Mr Cooper Group Inc (COOP)

[xanadu90]

Tuesday's Panel hearing really was a dog and pony show if it's purpose was to investigate the role of high risk mortgage lending in the financial meltdown. It seemed they found only one reason: Washington Mutual's option ARMs and subprime mortgages took the economy over a cliff.. They should have taken a broader look at the day's item, and not only concentrate on WaMu. Mr. Levin lost control of the hearing totally.

Not a word how such kind of toxic mortgage lending ever came to happen. What caused such fraud and greed?

Not a word about the rapidly growing housing bubble, nothing said about the governement new regulations to get houses to low-income citizens, nothing about rates kept artificially low by FED in years, about FED lending money at even lower rates to banks and financial institutions, which, using 30-60 time leverage, could push so much money in phony "financial tools" to the market that there were more money to chase less houses, so bubble was ready. And nobody noticed anything because house prices would always be higher next year.

I hope they noticed the zero results of the first hearing, and will examin more cases than only WaMu in next sessions.