The DOJ and the SEC Spurn their Ace in the Hole: Richard Bowen


New Economic perspectives has the article The DOJ and the SEC Spurn their Ace in the Hole: Richard Bowen. This is the second part of a three part series by William K. Black. I posted about the first part in The Lessons Richard Bowen’s FCIC Testimony Should Have Taught the Nation.

To give you a sense of the dereliction of duty of Obama’s Department of Justice, I give you the following excerpt from the latest Black article:

Competent and vigorous government financial regulators are typically superior witnesses compared to whistleblowers.  They are rarely subject to similar damaging psychological pressures.  They have nice titles and expertise in their fields.  They have no personal axe to grind.

In the savings and loan debacle (less than one-hundredth the size of the current crisis) our agency, the Office of Thrift Supervision (OTS) made over 30,000 criminal referrals.  The referrals produced over 1,000 felony convictions in cases designated as “major” by DOJ.  The cases that were prosecuted were hyper-prioritized through the “Top 100” process.  We worked closely with the FBI to prioritize the worst 100 fraud schemes.  That represented slightly over 300 S&Ls and 600 individuals.  They were nearly all prosecuted and despite having the best criminal defense lawyers in the world we achieved a 90% conviction rate.  The ability of the regulators to take the lead in successfully prioritizing cases for prosecution is one of the collateral advantages of superb regulatory criminal referrals.

Compare this record to the zero, yes I said zero, criminal referrals in the aftermath of the latest crisis.

See also the another post on my blog Whistleblower from Citi Bank asking WHY DOJ is not acting on his evidence!

If you are as incensed as I am about the failure to prosecute, then I don’t know how you could possibly vote for Hillary Clinton for dog catcher, let alone President.  These crooks are Hillary’s pals.  She has never called for their prosecution.  If a similar crisis occurred during her Presidency, you can bet she would act with as much venality as the Obama administration has acted.

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