John Madden, the most popular play-by-play commentator in NFL history, has always said, ?Speed kills.? In a chase-and-tackle game like American football, he is absolutely correct. In the financial world, however, we are seeing another truism play out before our eyes: ?Fraud kills.?
The massive financial mess that is the housing industry is feeling the impact of it right now. In case you thought this is a uniquely American issue, here is a lovely little snippet from The Banking Times:
?Financial Services Authority (FSA) has referred over 70 mortgage brokers to its enforcement division, which has the power to issue hefty fines and penalties.
The regulator currently has around 200 mortgage brokers under investigation for home loan fraud.
Some brokers have been involved in complex criminal schemes whereby false surveys with inflated valuations have been submitted to lenders by fictitious mortgage applicants.?
Misery loves company, I guess. The UK is hitting the same housing skids as the US. Stand by for fallout.
If fraud has such an adverse affect on the housing industry, it stands to reason, doesn?t it, that rampant insider trading, naked short selling, bashing, and pumping of the financial markets will have an equally devastating impact? Sure it does?and it is.
We at Basher Busters continue to hold fast the belief that it is high time for the SEC to become proactive in these matters, to forget about playing favorites or turning a blind eye to anyone, regardless how entrenched, how well funded, or how ?important,? and bring market miscreants to justice.
Fraud?kills.
That?s the Word on the Street.
Veracity Jones