Tapper: Obama regulators cashing in after very little enforcement

posted at 2:41 pm on April 3, 2013 by Ed Morrissey

Jake Tapper recently moved from the White House briefing room to CNN, but that doesn’t mean that one of the toughest reporters on that beat has given up his watch on the Obama administration. Yesterday evening, Tapper featured a recent trend among newly-retired regulators and their new lucrative gigs, which raises questions about how enthusiastic they were about performing their previous jobs:

So few of the individuals responsible for the financial crisis have been punished in any way. One reason for the lack of penalties may stem from the fact that those in charge of regulation and enforcement, did not do their jobs with the necessary vigor and aggressiveness.

Today CNN learned the former head of the U.S. Securities and Exchange Commission Mary Schapiro is joining a consulting firm which advises financial firms.

The mission of the S.E.C. is “to protect investors and maintain fair, orderly, and efficient markets.” Schapiro took the helm at the embattled S.E.C. in June 2009. And while many praise her for restoring the reputation of the agency at that time, she has also been criticized for never fully holding Wall Street accountable for the worst misdeeds that caused the financial crisis.

Schapiro’s announcement comes days after Lanny Breuer, the assistant attorney general in charge of the criminal division of the Justice Department, announced he would be leaving the department to rejoin the big bank law firm Covington & Burling as vice chairman, representing a big list of bank clients tied to the financial crisis.

Tapper wasn’t the only one to notice the, er, coincidencesNational Journal’s Michael Hirsh calls this the “ultimate dog-bites-man story” today:

As head of the Securities and Exchange Commission for the past four years, Mary Schapiro failed to win a major civil action against any Wall Street executive connected to what may be the worst financial fraud in history, the subprime-mortgage scam that led to the 2008 crash. As head of the Justice Department’s criminal division for the past four years, Lanny Breuer failed to accomplish the same with criminal action. And now both are headed back over to the other side: deep-pocketed firms that earn their keep largely from Wall Street. In Schapiro’s case, that’s Promontory Financial Group, which advises financial firms on regulation; in Breuer’s, it’s Covington & Burling, a major law firm that defends financial clients.

If this sounds like a dog-bites-man story, it is. Actually it’s more like, Wall Street bites everybody. But that too is pretty predictable these days. “It used to be called ‘selling out,’ ‘cashing in,’ or ‘influence peddling.’ Now it’s referred to politely as the ‘revolving door,’ ” said Dennis Kelleher, president of Better Markets, a Washington nonprofit that advocates for better regulation of financial markets. “But whatever it’s called, nothing is more corrosive to the American people’s trust in government than when former senior public officials turn their so-called public service into multimillion-dollar riches unimaginable to almost all Americans.”

In part, I suspect that’s because any real investigation of the 2008 bubble would ultimately point the finger back at policymakers in both parties who deliberately fueled the bubble by pushing Fannie Mae and Freddie Mac into a buying spree of subprime and other bad loans, as well as threats of enforcement of the Community Reinvestment Act on the lending community.  That kind of outcome would make it impossible for Barack Obama and his allies to use the FHA to pressure banks into making those kinds of loans again.  That would cut off a critical outlet for the kind of social engineering that remains popular with politicians looking for cheap headlines at great cost to the financial stability of the nation.

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Permanent Political Class.

steebo77 on April 3, 2013 at 2:43 PM

Crony Capitalism.

steebo77 on April 3, 2013 at 2:43 PM

Graft.

steebo77 on April 3, 2013 at 2:44 PM

Legal theft.

docflash on April 3, 2013 at 2:45 PM

steebo

John the Libertarian on April 3, 2013 at 2:45 PM

Tapper’s bosses at CNN aren’t going to like this very much, 0bama sycophants that they are.

UltimateBob on April 3, 2013 at 2:47 PM

So few of the individuals responsible for the financial crisis have been punished in any way. One reason for the lack of penalties may stem from the fact that those in charge of regulation and enforcement, did not do their jobs with the necessary vigor and aggressiveness.

Ban the revolving door between public service and related industries in the private sector. Until then, no one can be trusted to protect the public.
In some societies, like Germany, public servants rarely switch to the public sector because it’s considered immoral and a breech of the public trust. Unfortunately, the US has little social integrity and needs to find another way to prevent this kind of abuse.

bayam on April 3, 2013 at 2:49 PM

In part, I suspect that’s because any real investigation of the 2008 bubble would ultimately point the finger back at policymakers in both parties who deliberately fueled the bubble by pushing Fannie Mae and Freddie Mac into a buying spree of subprime and other bad loans, as well as threats of enforcement of the Community Reinvestment Act on the lending community.

Ding Ding.

Don’t even begin to talk to me about unregulated derivatives until you’ve spent years prosecuting the politicians who enabled this fiasco. I guess the reason that the GOP completely rolled over in this discussion is that to oppose the blame-Bush meme they might be called racist. But home-purchasing economics are just that. They needed to explain to Americans that banks shouldn’t be forced or granted blank-check incentives to lend to people who can’t pay back their loans.

Why is it racist to say, “If you can’t afford to take out a mortgage to purchase a particular home, rent.”

BuckeyeSam on April 3, 2013 at 2:53 PM

Unfortunately, the US has little social integrity and needs to find another way to prevent this kind of abuse.

bayam on April 3, 2013 at 2:49 PM

Monsieur le Guillotine had a solution for this kind of problem.

AZCoyote on April 3, 2013 at 2:55 PM

BTW: I’m seeing increasing mention of the expression “white privilege” these days. Will be soon be hearing that down payments, employment histories, credit histories, and credit scores are just more evidence of white privilege?

BuckeyeSam on April 3, 2013 at 2:57 PM

If anyone can save CNN’s ratings and credibility, it’s Tapper. I haven’t seen anything out of him since he rose to prominence that suggests he’s anything but a phenomenal journalist.

LukeinNE on April 3, 2013 at 2:58 PM

Crony Capitalism.

steebo77 on April 3, 2013 at 2:43 PM

And who was the driver of this theme? Sarah Palin.

rrpjr on April 3, 2013 at 2:59 PM

Ban the revolving door between public service and related industries in the private sector. Until then, no one can be trusted to protect the public.
In some societies, like Germany, public servants rarely switch to the public sector because it’s considered immoral and a breech of the public trust. Unfortunately, the US has little social integrity and needs to find another way to prevent this kind of abuse.
bayam on April 3, 2013 at 2:49 PM

How about limiting the size and scope of government?

The German government may be less corrupt than ours but your kidding yourself if you think they don’t have corruption.

gwelf on April 3, 2013 at 3:01 PM

Monsieur le Guillotine had a solution for this kind of problem.

AZCoyote on April 3, 2013 at 2:55 PM

In Russia, we used to call it “Duncan McLeod solution”.

Archivarix on April 3, 2013 at 3:03 PM

Why is it racist to say, “If you can’t afford to take out a mortgage to purchase a particular home, rent.”

BuckeyeSam on April 3, 2013 at 2:53 PM

Good concept in practice, but in a bubble scenario where loan officers are trying to push ARM notes on low income borrowers in order to maximize their sales commissions, it’s rare. Some banks, such as WaMu, institutionalized illegal lending practices and it’s amazing that not a single individual has been prosecuted.

http://www.washingtonsblog.com/2011/12/the-fbi-estimates-that-80-percent-of-all-mortgage-fraud-involves-collaboration-or-collusion-by-industry-insiders.html

Except for the little guy
http://www.nytimes.com/2011/03/26/business/26nocera.html?pagewanted=all&_r=0

bayam on April 3, 2013 at 3:04 PM

As head of the Securities and Exchange Commission for the past four years, Mary Schapiro failed to win a major civil action against any Wall Street executive connected to what may be the worst financial fraud in history, the subprime-mortgage scam that led to the 2008 crash.

That’s because most of the fraud and the criminality took place in the feral government, itself, and was due to feral government policies that forced Wall Street and lenders to generate and market bad paper. The feral government forced the misvaluation of debt in order to subsidize pet demographics without having to actually authorize or spend any actual cash (most of it was done through the implied guarantees, which register as no expenditures even though they are costs just as real as cash being given out) so as to hide the leftists’ perversion of our debt markets. The feral regulators and the ratings agencies all colluded and the private financial sector was forced to play along – at the threat of sanctions, lawsuits, screams of “raaaacist!!!’ and the like. Barky, himself, took part in this scheme as one of the only actual things he’s ever done in his pathetic, destructive, entropy-raising life.

If the people and organizations at the root of the credit crisis were truly to be held to account then lots of politicians and feral government employees would be donning orange jumpsuits, as we speak – not least of whom Dodd and Frank would be locked up and the key thrown away. But, Dodd and Frank got to stay free, push more asinine leftist perversions on the system through their insane Dodd-Frank law and continue to run free, against all sense and decency.

ThePrimordialOrderedPair on April 3, 2013 at 3:04 PM

was due to feral government policies that forced Wall Street and lenders to generate and market bad paper

I know many fixed income execs on Wall Street and have never heard anything even vaguely familiar to what you’re claiming. It’s merely a right wing interpretation that suits an ideological purpose.

bayam on April 3, 2013 at 3:06 PM

political elites.

rob verdi on April 3, 2013 at 3:07 PM

In part, I suspect that’s because any real investigation of the 2008 bubble would ultimately point the finger back at policymakers in both parties who deliberately fueled the bubble by pushing Fannie Mae and Freddie Mac into a buying spree of subprime and other bad loans, as well as threats of enforcement of the Community Reinvestment Act on the lending community.

The crux of the biscuit……

Tim Zank on April 3, 2013 at 3:08 PM

I know many fixed income execs on Wall Street and have never heard anything even vaguely familiar to what you’re claiming.

Wow! Not even “vaguely familiar”. That’s bad, right?

It’s merely a right wing interpretation that suits an ideological purpose.

bayam on April 3, 2013 at 3:06 PM

LOL. Okey doke.

ThePrimordialOrderedPair on April 3, 2013 at 3:10 PM

I laugh whenever I think of this article by Jake Tapper: “I Dated Monica Lewinsky” (published Jan. 30, 1998, just when the poo had hit the fan)

Attila (Pillage Idiot) on April 3, 2013 at 3:14 PM

***

Some banks, such as WaMu, institutionalized illegal lending practices and it’s amazing that not a single individual has been prosecuted.

***

bayam on April 3, 2013 at 3:04 PM

Your boys have been running the show at the White House, at Justice, and at the SEC. Please let us know when you hear something.

I know many fixed income execs on Wall Street and have never heard anything even vaguely familiar to what you’re claiming. It’s merely a right wing interpretation that suits an ideological purpose.

bayam on April 3, 2013 at 3:06 PM

Yeah, right. The incentives for federal bailout triggered the high-pressure lending as well as the reduction of credit standards.

I suppose you forgot that Obama was one of those lawyers dating back to the 1990s helping non-credit-worthy borrowers to picket and sue lenders. C’mon, we got rid of redlining years ago.

Standards of lending are not racist.

BuckeyeSam on April 3, 2013 at 3:15 PM

I know many fixed income execs on Wall Street and have never heard anything even vaguely familiar to what you’re claiming. It’s merely a right wing interpretation that suits an ideological purpose.

bayam on April 3, 2013 at 3:06 PM

You’re going there again? The last time this topic popped you got schooled in the comments.

As I recall northdallasthirty posted many links to reports that Fannie/Freddie pushed most or all this crap.

I’m all for arresting people who broke the law but it’s astounding that liberals like you let the government off of the hook every single time.

gwelf on April 3, 2013 at 3:16 PM

Unfortunately, the US the radical far-left Democratic party has little social integrity …

bayam on April 3, 2013 at 2:49 PM

Fixed that for ya.

UltimateBob on April 3, 2013 at 3:16 PM

It’s merely a right wing interpretation that suits an ideological purpose.

bayam on April 3, 2013 at 3:06 PM

explain Obama’s role in suing Bank of America lightweight

DanMan on April 3, 2013 at 3:16 PM

ThePrimordialOrderedPair on April 3, 2013 at 3:10 PM

Wasting your time. Bayam has fingers firmly planted in the ears while singing “La-la-la-I can’t hear you!”

iurockhead on April 3, 2013 at 3:17 PM

Yeah, right. The incentives for federal bailout triggered the high-pressure lending as well as the reduction of credit standards.

I suppose you forgot that Obama was one of those lawyers dating back to the 1990s helping non-credit-worthy borrowers to picket and sue lenders. C’mon, we got rid of redlining years ago.

Standards of lending are not racist.

BuckeyeSam on April 3, 2013 at 3:15 PM

Oh, come on, it’s just a massive coincidence that the housing bubble was caused by behavior that mirrored behavior heavily encouraged by policies created by the Clintons, Obama, Frank, Dodd and lots of other politicians!

/sarc

gwelf on April 3, 2013 at 3:18 PM

If the people and organizations at the root of the credit crisis were truly to be held to account then lots of politicians and feral government employees would be donning orange jumpsuits, as we speak – not least of whom Dodd and Frank would be locked up and the key thrown away. ThePrimordialOrderedPair on April 3, 2013 at 3:04 PM

I’d have to throw the feral Franklin Raines into this mix.

Rovin on April 3, 2013 at 3:19 PM

Yeah, right. The incentives for federal bailout triggered the high-pressure lending as well as the reduction of credit standards.

You can read the FBI and other reports. It’s the FBI that concluded

80 percent of all reported fraud losses involve collaboration or collusion by industry insiders

I know the political blame game is more satisfying and dramatic but the facts lead somewhere else.

http://www.ritholtz.com/blog/2011/12/fbi-estimates-80-of-mortgage-fraud-involved-industry-insiders/

bayam on April 3, 2013 at 3:19 PM

In part, I suspect that’s because any real investigation of the 2008 bubble would ultimately point the finger back at policymakers in both parties who deliberately fueled the bubble by pushing Fannie Mae and Freddie Mac into a buying spree of subprime and other bad loans, as well as threats of enforcement of the Community Reinvestment Act on the lending community.

This collection of C-SPAN footage shows Republicans raising warning flags and trying to expose the issues at Fannie and Freddie, while Democrats accused the Republicans of a “political lynching” (i.e., calling them racists) and insisted that there were not any “safety and soundness issues” at Fannie and Freddie.

That kind of outcome would make it impossible for Barack Obama and his allies to use the FHA to pressure banks into making those kinds of loans again.

So not only has the root cause problem NOT been fixed, the Obama administration is trying to create a new bubble so it can burst all over again!

ITguy on April 3, 2013 at 3:19 PM

Wasting your time. Bayam has fingers firmly planted in the ears while singing “La-la-la-I can’t hear you!”

iurockhead on April 3, 2013 at 3:17 PM

I don’t know where he thought up his screename from but he truly is, as they would say in Israel, “ba-yam” (at sea).

ThePrimordialOrderedPair on April 3, 2013 at 3:19 PM

How do you fix a country that is rotten with corruption at every level, starting from the top?

The Rogue Tomato on April 3, 2013 at 3:20 PM

It’s called corporatism. It’s nothing new, and a good reason why we don’t have real capitalism.

MoreLiberty on April 3, 2013 at 3:22 PM

Foxes hired to guard Hen houses get tired and want to be just Foxes again.

BL@KBIRD on April 3, 2013 at 3:22 PM

she has also been criticized for never fully holding Wall Street accountable for the worst misdeeds that caused the financial crisis.

Someone has a gift for ironic understatement…

tom on April 3, 2013 at 3:23 PM

How do you fix a country that is rotten with corruption at every level, starting from the top?

The Rogue Tomato on April 3, 2013 at 3:20 PM

Burn it down, and start over? Barky is working on that first part, the big question is, who will do the starting over?

iurockhead on April 3, 2013 at 3:23 PM

You can read the FBI and other reports. It’s the FBI that concluded

80 percent of all reported fraud losses involve collaboration or collusion by industry insiders

I know the political blame game is more satisfying and dramatic but the facts lead somewhere else.

http://www.ritholtz.com/blog/2011/12/fbi-estimates-80-of-mortgage-fraud-involved-industry-insiders/

bayam on April 3, 2013 at 3:19 PM

Your missing the rather obvious point that most of the losses weren’t due to actual fraud – just really misguided and corrupt public policy that encouraged legal but disastrous transactions that private institutions wouldn’t have done on their own on the scale they did if the government wasn’t guaranteeing them, threatening to litigate them for not complying, and setting up Fannie/Freddie to take the crap off of their hands.

gwelf on April 3, 2013 at 3:25 PM

And who was the driver of this theme? Sarah Palin.

rrpjr on April 3, 2013 at 2:59 PM

Kinda like “death panels.” The HA Harpies Brigade will be here to attack Ms. Palin in 5 … 4 … 3 ….

bw222 on April 3, 2013 at 3:27 PM

Your missing the rather obvious point that most of the losses weren’t due to actual fraud – just really misguided and corrupt public policy that encouraged legal but disastrous transactions that private institutions wouldn’t have done on their own on the scale they did if the government wasn’t guaranteeing them

Read the FBI and other reports. It WAS actual fraud.

The ultimate guarantor of subprime loans was the derivatives market, which transformed subprime loans into tripe-A rated securities that investors around the world lined up to buy. In other words, Wall Street claimed its financial engineering converted subprime loans into risk-free investments.
Yes, Wall Street preferred to buy subprime mortgages from fed agencies like FHA, but those players were never a required part of the equation.

If the only banking problem to occur prior to 2008 was liars laonds in the subprime lending sector, which represented about $350 bil in notes, no financial crisis would have occurred. In the massive US economy,, $350 bil is just a hiccup, perhaps comparable to the SLA crisis, but nothing remotely close to the total meltdown of the US financial system that the nation almost witnessed.

bayam on April 3, 2013 at 3:34 PM

If anyone can save CNN’s ratings and credibility, it’s Tapper. I haven’t seen anything out of him since he rose to prominence that suggests he’s anything but a phenomenal journalist.

LukeinNE on April 3, 2013 at 2:58 PM

I agree about Tapper, but CNN is considering a show with Andreson Cooper and Kathy Griffin. Griffin is more likely to turn men gay than straighten them out (much like Arianna Huffington) as she gives new meaning to the word “fugly.”

bw222 on April 3, 2013 at 3:36 PM

The useful idiots who have been working phone banks and stuffing envelopes for OFA and Elizabeth Warren etc sure are going to be bummed when they find out that progressivism is all about installing a true 1% ruling class – the New Class – and it’s not going to be them.

forest on April 3, 2013 at 3:47 PM

BTW: I’m seeing increasing mention of the expression “white privilege” these days. Will be soon be hearing that down payments, employment histories, credit histories, and credit scores are just more evidence of white privilege?

BuckeyeSam on April 3, 2013 at 2:57 PM

Everything is evidence of white privilege. It’s like global warming . . . er, climate change. Unusually warm weather is proof of climate change. Unusually cool weather is proof of climate change. Unusually wet weather is proof of climate change. Unusually dry weather is proof of climate change. More hurricanes than usual is proof of climate change. Fewer hurricanes than usual is proof of climate change. More ice at the poles is proof of climate change. Less ice at the poles is proof of climate change, etc.

It’s like the old saying: When all you’ve got is a hammer, everything looks like a nail.

AZCoyote on April 3, 2013 at 3:48 PM

I don’t know if Ed’s (and the usual “revolving door”) logic is right.

As head of a Federal agency, would you really pull your punches because you’re worried about future employment opportunities? If I was hiring someone to help keep my clients out of trouble, I’d be happy to have some tough SOB regulator who went after the bad guys with full force and fury. They’re most likely to know the best ways of keeping my clients out of trouble and defending them, and most likely to apply the same strengths and level of commitment as they did when working for the Feds.

I also don’t see anything that wrong with the revolving door under most circumstances. Sure, if you’ve just been charging after a company as a regulator, and then suddenly quit to help them out, that’s wrong.

But applying your general knowledge of how government works to help clients? Where are industry regulators supposed to go after government? Open a dry cleaning store?

bobs1196 on April 3, 2013 at 3:51 PM

If the only banking problem to occur prior to 2008 was liars laonds in the subprime lending sector, which represented about $350 bil in notes, no financial crisis would have occurred. In the massive US economy,, $350 bil is just a hiccup, perhaps comparable to the SLA crisis, but nothing remotely close to the total meltdown of the US financial system that the nation almost witnessed.

bayam on April 3, 2013 at 3:34 PM

The perversion of the debt markets that was forced by the feral government and leftist policies percolated through the debt market – that’s the friggin job of the arbs, you blithering idiot – and that destabilized everything. You cannot just twist and distort one segment of a fluid market and expect that distortion to remain quarantined in the little area that YOU deem distortion-worthy. By perverting one debt instrument all other debt instruments (which can be arbbed against it) get distorted, too. You friggin imbeciles started a chain reaction int he debt markets (which was contained as the hidden risk was shuffled from one place to another until it finally ended in the CDS market and had nowhere left to go). All of this was put into play with your anti-redlining policies that you forced on the lenders, then you supercharged Fannie and Freddie to buy up all the bad paper (since originators would lend their quota of cr@p loans and then stop, as they were full up with the bad paper Washington forced them to carry) so that originators would have free cash to run out and make more sh!t loans, which F&F then bought and on and on. In the meantime, the minute F&F touched anything it immediately got an implicit feral guarantee (wink, wink) and then certainly did become “better paper”.

As to your BS about Wall Street creating AAA paper as a lie, that’s a lie. The tranches that were AAA were simply the top X% of the collection of junk paper that they were built on. There is nothing wrong with this (except that it took into account the implied feral guarantee that should not have been there but that Washington had to also wink at, because it was the basis of the whole fraud, for the books) and the joke ratings that the agencies gave (also forced, initially by Washington). You can take 4 sh!tty golfers and get them to shoot a 75 during a scramble round. That is what the AAA tranches were.

It’s evident that you don’t understand jack about finance or much of anything. Did Wall Street and loan originators eventually jump in with two feet to do what Washington had been forcing them to do for a long time? Of course they did. If you steal $50,000 and force me to take it – at the threat of jail, lawsuits, my livelihood, etc. – then eventually I will take it and take the next and the next. For you to then turn around and accuse me of taking stolen money is insane – though typical for a leftist pile of sh!t. Wall Street reacted to the force of Washington as it should have. Washington and the leftists got exactly what they wanted. That brought the credit crisis to the rest of us. And you idiots still haven’t stopped. Now, you’re into printing money by the boatload and forcing more bad loans, lest we all be “raaaacists” against people who are not loan-worthy at the feral-forced ones. And you take these abnormal zero interest rates as some sort of sign of health, all the while never even considering what is going to happen when the Fed finally loses control of them (which it will).

You people are the lowest of the low and too dumb for words.

ThePrimordialOrderedPair on April 3, 2013 at 3:56 PM

As to your BS about Wall Street creating AAA paper as a lie, that’s a lie. The tranches that were AAA were simply the top X% of the collection of junk paper that they were built on. There is nothing wrong with this (except that it took into account the implied feral guarantee that should not have been there but that Washington had to also wink at, because it was the basis of the whole fraud, for the books)

No, the securities ratings weren’t based on implied loan guarantees. The ratings were a consequence of many factors, in particular derivatives calculus that projected a continued increase in the underlying property valuations. Feel free to cite quant papers that show otherwise.
You’re going off the ranch on a right wing rant that satisfies your political views without much consideration for the facts.

bayam on April 3, 2013 at 4:04 PM

You people are the lowest of the low and too dumb for words.

ThePrimordialOrderedPair on April 3, 2013 at 3:56 PM

Perfect description of the events that unfolded. +1000

Turtle317 on April 3, 2013 at 4:05 PM

Sounds like another endorsement of the Glenn Reynolds “Post-Government Employment Sur-Tax”.

Another Drew on April 3, 2013 at 4:07 PM

The closer we get to the policy makers responsible the more “retirements” from we will see.

jake49 on April 3, 2013 at 4:15 PM

From congress

jake49 on April 3, 2013 at 4:15 PM

As Yogi Berra once supposedly said, “It’s deja vu all over again”.

Michelle nailed in 2008.

And Brick Obama wants a do-over.

fred5678 on April 3, 2013 at 4:16 PM

in particular derivatives calculus

bayam on April 3, 2013 at 4:04 PM

Do you even know what you’re talking about? I’m a mathematician and I can tell you that this is a nonsense term. Don’t use the word “calculus” just because you think it makes you sound smart. It makes you sound like an idiot. If you mean “calculation”, or “valuation” or “valuation model” then say that. Don’t try to use words you don’t understand. It makes you sound like the idiot that you are. Try and hide it a little.

The lack of risk assessment for falling property values was something that the feral government regulatory agencies allowed and encouraged, since it was part of the need to make the bad paper look good. It was part of the fraud and was pushed … nudged … from Washington, as much of leftist debt-perversion policy depended on it. It was beyond idiotic as property values had just had serious declines less than a decade earlier. This was in addition to the implied feral guarantees bestowed on paper blessed by Fannie and Freddie, which did pay off, you know. There are hundreds of billions of missing dollars to attest to that, in addition to unstable, gigantic portfolios still standing … barely. And you agents of destruction are pushing the bad debt still.

You leftists can’t regulate everything and force everyone into your idiotic action templates and then complain that you had no control. You are an offense to humanity.

ThePrimordialOrderedPair on April 3, 2013 at 4:30 PM

I agree about Tapper, but CNN is considering a show with Andreson Cooper and Kathy Griffin. Griffin is more likely to turn men gay than straighten them out (much like Arianna Huffington) as she gives new meaning to the word “fugly.”

bw222 on April 3, 2013 at 3:36 PM

Yeah, I do think Tapper is too little, too late for them. I would watch his show if I didn’t have to work when it’s on, though.

LukeinNE on April 3, 2013 at 4:30 PM

Apart from the few out of touch conservatives who continue to wet their pants at anything anti Obama, who cares? A large majority of Americans certainly don’t evidenced by last November..

HotAirLib on April 3, 2013 at 4:40 PM

Mary was also appointed to the GE board of directors….enough said.

DanvilleMom on April 3, 2013 at 4:56 PM

Apart from the few out of touch conservatives who continue to wet their pants at anything anti Obama, who cares?
HotAirLib on April 3, 2013 at 4:40 PM

You obviously don’t. Just as you wouldn’t have if this had happened under Bush. Right? Right?

“Who cares?” The essential anthem of the Left in all matters of fiduciary and moral squalor pertaining to their tribe. We get it.

rrpjr on April 3, 2013 at 5:01 PM

People need to start looking at this as government/business incest.

maddmatt on April 3, 2013 at 5:26 PM

The more non-Constitutional regulations/laws you eliminate from the federal regulatory bucket, the less of this crap you have to police. It’s really that simple. And, every time someone says “There oughta be a law!” you look at them and say, “No, there shouldn’t.”

GWB on April 3, 2013 at 6:54 PM

Some banks, such as WaMu, institutionalized illegal lending practices and it’s amazing that not a single individual has been prosecuted.

bayam on April 3, 2013 at 3:04 PM

My, my. That certainly is odd.

Why, it’s almost as though those banks knew “someone in government” who could protect them from prosecution.
Of course, there isn’t anyone like that in the D’ohbama Administration.

After all, one just has to look at the rigorous prosecution of those involved in “Fast & Furious” and the openness of the upper echelons of the administration in their handling of that ‘escapade’.

Solaratov on April 3, 2013 at 8:20 PM

Ban the revolving door between public service and related industries in the private sector. Until then, no one can be trusted to protect the public.
In some societies, like Germany, public servants rarely switch to the public sector because it’s considered immoral and a breech of the public trust. Unfortunately, the US has little social integrity and needs to find another way to prevent this kind of abuse.
bayam on April 3, 2013 at 2:49 PM

Fail.

A couple come to mind. A former Berlin Senator with the tourism portfolio privatizes the bureau before retiring from “politics” to become head of the new tourism office. All of the folks, save the director, in the old public office didn’t get to “transfer” to the new corporate digs, they got laid off. Bet you didn’t know that public servants could get laid off in Germany, did you?

Gerhard Schroeder went from bailing out too big to fail corporations as Chancelor to heading Gazprom Deutscheland GmBH. In fact it happens a lot, especially in the SPD & Green party.

Is this your “Public Service 2.0″?

AH_C on April 4, 2013 at 8:37 AM

…any real investigation of the 2008 bubble would ultimately point the finger back at policymakers in both parties who deliberately fueled the bubble by pushing Fannie Mae and Freddie Mac into a buying spree of subprime and other bad loans, as well as threats of enforcement of the Community Reinvestment Act on the lending community.

You mean, like this 2008 expose from (of all places) the Village Voice?

Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country’s current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded “kickbacks” to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.

What he did is important—not just because of what it tells us about how we got in this hole, but because of what it says about New York’s attorney general, who has been trying for months to don a white hat in the subprime scandal, pursuing cases against banks, appraisers, brokers, rating agencies, and multitrillion-dollar, quasi-public Fannie and Freddie.

Of course, the only people who ‘paid’ are those e-e-e-vil bankers. Cuomo, of course, is now Governor of New York.

Paul_in_NJ on April 4, 2013 at 4:11 PM