Bureaucratic Concealment Of Regulatory Capture - FDL

[WillyT]

Bureaucratic Concealment of Regulatory Capture
By: masaccio - FDL
Sunday April 22, 2012 11:00 am

<snip>

I learned a very important trick from the Army: when someone tells you to do something, salute, and say Sir, Yes Sir in a confident and appropriately loud voice. It doesn’t matter whether you intend to do it, it matters that you say you will. The bureaucrats in the Department of Justice and the SEC learned this lesson well.

Remember that real estate mortgage-backed securities fraud task force which was created as part of the 49-State settlement of foreclosure fraud? Well, it’s been three months, and there is no sign of life. Mike Gecan and Arnie Graf wrote an op-ed for the New York Daily News Thursday, saying that nothing has happened, despite the Salute and the loud Yes Sir from Eric Holder:

U.S. Attorney General Eric Holder held his own news conference and announced that at least 55 Justice Department lawyers, agents, analysts and investigators would be assigned to the effort. A news release promised 30 staffers would be joining efforts “in the coming weeks.”

Gecan and Graf tried to find out the status of the task force, but they found nothing. No phone number, no office, nothing. That accords with other reports, including this one from Ben Hallman at the Huffington Post. The outlier is George Zornick, reporting for The Nation that New York AG Eric Schneiderman, one of several co-chairs for the task force, denies inactivity.

<And...>

The problem is that DOJ and SEC bureaucrats think Wall Street is a bunch of decent people, polished up in pretty clothes and offering helpful information. They think Wall Street is a partner with government in moving the economy forward. They carry out the directions of Wall Street while saluting the electorate. They hide the fact that they are the captives of a corrupting influence behind Sir, Yes Sir.

There is a solution. We put people in charge who think the people on Wall Street are slugs who would wreck the economy if they can make money. There is no reason to respect Jamie Dimon or Lloyd Blankfein or any Wall Street trader or administrative assistant. We need regulators who will cow them into compliance with the law, using the powers they have, including personal liability and criminal charges.

<snip>

More: http://firedoglake.com/2012/04/22/bureaucratic-concealment-of-regulatory-capture/

[kenny blankenship]

1. St. Ronnie, the Transformational, showed how it was done back in the day

Defund regulatory agencies, so that they don't have the staff or resources to do the work they are supposed to do, and it doesn't matter anymore what the law says or what the people expect.
Like Master, like pupil.

Actually, the S&L taskforce had 1,000 agents working on it. And that was a much smaller financial crime scene than the mortgage fraud massacre.

So the current crowd, in suppressing the mortgage fraud investigation through understaffing it, are performing a coverup that the old Reagan crowd could only dream of doing and getting away with.

[bvar22]

3. And THEN...

...Loudly proclaim that Government doesn't Work!


You will know them by their WORKS,
not by their excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]
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[girl gone mad]

2. k & r

[Bozita]

4. K&R ... Bigtime!