

E-Mails Imply JPMorgan Knew Some Mortgage Deals Were Bad - zippo
http://dealbook.nytimes.com/2013/02/06/e-mails-imply-jpmorgan-knew-some-mortgage-deals-were-bad/

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nhebb
My wife was an underwriter in the sub-prime mortgage industry. She worked for
three companies, and they were all pretty bad. At least a few times a month if
she turned down a loan for not meeting guidelines, she would have a loan
officer standing at her desk screaming and swearing at her.

If they couldn't browbeat the underwriter, then half the time the company
president would override the guidelines. The guidelines themselves were a
sham. They were written in house by people with no particular expertise, then
rubber-stamped by investors on Wall Street.

In the trenches, everyone knew there were bad deals. They were just making too
much money to care.

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sharkweek
As a college student who was working as a lowly bank teller between 2004-2008,
I was convinced these mortgages were bad.

People severely under-qualified were coming in, signing up for 80/20
mortgages, $0 down; never mind that the rates were going to skyrocket in a few
years! We'll all be rich then, things never go bad, right? And if they do, all
these things are insured anyways!

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patrickgzill
VERY old news. Read this info on zerohedge.com in like 2009.

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asveikau
I seem to recall Elliot Spitzer going after Merrill Lynch over nearly
identical doublespeak back in 2002. Old news indeed.

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jordanthoms
Well, sure, they just figured the government would bail them out by printing a
bunch of money and screwing everyone else, and everyone would forget all about
it after a couple of years.

Worked out pretty well (for them)

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DodgyEggplant
I'm shocked. Shocked.

