Dimon Calls Fannie, Freddie ‘Biggest Disasters of All Time'
Dimon blames leverage, risk taking and fraud. Here's some background on leverage and Paulson...
- Whitewash On Wall Street: How Henry Paulson Created The Financial Crisis That Brought Down The World
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Dimon calls Fannie, Freddie 'biggest disasters of all time'
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said government-sponsored mortgage companies Fannie Mae and Freddie Mac were “the biggest disasters of all time” and a leading cause of the U.S. financial crisis.
“That one was an accident waiting to happen,” Dimon said in an Oct. 20, 2010, interview with the Financial Crisis Inquiry Commission. The congressional panel yesterday released audio files of interviews gathered during its 18-month investigation into the causes of the crisis.
The Obama administration is set to announce in Washington today its recommendations on how to restructure the U.S. housing finance system. Washington-based Fannie Mae and Freddie Mac, in McLean, Virginia, have taken more than $150 billion in federal aid since regulators seized their operations in September 2008.
“We all knew about it, we all worried about it, no one did anything about it,” Dimon, 54, told investigators.
Dimon said lax lending standards across the industry and excessive leverage and risk-taking by banks helped cause the crisis.
- “You kind of got sucked into this whole sense of security because there were no losses,” Dimon said. “I would also say people lied. There was more and more of that in a frothy market.”
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Dimon now admits to fraud. Greenspan admitted the same at Jekyll Island in December at the Fed's 100 year victory celebration...
While Bernanke squirms, Greenspan admits the truth...
Feb 13, 2011 at 11:00 PM
Reader Comments (7)
Investment firm’s secrets slip out
http://www.boston.com/business/articles/2011/02/11/a_guarded_fund_firms_veil_slips_off/
[snip]
If it hadn’t been for a strange turn of events at the state’s highest court, sensitive details about the vast wealth of secretive Boston investment firm Wellington Management Co. might have never seen the light of day.
But for about three hours yesterday, information about the Wellington partnership was posted online, cited in a court decision in a long-running divorce case between well-known hedge fund manager Nicholas Adams and his wife, Nancy. The lengthy written decision from the Supreme Judicial Court incorporated many well-guarded financial facts about the company that manages more than $600 billion.
[snip]
Then, without explanation, the high court withdrew its decision and pulled the document off the Internet. The court docket indicates the case files have been impounded. However, a half-hour video of lawyers Alan Dershowitz and Joel Kozol arguing for their respective clients before the SJC remained available online, providing still more bits of information.
Ok, Now I have have to find a link or copy of what was posted. Anyone out there that may have a copy of what was leaked might want to share it here at the DB.
http://www.suffolk.edu/sjc/archive/2010/SJC_10671.html
I am beginning to wonder how many of those 535 people in D.C. who supposedly work for us were heavily invested in the too big to fail Wall Street Crooks? Something like that has to be going on behind the B.S. they've been pushing in the MSM.
One thing for sure. They don't work for us.
http://www.stayinmyhome.com/blog/?p=1152
[snip]
This morning, Judge Maxine Cohen Lando conducted the show-cause hearing. I’m hoping to get my hands on the transcript, but, from what I’m told by a colleague, she held Ben-Ezra & Katz in contempt, vacated the foreclosure judgment, dismissed the lawsuit with prejudice, and referred the lawyers to The Florida Bar.
FINALLY! A sanction for fraud. I applaud Judge Lando for this ruling and hope other judges follow suit. Better yet, I encourage all judges to realize the extent of the fraud and take stock of it before signing foreclosure judgments. Bear in mind, the fraud must be really bad for Fannie Mae to terminate Ben-Ezra, and this is undoubtedly just one example.
It gets even better.. read the Order To Show Cause linked in the article (grin).
That is why Fannie Mae just fired this firm (it's the second one they have fired to date)!
http://stopforeclosurefraud.com/2011/02/10/pb-post-fannie-mae-fires-second-south-florida-law-firm/