Google Elizabeth MacDonald May 17 subprime, or click the link below.  Makes you wonder who you can trust, because you have to trust someone to run your business and life.  

Her article begins
“ The Securities and Exchange  Commission is missing a bigger fraud while it chases the banks. Even though it knew about this massive, plain old fashioned accounting fraud back in 1998.  
Instead, the market cops are probing simpler disclosure cases that could charge bank and Wall Street with not telling investors about their conflicts of interest in selling securities they knew were damaged while making bets against those same securities behind the scenes, via credit default swaps.
Those probes have gotten headlines, but there aren’t too many signs that this will lead to anything close to massive settlements or fines.
For instance, the SEC doesn’t appear to be investigating how banks frontloaded their profits via channel stuffing -- securitizing loans and shoving paper securitizations onto investors, while booking those revenues immediately, even though the mortgage payments underlying those paper daisy chains were coming in the door years, even decades, later. Those moves helped lead to $2.4 trillion in writedowns worldwide.
The agency said it  believed banks were committing subprime securitization accounting frauds back in 1998 and claimed to be 'probing' them.”

Just when we thought British Petroleum, (BP), Greece etc where under control, we are told to look at the lack of using transparency from the two presidents back.   

http://emac.blogs.foxbusiness.com/2010/05/17/sec-knew-about-suprime-accounting-fraud-decade-ago?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogs%2Femac+%28Blogs+-+EMac%27s+Stock+Watch%29