Saturday, October 19, 2013
Justice for Wall Street?
The aftermath of the financial crisis led to many believing that there would be some justice after all for the highest level executives on wall street, possibly even criminal charges. These executives were well aware that they were buying and selling toxic traunches knowing full well how bogus they were. The government sent due diligence underwriters (contractors) in to evaluate loans that were written before the crisis of 08 and these people waved one red flag after another. Country Wide, this lending institution got everybody approved. Its a complex issue to prove fraud on a criminal level, although it was blatantly obvious to the underwriters to outright us the f word is a difficult process. One executive from Citigroup sounded the alarm bells well in advance, he said 60% of the home loans being looked at by our underwriters are bogus, "this is going to bankrupt our entire country" He was actually demoted for speaking the truth. There was one sheriff after the crisis, his name was Senator Kaufman. That man did everything in his power and then some to get the Department of Justice to start inditing some wall street executives but this seemed to be an exercise in futility. There were thousands of criminal charges brought against the small fry loan originators but not one single criminal case has been initiated toward any of the operatives that are running the dark world and black box of the major wall street firms. In fact Goldman Sachs knew those cdos were junk and they were making a fortune by buying and selling them however they also knew the end was near so they positioned themselves with major short positions against the very derivatives they claimed were so healthy. This is not the American Way, I must say, its ok to make money but not at the expense of the American people. The argument from the DOJs Lanny Breuer was that greed is not good however its not criminal and therefore cant be prosecuted beyond a reasonable doubt on a criminal al level. The FBI financial crimes unit was down to very few agents due to the fact that since nobody listened to John Oneill and "our real threat" now they finally were and most of the resources were used toward the terrorism fight. The problem here is that the suits at the Justice Department didn't know how to train spy's to go out in the field to get the proper intel, or at the very least to send people out to get on the ground floor and gather up a few whistle blowers. This isn't that hard to do, in fact Nick Verbitsky an independent filmmaker did this with relative ease which led to his movie Confidence Game. This film uncovered the intricacies of the kind of unbridled greed Bear Stearns was involved with..You have to have people that run in the same circles just like Verbisky did when he had his sources attending various fundraisers and Black Tie galas right here in Greenwich. After all is said and done it appears there will be a few civil suits brought against some firms that in aggregate are a pittance compared to the actual amount of money lost due to this egregious fraud and the infinite number of innocent families lives that have been ruined as a result.. How is not locking up the head sheds sending a message to these people, this only will give them more incentive to do this kind of thing again. .
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment