William Black, Associate Professor of Economics and Law, University of Missouri Kansas City. The former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri, Kansas City. During the savings and loan crisis, it was Black who accused then-house speaker and five US Senators, including John Glenn and John McCain of doing favors for the S&L’s in exchange for contributions and other perks. The senators got off with a slap on the wrist, but so enraged was one of those bankers like Charles Keating,- after whom the senate’s so-called “Keating Five” were named – he sent a memo that read, in part, ‘get Black – kill him dead.’ Metaphorically, of course. Of course
During the Savings and Loan crisis 1000 FBI agents were assigned to Savings and Loans crisis. Currently there are fewer than one hundred FBI agents assigned to financial crimes and they only go after the little guys. They are unwiling to investigate. CEOs like Jamiie Dimon, who orchestrate Chase’s policy, handles the investigation of charges. Jamie Dimon’s main priority is not to decrease his bonus.
The 2008 crisis has produced no criminal convictions. Zero. None of the eite bankers have been brought to justice. Everyone has gotten out of jail free. The SEC, the office of currency control, the FED, and other regulatory agencies simply have not moved against big banks.
Eric Holder, the Obama Attorney General said that the banks were too big to fail. Some regulators said they were unable to sleep at ngiht for fear of hurting big bankers. There has been a steady decine in prosecuting white collar crims.
After 9/11, national secuirty became the highest priority. The best FBI agents were transferred out of white collar crime. We have two FBI agents per industry that investigated white collar crimes. Banks don’t make criminal accusations against their CEOs. Cirminal referrals have ceased. Whistleblowers whistle infrequently. There is no system for prosecuting frauds. And we are getting near the statute of limiitations on this crime.
People who work for Justice and the SEC are afraid because the criminals are so big and regulators need the revolving door and their future with the criminals. Looting the underowrld of banking.
Jim Webb, who served as Senator from Virginia for one-term, is contemplating a run for the presidency. Webb led an effort in the Senate to tax windfall profits of executives who had benefited from TARP. He was told off the record by a Wall Street executive, “You have to punish these guys. It is outrageous what they did.” Webb could find support neither from Democrats or Republicans in the US. As Senator Durbin of Illinois says, “The bankers own us (the Senate.)”
