Stealing an almost immeasurably small amount of money from a hedge fund and giving it to a home owner is not exactly "robbing widows and orphans" territory."
The amount of money involved was hardly insignificant. Per WP:
"Early estimates are that the rate manipulation scandal cost US states, counties, and local governments at least $6 billion in fraudulent interest payments, above $4 billion that state and local governments have already had to spend to unwind their positions exposed to rate manipulation.[53] ... Timothy Lee, a capital markets expert at the Federal Housing Finance Agency Office of Inspector General, said in a 3 November memo that Fannie Mae and Freddie Mac may have lost more than $3 billion because of the manipulation.[57]"
And I hate to break this to you, but the people who benefit from these schemes weren't "giving [their gains] to home owners."
There's no way you can say the magnitude of the crime justified it, especially given the small scale and vague legal situation.
As to the crime, it's called "market manipulation", and there's nothing at all legally vague about it. These people knew what they were doing, and by and large, were perfectly aware that it was agains the law. The just didn't think they'd get caught.
The amount of money involved was hardly insignificant. Per WP:
"Early estimates are that the rate manipulation scandal cost US states, counties, and local governments at least $6 billion in fraudulent interest payments, above $4 billion that state and local governments have already had to spend to unwind their positions exposed to rate manipulation.[53] ... Timothy Lee, a capital markets expert at the Federal Housing Finance Agency Office of Inspector General, said in a 3 November memo that Fannie Mae and Freddie Mac may have lost more than $3 billion because of the manipulation.[57]"
And I hate to break this to you, but the people who benefit from these schemes weren't "giving [their gains] to home owners."
There's no way you can say the magnitude of the crime justified it, especially given the small scale and vague legal situation.
As to the crime, it's called "market manipulation", and there's nothing at all legally vague about it. These people knew what they were doing, and by and large, were perfectly aware that it was agains the law. The just didn't think they'd get caught.