Weekend Economists Examine Escape Artists and Con Men April 27-29, 2012

[Demeter]

48. Burden of Proof: Geithner, Obama, and Wall Street’s Unpunished Crimes By Richard (RJ) Eskow

http://www.nationofchange.org/burden-proof-geithner-obama-and-wall-street-s-unpunished-crimes-1335595803

Forgery. Perjury. Investor fraud. Bribery. Money laundering. The body of evidence against individuals at the nation’s biggest banks is overwhelming. Nothing speaks louder about the banks’ guilt than this evidence - nothing, that is, except the billions they’ve paid to settle the charges.

The Administration reacted indignantly this week to suggestions it’s still slow-walking its investigation. And then, despite all this evidence, the Treasury Secretary of the United States proclaimed that no laws had been broken. And the White House wonders why its word is no longer enough?

A source in the office of a key figure in the investigation has denied a new story that they’re ruled out criminal prosecutions. But the burden of proof has shifted. Nothing will convince the public now except action. Whether it’s JPMorgan Chase settling bribery charges in Alabama, Wells Fargo settling charges of laundering drug-cartel money in Mexico, or the nation’s five largest banks buying their way out of widespread foreclosure fraud and tax evasion, never in history has so much evidence led to so little action. Investigators pinpointed the fraudulent activity of individual accountants in GE Capital’s settlement with the SEC, only to be dumbfounded to discover that no criminal indictments were handed down. So it was nothing short of astonishing to hear the Secretary of the Treasury assert yesterday that no crimes were committed by America’s banks, saying that “most financial crises are caused by a mix of stupidity and greed and recklessness and risk-taking and hope” and adding “you can't legislate away stupidity and risk-taking and greed and recklessness.”

That’s a straw-man argument, since nobody has suggested outlawing character traits. The Administration’s critics are pointing to a mound of evidence implicating bankers in criminal activity and asking the simple question: Where are the prosecutions? Geithner was doubling down on an assertion his boss made last December, when President told 60 Minutes that ““Some of the most damaging behavior on Wall Street — in some cases some of the least ethical behavior on Wall Street — wasn’t illegal.” Deliberately or not, that sent a message to bankers that they could stop worrying about indictments - that is, if they ever had worried. Why would they? There’s been no investigation, no grilling, and no subpoenaing of bank executives’ emails or phone records. And as far back as 2010, Eric Holder and his Justice Department were trying to pass off long-standing investigations as part of a major assault against financial fraud called “Operation Blind Trust.” The DoJ's claims were quickly debunked and “Blind Trust” was shown to be nothing more than a deception which a Bloomberg columnist said used “trumped-up numbers.” The Columbia Journalism Review summed up their recap of “Blind Trust” coverage with the headline, "Obama Administration’s Financial Fraud Task Force Stunt Misfires."

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