It was one thing to have ENRON happen in the private sector, it's another thing when Fannie and Freddie go belly up, who supposedly had government oversight.
I hope people go to jail. A lot of 'em. Because a lot of people were in on the scam, and knew everything that was going on, but for commissions, bonuses, stock options or career advancement, they looked the other way. And no, incompetence should not be a defense.
WASHINGTON (Reuters) - New York Attorney General Andrew Cuomo was wrong to file subpoenas against Fannie Mae and Freddie Mac without consulting their regulator and may have overreached his authority, the regulator wrote in a letter on Thursday.
"I am disappointed that your office did not contact OFHEO before or even after subpoenaing the GSEs and issuing certain threats regarding their future business activity," wrote James Lockhart, director of the Office of Federal Housing Enterprise Oversight.
Cuomo announced on Wednesday that he had served the two mortgage finance firms with subpoenas in an investigation of what Fannie and Freddie might have known about possible home value inflation.