

U.S. Attorney General Eric Holder said today:


As we’ve repeatedly noted, this is wholly untrue.


































Galbraith also says:








Category: Bailouts, Legal, Think Tank


4 Responses to “Failure to Prosecute Fraud Causes Economic Downturns”

  1. 873450 says:


    Who cares what they say?

    Newly elected, not yet inaugurated President Obama recruited literal and figurative financial giant Paul Volker to his economic team. Volker handed him a 3-page document recommending reinstatement of repealed Glass Steagall separating FDIC insured banking from speculative investment banking, telling him you can save Main Street from Wall Street by ending TBTF the instant you sign this legislation into law.

    What did Obama do? He followed literal and figurative financial midget Tim Geithner’s advice to seat Volker at the children’s table, keep him out of the decision making room and trot him out for photo-ops. Then, banker’s lapdog Geithner passed Volker’s Rule to his bailed out masters for review and comment. Last I heard it grew from 3 to 150+ pages filled with caveats, exceptions, loopholes, escape clauses, etc., that even if enacted, it is so convoluted that it is essentially unenforceable.



    Socialism for Plutocrats – It is official U.S. government policy to rescue, protect and reward moral hazard and fraud on Wall Street.


    “If the big banks were helpful for an economic recovery, would they be prolonging our economic instability?”

    TBTF’s interests are best served when TBTF remains unstable and prolongs our economic instability.

  2. [...] Following the theme of large-scale fraud in the U.S., Barry Ritholtz rails against government refusal to prosecute the frauds perpetuated by America’s largest financial institut…. [...]

  3. Greg0658 says:

    there must be government – aka laws .. they must be fair to all .. imo we have a Laborers vs Rentier Capital > issue again

    * investigations & prosecutions take time & cash – something we have a diminishing amount of

    TBTF zones are a boomtime to that zone – hense bad for the rest of us

    since intellect is usually inside of that zone (zip back to *)


    what if?
    we made stock certificates be printed to paper and transfered thru the mail
    just like in “Blast from the Past”
    - also paid for with real green cash that must be transported to a brick & mortar door maybe with an armored truck

    aka ie – slow it down get real

  4. If I were to embezzle $2,5OO from the corner Bank of America and get caught, I’d be in federal prison. Period. How can the U.S. government sit on their ar$e and prosecute not a soul. The leadership at the big banks committed fraud ripping off the government, investors and taxpayers to the tune of $billions and brought this country to its knees and there are no bad guys? Not one? Zero? Instead of penalties, the banks have been lavished with rewards. In an earlier piece investors holding 1OO percent cash were criticized for being chicken $hit? Can anyone really blame them. Most are afraid of getting screwed again. Screwed by the banks. And why are we cyncial? C’mon Eric Holder.