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How convenient for the wealthy class/banksters responsible for the Crash.

Time is running out for U.S. securities regulators to file civil charges for alleged wrongdoing during the financial crisis.

Federal laws under which the Securities and Exchange Commission usually goes after alleged fraud and other misdeeds have a five-year statute of limitations. The five-year limit is causing SEC officials to race to file lawsuits in some cases and ask lawyers representing the targets of certain investigations to give the agency more time, according to people close to the investigation.

The SEC intends to file charges against firms and people involved in the creation of a $1.6 billion mortgage-bond deal called Delphinus CDO 2007-1, people close to the investigation said. The collateralized debt obligation—which is a pool of subprime mortgages or other loans, slices of which are sold to investors—imploded within months.

Among those likely facing civil charges are Mizuho Financial Group Inc.

An SEC spokesman said the agency's crisis-related track record is "unmatched" by any other law-enforcement organization, citing charges against 104 firms and individuals, as well as financial sanctions of $2 billion.
$2 Billion?? that's it? We lost Trillions in the Crash. $2 Billion is nothing to crow about.

Is there some reason(s) the SEC is turtle sloooooooooooow on actually enforcing the law?

and wow, impressive they are going after a Japanese company. that should be some comfort to Goldman Sachs and the rest.

Originally posted to Superpole on Fri Jul 13, 2012 at 11:53 AM PDT.

Also republished by Occupy Wall Street.

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Comment Preferences

  •  Tip Jar (15+ / 0-)

    "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

    by Superpole on Fri Jul 13, 2012 at 11:53:57 AM PDT

  •  It's not a popular question (1+ / 0-)
    Recommended by:

    but how much of what went on was actually illegal?

    I mean, it seems like after years/decades of deregulation a lot of things that were immoral and reckless, were also legal. That's not to defend the SEC, but I'm just asking. Because it seems like that would be a major effect of deregulation.  

    •  A big part of the point (3+ / 0-)

      Is that we will never know. We will never know and no one will even be acknowledged as acccountable.

      And then, of course, our brilliant lords can masters can be surprised and shocked, shocked when it happens all over again... Maybe next year...

      "I don't try to describe the future. I try to prevent it." - Ray Bradbury

      by chuckvw on Fri Jul 13, 2012 at 12:48:14 PM PDT

      [ Parent ]

    •  According to Bill Black (2+ / 0-)
      Recommended by:
      Liberal Capitalist, Superpole

      there was a whole lot that was illegal.

      We don't need new laws.  We need to enforce the ones we have.


      And why vote Democrat if the Democrats are just going to get along just like the Republicans?

      I have little reason to vote Democrat except that Republicans are worse on some matters.

    •  I Get it, But (0+ / 0-)

      ostensibly one of the purposes of the SEC is to protect our nation from financial ruin.

      The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

      Note the "maintain fair" markets.

      what happened in 2007-8 was far from fair. it reeks of malfeasance and chicanery of the worst sort.

      regardless of whether what happened was legal or not, the SEC is obligated to tell us what happened, which banksters did what, and make recommendations to congress to remedy the problem.

      If the SEC is not going to do this, then I'm not sure why we're paying their salaries.

      Pretending they can keep all of this secret is bullcrap.. alot of it is detailed in Michael Lewis' book The Big Short.

      "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

      by Superpole on Fri Jul 13, 2012 at 01:07:06 PM PDT

      [ Parent ]

    •  A lot of it. (1+ / 0-)
      Recommended by:

      Despite what the President chooses to believe.  Bill Black is one of the best sources on this.  I highly recommend these tow diaries--long but will greatly increase your knowledge of this subject if you are interested.

      Also this from Sen. Ted Kaufman's former CoS:

      The jury is out (alas, only metaphorically) on whether Wall Street practices that accompanied the financial crisis amounted to criminal fraud. Some legal commentators have concluded that the causes of the crisis were systemic and not the result of malfeasance or conspiracy. The debate about whether practices were illegal or simply unethical will never be resolved because only a jury can render a verdict after weighing the evidence, presented by opposing counsel, for each element of an alleged crime. That said, independent fact-finders like the Financial Crisis Inquiry Commission, the Senate Permanent Committee on Investigations, and the bankruptcy examiner for Lehman Brothers have compiled compelling evidence of what, to many, certainly looks like fraud.
  •  fail? i'd say it's a success (1+ / 0-)
    Recommended by:
    Horace Boothroyd III

    for the interests who own the SEC and our political system, lock, stock and barrel.

  •  The fix is in, let the deadline pass with one (4+ / 0-)
    Recommended by:
    chuckvw, Superpole, jhm453, 2laneIA

    case brought to throw dust in the eyes of those naifs expecting justice.  We have only had, what? four years of expert AND knowledgeable tracings of the dots and links between the financialization  of transactions as the way to profits in the banking industry and the egregious and unethical basis of the largest banks attempting this scam on everybody else besides their very best customers.  That  information is out there, but no action.  Hell, the NSA probably has evidence back when they are hoovering up 100% of all etraffic to chase money launderers.  Put that together with a skill team and slam them all to hell.  The evidence is in the government's possession already, worldwide traffic.  

    There is no will to pursue it!

    What has the DOJ wanted to do in this area?  How much effort have they spent compared with chasing California pot users and dispensaries?  They have been waiting for the SEC to come up with something for them to do.

    The fix is in, as in inside the SEC as it was with avoiding investigating and prosecuting  Bernie Madoff and his Ponzi scheme  for many many years.  Do one case, let the rest go.

    We really needed an independent special prosecutor who didn't come directly out of the banking industry or expect to get a job with it after their political time in Washington DC was done.  We have a group of experts like William Black, David Cay Johnson, many others in their class who could be the executive committee to point toward, uncover and pursue the cases. They even have the savings and loan debacle of the 90's as experience.

    We need a Pecora commission similar to what repaired the damage in the great Depression by prosecuting the main elements of the criminal syndicates inside the banks and stock brokerages of that time.

    With LIBOR scandal, others to come, we need a major effort here.  After the election, maybe?  LOL! I'l believe that when I see it actually happen!

    This currently under construction..

    by BeeDeeS on Fri Jul 13, 2012 at 12:18:14 PM PDT

  •  Holder and Shapiro can resign together (0+ / 0-)

    for the good of the country.

  •  "Better late than never." Not so much. n/t (2+ / 0-)
    Recommended by:
    Superpole, 420 forever

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Fri Jul 13, 2012 at 12:54:57 PM PDT

  •  It'll never happen ... (1+ / 0-)
    Recommended by:

    Repeating a post I made back in April:

    Only if you screw the 1%ers will you get punished, like Bernie Madoff did and got 150 years in jail.

    It has been well established over the last decade, if you are a politician, banker or stock broker, YOU ARE ABOVE THE LAW !

    Still waiting for someone who caused the Great Recession to go to jail.  

    Oh, wait ...

    not going to happen as long as we allow a war criminal to retire with Secret Service protection in Dallas, Texas.

    Let them go unpunished and some day, we EACH, may have to lament Pastor Niemöller's,  "First they came" quotation:

    "First they came for the communists,
      and I didn't speak out because I wasn't a communist.

     Then they came for the trade unionists,
      and I didn't speak out because I wasn't a trade unionist.

     Then they came for the Jews,
      and I didn't speak out because I wasn't a Jew.

     Then they came for me
      and there was no one left to speak out for me."


    *Austerity is the opposite of Prosperity*

    by josmndsn on Fri Jul 13, 2012 at 02:05:07 PM PDT

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