To: Eric Holder, United States Attorney General
Junk-Mortgage Securitized Bond Sales = Fraud!
Why haven’t the AAA classification and sale of junk-mortgage securitized bonds sold in the period prior to the Great Recession been treated as crimes? The bond-rating agencies committed securities fraud by wrongly classifying these bonds as AAA. Same offences by the banks and brokers who knowingly sold these bonds as AAA when they knew they were misrepresenting them. Isn’t that securities fraud? Why have there been no prosecutions on the major players?
Why is this important?
I have a questions about the classification and sale of junk-mortgage securitized bonds sold in the period prior to the Great Recession. Did the bond-rating agencies commit securities fraud by wrongly classifying these bonds as AAA? Same question about the banks and brokers who knowingly sold these bonds as AAA when they knew they were misrepresenting them? Isn’t that securities fraud? If so why haven’t they been prosecuted?