What a news day for the mortgage industry. This morning the SEC has charged Goldman Sachs with fraud involving subprime mortgages:
The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter.
One has to wonder who the SEC will go after next.
As I write this post, representatives from the OTS and FDIC are testifying before a Senate Subcommittee on Investigations regarding the failure of Washington Mutual. If you’re interested in watching, you can watch this on CSPAN-2.
OTS regulators authorized Washington Mutual to embark upon a high risk lending strategy. OTS examiners also repeatedly criticized the bank for inadequate controls. OTS examination documents cite “less than satisfactory