Mortgage Giant Overstated the Size of Its Capital Base

[Phred42]

Where I come from we call that Lying and FRAUD.

In Corporate American it's nothing personal -it's just business....
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Mortgage Giant Overstated the Size of Its Capital Base
http://www.truthout.org/article/mortgage-giant-overstated-size-its-capital-base
Gretchen Morgenson and Charles Duhigg, The New York Times: "The government's planned takeover of Fannie Mae and Freddie Mac, expected to be announced on Sunday, came together after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter."

[no_hypocrisy]

1. Overstated? Or committed fraud?

[salin]

2. probably fraud.

gut reaction.

[indepat]

4. Geez, wonder if any investment decisions were based on this stated capital cushion?

:P

[shanti]

3. along the same lines...

outsourcing? just business! :(

[texanshatingbush]

5. I want heads to roll.......

I want to know who is responsible within the companies for making these bordering-on-criminal financial decisions, and I want to know who in the government dismantled the economic safeguards put in place as a result of the Depression.

Those responsible in Fannie Mae and Freddie Mac should be fired, fined, humiliated, and held up to ridicule.

If Phil Gramm de-constructed the safeguards in the legal code, I want the world to know it and for him to be disgraced.

If some combination of Democrats currently in office were responsible for easing the oversight of the mortgage industry, I want the Party to clean house. If the Bush administration was responsible, then I want it shouted from the rooftops.

Dammit, I'm tired of business as usual! I want the Democratic Party to realize--and live like--"Caesar's wife must be above reproach". No more Enron-style business. Bring back rigorous ethics courses in business school. Too many people these days think that because "everyone is doing it", then it's OK. Bullshit!

There, I feel better now. Thanks for listening.