Lesson 9: Crime and (no) Punishment on Wall Street

December 8, 2023

Review:

  • Housing Market Collapse and Foreclosure Tsunami
  • Exam 2 on Mon Dec 11

Presentation:

  • The Untouchables
  • Mortgage Crisis Fraud
    • Wall Street Banks selling MBS and CDO securities
    • Subprime Loan Originators pushing ARMs and other non-traditional loans on low-income borrowers
      • Countrywide Financial
    • Rating Agencies issuing AAA ratings on low quality MBS and CDOs
      • Moody’s
      • Standard and Poor’s
    • Fannie and Freddie
      • Purchasing subprime loans in the secondary market
      • Providing liquidity for ongoing subprime lending
  • Why was no one punished?
    • Obama Administration DoJ did not aggressively pursue
    • Excessive greed everywhere but difficult to prove criminal fraud
    • No consequences = incentive to repeat
    • Too big to fail & Too rich to jail
  • Review for Exam 2

Assignment:

  • Study for Exam 2

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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