{"id":18321,"date":"2014-10-01T22:56:58","date_gmt":"2014-10-02T02:56:58","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=18321"},"modified":"2014-10-02T21:21:37","modified_gmt":"2014-10-03T01:21:37","slug":"a-perfectly-legal-scam-is-perfectly-unacceptable-to-real-bank-supervisors","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2014\/10\/01\/a-perfectly-legal-scam-is-perfectly-unacceptable-to-real-bank-supervisors\/","title":{"rendered":"A \u201cPerfectly Legal\u201d Scam is Perfectly Unacceptable to Real Bank Supervisors"},"content":{"rendered":"

New Economic Perspectives<\/em> has the article A \u201cPerfectly Legal\u201d Scam is Perfectly Unacceptable to Real Bank Supervisors<\/a> by William K. Black.\u00a0 Now that you have heard the words of the culprits from my previous posts<\/a>, let us bring in an expert to tell you exactly what is so wrong with what they did.<\/p>\n

Let me give you some excerpts from William Black’s biography<\/a> from\u00a0 University of Missouri Kansas City.<\/p>\n

Professor Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.<\/p><\/blockquote>\n

So when you get an explanation of what the Fed bank supervisors did wrong, you know it is the voice of experience from a bank regulator who has done it right.\u00a0\u00a0\u00a0 He explains several episodes of the financial crisis that are peripheral to (but essential background information about) the current brouhaha over Goldman Sachs before he gets into their latest fraud.<\/p>\n

In case you don’t get to read the article, I will just show you the excerpt that shows exactly how derelict the bank supervisors were.<\/p>\n

So, it\u2019s \u201capparent\u201d that the deal was a scam. Silva knew it was a scam. His team knew it was a scam. As a former senior banking lawyer\/regulator who worked with real supervisors let me assure the reader that there can be real supervisors and that no change in law was required for Silva to block a \u201cperfectly legal\u201d scam designed to \u201cartificially enhance\u201d a bank\u2019s reported \u201ccapital.\u201d Such a deal is \u201cunsafe and unsound\u201d and it abets an \u201cunsafe and unsound\u201d act. We would have ordered Goldman to terminate the scam and if its senior managers refused to comply we would have brought a \u201ccease and desist\u201d order against Goldman and a \u201cremoval and prohibition\u201d order against the senior managers. We would have won both actions. The federal banking regulators have explicit statutory power to act against \u201cunsafe and unsound\u201d banking practices.<\/p><\/blockquote>\n

I think the point is that the system including the FED is corrupt.\u00a0 However, the likes of Rand Paul haven’t a clue as to exactly what is wrong.\u00a0 If you want a Senator to go after the Fed and try to fix it, Elizabeth Warren is one of the people you want.<\/p>\n","protected":false},"excerpt":{"rendered":"

New Economic Perspectives has the article A \u201cPerfectly Legal\u201d Scam is Perfectly Unacceptable to Real Bank Supervisors by William K. Black.\u00a0 Now that you have heard the words of the culprits from my previous posts, let us bring in an expert to tell you exactly what is so wrong with what they did. Let me […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-18321","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/18321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=18321"}],"version-history":[{"count":3,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/18321\/revisions"}],"predecessor-version":[{"id":18327,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/18321\/revisions\/18327"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=18321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=18321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=18321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}