William Black is former bank regulator and former director of the Institute for Fraud Prevention, a constortium of organizations and companies committed to multi-disciplinary research.

He says fraud is built into the system.

IndyMac, the company which sold $80 billion in “liar’s loans” to other companies, and produced as many losses as the entire S&L crisis. This surfaced in 2006 and was not even exclusively in the sub-prime market. Even the prime market was tainted. People believed that, because the loans had AAA ratings, they must have been good. But there was systemic fraud. The AAA rating was just a “pretty pink bow” on top of a gigantic Ponzi scheme. The US financial system is the Ponzi scheme.

He calls these “liar’s loans” or “Ninja loans”.

The maxim from Ronald Reagon, “trust but verify,” lead to enormous fraud.