Bank Cover Up

The administration is trying desperately to cover up the deceptive and fraudulent behavior of many banks involved in the mortgage business. A settlement is being negotiated without investigation of the claims of fraud, because such an investigation would unavoidably result in disclosure of how high and how deep the rot runs. Thankfully, New York AG Schneiderman is not falling into line, so the administration’s strategy is now to pressure and marginalize him.

Here’s a recent example of the kind of behavior that the administration is willing to tolerate in return for the continued flow of campaign money to the Obama re-election effort.

Once you read the allegations in the cases included in this post, I strongly suspect you will agree that the “ruining lives” in the headline is not an exaggeration. And as important, these two cases, with very similar fact sets, also suggest that these abuses are not mere “mistakes”. These are clearly well established practices that Chase can’t be bothered to clean up, since cleaning them up costs money and letting them continue is more profitable.

Banking used to be a respectable business. But then they started hiring MBAs.

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