If the Commission really does want to learn WHO knew what, when, then they’re interviewing the wrong people.
They need to interview the line workers. Mortgage loan processors, managers, escrow closers, underwriters from the banks, private mortgage insurance companies as well as wholesale lending, loan servicing default and loss mitigation workers and even consumers. Seasoned mortgage industry veterans who have proof in the form of saved memos or emails, that they informed senior management of the red flags, predatory lending, and the insane relaxation of underwriting guidelines that started to pop up as early as 2001 and 2002 yet were ignored or whose concerns were dismissed.
I am willing to bet that if the commission opened up a public comment period for testimony, they would have all the evidence they need to prove all these hoocoodanode banksters definitely did know but their own pay and bonus structure set up an external incentive to keep the dice rolling. Who wants to be a Debbie Downer CEO and be the first banker to take away the punch bowl when the money party is still going full on? Anyone? Anyone”¦Buehler?
Read it all (hat tip: Calculated Risk).