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Hard proof Dodd-Frank isn’t working; The GSEs just got played, big time

Hard proof Dodd-Frank isn’t working; The GSEs just got played, big time

Reuters is running a pretty shocking exclusive right now. Apparently the Federal Bureau of Investigation, of all agencies, is investigating the claim that derivative traders are front running swaps orders from Fannie Mae andFreddie Mac.

The article itself goes into the unethical, if technically legal, nature of these trades. So I won’t. Still the contents are disturbing in implication.

The first is that the government-sponsored enterprises didn’t even look to monitor shifts in markets BEFORE placing these huge orders. Clearly, they were getting played, but aren’t even wide awake enough to take notice.

Second, this is proof Dodd-Frank isn’t working. The financial reform made plenty to do with how it would regulate derivatives and how this was going to happen: “The Dodd-Frank Act divides regulatory authority over swap agreements between the CFTC and SEC.”

One response to “Hard proof Dodd-Frank isn’t working; The GSEs just got played, big time

  1. I AM a homeowner who had predatory lending, flipping, phony Loan Applications submitted by the lender wherein he fabricated unbelievable fraudulent Loan Application and HUD docs to make a RE loan 6 times higher than I requested … and signed those docs himself, under the table. End result is I was given a $187,000 RE refi instead of the $30,000 personal loan I had requested. Guess what. I was set up for foreclosure. Now Wells Fargo has violated every aspect of Dodd-Frank and the new national Homeowners Rights law and told me my QWR wasn’t one. Seems like fraud is still the name of the game with the big banks.
    When you look at the lawsuits won from banks selling to investors….those are all based on loans like mine. However, Wells Fargo did not turn in my loan for curing. They pursue me day and night to get my home for $29,000.
    I think the reason WF has so many loans with severely ill, elderly and disabled people is that if they can pressure them into a heart attack and death…they get the house in 30 days with no one that can object. Clever Wells Fargo. I sure wish you people would take all your money out of the crooked bank.

    Thanks.

    W

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