SEC Sues Former Fannie, Freddie CEOs For Misleading Investors On Subprime Risk

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Fri, 12/16/2011 - 11:42 | 1986877 GeneMarchbanks
GeneMarchbanks's picture

Jail Time, bitchez!

Fri, 12/16/2011 - 11:42 | 1986880 Ahmeexnal
Ahmeexnal's picture

Too little much too late.

Fri, 12/16/2011 - 11:44 | 1986886 ucsbcanuck
ucsbcanuck's picture

Agreed. Nothing will come out of this.

Fri, 12/16/2011 - 11:47 | 1986898 Popo
Popo's picture

"Non-prosecution agreements."  ?!

Seriously:  Under what justification would such an agreement be made?  In order to get them to cooperate???  I'm sorry -- who has the mandate of authority here?  

How about:  "If you do not cooperate, we will have you arrested.  Are we clear?"

Fri, 12/16/2011 - 11:52 | 1986920 Mark123
Mark123's picture

At least we arn't offering them awards to cooperate....or are we????

Fri, 12/16/2011 - 11:58 | 1986934 The Big Ching-aso
The Big Ching-aso's picture

 

 

SEC......

I think nowadays this really stands for:    Sustaining Enterprise Corruption.  

 

 

Fri, 12/16/2011 - 12:00 | 1986945 Manthong
Manthong's picture

Where is Franklin Raines?

Fri, 12/16/2011 - 12:08 | 1986970 SheepHerder
SheepHerder's picture

Let's think about this...a taxpayer backed agency is suing another taxpayer backed agency.  So if one agency wins what do they get?  Oh that's right, unless they are going after personal assets...a shuffling of taxpayer money.  All the while the litigation and legal process will cost more taxpayer money.  Brilliant!  The one thing the American government is efficient at is wasting the 30% plus of my salary I give up on an annual basis.  Kudos, kudos!

Fri, 12/16/2011 - 12:17 | 1987001 john39
john39's picture

agency wasn't sued, just the individuals.

Fri, 12/16/2011 - 12:25 | 1987031 SheepDog-One
SheepDog-One's picture

There are no individuals, only Corporations.

Fri, 12/16/2011 - 12:31 | 1987060 Oh regional Indian
Oh regional Indian's picture

Very purseptive of you to notice that.

Yes, purseptive. it's like pursepective, only different.

ori

/this-that-and-the-4th-reich/

Fri, 12/16/2011 - 12:36 | 1987089 FreedomGuy
FreedomGuy's picture

40% for me last year. And they want more. Put on top of your 30% that we run about a 40% annual deficit...meaning to balance the books you should pay about 40% than you do now. It only gets worse with time. Someone beside Ron Paul in the Republican party might want to note and address this.

Fri, 12/16/2011 - 15:06 | 1987706 Buzz Fuzzel
Buzz Fuzzel's picture

Manthong, you risk being called a racist or even worst, a right wing conservative republican for asking that question.  I hope you are not expecting a meaninful answer.

Fri, 12/16/2011 - 12:59 | 1987222 smlbizman
smlbizman's picture

now we know why that disgusting nose picking ass eater quit.....

Fri, 12/16/2011 - 14:49 | 1987652 SWRichmond
SWRichmond's picture

Too little much too late.

Yes, only this, and since the "resititution," if any, would come out of the taxpayers' pockets anyway, since these companies are on taxpayer life support anyway, if there is not crminal prosecution then this is merely a show for the election cycle: "Look, we're doing something!  Regulation works!"

Fri, 12/16/2011 - 11:44 | 1986885 economics1996
economics1996's picture

Why do we have a SEC?  Fucking useless jerk offs.

Fri, 12/16/2011 - 11:58 | 1986938 PrintingPress
PrintingPress's picture

Haven't you heard, government creates jobs! 

Fri, 12/16/2011 - 13:53 | 1987425 chipshot
chipshot's picture

perfect holiday diversion for the JD/SEC off of fast and furious

Fri, 12/16/2011 - 12:13 | 1986987 navy62802
navy62802's picture

The SEC exists to make people believe that there is some sort of regulation going on.

Fri, 12/16/2011 - 12:18 | 1987003 SheepDog-One
SheepDog-One's picture

Yes and then when things like MF Global go up in flames, it gives great cover to guys like Bawney Fwank to bluster about needing more wegwoowations.

Never been more overlapping wegwoowations, but each failure to catch any outright criminality simply proves we need more.

Fri, 12/16/2011 - 12:25 | 1987036 dwdollar
dwdollar's picture

Sort of... Just like any government regulatory, they are institutionalized 'muscle' to keep the peasants from engaging in the same crimes the oligarchs are privileged to engage in.

Fri, 12/16/2011 - 11:49 | 1986911 HelluvaEngineer
HelluvaEngineer's picture

Time to wheel out Arthur Levitt to explain why the SEC should never take anyone to court.  His reason: if they lose a case in court, that sets a precedent, thereby reducing their capacity to enforce the law.  Make sense? 

 

No, didn't to me either.

Fri, 12/16/2011 - 13:13 | 1987276 scatterbrains
scatterbrains's picture

Lets elect Ron Paul, declare these banksters terrorist and hold them indefinitely or until they return to dust so we can clean this shit show up.

Fri, 12/16/2011 - 12:39 | 1987106 FreedomGuy
FreedomGuy's picture

They need to trace this thing all the way back to the prime movers of this fiasco, i.e., politicians! That will not happen because the majority are democrats. Frank is retiring and Dodd wisely got out before it came back on him. We need to go back 30 maybe 40 years for all of them. If anything good comes out of this (and I don't think anything really will) it would be that central planning always fails. Always.

Fri, 12/16/2011 - 13:00 | 1987227 bonddude
bonddude's picture

Does anyone find it amazing that Former FNMA CEO Franklin Raines (Yes, O bam a's former head of his campaign's finances) who made $100 MM is strangely missing from this suit ?

Fri, 12/16/2011 - 14:12 | 1987526 FreedomGuy
FreedomGuy's picture

Not amazing. Predictable. Tony Rezco is in jail in Chicago, though so who knows?

Fri, 12/16/2011 - 11:44 | 1986884 Surly Bear
Surly Bear's picture

About damned time.

Fri, 12/16/2011 - 11:45 | 1986889 LawsofPhysics
LawsofPhysics's picture

What about the folks at Goldman?  It seems like the folks at Fannie and Freddie are small fish here.  What the fuck?

Fri, 12/16/2011 - 11:45 | 1986891 spekulatn
spekulatn's picture

Pattsy, bitchez!

Fri, 12/16/2011 - 11:45 | 1986894 Theta_Burn
Theta_Burn's picture

3 yrs delay? thier not slow just helping where they can

http://www.statuteoflimitations.net/fraud.html

 

Fri, 12/16/2011 - 13:16 | 1987288 azusgm
azusgm's picture

Is there a time limit on the officers and directors insurance coverage?

Fri, 12/16/2011 - 11:48 | 1986903 Scalaris
Scalaris's picture

That didn't take long. 

(That's sarcasm, 'cause it did take long)

Fri, 12/16/2011 - 12:26 | 1987041 WonderDawg
WonderDawg's picture

It's funny because it's not true.

Fri, 12/16/2011 - 11:48 | 1986904 Caviar Emptor
Caviar Emptor's picture

Window dressing. THey may collect a nickel in 20 years. But since president Newt wants to downsize the court system, it could take longer. But a nickel will truly be worth more than 5cents!

Fri, 12/16/2011 - 11:49 | 1986909 Vincent Vega
Vincent Vega's picture

They were doing God's work.

Fri, 12/16/2011 - 11:50 | 1986912 Mark123
Mark123's picture

Sure am glad we voted in Obama to clean up the mess left behind by Bush.  Wow, he really showed them who's boss!  What a farce....can't wiat for the next stooge to come in and take control.....

 

Anyone have any comments on today's conflicted markets?  French market trading down (DAX flat), Bond yields in US way down, US stocks up?????  WTF???  Like a squirrel on the road darting back and forth in confusion as a car races towards it...

Fri, 12/16/2011 - 12:58 | 1987197 Strut
Strut's picture

 

If you think Obama's bad, just wait until any one of these GOP "candidates" gets elected. Even if Ron Paul were electable, he would be powerless to implement any of his reforms. Nothing changes without a constitutional amendment to get ALL MONEY out of politics.

 

Fri, 12/16/2011 - 11:52 | 1986913 Fíréan
Fíréan's picture

"The SEC said both firms have agreed to cooperate with the agency and have entered into non-prosecution agreements".

 

So what's the point ? Lots of investigation at high cost, SEC can feel good they're doing something about something ( and can report that they're doing it ), and some report gets released at the end of the day, whenever . . . whatever.

Fri, 12/16/2011 - 11:52 | 1986915 SheepDog-One
SheepDog-One's picture

Is this our good news for excuse to ramp equity stawks today?

Fri, 12/16/2011 - 11:51 | 1986916 BluPoint
BluPoint's picture

Anyone remember the Fannie Mae CFO that offed himself at home back in 2009?  The story was pretty hushed.  Nice family, nice house, nice salary and bonuses too.  All gone.  what did he know and when did he know it? 

Fri, 12/16/2011 - 12:34 | 1987078 JR
JR's picture

Funny how many placed people flick the “off” switch.  Vince Foster set a “suicide” trend?

Fri, 12/16/2011 - 12:41 | 1987109 Widowmaker
Widowmaker's picture

Only justice served so far in my opinion.

He knew the shit was systemic, an epidemic and presidential.

To those involved in the mortage gutting of the United States and the poisoning of liberty using 9/11 as a shield, you have a lot to be ashamed of.

By the time history is done with the George W Fuckin Bush administration of war criminals, just the sound of the name will make US citizens vomit.

 

 

Fri, 12/16/2011 - 11:55 | 1986924 LeBalance
LeBalance's picture

very poorly played. this action is an implicit admission of incompetence/complicity by the SEC.

if they were ever going to bring this action it had to have been done in a timely fashion after the event, by say mid 2009 at the latest.

bringing the action now makes it obvious that they knew there was illegality, but chose not to exercute their function for approximately 3 years.

at this point this is the worst gambit to make.

not only does it roil the waters, it destroys the SEC by their own hand.

Fri, 12/16/2011 - 12:05 | 1986959 Mark123
Mark123's picture

Like all other authorities their prime directive is to support the overall markets and encourage confidence - their excuse to justify their lack of enforcement.  The way they do that is to make sure all evidence that the markets are rotten is swept under the carpet, and at a senior level the offenders are given a stern warning (e.g. - you better clean things up or we will have to really intervene).

If one applied this to the rest of the world, we would have no prisons or courts.  The police would visit the bank robbers house and give him a stern talking to.

 

Fri, 12/16/2011 - 14:57 | 1987139 FreedomGuy
FreedomGuy's picture

You have to realize that with leftist-collectivist democrats there is no concept of personal responsibility. That is the connection between Obama, Corzine, Frank, Holder and government, in general. None of them takes responsibility for anything. The FBI can illegally sell illegal weapons to people in an illegal business, have one of their own killed and it's not the Director's fault. In fact, he didn't even know. Obama will not own the economy. It is Bush's fault still. Corzine is innocent because he doesn't know where a billion went. Frank said Fannie and Freddie were solid on video and defended them and even though he controlled that committee it's not his fault. See the theme? These guys may take the fall...maybe but it will not get back to the prime movers. They all had good intentions and that is enough.

Fri, 12/16/2011 - 11:56 | 1986931 monopoly
monopoly's picture

It is a start. Lets see if it is just window dressing. But ya gotta start somewhere.

Fri, 12/16/2011 - 11:56 | 1986933 G_T_A_44
G_T_A_44's picture

Was Mary Schapiro the Lead Blocker for Corzine?

 

"Corzine, I know from (an) inside source at the SEC, there were going to be rules to prevent them from doing exactly what they are doing.

Corzine went down (to the SEC), met with Mary Schapiro, she personally revoked it. That's information I have from inside the SEC. So the whole thing is a joke. When I speak to people on the (Capitol) Hill, they even say the SEC is bought and paid for."

 

OK. Back to shredding and Porn.

Fri, 12/16/2011 - 11:58 | 1986940 monopoly
Fri, 12/16/2011 - 12:54 | 1987102 NuYawkFrankie
NuYawkFrankie's picture

I hope you're not suggesting that Franklin Raines be held accountable?

Surely you must be aware that Mr. Raines is an esteemed FOB (Friend of Bill)? Nothing untowards ever happens to Slick Willie's buddies.

BTW Jonny "I'm Dreaming of a Re-hypothecated Christmas" Corzine is also a Friend of Bill's - and also pretty snug with Hillary, from what I hear. So fuggedabout him as well.

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