William K. Black
February 2, 2016 Bloomington, MN
It is time to break out one of our two family rules again – it is impossible to compete with unintentional self-parody. How fraudulent is finance even now? The Wall Street Journal reports that “big money managers” want to bring back “liar’s loans.” I am trying to write much shorter columns, so there will be many columns in this series because the WSJ article so beautifully exemplifies the lies that the industry and the media told about liar’s loans before and after 2008.
Spoiler alert: liar’s loans, as the name admits, are pervasively fraudulent. Only fraudulent lenders make liar’s loans as a regular business practice. These home loans make the officers wealthy through the “sure thing” of the “fraud recipe” for “accounting control fraud.” The WSJ, of course, ignores these facts and presents instead falsehoods provided by fraudulent officers.