All of you who think the FMs caused the mortgage crisis, you need to read this. Countrywide and Citibank both engaged in deliberate mortgage fraud. No regulator in the world can prevent the kind of fraud they perpetrated -- regulators can only prosecute them when it's uncovered. It has been uncovered. Whistleblowers from both companies are ready to testify. Yet the Justice Department hasn't opened a criminal investigation and made charges. Why not?
Is it because politicians -- including Obama -- are in the bankers' pocket? Or are federal prosecutors just afraid they'll be outgunned by dozens of high-priced lawyers? Whatever the excuse, it's not good enough. We put executives behind bars for S&L fraud, and that was mild compared to this. We need criminal cases and CEOs and CFOs behind bars, and we can do it using the 2002 Sarbanes Oxley Act.
December 4, 2011 | CBS News