Everyone in D.C. would like to say that they were taken by surprise by the depth of our financial collapse; I beg to differ.
Here is a link to a report that was put together by the FBI in May of 2007. It is the 2006 Mortgage Fraud Report.
Here's one in 2005. Feds Warn Against Mortgage Lenders
They saw this coming.
What did these financial institutions do to prevent themselves from getting to this point once they received the warning signs?