Is B of A Facing the Most Embarrassing Department of Justice Suit Ever? - William K Black

``The problem, once more, is DOJ's failure to understand accounting control fraud. They simply cannot conceive that deliberately making crappy loans maximized Lewis' compensation even though the math is indisputable. DOJ fails to make the three obvious, critical points that would greatly strengthen its case -- why did B of A controlling officers use loan brokers, why did they create perverse incentives (through their compensation system for loan brokers and their deliberate evisceration of B of A's loan underwriting process), and why did they continue (until the secondary market collapsed) to use loan brokers when their own internal reports proved that the result was "toxic waste" and fatal levels of mortgage fraud?''