Just step 1 of a long process. The next laughable step (again, humans follow the same path over and over and over) will be the politicians red faced and fist shaking "How could this happen!?!" as they have their hearings...a joke, all of it. When the money was rolling in, nothing was questioned. As long as the 'right people' were getting rich, no regulation needs to matter. Now, suddenly will come the wave of (fake) outrage.
- The Federal Bureau of Investigation on Tuesday said it is investigating 14 companies for possible fraud or insider trading violations in connection with loans made to risky borrowers, and investments spun off of those loans.
- Agency officials did not identify the companies under investigation but said the wide-ranging probe, which began in spring 2007, involves companies across the industry, from mortgage lenders to financial firms that bundle home loans into securities sold to investors.
- The development comes as authorities in New York and Connecticut investigate whether Wall Street banks hid crucial information about high-risk loans bundled into securities that were sold to investors. (you bet they did, but I am sure their lobbying staff can make most of this trouble "go away" and if we repeat 2001-2003, they will pay massive fines.... fines around $5 million! Or about 0.001% of all the billions made in this fiasco. And admit no wrong doing. Because people who pay fines, of course do so out of charity.)
Those Who Cannot Learn from History are Doomed to Repeat It. And repeat it we will. By some bubble being birthed today with "easy credit 2.0", that will come to fruition (and then implode) circa 2012-2014. Count on it.
