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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forums2 new fraud deals show wall street's washington insiders at work
http://www.nationofchange.org/two-new-fraud-deals-show-wall-street-s-washington-insiders-work-1358093834It mustve been like old home week when the old gang of Wall Street and Washington insiders finalized a couple more cushy settlements last week.
Everybody knew the drill: Ignore the potential criminal charges and agree on settlement figures they think the public will swallow figures that are big enough to sound impressive but far smaller than the banks ill-gotten gains. Theyve done this dozens of times before.
But there was an empty chair at the negotiating table.
Bank of America was there, as it has been so many times before. So were the other too-big-to-fail banks. Representatives from the Attorney Generals office were undoubtedly there, too. The Attorney General was a high-priced Wall Street attorney.
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2 new fraud deals show wall street's washington insiders at work (Original Post)
xchrom
Jan 2013
OP
Fumesucker
(45,851 posts)1. This is interesting
But then, the insiders had it wired. The reviewers included Promontory Financial Group, whose CEO was Comptroller of the Currency under President Bill Clinton. Then he became a senior attorney at Wall Street defense firm Covington & Burling. Small world: The Attorney General of the United States worked at Covington & Burling too.
Promontory and the other reviewers have an underlying conflict of interest: theyre reviewing their own client base. Thats the same conflict of interest that corrupted the for-profit ratings agencies, leading them to rate their clients toxic mortgage-backed securities as AAA.
Promontory was also the firm that said well over 99.9 percent of the loans issued by Standard Chartered bank complied with the law and only $14 million of them were illegal. Then the bank admitted that $250 billion of its deals, not $14 million, were illegal. Thats 17,000 times as much illegality as Promontory found in its review. (17857.142 as much, to be precise, but whos counting?)
Promontory kept the foreclosure gig anyway, with no objection from Washingtons regulators or law enforcement officials.
Promontory and the other reviewers have an underlying conflict of interest: theyre reviewing their own client base. Thats the same conflict of interest that corrupted the for-profit ratings agencies, leading them to rate their clients toxic mortgage-backed securities as AAA.
Promontory was also the firm that said well over 99.9 percent of the loans issued by Standard Chartered bank complied with the law and only $14 million of them were illegal. Then the bank admitted that $250 billion of its deals, not $14 million, were illegal. Thats 17,000 times as much illegality as Promontory found in its review. (17857.142 as much, to be precise, but whos counting?)
Promontory kept the foreclosure gig anyway, with no objection from Washingtons regulators or law enforcement officials.
think
(11,641 posts)2. Can anyone say "Collusion"? ......
Angry Dragon
(36,693 posts)4. the American people would like to see some prison time for these bankers
KG
(28,751 posts)5. well, except people who were banned by Kos.
everybody else are just griefers...