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NEW YORK, May 31 (Reuters) - Abacus Federal Savings Bank, which caters to Chinese immigrants in New York and other communities, has been charged with selling hundreds of millions of dollars worth of fraudulent mortgages to Fannie Mae.
The last time the Manhattan District Attorney's office indicted a bank was the Bank of Credit and Commerce International (BCCI) in 1991.
You know what they say about Chinatown.
In the running for top ten best movie ever!
The real question is , how could we have the biggest financial crisis since the great depression and not a single prosecution for fraud since 1991, and the best the d.a. could do was a community bank.
got me thinking about "Lin's Gardens" on Bayard Street.
THE after-concert destination for hungry Grateful Dead fans back in those 1970's days.
Only competition was "Dave's" on Broadway and Canal Street. (non-Chinese food division)
"Read the raves
eat at Dave's ..." (U.S. Blues, live Madison Sq. Garden version)
Interesting how the other major banks are being asked to buy back billions of loans from Fannie and Freddie, but little Abacus is being indicted even though its loan default rate is "less than one-half of 1 percent compared to the current national average of more than 5 percent." On top of that, unlike the major banks, it reported the issues voluntarily after an internal investigation uncovered the problems.
Another thing, I thought people think that the Chinese just pay all cash stuffed in suitcases, why do they need loans from Abacus FSB anyway?
Actually, Abacus has a history of bad practices. I have no doubt Sunday that this bank is guilty of fraud. The interesting thing is that this is the first case the District Attorney went after in over two decades. They went after the smallest guy or the lowest hanging branch. There's so much more they should/could be doing. Right now the banks believe they can get away with anything.