Latest Evidence, #2a in a series

Back to the Taibbi again...

Remember that "climategate" furor a few years ago, where somebody leaked 50,000 e-mails from a British climate science center, and out of the 50,000 e-mails they found about three or four showing that graphs on public presentations (not the data, just the presentations) had been fudged? For clarity of presentation, not for pay or whatnot? Well it turns out the financial ratings agencies, in a far more widespread manner, have been fabricating the actual ratings on your retirement investments, out of whole cloth. In exchange for pay. Will these scandals receive the same outrage as the "climategate" revelations?

"The Last Mystery of the Financial Crisis"

In incriminating e-mail after incriminating e-mail, executives and analysts from these companies are caught admitting their entire business model is crooked.
"Lord help our f*cking scam ... this has to be the stupidest place I have worked at," writes one Standard & Poor's executive. "As you know, I had difficulties explaining 'HOW' we got to those numbers since there is no science behind it," confesses a high-ranking S&P analyst. "If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value," complains another senior S&P man. "Let's hope we are all wealthy and retired by the time this house of card[s] falters," ruminates one more.

Latest Evidence, #2 in a series

I bet you know people, at least friends-of-your-friends, who were foreclosed upon in a very rushed manner, who were in the middle of negotiations and trying to comply with their banks, but their own paperwork was going slow as molasses. That scenario happened to two of my best friends. The banks in the past few years have had perverse financial incentives such that they could pick up expensive real estate for pennies on the dollar just by rushing through foreclosures and throwing a few people out on the street. So, guess what? That's what the banks made to happen. By hook or by crook.

"We Were Told To Lie" -- Bank of America Employees Open Up about Foreclosure Practices

Employees of Bank of America say they were encouraged to lie to customers and were even rewarded for foreclosing on homes, staffers of the financial giant claim in new court documents. Sworn statements from several Bank of America employees contain a number of damning allegations, the latest claims entered as evidence in a multi-state class action lawsuit that challenges the bank’s history with foreclosures.
In one of the sworn statements, an ex-bank staffer said he would be directed to deny upwards of 1,500 loan modification applications at a single time with no apparent reason. “To justify the denials, employees produced fictitious reasons, for instance saying the homeowner had not sent in the required documents, when in actuality, they had,” William Wilson, Jr., a former underwriter for the bank, wrote in his statement.
Simone Gordon, a senior collector at B of A from 2007 through 2012, said, “We were told to lie to customers and claim that Bank of America had not received documents it had requested.