Too Big To Jail: Wall Street Executives Unlikely To Face Criminal Charges, Source Says

Commented Sep 8, 2012 at 18:03:52 in Business

“They still do not seem to get it do they? It was not the banks and it was not wall street, unless you consider bond rating agencies part of wall street. It was the bond rating agencies like Standard and Poor's. If the rating agencies had rated the mortgage backed securities triple F instead of triple A, pension fund managers and other investors would not have bought them. Case closed! If every one would read “The Big Short” by Michael Lewis they would realize that the banks did not need to be bailed out. The ones needing bailed out were the ones that had sold insurance (credit default swaps) on the mortgage backed securities. AIG for one sold those credit default swaps and should be taking the bond rating agencies to court. Why are they not doing so? All in bed together, maybe? These bonds (mortgage backed securities) enabled banks to lend money risk free. The bond holders were the ones left holding the bag and the people who had bought insurance on the bonds made million. AIG and other insurance sellers stood to go under. So who should be going to jail? Rating agency CEO's? One of the big reason this all happened is that no one considered the fact that people were losing their jobs to China and would not be able to pay their mortgages.”