Fraud and folly: The untold story of General Electric’s subprime debacle

[MrsSmith]

marmar (52,376 posts) ...
 
Fraud and folly: The untold story of General Electric’s subprime debacle

from the Center for Public Integrity:



Ex-employees say GE ignored warnings from whistleblowers

By Michael Hudson
6:00 am, January 6, 2012 Updated: 20 hours, 1 minutes ago


For General Electric Co., hawking subprime mortgages was a long way from making light bulbs and jet engines.

That didn't stop the industrial giant from jumping into the subprime business in 2004, lending blue-chip respectability to the market for risky home loans by paying roughly half a billion dollars to buy California-based WMC Mortgage Corp.

What GE got in the bargain, former WMC employees say, was a place where erstwhile shoe salesmen, ex-strippers and even a former porn actress could sign on as sales reps and make big money pushing home loans. WMC's top salespeople earned a million dollars a year or more and lived fast, swigging $1,000 bottles of Cristal and wheeling around in $100,000 Ferraris and Bentleys.

In pursuit of these riches and perks, several ex-employees claim, many WMC sales staffers embraced fraud as a tool for pushing through loans that borrowers couldn’t afford. ...............(more)

http://www.democraticunderground.com/10165709

qb
1. I hope this awful company suffers greatly.

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What I remember most about GE is the way its head manipulated reporting on election night 2000 to favor GWB.

http://www.opensecrets.org/pres08/contrib.php?cid=N00009638

Barack Obama (D)
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{#17} General Electric...

 

[Carl]

They called Florida for Gore before voting on the panhandle closed?

[BEG]

That idiot can't be that delusional can they?

[BlueStateSaint]

That idiot can't be that delusional can they?

My dear lady, just as they continually drill down and tap into a whole new level of Stooooopid (thundley, there's 5 os there!), Delusional seems to be right there in the same vein.

[DumbAss Tanker]

Hey, DUmmies, what ya got against GE, whose CEO is Obozo's 'Jobs expert?'  Aside from the fact they paid no net income tax, and created no net jobs in the US due to moving stuff to China and India, I'd think you'd be all tight with them, since their boss is so tight with your beloved and worshipped Prez.