foot mansion in a Dallas
suburb
well in July she was named chief
operating officer of Prospect
a mortgage with which is backed by
private-equity firm sterling partners
and the firm is run by a former
executive up IndyMac
an American Home Mortgage and chaired by
former CEO of the government-sponsored
mortgage finance giant Fannie Mae
Prospect Mortgage offerings include
interest only
loans whose payments can increase
sharply after a few years
so again adjustable-rate mortgages we're
dealing with here
again another person directly involved
with this year against
they should be in jail but they're not
they are doing the exact same thing
Jim conrad is the founder and former CEO
of act
accredited home lenders which craters so
quickly when the housing bubble burst
their private equity firm
that had agreed to buy it tried to back
out of the deal that's how bad the
the financial decisions were up this
particular company
today these guys have a chairman all the
lender sure financial services he still
in the business
Scott band ellen is the former CEO of
the homebuilder lending
division on buy IndyMac a California
bank whose collapse was the nation's
costliest
and last December a jury agreed that he
and two other former executives
should pay $169 million dollars to
federal regulators
finding a teammate illegal loans well
now you know they're doing
he has a new company there is a criminal
he was forced to pay up for doing all
these illegal practices he owns a new
company
Yale Street mortgage still miss same
business provide loans to
are real estate better investors who
wanna buy fix-up and flip single-family
homes and small apartment buildings
now get this the Center for Public
Integrity in 2009
identified the top 25 lenders by
subprime
along production from 2005 to 2007
and today senior executives from all 25
all those companies or companies that
they swallowed up before the crash
they're all back in the mortgage
business
now let me ask you a question I maginnis
in it any other contact
literally any other context so your
plumber
you maneuver for three years every time
you go to New Orleans jobs
you can't fix the pipes you can fix the
toilet or whatever you have in effect
you never get a right ever ever in fact
you make it worse
you wanna fix the toilet know when you
leave the toilet pops often is a fucking
guys are spewing out somebody's
up bathroom in their shit all over the
place
why a couple years later
should you still be in the same business
should you be not my business
I mean look in other areas you would
immediately go out of business
now why is it that these guys stay in
business could the good ol boys call
love
money be gets money right so here that
he's got money if you got money well
you never suffer the you know the
consequences of
a regular criminal mind rather
convenience or something like that they
get
you know eight years in jail your ass
gets a yet get a promotion you stay in
the same business
no matter how bad you are what you do
and then also let's not forget
when when shit hits the fan for them
they get
money from the government so you for you
forgot your plumber
your fire near can get on the street but
if you
do a horrible job when you're in
the adjustable rate mortgage business in
the subprime mortgage business
well doesn't matter used a mes amis
