While the Justice Department has not criminally prosecuted any senior banking executives for their role in the housing crisis, they’ve had no problem going after the small-timers. On this week’s show, Bill spoke to veteran bank regulator William K. Black about the significance of a recent ruling handed down by a federal jury in Sacramento acquitting four allegedly fraudulent mortgage borrowers of criminal charges. Their ruling came after testimony from Black that the executives at their banks knowingly made fraudulent loans for their own personal, financial benefit. “This is the first that a jury has ever got to hear what actually caused the crisis,” Black, who testified for the defense in the case, told Moyers. “And the jury was horrified, because it was the lenders who deliberately made massive amounts of fraudulent loans and then sold these massive amounts of fraudulent loans through additional frauds to the secondary market and eventually brought down the global financial system.”
Posted on: Sun, 05 Oct 2014 06:53:07 +0000
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