Ex-Mortgage Bank Execs Profit During Crisis

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I have news for Mr. Obama in how to turn the home foreclosure crisis around.

Go after the perpetrators, including those members in Congress who assisted the banking industry to market “interest only” use right ownership to many Americans after the Keating mess of the 1980’s. That was the previous unconstitutional Act of Congress created to supposedly salvage the economy after the savings and loan collapses.

It is only by addressing the problem that this situation will be resolved, not by masking the symptoms and making quick fixes that will create even greater problems again down the road. We have a government now in collusion with the banks and banking executives.

Nowhere is that more apparent than in today’s article in the New York Times. It seems that one of the former executives at Countrywide is now making money hand over fist by buying up these bad debts which he was able to do under the provisions of the 700 billion bank bailout – the terms of which were never fully disclosed to the American public and which are now being overseen by the Department of the Treasury.

It appears the Department is simply rewarding these banking executives, since no charges were pursued against them for their part in the mismanagement of their banking institutions. This story is on a former executive of Countrywide, who was one of the largest mortgage bankers prior to the September “collapse,” Stanford Kurland.

In the photograph that accompanies the story, it appears that Mr. Kurland just stepped out of one of Southern California’s tanning salons.

Mr. Obama is sacrificing the future of America’s next generation and the American taxpayers in this mess which Washington and the bankers created in their 1980’s collusion. Mr. Kurland received over 200 million dollars in corporate stock to formulate his new “business,” which was also due to the good will of Congress and his corporate legislative backers last September.

And the rub in this entire mess is that those subprime and creative predatory loans which Mr. Kurland had a major part in marketing through Countrywide, were resold on the stock exchange to cover those losses, leaving many investors now holding the bag. He and Washington continue raping the American people in the process – the foreclosure upon homeowners, the public in general, and the shareholders of Countrywide.

In the most simple terms – Washington and Congress in September, due to the lax terms of the bailout, and lack of accountability afforded to the Secretary of the Treasury in oversight, are now enabling the mortgage bankers not only to not be held accountable for their deeds, but to profit from them.

And the most horrible part of all is that the debts of the homeowners who have lost their homes after paying all those points and interest on those debts for however long they “owned” them, were already paid off since they were resold on the stock exchange to those duped investors. A pyramid scheme now condoned and enabled to continue by Washington’s continued lack of regulation over these national banking and financial institutions, and failure to prosecute those banking executives involved.

All of this was supported by both Mr. Obama and Mr. McCain in their senatorial capacity back in September, when they sought to “turn this economy” and the mortgage crisis around.

I have a news flash for Washington – instead of wearing a Southern California tan and conducting interviews from his offices overlooking the Santa Monica mountain range, Mr. Kurland should be wearing an ankle bracelet.

And Washington should be getting back to basics in their Constitutional functions, and sufficiently overseeing and regulating these banking and financial institutions, and banning any and all executives like Mr. Kurland from working in the financial industry ever again.

See the New York Times article