Reprinted from neweconomicperspectives.org by William Black, professor, School of Law and Dept. of Economics
This is the second article in my series prompted by the Wall Street Journal report that “big money managers” want to bring back “liar’s loans.” Given that the best study of liar’s loans during the crisis found a fraud incidence of 90% — this is a startling proof of how openly addicted to fraud the “big money managers” remain. It demonstrates some of the terrible costs of the Department of Justice’s refusal to prosecute the fraudulent loan originators’ controlling officers. Read more.