I suspect that a lot of "predatory lending" occurred, much of which was gray or actually illegal (an awful lot of those mortgages are being retconned now because a team of lawyers goes through them and finds illegalities or proves that there's a possibility of defrauding or predatory intent). That's probably not a jail time offense, I forget now; fines vs the institution as a whole?
IIRC there was a lot of dodgy business practice, and some of that was so actively harmful (S&Ls basing their whole inventory on crappy mortgage debt sort of things) that it should be regulated to keep harm from happening to the innocent customers (e.g. the victims of predatory lending or who just happened to have savings accounts at Bank of Stupidly Uncapitalized Junk MOrtgages, not the investors). Basel 3 and all that, oh god I'm in no condition to discuss this right now arrrrgh.
no subject
IIRC there was a lot of dodgy business practice, and some of that was so actively harmful (S&Ls basing their whole inventory on crappy mortgage debt sort of things) that it should be regulated to keep harm from happening to the innocent customers (e.g. the victims of predatory lending or who just happened to have savings accounts at Bank of Stupidly Uncapitalized Junk MOrtgages, not the investors). Basel 3 and all that, oh god I'm in no condition to discuss this right now arrrrgh.