Imagine you walked into a bank, applied for a personal line of
credit, and filled out all the paperwork claiming to have no debts
and an income of $200,000 per year. The bank, based on these
representations, extended you the line of credit. Then, three
years later, after fighting disclosure all the way, you were
forced by a court to tell the truth: At the time you made the
statements to the bank, you actually were unemployed, you had a $1
million mortgage on your house on which you had failed to make
payments for six months, and you hadn’t paid even the minimum on
your credit-card bills for three months. Do you think the bank
would just say: Never mind, don’t worry about it? Of course not.
Whether or not you had paid back the personal line of credit,
three FBI agents would be at your door within hours.
Yet this is exactly what the major American banks have done to