Step one: Understand the three “control fraud” epidemics that drove the crisis....
There is no fraud exorcist, so fraudulently originated loans stay fraudulent and can only be sold to the secondary market through fraud....
Step 2: Restore the destroyed criminal referral process, restore the partnership with the banking regulatory agencies, and end the partnership with the “perps”....
To produce over 1,000 felony convictions in cases the Department of Justice (DOJ) designated as “major” during the S&L debacle, the Office of Thrift Supervision (OTS) made over 30,000 criminal referrals. In this crisis, which is over 70 times larger than the debacle in terms of losses and fraud, OTS made zero criminal referrals, as did the Office of the Comptroller of the Currency and the Federal Reserve. (The FDIC is smart enough to refuse to answer how many referrals it made.)
New Economic Perspectives
How to Prosecute the Elite Bank CEO that Led the Frauds that Drove the Crisis
William K. Black | Associate Professor of Economics and Law at the University of Missouri-Kansas City in the Department of Economics and the School of Law
Like Sen. Durbin said, "The banks own the place."
1 comment:
Manipulate libor and increase the margin portion of everyone's lines of credit interest rate. .
The banks knew 2007 that interest rates would drop 2008 because they rigged the libor.
But they had to shore up their customer's lines of credit since these have variable interest rates.
So they raised the margins of these
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