Tuesday, May 17, 2011

The Jig is Up...or is it?


"They weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it.


Thanks to an extraordinary investigative effort by a Senate subcommittee that unilaterally decided to take up the burden the criminal justice system has repeatedly refused to shoulder, we now know exactly what Goldman Sachs executives like Lloyd Blankfein and Daniel Sparks lied about. We know exactly how they and other top Goldman executives, including David Viniar and Thomas Montag, defrauded their clients. America has been waiting for a case to bring against Wall Street. Here it is, and the evidence has been gift-wrapped and left at the doorstep of federal prosecutors, evidence that doesn't leave much doubt: Goldman Sachs should stand trial."

Now, what is the betting bool on Eric Holder having the guts to go after these guys?  One can only wish Vincent Bugolosi was the prosecutor on this number.

In addition to Goldman, Holder will get another shot to do good, this time regarding the mortgage disaster perpetrated by companies we all know and love...


"A set of confidential federal audits accuse the nation’s five largest mortgage companies of defrauding taxpayers in their handling of foreclosures on homes purchased with government-backed loans, four officials briefed on the findings told The Huffington Post.


The five separate investigations were conducted by the Department of Housing and Urban Development’s inspector general and examined Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, the sources said."

Regarding mortgages, BRT's Habious Corpeus or Hey Dude, Where's My Mortgage is a primer regarding the importance of deed verification and how it was systematically violated in order for outfits like this to make enormous amounts of money at the public's expense.

"The devil can cite scripture for his purpose". -( Quote Act I, sce. III). Merchant of Venice




Addnendum: There is a guy who has the courage to go after, in this case, the mortgage lenders who defrauded the public.

"Not surprising then to find all of the power players in on the latest deals: the Obama administration that had bailed out the banks but not troubled homeowners; the regulators and Fed officials who all looked the other way when the housing bubble was inflated; and the state attorneys general who backed away from going after the perpetrators of robo-signed mortgages and other scams used to foreclose homes.


But now Schneiderman has a chance to derail the deals, given that he is supported by the state’s tough 1921 Martin Act, which one of his predecessors as New York state attorney general, Eliot Spitzer, had used to good advantage in exposing the financial behemoths that are so heavily based in New York. The Wall Street Journal describes the Martin Act as “one of the most potent prosecutorial tools against financial fraud” because, as opposed to federal law, it doesn’t carry the more difficult standard of proving intent to defraud.


Last week, it was revealed that Schneiderman’s office has demanded an accounting from Bank of America, Morgan Stanley and Goldman Sachs as to the details of their past practice of securitizing those mortgage-based packages that proved so toxic. Maybe he will fail against such powerful forces, as did Spitzer and Andrew Cuomo after him, but it is a test worth watching, since no one else, from the White House on down, seems to be concerned with holding the bailed-out banks accountable for the massive pain and suffering they inflicted on the public."

N.Y. Attorney General Eric Schneiderman

T.R. would be proud.
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