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Gretchen Morgenson: Banks Bilking Taxpayers By Refusing To Buy Back Toxic Loans They Sold To Fannie And Freddie

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From the earliest days of the credit crisis, the nation's big financial institutions have been less than forthcoming about ballooning loan losses buried inside their books. To some degree this is understandable: denial is a powerful thing, after all, and writing off troubled loans during a period of severe stress is, for bankers, the equivalent of getting a root canal.

As profits rebound at many of these institutions, however, artful dodging becomes more disturbing. And when disguising problems winds up harming the taxpayer -- the same folks who rode to the rescue of banks with billions of dollars -- the denial is downright exasperating.

Read the whole story at New York Times

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Bill Moyers Journal . Gretchen Morgenson | PBS