Too Big to Jail

A quick note on the subject of criminal prosecution of bankers. The excuse is the four dog defense.

As a refresher, the first part is “I don’t have a dog.” In the case of the mortgage crisis, it started with the banks claiming that trusts, derivatives, mortgage backed securities had nothing to do with the loans. Actually, they were telling at least part of the truth. It was the banks and servicers that brought the foreclosures to the door of homeowners. Then it evolved into “U.S. Bank as Trustee for [either the certificate holders or a named REMIC Trust]”. Now they have gone back to naming the bank as though there was no trust, claiming no securitization.

Part 2 is “OK I have a dog but my dog doesn’t bite.” In the courts this translates as it was “legal” because it was disclosed. In part, that is true. But the greater part of the truth is that the “mortgage-backed securities” were issued by a REMIC entity that was never funded; so the certificates were not mortgage-backed and thus did not qualify for REMIC treatment and the exemption from securities regulation did not apply, so the bankers could have and should have been jailed for criminal fraud.

Part 3 is “OK I have a dog and it does bite but it didn’t bite you.” So since the borrowers were defrauded in a different way, law enforcement failed to prosecute the Investment Banks and the officers and directors. The real reason for this is nobody in law enforcement actually took the time to study what was done. So the banks assert that maybe they broke every rule imaginable but whoever is complaining cannot show how it exactly hurt that one person. That is why the word “investigation” exists.

Part 4 is “OK I have a dog, it does bite and it did bite you but the injury is your fault. You shouldn’t have been playing with a dog you knew nothing about”. So all that advertising, mailers, door hangers and people knocking on doors luring the homeowners into these bone-headed loans at what appeared to be 2.5% counts for nothing. And all those rating agency reviews that gave AAA approval for the shares of a company that had no assets and no liabilities and no income and no expenses means that the investors and borrowers (i.e., the victims) were at fault because they were looking for something for nothing. And they should have known better. On that theory Madoff should not only be free, he should be continuing his Ponzi scheme on the theory that to stop it would damage the investors.

Here is the truth: neither the Bush Administration nor the Obama administration had any knowledge about the fraud and corruption on Wall Street other than what they were getting from their “advisers” a/k/a Wall Street insiders. So when the bankers asked for a form of informal immunity, Bush and Obama agreed. And here is another truth.

If the truth had been exposed by regulators and law enforcement the entire crash would have been vastly diminished because the investors and borrowers could have come together and mitigated the damage to both. That opportunity still exists and is still needed to mitigate the further damage from another 8 million foreclosures that the banks are hiding but which is starting to be revealed. Google it. There is only so much you can sweep under the rug. Each step of the foreclosure process is furthering the fraud, covering it up and is intended to avoid detection — all crimes.

see (http://www.americanbanker.com). The entire article may be viewed at http://www.americanbanker.com/news/law-regulation/why-too-big-to-jail-is-still-a-matter-of-debate-1076225-1.html Why ‘Too Big to Jail’ Is Still a Matter of Debate August 21, 2015 By John Heltman

Third in a series on “too big to jail”

WASHINGTON — The failure to prosecute bankers as a result of the financial crisis has sparked an ongoing debate about whether enforcement officials lacked the will to move forward with any cases—or didn’t have enough proof that any crimes had been committed.

19 Responses

  1. The wheeler dealers want us to believe credit is money & money is credit which it’s not.

    Where the supposed debt was derived from is what they want to hide.

    Who speculates on the value of SALES & sets the EXCHANGE RATES?

    The high frequency traders manipulate the buy rate & yes that’s CRIMINAL because no one knows what they’re really selling.

  2. So who do they think they’re kidding?

    We don’t honor princes or bow to Kings & Queens in these United Ststes.

    Obama reportedly told congress he wants more money to pay bills because they spent it before it was printed.

    Too bad, that’s what they say to us & then they beat our brains in.

    It’s psy ops by hoodlums.

    The news reported the TREASURY DEPARTMENT will be broke by early November.

    Nice try gettng someone to believe that bs.

    We print our own money so why not print some instead of borrowing credit because the DEBT FRAUD was derived from CRIMINAL SHENANIGANS by the spy ring.

    Since when is the President the Treasury Secretary who pays their tab off of our backs?

  3. I don’t know what you meant in your comment Kalifornia.

    The truth of the matter is, the DRUG RACKETEERS need to go to the HAGUE for war crimes.

    When there is total corruption & you have the POLITICIANS to blame for being invested in their own corruption calling everyone else criminals it’s treason.

    Read the DECLARATION OF INDEPENDENCE – & for the support of this DECLARATION, with A firm Reliance on divine Providence.

    In every stage of these Oppressions we have Petitioned for Redress in the most humble Terms:
    Our repeated Petitions have been Answered only by repeated Injury. A Prince, whose Character is thus marked by every Act which may define Tyrant, is unfit to be the Ruler of A FREE PEOPLE.

    Nor have we been wanting in Attentions to our British Brethren. We have warned them from Time to Time of Attempts by their Legislature to extend an unwarrantable Jurisdiction over us. We have reminded them of Circumstances of our Emigration & Settlement here. We have Appealed to their native Justice & Magnanimity, & we have conjured them by the Ties of our common
    Kindred to disavow these Usurpations, which, woud inevitably interrupt our Connections & Correspondence. They too have been deaf to the Voice of Justice and of Consanguinity. We must, therefore, Acquiesce in the Necessity, which denounces our Separation, And hold them, As we hold the rest of Mankind, Enemies in Wsr, in Peace, Friends.

  4. Thu Oct 22, 2015 at 01:36 PM PDT
    Iceland sentences 26 bankers to a combined 74 years in prison

  5. @ lvent

    The preceding message posted is now further extended to you too.

  6. Correct typo: they try to _criminalize_us & for some reason, my previous comment unintentionally posted twice.

  7. Who else would try & criminize us for them unlawfully spying on us?

    Only those with crimes to hide spy on people.

  8. Who else would try & criminize us for them unlawfuly spying on us?

    Only those with crimes to hide spy on people.

  9. We should sue the MEDICAL ESTABLISHMENT & their BIG PHARMA AIG/INFRAGUARD DRUG CARTEL for violating our legal rights by existing.

  10. Theyre high on their own DERIVATIVES FRAUD CRACK they conjured up on WALL STREET.

    They’re DEBT FRAUD crack whores because of it.

  11. @ greg

    When such a loss/muddling of time occurs under these extreme and cumulative circumstances, the medical term and/or definition of the cause of the cognitive impairment has been identified: “allostatic load.”

    My condolences to you and yours.

  12. OMG – brain dead

    my apologies to ALL for missing the hosting of tonite’s follow up Q&A Call

    with all the hubbub pertaining to the passing of my mother-in-law (my 4 kids’ grandma) 2 days ago and preparation – i completely lost a day of the week and lived today as if it were Wednesday…

    i will be back in sync next week, OK?

    please forgive –

    thank you
    greg

  13. test

  14. This is where I’ve always gotten lost in the weeds of Neil’s rationale…..

    “If the truth had been exposed by regulators and law enforcement the entire crash would have been vastly diminished because the investors and borrowers could have come together and mitigated the damage to both.”

    That assumes that both sides agree that a huge crime spree took place and that everyone should act like grownups and simply rewrite contracts excluding the criminals this time.

    I have a better scenario, and it doesn’t involve a dog:

    Part 5: Yes, we’ve surrounded Wall Street and we have a lot of rope. Oh look, lamp posts! Lots of lamp posts – posts not being used for anything ‘cept for holding up lamps! Let’s put them to some really good use for a change.

    All of the globe’s woes would be over within hours.

  15. Reblogged this on Deadly Clear and commented:
    Confiscate the software, rescind and ban the use of this patented scheme. Wake up Congress!

  16. The thing is they were not only Cant afford scenarios my broker who I considered a friend,who I referred so many people to because she was good,and she did every loan of mine about 14-20,she freakin stalked me over this one and that wasnt here style at all.

    My accountant at the time who was what I thought a really good guy was trying just as hard to peddle a kinda new investment called REMICS TRUSTS,can you believe these f…s.
    Thats why when reflecting on the way the closing went down and how bad of actors these folks were they musta made nothing but dollhairs on those deals.
    My thought they kept the entire thing as you see none of those Mother f…ers are working any longer at least not in the same business and not one that I know of got busted.
    My broker dismissed with no issue time barred let me take all the loan docs home with me and didnt need them she also knew that I paid off my 2nd 2 months before even thinking about this garbage,but Wells Fargo says they paid it.
    This was all talked about amongst those in that industry,the real estate industry also is my opinion and the legal community and now thinking about it she did attempt to get me refid after the shit hit the fan,but it was too late.
    My mom and my sister both went to her and have had nothing but problems at least they got fixed loans.Dang what a trip.

    The whole meltdown passed over me as I lived in my own world raising my son on my own,surfing,working and wow times have changed.I live near the beach in what has now become a disgusting place to live IMO,where today realtors collude with straw buyers to grab homes that have loans that cant be fixed at bargain prices,sorta and the traffic and helicopters and sirens never stop.Used to be anytime of any day all you heard was silence.
    That used to be strange also,oh well get over it,can you see,that i have no question mark key.

  17. The only way this scam ends is when it costs more than it brings in. That cost is prosecutions and jail time like they did in Iceland. Iceland, just recently, nailed several more bankers. It is imperative that this happens here.

  18. Jaws. We’re dealing with Big Killer Sharks
    Who claim to be friendly helpless Dolphins

    NAzi propaganda at its best

    NEVER AGAIN

  19. still Neil, not enough has been done and yes to Obama, this is history already and his failure HAMP and HARP plans which appear to be a façade to look like he is genuinely concerned is a joke. As long as Obama is in office, the banks rule. sorry I am a rush Limbaugh fan, not a fan of a corrupt legal system that no one appears to be fixing and I know you are bringing a lot of truths to surface but you are a small fish in a big sea of corruption. Surely with 8 million foreclosures still on the horizon, how could Obama turn a blind eye and fail to look at his shortcomings with this crisis. No wonder the economy cant seem to really get going. Do you know how many people this has affected. The people that this foreclosure crisis has effected want to see justice done to these bankers that gambled with our homes and then they really did not gamble, they were looking for a quick buck and they got it by luring people into homes they really could not afford with these liar loans, keeping people confused with the non existent paperwork which they now have to fabricate to steal your home and then re sell the home. They cashed in big and we lose. And it goes on today because no severe punishment and by that I mean jailtime. money is like water to bankers, they will never run dry because they are using their ill gotten gains to bail themselves out of their criminal, felony acts. That’s why you don’t hear anything on the media. They threaten the TV stations. Channel 10 had a story about a couple that the bank breached a loan modification like they did with me and the couple took it to federal court and Christine reported it and then you never ever heard about the outcome and you know why because the bank is guilty and there was a closed door settlement. I am still waiting for my closed door settlement. They might as well have shot us in our homes when they serve the eviction notice. The banks would have just had us removed with the rest of the “junk” in our house (and I say junk, because that is all we are to them, not a valued customer as their customer service people always claim”. They could get away with MURDER and nothing would happen.

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