80% Of Citigroup Mortgages Were Defective

Buried at the bottom of a Bloomberg story this morning, I found this:

Richard M. Bowen, former chief underwriter for Citigroup’s (nyse:C) consumer-lending group, said he warned his superiors of concerns that some types of loans in securities didn’t conform with representations and warranties in 2006 and 2007.

“In mid-2006, I discovered that over 60 percent of these mortgages purchased and sold were defective,” Bowen testified on April 7 before the Financial Crisis Inquiry Commission created by Congress. “Defective mortgages increased during 2007 to over 80 percent of production.”

It looks like fraud, it walks like fraud, but Robert Rubin would say:

"It's not fraud.  Now hurry, someone stop Brooksley Born."

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Links:

• Foreclosuregate Fallout: How Bad Can It Get For Wall Street?

• Nine stories the press is underreporting -- fraud, fraud and more fraud

• Warren Buffett May Be Getting Unwanted Phone Call from Goldman Sachs

• AIG Raises $17.85 Billion, Prices AIA IPO at Top

• Banks Face Two-Front War on Bad Mortgages, Foreclosures

• Chicago sheriff says no to enforcing foreclosures

• Judge Bombshell: I Never Approved The Sale Of Lehman To Barclays

• 32 Seconds Of Nassim Taleb Kicking Bob Rubin's Ass

• HE'S BACK: Bubble Architect Robert Rubin Returns To Wall Street (With A Sex Scandal)

• PBS Frontline: The Warning -- How Greenspan, Summers & Rubin Conspired To Silence Derivatives Whistleblower Brooksley Born (Complete VIDEO)

• Yo Bob Rubin: Shut Your Freaking Pie Hole

Comments

[DailyBail]

Why The Paperwork Appears "Sloppy"

http://www.informationclearinghouse.info/article26646.htm

[DailyBail]

When Banks Are the Robbers

http://www.informationclearinghouse.info/article26641.htm

[DailyBail]

Nine stories the press is underreporting -- fraud, fraud and more fraud

http://www.niemanwatchdog.org/index.cfm?fuseaction=ask_this.view&askthisid=481

[DailyBail]

More waste, fraud, and abuse from Bell, CA

http://www.bankruptingamerica.org/2010/10/21/more-waste-fraud-and-abuse-from-bell-ca/

[Cheyenne]

Is that Eldon Tyrell at the podium?

http://2.bp.blogspot.com/_AG0NMLjCoX4/R3xueMMbUjI/AAAAAAAAAhI/RlEcJ0WtHh4/s400/Turkel02.jpg

[Wil Martindale]

But haven't you heard? We're getting such a great return on the fraud ...
http://www.bloomberg.com/news/2010-10-22/ppip-funds-surge-36-on-average-in-first-year-treasury-says.html