The Perfect No-Prosecution Crime
By Greg Hunter’s USAWatchdog.com
Did you know that in the aftermath of the Savings and Loan (Thrifts) scandal there were more than a thousand felony convictions of financial elites? The cost of the wrongdoing associated with the rip-off and closure of nearly 800 Thrifts cost taxpayers more than $160 billion. The current sub-prime/mortgage-backed security scandal is 40 times bigger according to Economics professor William Black. That means the size of the crime is $6.4 trillion by my calculation. Can you guess how many indictments there have been on financial elites who created this enormous mess? Zero, none, nada, zip. Yes, not one single prosecution or conviction has been started of achieved.
That is simply outrageous considering the width and breadth of the many crimes committed. There was “rampant” mortgage fraud in the loan application process according to the FBI as far back as 2004. (Click here to see one of many stories of the FBI warning of mortgage fraud) There was real estate document fraud when the original Promissory Notes and loan documents were “lost.” The Promissory Notes were required to create tens of thousands of mortgage-backed securities (MBS). No “note,” no security. That is security fraud. No security means the special IRS tax treatments for the MBS’s were fraudulently obtained. That is IRS tax fraud. Because there were no documents, the rating agencies fraudulently made up triple “A” ratings for the securities. When the whole mess blew up, big banks hired foreclosure mill law firms to create forged documents. That phony paperwork was and is being used to wrongfully remove homeowners from their property. That is foreclosure fraud.
It appears to me the entire mortgage/securitization industry is one giant criminal enterprise. And yet, last Wednesday, Housing and Urban Development Secretary Shaun Donovan said, “We have not found any evidence at this point of systemic issues in the underlying legal or other documents that have been reviewed.” What! Well, look a little harder Mr. HUD Secretary. (Click here for the complete Reuters story with Donovan’s quote.) Donovan did say the foreclosure fiasco is “shameful,” but that is not the same as a criminal prosecution now is it? Where is U.S. Attorney General Eric Holder in all of this? I guess he’s busy planning a lawsuit to stop California from making pot smoking a misdemeanor. Holder is probably also very busy with continuing legal actions against Arizona’s immigration law. I guess trillions of dollars in mortgage and securities fraud is just not enough of a legal priority for America!
All 50 State Attorneys General are looking into what is now being called “Foreclosuregate.” Iowa AG, Tom Miller, is leading the investigation for the 50 states. His focus, according to a recent Washington Post story, is “preventable foreclosures“–ones in which small changes might keep the homeowners in their home – benefits all parties involved. The borrower keeps the house. The servicer continues to collect fees, and the investors receive more income than a foreclosure would bring. The community has one less deserted home.” Miller’s office also says, “This is a public policy issue.” (Click here to see the complete Wa Po story.)
When did State AG’s become public policy negotiators for the banks? Where are the criminal prosecutions? This is a sham and an outrage perpetrated by state governments. Who are they protecting? I say it’s really the banks’ and investors’ income stream.
It sure doesn’t look like the FBI is going to prosecute any of the “rampant” mortgage fraud any time soon, according to Professor Black. At the end of September on the Dylan Ratigan Show, he said, “We know that the FBI has formed what it calls a partnership with the Mortgage Bankers Association. Now, that’s a trade association of the perps, and guess what the trade association said: ‘Hey we’re the victims. You know none of the bad stuff happened because the lenders wanted to engage in this fraud,’ and the FBI believed them if you can believe that!”
Black is not just some angry academic. Besides being a Professor of Economics at the University of Missouri KC, he is also a former bank regulator and an expert in crimes committed by CEO’s. He thinks Treasury Secretary Tim Geithner and Attorney General Eric Holder should be fired so real regulators can get to work on prosecutions of crime throughout the entire industry. And get this, just last week, Black adamantly claimed that “major frauds continue,” at all the big banks. Hear for yourself in the clip below
:
Again, Black said, “80% of the loans were fraudulent.” He also said in this segment (but wasn’t included in the clip) that, “securitized mortgage instruments are all fraudulent.” That means trillions of dollars in MBS’s are worthless! Foreclosuregate is a gargantuan financial mess, and federal and state regulators have not found a single crime in all of this to prosecute? Clearly, the U.S. government and both political parties are shielding the perpetrators. Oh wait! The SEC did fine Angelo Mozilo, the former head of Countrywide Financial Corp., $67.5 million in penalties to settle civil fraud and insider-trading charges. Mozilo ripped-off hundreds of millions of dollars, and he pays a fine that amounts to a parking ticket for a man of his wealth? Is that the same as a criminal prosecution? I don’t think so!! (Click here for more on the Mozilo story from The WSJ.)
So, if you are or have been committing document, tax, security, rating or foreclosure fraud, you don’t have a thing to worry about. Keep doing what you’ve been doing because you are committing “the perfect no prosecution crime.” According to the financial elites, these crimes are essential to keep the American economy running smoothly.
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“We know that the FBI has formed what it calls a partnership with the Mortgage Bankers Association.
Like I said Greg the gov is the mob!
Go look and see that former FBI boys as well as CIA men work for the banking cartel
There will be NO!!!!! Prosecution of any big bankers period.
The banks are your & mine & everyone who reads this. They are our MASTERS!!
Here’s just a little sample of the facts
Louis Freeh director of the FBI,
In September 2001, Freeh was appointed to the board of directors of credit card issuer MBNA; he also served as the bank’s general counsel, as well as corporate secretary and ethics officer.
CHARLOTTE — Bank of America has hired Chris Swecker, assistant director of the Criminal Investigative Division and acting executive assistant director for Law Enforcement Services at the Federal Bureau of Investigation (FBI), to lead its Corporate Security organization. Swecker, who has announced his retirement at the FBI, will transition his bureau responsibilities over the next several months and join Bank of America in July.
Shadowman,
Very good stuff today. Thank you for sharing your thoughts and information with the readers here!!
Greg
So the battle thats being set up is between the 50 state attorney generals offices seeking justice and compensation for the state, city, fire and police pension funds that invested in the bogus products the banks created and the banks have in their arsenal, connections to the FBI, CIA and the SEC not to mention the congressional lawmakers, what about the military are they in the pockets of the banks too?
This will be interesting.
Or will the banks just offer better paying jobs to all the staff of the state AG’s offices thus nulling any efforts made by the states?
Robert,
I hope the people get justice. Thank you Robert for adding to this post.
Greg
First off I voted for Obama.. I bought into his “change” ruse. Change? What change? He’s as much in bed with the banks and other trans-nationals as the folks in his predecessors administration were and probably still are.
This is Obama’s DOJ that is more concerned about California legalizing smoking pot and making sure that gays don’t serve in the military than they are with the multi-trillion dollar fraud perpetrated by some of the biggest campaign donaters in the political system of the USA. This administration depends on donations from the perps of this fraud just as much as the republican party does.
And then we go out and invade other countries and tell them theyre wrong in how they view the world and to be more like us, unregulated, unrestrained capitalism is good, and to look at our country as the example.
How do we fix what’s wrong in our country when the people who weve placed in charge of that process and the people they’ve co-partnered with are the cause of this mess? Both parties are culpable as enablers of this fraud and nothing will be done about it, nothing of any consequence except to hand us the taxpayers the bill.
Robert,
What was that verse in the famous WHO song. “Meet the new boss, same as the old boss.” We are all dissapointed with BOTH parties. Thank you for venting here, I feel your rage!
Greg
Patrick Henry, March 23, 1775.
No man thinks more highly than I do of the patriotism, as well as abilities, of the very worthy gentlemen who have just addressed the House. But different men often see the same subject in different lights; and, therefore, I hope it will not be thought disrespectful to those gentlemen if, entertaining as I do opinions of a character very opposite to theirs, I shall speak forth my sentiments freely and without reserve. This is no time for ceremony. The questing before the House is one of awful moment to this country. For my own part, I consider it as nothing less than a question of freedom or slavery; and in proportion to the magnitude of the subject ought to be the freedom of the debate. It is only in this way that we can hope to arrive at truth, and fulfill the great responsibility which we hold to God and our country. Should I keep back my opinions at such a time, through fear of giving offense, I should consider myself as guilty of treason towards my country, and of an act of disloyalty toward the Majesty of Heaven, which I revere above all earthly kings.
Mr. President, it is natural to man to indulge in the illusions of hope. We are apt to shut our eyes against a painful truth, and listen to the song of that siren till she transforms us into beasts. Is this the part of wise men, engaged in a great and arduous struggle for liberty? Are we disposed to be of the number of those who, having eyes, see not, and, having ears, hear not, the things which so nearly concern their temporal salvation? For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst, and to provide for it.
I have but one lamp by which my feet are guided, and that is the lamp of experience. I know of no way of judging of the future but by the past. And judging by the past, I wish to know what there has been in the conduct of the British ministry for the last ten years to justify those hopes with which gentlemen have been pleased to solace themselves and the House. Is it that insidious smile with which our petition has been lately received? Trust it not, sir; it will prove a snare to your feet. Suffer not yourselves to be betrayed with a kiss. Ask yourselves how this gracious reception of our petition comports with those warlike preparations which cover our waters and darken our land. Are fleets and armies necessary to a work of love and reconciliation? Have we shown ourselves so unwilling to be reconciled that force must be called in to win back our love? Let us not deceive ourselves, sir. These are the implements of war and subjugation; the last arguments to which kings resort. I ask gentlemen, sir, what means this martial array, if its purpose be not to force us to submission? Can gentlemen assign any other possible motive for it? Has Great Britain any enemy, in this quarter of the world, to call for all this accumulation of navies and armies? No, sir, she has none. They are meant for us: they can be meant for no other. They are sent over to bind and rivet upon us those chains which the British ministry have been so long forging. And what have we to oppose to them? Shall we try argument? Sir, we have been trying that for the last ten years. Have we anything new to offer upon the subject? Nothing. We have held the subject up in every light of which it is capable; but it has been all in vain. Shall we resort to entreaty and humble supplication? What terms shall we find which have not been already exhausted? Let us not, I beseech you, sir, deceive ourselves. Sir, we have done everything that could be done to avert the storm which is now coming on. We have petitioned; we have remonstrated; we have supplicated; we have prostrated ourselves before the throne, and have implored its interposition to arrest the tyrannical hands of the ministry and Parliament. Our petitions have been slighted; our remonstrances have produced additional violence and insult; our supplications have been disregarded; and we have been spurned, with contempt, from the foot of the throne! In vain, after these things, may we indulge the fond hope of peace and reconciliation. There is no longer any room for hope. If we wish to be free– if we mean to preserve inviolate those inestimable privileges for which we have been so long contending–if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained–we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of hosts is all that is left us!
They tell us, sir, that we are weak; unable to cope with so formidable an adversary. But when shall we be stronger? Will it be the next week, or the next year? Will it be when we are totally disarmed, and when a British guard shall be stationed in every house? Shall we gather strength by irresolution and inaction? Shall we acquire the means of effectual resistance by lying supinely on our backs and hugging the delusive phantom of hope, until our enemies shall have bound us hand and foot? Sir, we are not weak if we make a proper use of those means which the God of nature hath placed in our power. The millions of people, armed in the holy cause of liberty, and in such a country as that which we possess, are invincible by any force which our enemy can send against us. Besides, sir, we shall not fight our battles alone. There is a just God who presides over the destinies of nations, and who will raise up friends to fight our battles for us. The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave. Besides, sir, we have no election. If we were base enough to desire it, it is now too late to retire from the contest. There is no retreat but in submission and slavery! Our chains are forged! Their clanking may be heard on the plains of Boston! The war is inevitable–and let it come! I repeat it, sir, let it come.
http://www.youtube.com/watch?v=ckFfzoplC-I&feature=youtube_gdata_player
Dear Greg,
Just read your column, and it was what I was arguing yesterday. These banks committed an open fraud, knowing that they had “friends in high places.” They commit the fraud, the homeowner loses. Bank of America, the biggest player in all this, recently claimed that it was not going to put a freeze on foreclosures, they were going to continue with their foreclosing plans anyway!
The Pledge of Allegiance is a lie. There is no liberty, no justice for all. The BATF&E calls the Constitution “two hundred year-old laws,” and the Bill of Rights “mythical.” The citizenry are not the rulers, politicians and their minions are, and we’d all better just shut up.
Rebellion, anyone?
Sam,
The facts say you won that argument! Thank you man!!
Greg
Greg a must see for you your staff and the people this will be my last post today
http://www.youtube.com/watch?v=eZA0qNsf4m0&feature=youtube_gdata_player
Hi Greg,
Jim Sinclair posted a significant related article to the MBS debacle on 10/24, and perhaps you’d consider checking into it. The title is, “Ministers plan huge sell-off of Britian’s forests”.
http://www.telegraph.co.uk/earth/countryside/8082756/Ministers-plan-huge-sell-off-of-Britains-forests.html
“Caroline Spelman, the Environment Secretary, is expected to announce plans WITHIN DAYS to dispose of about half of the 748,000 hectares of woodland overseen by the Forestry Commission by 2020.”
They hope to recoup funds from selling the planet’s ancient forests due to losses on MBS and other OTC derivative instruments. If there’s a way to elevate the issue and prevent this sale it would be a big win since our forests are the lungs of the earth.
Thanks!
Diane
Diane,
They are doing this to pay off the banks losses. This is robbery and the British government is complicit. Sad. Thank you for the info and comment.
Greg
America is for sale too. Various government entities are selling off infrastructure to foreign investors via our own banksters so as to plug gaps in their budgets. From Matt Taibbi:
http://www.rollingstone.com/politics/news/17390/222206
Greg, you’re amazing. I don’t see how your head doesn’t explode, compiling all this evidence from all the assorted bottomless bankster-created rabbit holes of fraud, criminality and debauched profit-taking. LOL there are times I have to take a break from this reality (music and canning applesauce helps).
Thank you Geofizz for the comment, info and kind words!
Greg,
I’m sorry that most Americans have only just realised that Obama is a disaster, but if its any consolation we in the UK also fell for the charms of a handsome, slick talking, media savvy, socialist conman (Blair). With this experience behind us, Obama looked very suspect to many on this side of the Atlantic from day 1 in office. I think that both our nations have now learned not to vote for politicians who look too good to be true.
Here in the UK we have convinced the world that we have embraced austerity, but it is largely a sham. Annual government expenditure is still projected to rise year on year over the next six years. The headline “cuts” in the UK ($120 billion over the next 4 years) are actually cuts in the previously planned expenditure increases. Obama should have copied our socialists. To hide his $1.4 trillion deficit he could have initially announced a $2 trillion budget, then announcing “cuts” of $600 billion, to achieve the same result – a $1.4 billion deficit – but with better headlines in the press.
The future does not look good. Republicans are likely to be just as pro the banks and Wall St. as Democrats, just as our current coalition is proving to be just as big a bunch of keynesian clowns as our last socialist administration.
Good luck for Nov 2nd. You’re going to need it.
Thank you Mr. East for your UK perspective. It is appreciated by readers here in the U.S.
Greg
I’ll may get a lot of negative comments for this, but oh well, here goes…..
Gee, I’m so surprised by this. The “bankers” (elite, super wealthy) taking by any means what is not rightly theirs.
The history of government (that would be the elite, super wealthy) on this continent has been one of “take what is not yours by any means necessary”. They took ALL of the land from the Native Americans. They took from millions of Africans their “bodies, families, and labor”. And when there was no one else left to take from, they began to take from the lowly “common white man” as well. It was only a matter of time before they got to us!
Look at the Louisiana Purchase; the acquisition by the US of France’s “claim” to the of 828,800 square mile territory of Louisiana in 1803 for 15 million dollars. What the US Government actually bought was France’s “claim” to go in and TAKE by lethal force all of the land which belonged to those who had lived there for the last several thousand years; the Native Americans. And that is exactly what the “US Government” did. And untold numbers of Native Americans died in the process. Who was prosecuted for these crimes?
Funny, cause I thought that the Declaration said: “…that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness”. Funny how it didn’t apply to Native Americans and those of African descent! And now it no longer applies to us, the “Common Man”!
This is nothing new!
Thank you Steve for weighing in. You overlook what is new about this– It is the biggest fraud ever, and it went global.
Greg