Monday, May 14, 2012

Wall Street Journal: "Missing: Stats on Crisis Convictions"

Wall Street Journal May 14, 2012 p. C1, C5 by Jean Eaglesham

Excerpt from article:

"It is a question that has been asked time and time again since the financial crisis: How many executives have been convicted of criminal wrongdoing related to the tumultuous events of 2008-2009? The Justice Department doesn't know the answer...."

Majia here: Apparently the Justice Dept. does not keep data on the number of board-level prosecutions.

One has to wonder why not?

William Black, who was responsible for the Savings and Loan criminal prosecutions, asserts in this article that the government used to keep those stats.

I think the most notable quote from the article is this passage:
"But officials said the scarcity of crisis-related prosecutions might reflect a lack of criminal behavior, rather than any failure of law enforcement" (C5).

Majia here: What a twisted and corrupted world we live in.

For more on William Black's perspective, see the following:

Holder & Obama’s Propaganda is “Belied by a Troublesome Little Thing Called Facts”

By William K. Black

[excerpt] "The Obama administration’s record of prosecuting elite financial frauds is worse than the Bush administration’s record, which is a very large statement. Syracuse University’s TRAC issued a report on November 11, 2011 entitled “Criminal Prosecutions for Financial Institution Fraud Continue to Fall.”

Neither administration has prosecuted any elite CEO for the epidemic of mortgage fraud that drove the ongoing crisis." [end excerpt]
William Black: Recurring Crises Derive From Epidemics of Fraud Stemming from C Suite November 2011. Speech available:

Majia paraphrasing his comments:

No convictions mean that the fraud will continue over and over, leading to more crises and more inequality

Wiped out 6 million jobs and 5 million that would have been created

11 trillion dollars lost in household sector

"We [government] promote incompetence if it helps the 1%"

"We can prosecute these fraud"

17 of the largest banks in America committed massive fraud and there exists a paper trail proving it.

FBI warned of fraud, they knew a crisis was coming stemming from epidemic of liars loans.

The crisis came from the very top of the largest banks in the world

"It is an orchard of 1%ers that are rotten to the core"
J.P. Morgan's Losses "Could Total More than $4 Billion" (Fitzpatrick, D., & Zuckerman, G. 2012, May 14. Three to Exit J. P. Morgan. The Wall Street Journal, p. C1.)
"J.P. Morgan Chase & Co.'s trading debacle is causing employees to worry it will unfairly target their reputations, while deepening concerns at rival financial firms about tougher regulations and potential ratings downgrades" Sidel, R., Lucchetti, A., & Rappaport, L. (2012, May 14) Reputation is Staff Concern. The Wall Street Journal p. C3.  

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