Citigroup pays $158 million in mortga...

Citigroup pays $158 million in mortgage fraud pact

There are 39 comments on the Reuters story from Feb 15, 2012, titled Citigroup pays $158 million in mortgage fraud pact. In it, Reuters reports that:

Often ignored as an economic laggard, the Philippines has beaten India to win the top spot for offshore call center outsourcing.

Join the discussion below, or Read more at Reuters.

First Prev
of 2
Next Last
Great Job

Harrison, AR

#1 Feb 15, 2012
I'm so glad someone stood up to them and won.
Bravo

Harrison, AR

#2 Feb 17, 2012
Bravo to a brave woman!!!!
Sherry

New York, NY

#4 Mar 2, 2012
Thanks mom!
guest

United States

#5 Mar 2, 2012
Why don't we get the federal government out of the insurance business altogether and avoid putting taxpayers at risk?

A private insurance company would have investigated the loans to make sure they were not risky. And if the loans did go bad and the insurance company lost money, it would have been the investors and stock holders taking the hit instead of taxpayers.
Captain Obvious

Euless, TX

#6 Mar 4, 2012
Ummm.... You haven't been paying all that much attention. You do know that AIG was bailed out, the banks were all bailed out and all these businesses are privately held, yet the government bailed them out. You know what would work better? Sending a few of the high level executives, who allowed and probably actively encouaged the inadequate at best, false at worse underwiting that's the root cause of the majority of the pain we suffered over the past 8 years.
guest

United States

#7 Mar 5, 2012
Captain Obvious wrote:
Ummm.... You haven't been paying all that much attention. You do know that AIG was bailed out, the banks were all bailed out and all these businesses are privately held, yet the government bailed them out. You know what would work better? Sending a few of the high level executives, who allowed and probably actively encouaged the inadequate at best, false at worse underwiting that's the root cause of the majority of the pain we suffered over the past 8 years.
I have been paying attetion there Captain. Everyone of those bailouts was wrong and utterly unconstitutional. All our Congressmen have done is enslave generations of Americans with tremendous amounts of debt.

Companies like AIG that made boneheaded businesses decisions should be the ones to suffer the negative consequences of their decisions, not every taxpayer in the country for generations to come. The same is true for other financial entities as well as automobile manufacturers and others.

And it's the same with the current issue. The federal government has no lawful authority to be in the financial insurance business, gambling with public money. For government, there's no profit motive driving oversight and efficiency, and that's what led to being hoodwinked by Citigroup.

We need to drastically scale back the gigantic monster we call the federal government and return it to what it was originally designed for - providing for a common defense for the states, securing the rights of individuals to life, liberty and property, and maintaining a free market economy.
The Fixer

Warren, NJ

#8 Mar 5, 2012
But his point was, I think, that the government, instead of bailing these bad actors out with its citizen's money, should instead be prosecuting people within these companies, making sure enough go to prison that maybe the threat of having to live with potential daily ass rape might curb these guys enthusiasm to do things like this.

The fact that so much of the underwriting was poor, missing, or lies should have generated hundreds of fraud cases.

As yet, I'm unaware of anyone spending a day in jail in relation to this travesty.
peter tucker

Eaton Rapids, MI

#9 Mar 5, 2012
Spoken like a true misogynist. Right out of that guy riding the bomb in Dr. Strangelove. You people are amazing and straight out of the 18th Century Will also be the first ones crying foul..unfair, wrong.. call my mother when 40,000 jobs are lost. No concept of reality/ history...right wrong etc. To you reason is foreign...a real four letter word. Fix the bayonets and CHARGE. Real paper cowboys
peter tucker

Eaton Rapids, MI

#10 Mar 5, 2012
Oh yeah.....why do you think those shirts you buy at Wal-Mart are affordable???? Bunch of xenophobic "patriots"???? Because they are made by the "enemy' overseas" stealing American jobs that you do not want to do anyway
guest

United States

#11 Mar 5, 2012
The Fixer wrote:
But his point was, I think, that the government, instead of bailing these bad actors out with its citizen's money, should instead be prosecuting people within these companies, making sure enough go to prison that maybe the threat of having to live with potential daily ass rape might curb these guys enthusiasm to do things like this.
The fact that so much of the underwriting was poor, missing, or lies should have generated hundreds of fraud cases.
As yet, I'm unaware of anyone spending a day in jail in relation to this travesty.
You missed the point. It wasn't the people who took out the loans that were defrauded, it was the government who underwrote those loans. The banks made it appear that the loans were far less risky than they actually were.

The core of the problem is that the federal government has no business putting the taxpayers' money at risk by providing investment and financial insurance. That goes for FDIC and FSLIC too.

If private businesses were insuring those Citigroup loans, they would have have performed due diligence BEEFORE underwriting them and would have discovered the real risks involved. Those loans never would have been underwritten and therefore would never have been made.

If a private insurance company was defrauded by the banks, they would file a civil lawsuit for damages.

Either way, the taxpayers wouldn't be stuck with tens of billions of losses for the failure of the federal government to properly operate an insurance business that it has no lawful authority to engage in to begin with.
guest

United States

#12 Mar 5, 2012
peter tucker wrote:
Spoken like a true misogynist.
Mysoginist? This topic has absolutely nothing to do with mysogyny. Do you even know the meaning of the word?
guest

United States

#13 Mar 5, 2012
peter tucker wrote:
Bunch of xenophobic "patriots"???? Because they are made by the "enemy' overseas" stealing American jobs that you do not want to do anyway
Xenophobic? Do you know the meaning of the word? It doesn't appear that you do because your two statements above are contradictory.

Pete, it appears that you heard a few big words and threw them into your posts in a failed attempt to make yourself look intelligent. Since you incorrectly used them, you actually made yourself look quite ignorant.

Take some advice. Express yourself in words that you are comfortable with and stop trying so hard to make yourself look good.
peter tucker

Jackson, MI

#14 Mar 5, 2012
The problem started with private businesses....Where were you???? You want the federal gov't available for what you see as your purposes when you want it...where you want it. Does not work that way pal.... lil boy who cried wolf
again

United States

#15 Mar 6, 2012
Peter, again, the topic of the news story (and of this thread) is Citigroup defrauding the federal government by making it appear certain loans were far less risky than they truly were in order to obtain federal insurance on them.

Calling me a little boy who cried wolf is nothing more than a red herring, a strawman and a petty ad hominem attack, all of which have nothing to do with the topic at hand, nor do they in any way detract from the facts I set forth in my earlier posts.

If Citigroup had hoodwinked a private insurance company in the manner in which it did the federal government, the private insurer would have filed a civil suit in federal court. Coverage of such a suit would be buried on page 43 of the Wall Street Journal. It wouldn't be front and center on many main stream media outlets.

Why? Because it wouldn't really be news. As it is, it's only news because the taxpayers got screwed out of their money by the failure of the government to properly oversee and operate an enterprise in which they have no lawful basis to be engaged with in the first place.

Where is the outrage about our government delving into matters far, far afield from that allowed by the Constitution?
peter tucker

Lansing, MI

#16 Mar 6, 2012
I am not insulted..but amused.. When you are looking up words.....try pedantic narsissism. Jesus H. Christ...you rock dwellers who think it is 1875.... are so BORING
peter tucker

Lansing, MI

#17 Mar 6, 2012
Oh yeah...your evil bank Citicorp underwrote the IPO of Facebook...but you would not know about that...you monosyllabalic sophist jerk
The Fixer

New York, NY

#19 Mar 8, 2012
Whether or not these loans were insured by public or private entities really isn't the point. The point is people at a financial institution did knowingly work to defraud another entity, public, private, or government, it doesn't make a difference.

There were people who were defrauding others.

Why hasn't anyone gone to jail for that?

Seriously, I think the fact that no one has gone to jail for this, almost garuntees that within 25 years, we're going to see the EXACT SAME THING happen again.
peter tucker

Jackson, MI

#20 Mar 8, 2012
"did knowingly work to defraud another entity, public, private, or government, it doesn't make a difference." You can not prove that anybody knowingly did anything. It is a bad cruel deceptive world out there and you are naive as hell. 25 yrs???? Happened somewhere 500 times today. By the way..speaking of knowingly..it is "guarantee" Love to hate those banks. This is really shocking news... Life is unfair. That is news to you

Since: Jul 11

Location hidden

#21 Mar 8, 2012
Why are you wasting your time arguing with Peter Tucker, our forum's fool? He will continue to argue with you regardless if he is wrong and holds no clue about the subject being discussed.
guest

Erie, PA

#22 Mar 9, 2012
The Fixer wrote:
Whether or not these loans were insured by public or private entities really isn't the point.
It is for any taxpayer who is tired of the federal government wasting his money on unconstitutional endeavors such as government insurance programs.
The point is people at a financial institution did knowingly work to defraud another entity, public, private, or government, it doesn't make a difference.
Yes, it makes an enormous difference. You and me and every taxpayer in the country is on the hook for the losses. If it was a private insurance company suffering the losses, we wouldn't have to foot the bill.
There were people who were defrauding others.
There was a finanical institution defrauding the federal government. Not the same thing.
Why hasn't anyone gone to jail for that?
It's a civil matter.
Seriously, I think the fact that no one has gone to jail for this, almost garuntees that within 25 years, we're going to see the EXACT SAME THING happen again.
As long as we have government meddling into things for which it has no authority, the taxpayers will continue to get screwed. The answer is to keep government out of insurance programs and let the free market economy work like it's supposed to.

There is a reason why the powers of the federal government are limited by the U.S. Constitution. We must hold accountable our political leaders and force them to obey the Constitution and their oaths to support and defend it. Failure to do so will result in continued economic destruction.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker
First Prev
of 2
Next Last

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

CitiMortgage Discussions

Title Updated Last By Comments
News Five big banks face criminal charges and $5 bil... (May '15) Jul '16 swedenforever 54
News Bank of America Cuts This High Profile Name (Mar '13) Jun '16 integrity watch 5
News Citigroup Seizes 89 New York City Taxi Medallio... (Jun '15) Jun '15 Dan Nietzsche 1
News Elizabeth Warren tells Wall Street: 'Bring it on' (Mar '15) Apr '15 SirPrize 5
News Morning 10: $7B Citigroup settlement | Sotheby'... (Jul '14) Mar '15 Sydney 4
News A Midwestern Cow Girl Blew The Lid Off Of Citig... (May '12) Mar '15 Sydney 5
News Why Citigroup and Its Shares Are Poised to Make... (Jan '15) Jan '15 To Make A Dive 2
More from around the web