Why Isn't Wall Street In Jail!

• "You put Lloyd Blankfein in pound-me-in-the-ass prison for one six-month term, and all this bullshit would stop, all over Wall Street," says a former congressional aide.  "That's all it would take.  Just once."

--

Source - Rolling Stone

Why Isn't Wall Street In Jail?

By Matt Taibbi

Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.

"Everything's fucked up, and nobody goes to jail," he said.  "That's your whole story right there.  Hell, you don't even have to write the rest of it.  Just write that."

I put down my notebook. "Just that?"

"That's right," he said, signaling to the waitress for the check. "Everything's fucked up, and nobody goes to jail.  You can end the piece right there."

Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world's wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

The rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. Their names by now are familiar to even the most casual Middle American news consumer: companies like AIG, Goldman Sachs, Lehman Brothers, JP Morgan Chase, Bank of America and Morgan Stanley. Most of these firms were directly involved in elaborate fraud and theft. Lehman Brothers hid billions in loans from its investors. Bank of America lied about billions in bonuses.

Goldman Sachs failed to tell clients how it put together the born-to-lose toxic mortgage deals it was selling. What's more, many of these companies had corporate chieftains whose actions cost investors billions — from AIG derivatives chief Joe Cassano, who assured investors they would not lose even "one dollar" just months before his unit imploded, to the $263 million in compensation that former Lehman chief Dick "The Gorilla" Fuld conveniently failed to disclose. Yet not one of them has faced time behind bars.

Instead, federal regulators and prosecutors have let the banks and finance companies that tried to burn the world economy to the ground get off with carefully orchestrated settlements — whitewash jobs that involve the firms paying pathetically small fines without even being required to admit wrongdoing. To add insult to injury, the people who actually committed the crimes almost never pay the fines themselves; banks caught defrauding their shareholders often use shareholder money to foot the tab of justice. "If the allegations in these settlements are true," says Jed Rakoff, a federal judge in the Southern District of New York, "it's management buying its way off cheap, from the pockets of their victims."

Continue reading at Rolling Stone...

Comments

[Cheyenne]

“But a veritable mountain of evidence indicates that when it comes to Wall Street, the justice system not only sucks at punishing financial criminals, it has actually evolved into a highly effective mechanism for protecting financial criminals. This institutional reality has absolutely nothing to do with politics or ideology — it takes place no matter who's in office or which party's in power.”
* * *
“All of this paints a disturbing picture of a closed and corrupt system, a timeless circle of friends that virtually guarantees a collegial approach to the policing of high finance.”

There you have it. The two political parties in this country are Wall Street and Main Street. Since you're not good enough for Wall Street, guess which party you're in? Unless, that is, you are stupid enough to carry Wall Street's water--for free.

And now, back to our regularly scheduled red sock puppet vs. blue sock puppet match on Fox and MSNBC...

[DailyBail]

well said cheyenne...enjoyed reading that...

[DailyBail]

http://www.newsrealblog.com/2011/02/17/ron-paul-is-a-vicious-anti-semite-and-anti-american-and-conservatives-need-to-wash-their-hands-of-him/

Ron Paul Is A Vicious Anti-Semite and Anti-American and Conservatives Need To Wash Their Hands of Him

---

David Horowitz is getting afraid of ron paul's growing clout...

[DailyBail]

U.S. Loans in Foreclosure Tie Record as Lenders Delay Seizures

http://www.bloomberg.com/news/2011-02-17/u-s-loans-in-foreclosure-tie-record-as-lenders-delay-seizures.html

[DailyBail]

Gold Climbs, Silver Touches 30-Year High Amid Inflation Concern

http://www.bloomberg.com/news/2011-02-17/gold-may-weaken-on-speculation-rise-to-four-week-high-will-spur-selling.html

[DailyBail]

Stanford Sues U.S. Prosecutors, SEC and FBI Agents

http://www.bloomberg.com/news/2011-02-17/stanford-sues-u-s-prosecutors-sec-and-fbi-agents.html

[DailyBail]

http://www.bloomberg.com/news/2011-02-17/cotton-rises-above-2-for-first-time-as-supply-tightens-on-chinese-demand.html

Cotton Tops $2 for First Time in New York as Bulls Go ‘Berserk’

[Sagebrush]

The United States Government is as corrupt any Dictatorship or Monarchy on the planet today. That serious crimes were committed causing the economic collapse is obvious to anyone with half a brain. That the Federal Reserve, the other regulatory agencies and the Justice Department refuse to investigate and file charges on these criminals leads me to believe they are all involved in a conspiracy against the American People.

It's been the same story down through history. It doesn't matter if it's a Monarchy, a Military Dictatorship, or a completely corrupted Democratic Republic as in the the United States of 2011. The expanding elite appetite for wealth and power demands more sacrifice and more labor from the common people. It should be obvious to every middle class American Citizen where we are in this scenario today.

Voting is not going to change anything. They own most of the electoral system, The few people in congress and the government who try to follow rule of law and the Constitution end up overwhelmed by the sold-out majority.

I think the only way to peacefully change it is to march on D.C. in numbers that can't ignored and try to make those people who supposedly represent us do the damn job they took an oath to do. if that doesn't work, the other story down through history has been death and destruction for elite and commoner alike.

To those who believe it can't happen here, I hope your right.
I don't agree, but I hope your right.

[Cheyenne]

I harp on the Kabuki Theater theme of contemporary American politics enough I should disclose that I grew up on the very red team, as my old man was heavily involved in NC politics. I met Reagan in '76, talked to Billy Graham on the phone once, and was in Jesse Helms' house many times. It was a lot of fun for a kid.

But when Sen. John East's death was adjudged a suicide in 1986 with nary a serious discussion, I lost my taste for that stuff and checked out.

At least until the outright betrayal of the entire U.S. population by Congress in October 2008.

[S. Gompers]

Serious crimes were committed causing the economic collapse, and lobbying and contributions will keep the guilty flying high as you can see by the many who tout the tales of the wealthy and call for less regulation which also mean less than our normal lack of convicting the guilty.

Regulation is laws that have been developed in an attempt to prevent things that have gone wrong in the past. As we tear those down we create the conditions that make ripe the climate for those crimes to rise again. Anti Trust Laws can be the cure for to big to fail, or we all can get used to our role in privatize the profits and socialize the losses version of the bankers American dream.

http://moneymorning.com/2009/01/13/deregulation-financial-crisis/

If you are worried about cotton, don't worry, you will get hungry before you run out of Chinese made clothes. While the Government keeps paying farmers to not farm something like 40 million acres while your food and fuel are going up. Over a seven year period, the Department of Agriculture paid $1,100,000,000 in subsidies to dead farmers not to farm. I guess they call that a fertilizer subsidy.

Seven fat cows, seven skinny cows, we are rapidly running out of fat cows. I hope everyone is thinking about a garden project this year.

A few things of interest.

http://hoguenews.com/?p=4834

[Cheyenne]

Sage and Gomp--

I couldn't agree more. We're getting to the point where we have to get it together personally and collectively or it is game over. The system as presently configured is hitting the wall as we speak.

[josie]

@ Cheyenne, Sage & Gomp

Agree. To those who think it cannot happen here in the good old US of A...France, 1789...

...as the gap widens between the few "haves" and many "have-nots," as the greedy financial elite class assumes more and more power, as the middle class is destroyed by stagnant wages, rising prices and debased currency, as US debts rise to levels which can NEVER be paid back, as our republican form of government corrupts more and more...This scenario does not end well. History teaches us that...

[Paul]

Blankfein is a fifth columnist, like so many more of them, stealing America's wealth and power for his Chosen masters. Jail isn't enough.

[GreedyCapitalistPig]

There seems to be an easy fix: don't allow anyone who worked for the SEC to work for one of the financial institutions or the financial institutions law firms, that they were supposed to be policing to begin with, for at least 10 years after they leave the SEC. Take away all incentives to give leniency to these financial institutions.

This kind of thing really pisses me off. I expect corrupt behavior from the financial institutions as a given, but from the people we choose as our guardians!? Forget that. Why isn't there such laws in place to take away incentives? Lobbyists probably.

[Dr. Pitchfork]

Good point, Pig. I just want to make sure that Geithner is banned from working on Wall St. before he leaves office. I assume the Geithner-to-Goldman clock is still ticking.

[S. Gompers]

Banned from Wall Street? he should be banned from working everywhere, including the double arches.

[Cheyenne]

Re Geithner: what do you think of a man who grows up in Asia and majors in Asian Studies at a U.S. university? Same as me.

No rules are needed for Timmy. Let him fend for himself for once is my wish. Give natural law a chance.

[Sagebrush]

@ Cheyenne,
Criminal law would be fine place to start. He deserves a nice long jail sentence for conspiracy to defraud the American People, and Big BuBa for a roommate. I'm sure some kind of natural or unnatural law would play out in that situation.

[Cheyenne]

Yeah, I know what you mean, Sage, you're certainly right. But NO ONE has gone to jail this time. Hell, it was 3800+ for the last crisis 20+ years ago. I think I might've read that here.

At this point, the old-fashioned channels don't seem to be working. I can't help but think that something else is in order.

Stated differently, I become increasingly frustrated with the Gerbi-trails feel of business as usual and Civics 101.

[john]

AP source: Feds drop criminal probe against Mozilo

http://news.yahoo.com/s/ap/us_countrywide_mozilo

[snip]

LOS ANGELES – Federal prosecutors have ended a criminal investigation of Countrywide Financial Corp. co-founder Angelo Mozilo, a person close to the investigation said Friday.

The federal official told The Associated Press that the probe launched in 2008 into the actions of the former chief executive of the housing giant during the mortgage meltdown has been closed with no indictments. The person spoke on the condition of anonymity because the investigation was never publicly announced, and the Department of Justice as a policy does not announce the closing of investigations.

In October, Mozilo agreed to a $67.5 million settlement to avoid civil trial on fraud and insider trading charges brought by the Securities and Exchange Commission, but prosecutors pursuing the criminal case against him found that his actions did not amount to crimes.

[john]

this is to supplement my 11:16 post re: Countrywide, please note the players in this story.

Justice Urged to Investigate GSEs (2008)

WASHINGTON -- Fannie Mae and Freddie Mac, already under investigation by the Securities and Exchange Commission and the U.S. Attorney in New York,

will be fending off another investigation if some lawmakers in Congress have their way.

Twenty-eight Republican members of Congress have urged the Department of Justice to investigate Fannie Mae and Freddie Mac for mortgage fraud.

The group, led by the ranking minority member of the House Financial Services Committee Spencer Bachus (R-Ala.), has sent a letter to Attorney General Michael Mukasey charging that fraud, mismanagement, missed opportunities to rein in the enterprises and overzealous lending under the Community Reinvestment Act are at the center of the troubles in the mortgage-related markets.

The group urged Mukasey to add the GSEs to the Justice Department's already underway Operation Malicious Mortgage probe.

The lawmakers also alleged that sweetheart loans given to former Fannie and Freddie executives--the "friends of Angelo/Countrywide VIP mortgage program"--be included in the probe, naming several of them as having been recipients of loans on favorable terms from the company.

Angelo Mozilo is the former heard of Countrywide, which is now owned by the Bank of America.

Several years ago, Fannie Mae and Freddie Mac had to restate several years' worth of earnings in a $10 billion accounting scandal.

source: http://www.cutimes.com/Issues/2008/November%2005,%202008/Pages/NAFCU-Offers-Statement-Inserts-On-Credit-Report-Information.aspx

Flashback:

Mukasey Declines to Create a U.S. Task Force to Investigate Mortgage Fraud

http://www.nytimes.com/2008/06/06/business/06justice.html

[The Dance]

They win again...a Rolling Stone story. Yikes. What's next, a piece in Vanity Fair? Obama is the top cop, until his name is thrown into this mess, nothing is going to happen. So, nothing is going to happen.

[Dave]

This is why I can't wait to watch "The Inside Job". Just watching the trailer to that really got my attention. I may have overlooked it because I was thinking it was another view on 911. I didn't realize that it was about the banks and the reason why nobody went to jail or so much was questioned before a judge?

[DailyBail]

It's a great movie dave. You can rent it just about anywhere.

[Dave]

Thats all I've heard about it and I will get it soon.

I wanted to mention I noticed gold and silver are topics mentioned quite a bit. I have a simple app that tell me the daily prices. One thing I was before I got to where I am now. I was an avid coin collector and have been all of my life. One simple thing I had planned to do was invest in silver. Even though gold was doing so great for a long while there gold on average could not make you as much money as silver in the long run. Especially when your budget calls for buying small rather than large. That dynamic has changed.

If I didn't know better I would swear that it is if there trying to keep people who could still invest in the small between the two were deliberately creating a situation that now it is just the reverse. Or so it seems?

[chunga]

Pick up the phone and call scumbag Iowa AG Tom Miller. He blows.

Press Release | Miller Caves to Big Bank Pressure – Decision to Remove NY AG From Foreclosure Group was Politically Motivated

http://4closurefraud.org/2011/08/24/press-release-miller-caves-to-big-bank-pressure-decision-to-remove-ny-ag-from-foreclosure-group-was-politically-motivated/

1305 E. Walnut Street
Des Moines IA 50319
Phone: 515-281-5164
Fax: 515-281-4209
webteam@ag.state.ia.us

[DailyBail]

Thanks Chunga.

[jack kane]

The only conceivable answer is that Wall Street OWNS the joint. Why are they not in jail? They own the jails. Basically we have an Oligarchy at the top, which writes and enforces the laws, and which therefore has the power to exempt itself from the whole judicial process. All of this is blatantly obvious in the rational sense and easily verifiable in the empirical sense.

These days, meaning the last decade-or-so, the Oligarchical influence and their overall scheme have become so obvious and so damaging that people are beginning to take notice of the big problem en masse. More people need to figure out the details of the grand scam. Useful action must be taken, and soon.

[DailyBail]

Nicely said, Jack.

[Howard T. Lewis III]

Choreographed financial looting is a method, like a kick in the teeth when you are not looking. Whose method? Bankers. Whose bankers? Those guys over there who own the banks and legal jurisdictions outside the U.S.. Why isn't Wall Street in jail? Who controlled the FTC and SEC during the last administration? And what did the SEC and FTC do during this time? And why did Obummer rehire them? Because he is totally, pathologically, passive about everything. What does that mean? The last administration is still ripping everybody off, leaving him holding the bag. Remember, Obummer is totally passive. Operation Monarch.

[LiberatedCitizen]

Short Answer Wall Street Is Still Giving to President

http://online.wsj.com/article/SB10001424052702303933404577500810740985338.html

[AnonPatriot]

It's July 4th, 2012 - Do YOU KNOW what time it is?
(It's time to pass H.R. 459, and AUDIT THE 'FED'!)
http://chooseliberty.org/auditrphf3.aspx?pid=0703

http://www.chooseliberty.org/mailin/audit_donate1_mail.htm?i=CL090077-0703

[Paul]

The likes of Blankfein will never go to jail. Laws are only there to control the un-Chosen