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Response to JoePhilly (Reply #14)

Mon Jan 2, 2012, 03:29 PM

29. Did you even read the article?

It looks like you just found a few quotes that you could use to support the viewpoint you already held. This is an amazing article, and it says nothing similar to what you are saying. You're so far off I hardly know where to start, or if it's worth my time.

You said "To prosecute this, you have to start here, with the loan / mortgage broker."

There is no support for that in the article, in fact quite the opposite. Black goes to great length to explain just how futile that approach is. And the brokers were not the problem, they were the little guys implementing the fraud desired by their employers.

Black: "Remember I told you there were over a million cases of mortgage fraud a year and that overwhelmingly itís lenders who foot the fraud, the lie in the liars loan. But the FBI couldnít and didnít investigate any of the major lenders. So it is looking at these relatively small folks, and that is what it reports back. The FBI decides you know, as I said, this cannot work. This is like going to a beach in San Diego and throwing handfuls of sand in the Pacific Ocean and wondering when you are going to be able to walk to Hawaii. Every year, with a million plus cases of fraud a year, if you prosecute a thousand of them or two thousand of them or three thousand of them, you are a million cases further behind every year, right. It is just insane. So the FBI says we got to start going after the big guys at which point Bushís Attorney General Mukasey says no, he refuses to even create a National Task Force against mortgage fraud"

Jim Puplava: "What about the Obama Administration?

William Black: They never did it. They didnít even back off. They never, you can tell from the numbers that they have, in how many FBI personnel it takes to do a really sophisticated, large institutional investigation. They have never done what would have been considered a real investigation in the Savings and Loan era of any, any of the major fraudulent lenders and investment banks that created the worthless financial derivatesónot worthless, but not worth very muchófinancial derivatives.

Jim Puplava: What about the Obama Administration? Had they came in, they continued with the same policy basically, they ignored it. Where they could have had let us say, an opportunity. Is it because Professor, that the process is you know, some have said that Congress is bought and paid for by the financial industry. I mean, is that part of the reason?

William Black: Well, itís not just Congress of course. The President has said that he wants to raise a billion dollars in the reelection effort and despite all the press you may have heard about how the White House is despised by financeóin fact, last I read, a bigger percentage and a bigger absolute dollar amount of contributions in this effort, than in the original effort had come from finance. And so both parties are tremendously beholden to finance. That is part of it but again, the Obama Administration was better than the Bush Administration. The Obama Administration was willing to create a task force and itís the numbers of FBI Agents have been increased, but they are still looking at relatively small cases. And they are nowhere near the numbers required and so unless something dramatic or radical changes, this is going to be the greatest case of elite fraud with impunity in the history of the world. And it is only going to change if we express our outrage as the people and demand that it is changed. Let me tell you how bad it is. The Federal Housing Finance Administration, has just last week, or about ten days ago now, filed fifteen hundred plus pages of complaints against seventeen financial entities. And about ten of them are among the biggest financial entities in the world saying, every investigation has found repeated enormous fraud at these entities. So, and there is a track record, a paper trail of that fraud. But these entities got reports saying these assets were trash and that they lied and then sold the assets to Fannie and Freddie by making acts of deceit, which is of course, the key element of fraud.

So, now that this has happened, there are really only two possibilities. Either the Federal Housing Finance Administration has gotten all those documents wrong, and there is no such record, or there is such a record in which case, where is the Justice Department, why is it not bringing criminal prosecution against most of the largest banks in the world.

Jim Puplava: not one single prosecution was brought in this entire situation, what is probably the largest fraud committed in history. And yet it still goes on Professor, we still have the financial industry contributing large amounts of money to politicians in both parties, both at the national level, the local level, and so basically, what you have is influence buying here. ... I thought my goodness, there was enough evidence to go after but not one thing was done. And even when a lot of these firms went under, as the shareholders lost everything, the taxpayers losing everything, the guys at the top walked away with some of the biggest bonus packages Iíve seen in my investment career.

William Black: ... The firm failed because you followed the fraud recipe that I gave you, which causes catastrophic losses but their CEOís and other Senior Officers can walk away incredibly rich. ... So again, if people, I do not understand who have never done this, how absolutely critical the criminal referrals are.

...

The Administration is not necessarily fighting strong for any, the Dodd Frank Bill was not created and designed to deal with the actual causes of the crisis. And so it most likely will not stop the next crisis. But the focus on legislation is a bit misleading. Under the existing laws and regulation, this was an easy crisis to prevent.

...

Bernanke was reappointed by President Obama. You know, I tried as little, what one little person could, to stop that. We need to have a complete new crew. Geithner needs to go, Attorney General Holder needs to go, and Bernanke needs to go and we need to put people in who will make a high priority ending the ability to loot institutions with impunity.

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kpete Jan 2012 OP
banned from Kos Jan 2012 #1
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abelenkpe Jan 2012 #5
JoePhilly Jan 2012 #7
dreamnightwind Jan 2012 #10
JoePhilly Jan 2012 #14
LineLineLineLineLineLineNew Reply Did you even read the article?
dreamnightwind Jan 2012 #29
abelenkpe Jan 2012 #32
JackRiddler Jan 2012 #34
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