Bank of America, Goldman Sachs and Morgan Stanley being investigated

These big beasts of American banking are being subjected to an "active and ongoing investigation into the mortgage crisis." This is being conducted by New York State Attorney General Eric Schneiderman. He's leaving no stone unturned in his quest to find out why the so-called Triple A rated mortgage securities metamorphosised into Quadruple X rated financial bubbles all eager to pop themselves over unsuspecting investors.

The proverbial excrement hit the fan. This is the beginning of the end in the clean up of the fan. No fan with such stuff wedged into it can pump fresh air around a room. How long it will take to investigate is probably hard for anyone to say. Getting to the truth will be something. It cannot be right for city slickers to defraud, if that is what they have done, with impunity and for others to carry the financial can.

These sub-prime mortgages were toxic to start with. I'm no scientist, but if you add one toxin to another it must still be pretty vile as a result. In my opinion it was the credit rating agencies giving the products a clean bill of health that let the scam get out of control. Maybe they should be called something else? Or as Marjory Dawes of FatFighters fame (BBC Little Britain) might say "but You are summin else!"

Posted in: bank lending,mortgages,securities