Daily Archives: August 18, 2013

The FBI’s 2010 Mortgage Fraud Report Reveals Why the Banksters Love Holder

The New Economic Perspectives blog has published William K Black’s article The FBI’s 2010 Mortgage Fraud Report Reveals Why the Banksters Love Holder.

The cutest quote from the article is:

One of the difficulties we have is that because the last two administrations have fanatical devotees of the cult of the Virgin Crisis – the myth that the ongoing crisis was the first in modern times conceived without sin (control fraud) – that it is exceptionally difficult to know what their creed is.

However, the short quite that is most indicative of the shortcomings of l;aw enforcement is the following quote”:

The U.S. Attorney for Sacramento, one of the epicenters of accounting control fraud, was foolish enough to attempt to explain why he did not investigate or prosecute the banksters:

Benjamin Wagner, a U.S. Attorney who is actively prosecuting mortgage fraud cases in Sacramento, Calif., points out that banks lose money when a loan turns out to be fraudulent. “It doesn’t make any sense to me that they would be deliberately defrauding themselves,” Wagner said.

Wagner’s inability to keep his pronouns straight even when they were in the same sentence – “they” refers to the CEO, “themselves” refers to the bank the CEO is looting – was so embarrassing that he did not even try to respond to his critics. 

Black compares the prosecutions after the S & L crisis to the ones after the current crisis to emphasize how much the current law enforcement entities have fallen down on the job. The current executives in our law enforcement agencies seem to have forgotten all the resources at their disposal that have been useful in past frauds. Instead they turn to the perpetrators to tell them what they should and shouldn’t do to investigate the crimes. I am not talking about reformed perpetrators, either. These are the perpetrators who continue with their crimes. We know how well that worked out with the Whitey Bulger case. If even murder isn’t enough to get the FBI’s attention, then how can we expect them to be bothered by a few trillion dollars of fraud?