William Black: The Incredible Con the Banksters Pulled on the FBI

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William Black: The Incredible Con the Banksters Pulled on the FBI

William Black: The Incredible Con the Banksters Pulled on the FBI

New Economic Perspectives-

This is the second in my series of articles based on the FBI’s most (2010) “Mortgage Fraud Report.”

In my first column I began the explanation of how many analytical conclusions one can draw from a close reading of what is left out of the FBI report.

In particular, I emphasized the death of criminal referrals by the SEC and the banking regulatory agencies. The FBI report implicitly confirms the investigative reporting of David Heath that first quantified the death of criminal referrals by the banking regulatory agencies.

Because banks will not make criminal referrals against their own CEOs, this means that criminal referrals have virtually vanished against the “accounting control frauds” that drive our recurrent, intensifying financial crises. As George Akerlof and Paul Romer explained in their famous 1993 article (“Looting: The Economic Underworld of Bankruptcy for Profit”) the death of prosecutions of the controlling officers of banks will lead to accounting control fraud becoming a “sure thing.”

[M]any economists still seem not to understand that a combination of circumstances in the 1980s made it very easy to loot a financial institution with little risk of prosecution. Once this is clear, it becomes obvious that high-risk strategies that would pay off only in some states of the world were only for the timid. Why abuse the system to pursue a gamble that might pay off when you can exploit a sure thing with little risk of prosecution? (1993: 4-5).

[NEW ECONOMIC PERSPECTIVE]

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CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

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2 Responses to “William Black: The Incredible Con the Banksters Pulled on the FBI”

  1. Sarah says:

    Well it’s noted that the FBI spent time setting up elaborate plots to entrap/get “terrorists”. Perhaps that was another distraction. So we read other agencies (SEC, regulators) are so lacking (or completely captured) that they didn’t provide what the FBI needed. And that the FBI was captured by the MBA. Phew! Things are so fantastically corrupt, it’s enough to seriously undermine faith in anything and further evidence that victims are completely ignored.

  2. Charles Reed says:

    Having reported the same type crime Szymoniak did but my case was against Ginnie Mae MBS, but the FBI is still at their desk without a clue because the White House does not give instructed to a crew that are not capable of uncovering these financial crimes as they simply are not smart enough to handle the information.

    These financial products were always in the gray and the reason Stated Loan prosecution was stop was because who committed the crime if it was a part of the lenders products to have a stated program. So what were the guidelines? Who is it illegal to do something if the leader sold the program to its borrowers. Was there some disclosure signed breaking down some law governing stated loan.

    What were the applicants doing in stating income when in fact people filed income tax.

    The FBI not trained and are not former Wall Street workers but regular college grad that can intimidate Joe Blow citizen but themselves are intimidated by high dollar attorney that the Fed made trillion dollar loans to that could have an agent in the end working at the local 7Eleven selling Lotto tickets.

    But Professor Black in his many writing is but another person that cannot do anything to change the great rants he has, but were is the BEEF? If he would open an email and take my SEC on it would return $24 billion to the US taxpayer coffer!

    We got to stop talking about BS and do what Szymoniak did and that was to file and collect the money for he efforts!

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