As part of today's subpoena of Credit Suisse over mortgages (which is yet another reason why when this is all said and done MBIA CDS will be back to trading spread from points), we encountered the following stunner. We won't bore you with details, so here is the gist: in a series of emails, represented below, we discover the beyond ridiculous story of a Charlotte stripper who had a Stated Income Loan with Credit Suisse, and when the Swiss bank decided to start backing into her actual income, which goalseeked to $12,000 a month (read the analysis on how this was achieved), which apparently raised some internal flags, and demanded that the loan be investigated, the broker claimed that the stripper's never formally disclosed income is credible and her loan should remain Stated. The last email in the thread: "Someone needs to go to jail on this one." And yet, nobody, not even Angelo Mozillo has, courtesy of the SEC. If there is one email thread that encapsulates all the excesses in the housing bubble, this is it. As for the rhetorical question at the end, we are confident that absolutely nobody will ever go to jail "on this one" or any other one for that matter.

Start at the bottom and read up.

h/t Manal Mehta