Page 585 - untitled

556 Notes to Chapter 1

69. Gary Crabtree, interview by FCIC, August 18, 2010. Crabtree, written testimony for the FCIC,
September 7, 2010, pp. 6–7.
70. “FBI Warns of Mortgage Fraud ‘Epidemic’ from Terry Frieden,” CNN news report, September 17,
2004.
71. Kirstin Downey, “FBI Vows to Crack Down on Mortgage Fraud; Hot Real Estate Market Drives
Reports of ‘Suspicious’ Activity, Agency Says,” Washington Post, February 15, 2005.
72. Financial Crimes Enforcement Network, Regulatory Policy and Programs Division, “Mortgage
Loan Fraud: An Industry Assessment Based upon Suspicious Activity Report Analysis,” November 2006.
See also Financial Crimes Enforcement Network, “Annual Report: Fiscal Year 2008.”
73. FinCEN response to FCIC interrogatories, October 14–15, 2010.
74. William K. Black, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Miami, session 1: Overview of Mortgage Fraud, September 21, 2010, p. 8.
75. Alberto Gonzales, interview by FCIC, November 1, 2010; Michael Mukasey, interview by FCIC,
October 20, 2010.
76. Federal Reserve Consumer Advisory Council Meeting, October 28, 2004, transcript, p. 44.
77. Ibid., p. 45.
78. Ruhi Maker, interview by FCIC, October 25, 2010.
79. Kirstin Downey, “Many Buyers Opt for Risky Mortgages,” Washington Post, May 28, 2005.
80. “After the Fall: Soaring house prices have given a huge boost to the world economy. What happens
when they drop?” The Economist, June 16, 2005.
81. Fed Chairman Alan Greenspan, “The Economic Outlook,” prepared testimony before the Joint
Economic Committee, 109th Cong., 1st sess., June 9, 2005.
82. Ibid.
83. Fed Chairman Ben S. Bernanke, “The Economic Outlook,” prepared testimony before the Joint
Economic Committee, U.S. Congress, 110th Cong., 1st sess., March 28, 2007.
84. Sheila Canavan, comments during of the Federal Reserve Consumer Advisory Council Meeting,
October 27, 2005, transcript, p. 52.
85. David Leonhardt, “Be Warned: Mr. Bubble’s Worried Again,” New York Times, August 21, 2005.
86. Raghuram Rajan, interview by FCIC, November 22, 2010.
87. Ibid.
88. Ibid.
89. Raghuram G. Rajan, Fault Lines: How Hidden Fractures Still Threaten The World Economy (Prince-
ton: Princeton University Press, 2010), p. 3.
90. Susan M. Wachter, interview by FCIC, October 6, 2010.
91. Mark Klipsch, quoted in “Blizzard Can’t Stop ASF 2005 Conference,” Asset Securitization Report,
January 31, 2005.
92. Dennis J. Black, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Miami, session 2: Uncovering Mortgage Fraud in Miami, September 21, 2010, p. 1; for the appraiser’s pe-
tition, see http://appraiserspetition.com/.
93. Karen Mann, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Sacramento, session 2: Mortgage Origination, Mortgage Fraud and Predatory Lending in the Sacramento
Region, September 23, 2010.
94. 2009 Mortgage Market Statistical Annual, vol. 2, The Secondary Market, p. 13, “Non-Agency MBS
Issuance by Type,” and FCIC staff estimates based on analysis of Moody’s SFDRS data.
95. Jamie Dimon, testimony before the FCIC, First Public Hearing of the FCIC, day 1, panel 1: Finan-
cial Institution Representatives, January 13, 2010, transcript, p. 78.
96. Madelyn Antoncic, interview by FCIC, July 14, 2010.
97. Anton R. Valukas, Report of Examiner, In re Lehman Brothers Holdings Inc., et al., Chapter 11
Case No. 08-13555 (JMP), (Bankr. S.D.N.Y.), March 11, 2010, 1:114, with n. 418.
98. Richard Bowen, interview by FCIC, February 27, 2010.
99. Richard Bowen, email to Robert Rubin, David Bushnell, Gary Crittenden, and Bonnie Howard,
November 3, 2007.