Archive for April, 2011

BLACK: There Was “Massive Illegality” In Mortgage Lending

WaMu, and others motivated by greed, financial crisis probe concludes

Sen. Levin calls Goldman Sachs tactics “disgraceful”… In one 2007 case, executives at Washington Mutual Bank were urgently trying to sell risky loans likely to go delinquent to get them off its own books and pass the expected losses on to investors, the committee report concludes. The Senate panel investigators found that WaMu pooled 1,900 loans worth more than $1 billion in a security in March 2007. Within 9 months, the ratings on the loans were downgraded and by February 2010, more than half the loans were delinquent.