New Taibbi Article on BoA Coming

Matt Taibbi is going to Florida for research on an upcoming article on the foreclosure crisis

A snippet from his blog post (emphasis supplied):

“There has been a tremendous effort in the media to blame this foreclosure crisis on homeowners who over-borrowed and the lawyers who represent them. (A Wall Street Journal article last week blaming a Jacksonville lawyer named James Kowalski for destroying the universe was a new low in crisis reporting and some of the worst journalism I’ve ever seen). The truth, and I’ll get into this in detail when the magazine piece comes out, is that this foreclosure fiasco is a story about wide-scale bureaucratic fraud, with a kind of mortgage counterfeiting and a gangbang mentality with regard to the securitization process has infected the entire system. Since mortgages and mortgage-backed securities are in everything — in your pensions, in insurance portfolios, on the balance sheet of the Fed and its bailout facilities (making all Americans stakeholders in subprime notes) — a wave of phantom and/or mismarked mortgages has the potential to wreck the entire economy, which is why everyone from Ben Bernanke on down is shitting bricks as this story (and disclosures like this BOFA thing) unfolds. This business is, believe me, a LOT worse than even Bank of America is admitting, and it’s not confined to just a few reckless banks. Anyway, more to come later.”

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One thought on “New Taibbi Article on BoA Coming

  1. Taibbi is one of the few mainstream journalists who has consistently set his sites on the real target. Yes, some homeowners committed fraud. But it was neither systematic, organized nor pervasive. On the other hand, all the big investment banks along with their cronies at the ratings agencies, monoline insurers, the “regulators”, the Federal Reserve and the Dept of Treasury, engaged in a decade-long orgy of organized, systematic and pervasive fraud. If they all had Italian last names, we would call it “Organized Crime”, but since their bankers, we call it “Business”.

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