Janet Tavakoli is a very smart lady. I take her analysis of things very seriously. Check out her interview in the Washington Post and you'll see that we have a big foreclosure mess brewing here.
And it's not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met...
Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one...
Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It'll be a case-by-by-case basis.
This is more than sloppy paperwork caused by overworked employees. This is systemic. This was set up wrong from the beginning.
This is a good interview Janet Tavakoli did on CSPAN last year. You'll learn a lot by watching it and know that this lady knows what she is talking about.
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