My kid’s last day of school was yesterday so I’m fighting the urge to take the summer off. Ok, it’s not possible, but I can dream.
It’s been a week to remember.
- Two US senators completely missed signs of favoritism. Sen. Kent Conrad, a Democrat from North Dakota, said the Senate Ethics Committee will look into mortgage loans he received from Countrywide Financial Corp…Sen. Christopher Dodd, a Connecticut Democrat who is chairman of the Senate Banking Committee, also has acknowledged receiving mortgages from Countrywide.
- The first sign of last summer’s problems – Two former Bear Stearns hedge fund managers were arrested today. “This is not about mismanagement of a hedge fund investment strategy,” said Mark J. Mershon, the head of the New York office of the Federal Bureau of Investigation, at a news conference Thursday. “It is about premeditated lies to investors and lenders.”
- It’s real money – The FBI arrested over 300 real estate brokers in mortgage fraud schemes since March whose victims lost more than $1B.
Fast and easy credit that was relatively unchecked by regulators provided the perfect environment for fraud, the creation of instant wealth and/or newly found leverage to those who were willing to use it or accept it.
We seem to be entering the fourth phase of the credit crunch (not marriage). Discover, Fret, Propose, Charge, Reconsider, Solve
This week’s persistence award goes to a woman who, for 6 months, tried to get someone at WaMu to talk to them about their mortgage (hat tip to Holden Lewis/Mortgage Matters). Can someone please explain to me how WaMu’s CEO has been able to hold onto his job?
Here’s Politco’s list of mortgages held by US Senators.