Wednesday, November 30, 2011

Judge rejects deal cut by SEC

The Sacramento Bee has a good editorial this morning on a federal judge who refused to accept an SEC deal with the major banks that would only provide only weak punishment to Citi corps for one of their several frauds.
As judge Jed. S. Rokoff  said and the cost is obscured rather than revealed and the punishment is less than the profits made by Citi Corp in a few days. This weak agreements apply to each of the other deals proposed, JP Morgan, Bank of America, Chase, USB and others.
This should be a time of legitimate enforcement of financial regulation and fraud. What would it take ?  The Dodd-Frank bill has passed.  It is too limited.  It did not re-establish the 1936 Glass- Steagall  rules.   At present the Republican Party is working night and day to limit and restrict even the limited Dodd-Frank rules.  Each of the Republican candidates for President campaigns to even further restrict regulation.
The Financial Crisis Inquiry Commission in their report described the even existing oversight functions as cramped and not enforced because there are insufficient regulators.  That is, the Republicans protect the banks by preventing the hiring of sufficient regulators even for the present rules.  That means that the entire financial crisis could be repeated in any day.

To protect our remaining economic system from the banking and finance industry, we need at least an 800% increase in accountants and enforcement at the SEC, the FDIC, and the Federal Reserve.
And, we should arrest and prosecute the major leaders of the banks and investment companies.  They looted the economy. They violated many laws and they brought down the economy while taking out billions of dollars in hidden subsidies and loans. (See posts below)
The refusal to arrest the leaders of the fraud is a product of the oligarchy and must be changed.  If we do not- it will all happen again. 

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