The Bank of America executive at the center of the recent mortgage fraud case – for which Bank of America was found liable by a jury – is not only still working on Wall Street, she is still working in the housing market. Rebecca Mairone, the architect of the scam known as “the Hustle”, now works for JPMorgan Chase as the Managing Director of Home Lending, according to her LinkedIn profile and a report by the New York Times.
Federal lawyers claimed that Ms. Mairone, who now works at JPMorgan Chase, led a program nicknamed the “hustle,” derived from the initialism HSSL, or the “high-speed swim lane.” The program linked bonuses to how fast bankers could originate loans and as a result, the credit quality of the borrower was given short shrift, the government contended. When the loans were sold to mortgage giants like Fannie Mae and Freddie Mac, they failed, generating more than $1 billion in losses.
Marione was found liable by the jury of one count of fraud for her conduct as an executive at Bank of America’s Countrywide unit. Her penalty has yet to be determined
So while JPMorgan Chase negotiates to lower its fines and escape prosecution for the firm’s own fraudulent activities in the mortgage market, it is employing executives involved in mortgage fraud. Leading their home lending department no less! Something tells me JPMorgan Chase might not be turning over a new leaf.
It is bad enough that because of weak regulations, a bailout culture, and poor enforcement Wall Street is incentivized to continue the kind of criminal behavior that led to the 2008 financial crisis. But now it seems the banksters have no trouble employing the very same people who caused that crisis.
What ever happened to people getting banned from the securities industry if they were caught breaking the law?