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Special Report: "The watchdogs that didn't bark!"-- By Scot Paltrow / Reuters

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KoKo Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-23-11 09:42 AM
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Special Report: "The watchdogs that didn't bark!"-- By Scot Paltrow / Reuters

By Scot Paltrow

Thu Dec 22, 2011 2:15pm EST

(Reuters) - Four years after the banking system nearly collapsed from reckless mortgage lending, federal prosecutors have stayed on the sidelines, even as judges around the country are pointing fingers at possible wrongdoing.

The federal government, as has been widely noted, has pressed few criminal cases against major lenders or senior executives for the events that led to the meltdown of 2007. Finding hard evidence has proved difficult, the Justice Department has said.

The government also hasn't brought any prosecutions for dubious foreclosure practices deployed since 2007 by big banks and other mortgage-servicing companies.

But this part of the financial system, a Reuters examination shows, is filled with potential leads.

Foreclosure-related case files in just one New York federal bankruptcy court, for example, hold at least a dozen mortgage documents known as promissory notes bearing evidence of recently forged signatures and illegal alterations, according to a judge's rulings and records reviewed by Reuters. Similarly altered notes have appeared in courts around the country.

Banks in the past two years have foreclosed on the houses of thousands of active-duty U.S. soldiers who are legally eligible to have foreclosures halted. Refusing to grant foreclosure stays is a misdemeanor under federal law.


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Article goes on and on and is a good read laying out what hasn't been proscecuted-- although it will make you gnash your teeth and blood pressure go up!

http://www.reuters.com/article/2011/12/22/us-foreclosur...
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