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One of the most frustrating things about Obama (next to his not going after the torturers from the Bush administration) has been his unwillingness to make the banks pay for their misdeeds in the financial crisis. He continues to characterize their misdeeds as mistakes rather than criminal actions. He and Holder have done this without any evidence from any actual investigation. They simply take the banks at their word ... just as they took Bush's claims at his word that they did not torture (despite clear evidence ... to anyone with open eyes ... to the contrary).

The current rush to give the banks waivers from their possible past crimes as part of a mortgage settlement agreement, without any real investigation into what the banks did or did not do, is a clear case in point.

Yves Smith at Naked Capitalism, one of the few people out there that seems to understand what has happened and the extent of the banker crimes ... and who is willing to stand up and scream that it was criminal, is out with a great post that shows how even Matt Taibbi may have been hoodwinked over the latest Schniederman appointment (Please read the whole article ... it is worth it).

If the Administration had really changed its stance on bank misdeeds, you’d see it putting the settlement on hold until the investigations led by Schneiderman had been concluded. The fact that the mortgage settlement is proceeding on schedule says this the Administration is, as before, trying to cover up its bank-favoring actions with better propaganda.

and more specifically:

In addition, the consensus view among the boosters is that robosigining is not such a big deal, so we ought to be happy to waive that in isolation. But look at how Catherine Cortez Masto is using that abuse to go in a very systematic manner up the servicing ladder, from managers of robosigners that she is prosecuting criminally to Lender Processing Services. As we have argued repeatedly, LPS served as a liability shield for the major servicers. If Masto gets to discovery on LPS, the odds are high that she will be able to establish that servicers were well aware of the abuses that LPS was engaged in as their agent and the banks were effectively colluding with LPS.

In other words, clear cut, institutionalized abuses are a great way to engage in the classic mob prosecution strategy of targeting the foot soldiers to get them to give you the dirt on the entire network. Why would you give up such a valuable chip when you don’t know the extent of the abuses?

The after effects of the financial crisis live on and will continue to live on until there is real reform that prosecutes wrongdoing (and puts those convicted in jail). You absolutely need to have real prosecutions if you want to have a deterring effect on future actions by the banks. That this has not been done ... and more criminally, that no real investigation has been done to establish the degree of misbehavior involved in and of itself speaks volumes about the degree to which the administration has drunk and continues to drink the bank kool-aid.

Where are the real investigations???????? Laws are of little value if there are no penalties for breaking them! You would think a Law Professor would know this.

Oh and why is Corzine (ex of MF Global) still a free man. Usually when you steal $1 billion dollars there are some consequences.

Originally posted to taonow on Wed Feb 01, 2012 at 04:49 AM PST.

Also republished by ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement.

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Comment Preferences

  •  Tip Jar (12+ / 0-)

    Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

    by taonow on Wed Feb 01, 2012 at 04:49:44 AM PST

  •  You work with the government you have, not the (5+ / 0-)

    one you want- until the people (OWS) change the corporatocracy what can he do?

    I'm asking, not approving.

    "Time is for careful people, not passionate ones."

    "Life without emotions is like an engine without fuel."

    by roseeriter on Wed Feb 01, 2012 at 04:53:21 AM PST

  •  We will soon see a new great divide (4+ / 0-)

    in the Democratic Party and right here at Daily Kos.

    There is certainly much more that I hope President Obama can accomplish as President of The United States of America.

    And I hope that he will have the four more years that he needs. He will also need Progressive Democrats to tell him exactly what we expect, and he will need the backing of moderates, and he will need the courage and wisdom to do the right thing.

    I guess we are going to have to survive our own infighting and trolls first.

    This better be good. Because it is not going away.

    by DerAmi on Wed Feb 01, 2012 at 05:10:02 AM PST

  •  Investigations are by design confidential. (5+ / 0-)

    One does not want to give the agenda away.  In addition, much as one might prefer it to be otherwise, corporate entities (artificial persons) are also considered innocent until proven guilty and cannot be charged, never mind found guilty, without proof of malfeasance and intent.
    Fact is that many financial shenanigans have been made entirely legal by......guess!  Yes, that's right, our state and national legislative bodies (also corporations, btw) have made clearly immoral behavior entirely legal, mostly under the principle that when people are informed of the possibility they'll be stolen blind and agree to it by signing on the dotted line, it's no longer abusive and it's not a crime.
    It's sort of like a panhandler asking nicely for money instead of sticking a gun in your ribs.  One's legal and the other is a mugging. Even in the case of the latter, law enforcement would have to prove the fellow actually had a gun, not just a fat finger.

    Now, if you brought suit against the mugger, assuming you know where he lives, then he'd have to show up in court or you'd win by default.  However, collecting what you've won would still be your problem.  
    Georgia is now putting people who default on their child support obligations in prison, but that does not collect the money they owe.

    You can restrain a deadbeat, but you can't make him pay.

    Putting banksters in prison does not get the money back.  
    Now, legislators could write the standards for corporations to say that imprudent or negligent management which results in bankruptcy will result in the corporation being terminated, but they haven't been willing to do that.
    We need better legislators.  That they can shut down corporations is evidenced by what they are doing to labor unions (also corporations) in Wisconsin, Michigan and Indiana.

    That the executive is responsible for everything because he affixes his signature to laws is a convenient sham that lets legislators off the hook.  If that one doesn't work, they blame the lobbyists.

    People to Wall Street: "LET OUR MONEY GO"

    by hannah on Wed Feb 01, 2012 at 05:18:11 AM PST

    •  The Obama defense (7+ / 0-)
      Fact is that many financial shenanigans have been made entirely legal by

      That is the Obama defense. And it is WRONG. There is clear evidence of fraud and other crimes especially in how mortgages were securitized. The banks want the waiver to be as broad as possible because they know some of what they did was clearly illegal. But to grant such a waiver before you even know what they did wrong is patently insane.

      Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

      by taonow on Wed Feb 01, 2012 at 05:22:48 AM PST

      [ Parent ]

      •  Lay out this clear evidence (9+ / 0-)

        of fraud and other crimes.  So far I have seen the the suggestion of fraud I have seen no clear evidence.

        Republican Family Values: Using the daughters from your first wife to convince everybody that your second wife is lying about your third wife.

        by jsfox on Wed Feb 01, 2012 at 05:41:22 AM PST

        [ Parent ]

      •  If you listened to Shneiderman, (6+ / 0-)

        the waivers being discussed on the federal level will not impact the liability for criminal acts on the state level and the Attorneys General of the two states where most of these corporations are registered, New York and Delaware, will be able to continue their work.

        This is a federal system.  Most criminal matters are the responsibility of the several states and local jurisdictions. It is a waste of time to task the President with carrying out obligations he doesn't have.

        Royalists have a king to blame and that makes them feel good, but it doesn't provide justice.

        People to Wall Street: "LET OUR MONEY GO"

        by hannah on Wed Feb 01, 2012 at 05:44:10 AM PST

        [ Parent ]

        •  Yeah, yeah, no accountability. (0+ / 0-)

          Always an excuse, never a perp walk.

          The two things Teabaggers hate most are: being called racists; and black people.

          "It takes balls to execute an innocent man." -- anonymous GOP focus group member on Rick Perry

          by Punditus Maximus on Wed Feb 01, 2012 at 07:43:07 AM PST

          [ Parent ]

          •  "Accountability" means to be able (0+ / 0-)

            to render an account and to render an account means to tell what was done (spent, collected, experienced).  Then, when one knows what was done, one can take action to correct a mistake or fire a perpetrator.  
            Public officials are presumed to be acting according to instructions.  That's what they are hired to do.  If they don't, they deserve to get fired--but not by a firing squad. Not only does the presumption of probity have to be overcome, but there's also a presumption that those who hired bear some responsibility for the outcome.
            So, if elected public officials are duds, then the electorate has to look at itself.

      •  speculation is cheap... bring on the FACTS (5+ / 0-)

        "It is horrifying that we have to fight our own government to save the environment." *Ansel Adams* ."Even if you are on the right track, you'll get run over if you just sit there."*Will Rogers*

        by Statusquomustgo on Wed Feb 01, 2012 at 06:03:41 AM PST

        [ Parent ]

      •  Prove it (2+ / 0-)
        Recommended by:
        sagesource, Diogenes2008
        There is clear evidence of fraud and other crimes especially in how mortgages were securitized.

        Let's hear the "clear evidence of fraud"

        Some of the "clear evidence" I've heard people spout is about the bond ratings agencies giving AAA ratings to garbage....when you look into the facts, it turns out that the ratings are apparently OPINIONS and they're not suitable targets for fraud suits or prosecutions, however wrong they are.

        And while you're at it,  have some respect for the President.

        "Ronald Reagan is DEAD! His policies live on but we're doing something about THAT!"

        by leftykook on Wed Feb 01, 2012 at 07:05:45 AM PST

        [ Parent ]

        •  For the nth time, (3+ / 0-)
          Recommended by:
          anarchyintheusa, aliasalias, taonow

          the answer to your question is "MERS".

          Now, let's be clear -- we both know that as long as Obama is in office, you don't care.  But I wish you'd be honest about it.

          The two things Teabaggers hate most are: being called racists; and black people.

          "It takes balls to execute an innocent man." -- anonymous GOP focus group member on Rick Perry

          by Punditus Maximus on Wed Feb 01, 2012 at 07:45:46 AM PST

          [ Parent ]

  •  There is money missing at MF Global. (3+ / 0-)

    And multiple investigations are ongoing, according to press reports. It is still not clear if anybody stole any money, let alone that Jon Corzine stole any money. But you think it a problem that Corzine is "still" a free man. To hell with whether he actually should be charged with a crime, or face trial, or mount a defense. Damnit Obama, skip all that stuff and just lock him up! Brilliant.

  •  Btw, that's an offensive title. (7+ / 0-)

    Hardly worth responding to, except for the fact that the ignorance about how federalism affect the nation is rather widespread.

    Conservatives like federalism because they think smaller political units are easier for petty potentates to rule and ruling is what they're about.

    The people appreciate federalism because petty potentates are easier to remove than plenipotential ones. :)

    People to Wall Street: "LET OUR MONEY GO"

    by hannah on Wed Feb 01, 2012 at 05:49:25 AM PST

  •  that's why I've always thought of Obama as (1+ / 0-)
    Recommended by:
    anarchyintheusa

    Bush lite

  •  When you write: (4+ / 0-)
    Recommended by:
    doc2, sagesource, Diogenes2008, kalmoth

    "He continues to characterize their misdeeds as mistakes rather than criminal actions. He and Holder have done this without any evidence from any actual investigation."

    What I think about is due process, not rushing to judgment, innocent until proven guilty.

    What the banksters did was obviously wrong, they should've been strictly regulated, and there was no doubt some serious malfeasance involved, but to call it criminally wrong before a trial is something the President of Salem, Massachusetts might do. But thankfully not our President.

    Republicans, like Zombies, just want to get a head.

    by Tortmaster on Wed Feb 01, 2012 at 06:03:23 AM PST

    •  IF (1+ / 0-)
      Recommended by:
      aliasalias

      If you refuse to do an official investigation (in case you might find evidence) then no, you will not find criminal wrongdoing and can argue that there was none.... BUT THIS DOES NOT MAKE IT SO.

      Enough independent work has been done to show that at an absolute minimum there is enough smoke to look and see if there was a fire.

      To ignore the evidence, from MERS to illegally packaging and flogging CDOs, and simply say don't jump to conclusions is nuts given the damage that has been done to the economy. Just look at the convictions in the old S&L crisis and you have a pretty good idea that if someone actually looked for fraud they might actually find it ... BUT Obama refuses to even look. He is the one prejudging the outcome.

      Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

      by taonow on Wed Feb 01, 2012 at 02:57:19 PM PST

      [ Parent ]

  •  thanks for diary taonow... (2+ / 0-)
    Recommended by:
    anarchyintheusa, taonow

    i've been following mortgage fraud closely on nc
    imo yves is right on the money, and taibbi's just covering for the administration
    there are laws for the 99%
    and then there are mistakes made by the 1%.......wtf

  •  Don't agree. Schneiderman, CFPB, Dobbs-Frank, etc. (4+ / 0-)

    But this shows real naivete, imo...

    Usually when you steal $1 billion dollars there are some consequences.

    Historically, I can't think of an example, unless Madoff's take reached a billion.

    Billionaires tend to get what they want, and many of them get their stash unethically/illegally.  If we want to stop them, imo, we should go after the Kochs in WI and now AZ, rather than the Pres.  And their real friend, Romney.

  •  Actually, under our system, (1+ / 0-)
    Recommended by:
    anarchyintheusa

    the last person who faces consequences is the man who steals $1 billion.

    The two things Teabaggers hate most are: being called racists; and black people.

    "It takes balls to execute an innocent man." -- anonymous GOP focus group member on Rick Perry

    by Punditus Maximus on Wed Feb 01, 2012 at 07:40:50 AM PST

  •  another day, (0+ / 0-)

    another stupid Obama-is-an-evil-corporatist diary at Daily Democrat hate.

    •  Another day (0+ / 0-)

      ... another day and another apologist for the lack of action.

      Those who make peaceful revolution impossible will make violent revolution inevitable. - JFK

      by taonow on Wed Feb 01, 2012 at 03:02:02 PM PST

      [ Parent ]

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