Monday, December 05, 2011

Prosecute the bank CEOs and Wall Street



 Steve Kroft of “60 Minutes” got tired of waiting for the Justice Department to prosecute the big banks that caused the financial crisis.   They asked the questions that the media has been avoiding.
This is a good start.  the next step is to prosecute the CEO's of the major banks.  Only 2 have been prosecuted for the fraud of  $14 Trillion.  Based upon the Savings and Loan fraud of the 1980's, at least 1,000 should be going to jail.  Ask the Obama Administration,  ask your Congressperson why no one is going to jail.

Robert Scheer. You can arrest an idea. On Truth Dig.

"For a confirmation of that point, I also intended to present the mayor with the transcript of U.S. District Judge Jed S. Rakoff’s ruling this week rejecting the sweetheart deal between the SEC and Citigroup. The settlement, one of dozens like it offered to the banks, would have let Citigroup off the hook for a pittance in fines in return for closing cases involving immense corruption on the part of the bankers, who would not have to admit guilt for their crimes.


And crimes they clearly are, far beyond the scope of pitching a tent in a public park. As Judge Rakoff stated, the Securities and Exchange Commission has charged Citigroup with “a substantial securities fraud” in the sale of a billion dollars’ worth of toxic securities that were designed to fail and which the bank had bet against. Rakoff, who has handled a number of these cases, complained that Citigroup, like the other major banks, is a recidivist. Citigroup had already paid fines for four similar scams. The judge observed that “although this would appear tantamount to an allegation of knowing and fraudulent intent, the SEC, for reasons of its own, chose to charge Citigroup only with negligence” despite the far more serious charges called for in securities law.

The failure of the SEC or any other government agency to hold the banks accountable provides the essential justification for citizen action of the sort the Occupy movement has offered. In his concluding summary, Rakoff stated: “Finally, in any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth. In much of the world, propaganda reigns, and truth is confined to secretive, fearful whispers. Even in our nation, apologists for suppressing or obscuring the truth may always be found.”

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