Saturday, April 16, 2011

Bankers wreck economy and get rewarded, not prosecuted

The New York Times, an establishment revering, Zionist operated, corporate sycophantic media outlet if there ever was one, published a rather revealing article the other day about the full scale immunity of elite criminal bankers and international financial institutions from the rule of law.  The article, entitled "In Financial Crisis, No Prosecutions of Top Figures," begins this way (bold and underline mine):
It is a question asked repeatedly across America: why, in the aftermath of a financial mess that generated hundreds of billions in losses, have no high-profile participants in the disaster been prosecuted?

Answering such a question — the equivalent of determining why a dog did not bark — is anything but simple. But a private meeting in mid-October 2008 between Timothy F. Geithner, then-president of the Federal Reserve Bank of New York, and Andrew M. Cuomo, New York’s attorney general at the time, illustrates the complexities of pursuing legal cases in a time of panic.
I'd really like to know: why would prosecuting criminals who broke the law, engaging in absurdly fraudulent and reckless behavior, in such a blatant, in-your-face manner be "anything but simple," as the Times put it?  Here are some excerpts of the Times article that stood out most to me, followed by some brief commentary:
At the Fed, which oversees the nation’s largest banks, Mr. Geithner worked with the Treasury Department on a large bailout fund for the banks and led efforts to shore up the American International Group, the giant insurer. His focus: stabilizing world financial markets.

Mr. Cuomo, as a Wall Street enforcer, had been questioning banks and rating agencies aggressively for more than a year about their roles in the growing debacle, and also looking into bonuses at A.I.G.

Friendly since their days in the Clinton administration, the two met in Mr. Cuomo’s office in Lower Manhattan, steps from Wall Street and the New York Fed. According to three people briefed at the time about the meeting, Mr. Geithner expressed concern about the fragility of the financial system.

His worry, according to these people, sprang from a desire to calm markets, a goal that could be complicated by a hard-charging attorney general.

Asked whether the unusual meeting had altered his approach, a spokesman for Mr. Cuomo, now New York’s governor, said Wednesday evening that “Mr. Geithner never suggested that there be any lack of diligence or any slowdown.” Mr. Geithner, now the Treasury secretary, said through a spokesman that he had been focused on A.I.G. “to protect taxpayers.”

Whether prosecutors and regulators have been aggressive enough in pursuing wrongdoing is likely to long be a subject of debate. All say they have done the best they could under difficult circumstances.

But several years after the financial crisis, which was caused in large part by reckless lending and excessive risk taking by major financial institutions, no senior executives have been charged or imprisoned, and a collective government effort has not emerged. This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail. Among the best-known: Charles H. Keating Jr., of Lincoln Savings and Loan in Arizona, and David Paul, of Centrust Bank in Florida.

Former prosecutors, lawyers, bankers and mortgage employees say that investigators and regulators ignored past lessons about how to crack financial fraud. […]

“This is not some evil conspiracy of two guys sitting in a room saying we should let people create crony capitalism and steal with impunity,” said William K. Black, a professor of law at University of Missouri, Kansas City, and the federal government’s director of litigation during the savings and loan crisis. “But their policies have created an exceptional criminogenic environment. There were no criminal referrals from the regulators. No fraud working groups. No national task force. There has been no effective punishment of the elites here.” […]

To be sure, Wall Street’s role in the crisis is complex, and cases related to mortgage securities are immensely technical. Criminal intent in particular is difficult to prove, and banks defend their actions with documents they say show they operated properly.

But legal experts point to numerous questionable activities where criminal probes might have borne fruit and possibly still could.

Investigators, they argue, could look more deeply at the failure of executives to fully disclose the scope of the risks on their books during the mortgage mania, or the amounts of questionable loans they bundled into securities sold to investors that soured.

Prosecutors also could pursue evidence that executives knowingly awarded bonuses to themselves and colleagues based on overly optimistic valuations of mortgage assets — in effect, creating illusory profits that were wiped out by subsequent losses on the same assets. And they might also investigate whether executives cashed in shares based on inside information, or misled regulators and their own boards about looming problems. […]

But the Justice Department has decided not to pursue some of these matters — including possible criminal cases against Mr. Mozilo of Countrywide and Joseph J. Cassano, head of Financial Products at A.I.G., the business at the epicenter of that company’s collapse […]

Financial crisis cases can be brought by many parties. Since the big banks’ mortgage machinery involved loans on properties across the country, attorneys general in most states have broad criminal authority over most of these institutions. The Justice Department can bring civil or criminal cases, while the S.E.C. can file only civil lawsuits.

All of these enforcement agencies traditionally depend heavily on referrals from bank regulators, who are more savvy on complex financial matters.

But data supplied by the Justice Department and compiled by a group at Syracuse University show that over the last decade, regulators have referred substantially fewer cases to criminal investigators than previously. […]

The Office of Thrift Supervision was in a particularly good position to help guide possible prosecutions. From the summer of 2007 to the end of 2008, O.T.S.-overseen banks with $355 billion in assets failed.

The thrift supervisor, however, has not referred a single case to the Justice Department since 2000, the Syracuse data show. The Office of the Comptroller of the Currency, a unit of the Treasury Department, has referred only three in the last decade.
The article goes on to explain away the lack of investigation and criminal charges brought against these criminal banks. The blatant level of criminality, corruption, and conflicts of interest between those in charge of regulating and overseeing the private banks and financial institutions and those very same institutions is simply astounding.  Instead of prosecuting and ending this criminal behavior, President Obama spoke about the need to reduce the deficit, largely through scaling back already meager social safety net programs.

And then this was reported in the Jerusalem Post:
Prime Minister Binyamin Netanyahu on Saturday thanked the US House of Representatives for approving new funding to protect Israelis living near Gaza.

The Republican-dominated House of Representatives on Friday passed a budget bill that allocates an additional $205 million for the Iron Dome anti-rocket system, as well as funding for other Israeli defense projects such as Arrow 2, Arrow 3 and Magic Wand.  [...] 
Netanyahu, in a statement, expressed “deep appreciation to President Barack Obama and the United States Congress for their steadfast support of Israel’s security. The $205 million in budgetary funding for the Iron Dome missile defense system will help protect Israel’s citizens and communities against rocket fire from Gaza.

“America’s unshakeable commitment to Israel in critical times, along with ongoing military and material cooperation, is a testament to our shared values and the enduring bonds between our two peoples.”
Talk about hasbara.  I just threw up in my mouth a little bit there after reading that.  Could it be any more obvious who controls this country and it's government, and who's interests are being served?



End the Fed. Arrest the bankers. Arrest the politicians, corporate scumbags and media whores that support, pander to, cover up and downplay this non-sense.  End all aid to Israel and Zionist organizations.  In fact, dismantle and eliminate the state of Israel and Zionist organizations world-wide, as they are the biggest threat to the peace and security of the people of the world.  Enough is enough.  

2 comments:

  1. Obama is just a muttering jackass. The Banksters have caused millions of job losses, impoverishment, even suicide. They've even admitted crimes, but been left off with "no-prosecution" agreements and are making more money than ever, with bigger bonues, while raising rates on customers. Crime pays. Goldman-Sachs Geithner appears to run Obama's policies, which are becoming suspiciously more trickle-down every day.

    Doing nothing and bending over for repugs and corporations is Obama's forte. He waffled on Libya when the momentum was with the rebels, and that could be over. Instead, that turmoil, besides being a humanitarian catastrophe, is causing oil speculation to boost gas so high we are losing hundreds of billions of dollars to the oil companies, and many businesses are going under, especially small truckers.

    I want my vote back. But then, I wanted Hillary to be nominated. She has the balls Obama lacks.

    Muttering Jackass Obama. Hmm, I like that phrase ;')

    ReplyDelete
  2. Hi there, I think Hillary may be a bigger Zionist than Obama. Either way, they are cut from the same cloth when it comes to the major issues of the day. Do you seriously think Hillary Clinton would be out there arresting banksters or ending the wars had she won the presidency?

    ReplyDelete

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