Bank Bundling: Anatomy of One Bad Banana In The Bundle
The story I am linking to is provocative and full disclosure requires that I inform you I personally know two of the parties mentioned. Big Dallas names are invoked — Rusty Rose, Don Lummus. Let me remind you I am a messenger and impart no opinion nor further fact on the information. In the last 45 days, real estate reporting has become a brave new world. It is no longer prices up, down, sales volume or House Porn — though House Porn still rocks. It is now about complex mortgages and penny-stock banks and alogrithims and however else the financial geniuses of our generation twiddled and fiddled with home loans. That is why I reacted negatively to the SEC investigation of Mark Cuban, why I think it was overkill to waste tax dollars sending Martha Stewart to prison. Peanuts compared to what’s been going on the last few years… read on.
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Mike Volpe here author of the piece linked.
I just wanted to add a couple words about Cuban, Stewart and the situation I wrote about. First, of course, Cuban is innoncent until proven guilty and so everything should be viewed through that prism.
That said, here is how I see all of these things linked. The story I wrote is ultimately about the ways in which powerful folks can game the system in ways that non powerful folks could never. That is the crux of the situation with Cuban. He was acting, if guilty, on information that the rest of the public doesn’t have access to.
We have a crisis of confidence in our markets. In part that’s because the masses believe the system is rigged to the powerful. This act shows that the feds are serious about holding the powerful accountable. I agree that they need to hold $25 million dollar malfeasance accountable as well, but all malfeasance must be vigorously prosecuted.