President Obama’s Financial Fraud Enforcement Task Force

[jazzimov]

http://www.justice.gov/opa/pr/2013/August/13-ag-886.html

Tuesday, August 6, 2013

Attorney General Eric Holder and U.S. Attorney for the Western District of North Carolina Anne M. Tompkins announced today that the United States has filed a civil lawsuit against Bank of America Corporation and certain of its affiliates, including Merrill Lynch, Pierce, Fenner & Smith f/k/a/ Banc of America Securities, LLC, Bank of America, N.A., and Banc of America Mortgages Securities, Inc. (collectively “Bank of America”). The complaint alleges that Bank of America lied to investors about the relative riskiness of the mortgage loans backing the residential mortgage-backed securities (RMBS), made false statements after intentionally not performing proper due diligence and filled the securitization with a disproportionate amount of risky mortgages originated through third party mortgage brokers.

This announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group and is accompanied by an announcement by the Securities and Exchange Commission (SEC) that it has filed civil charges in federal court in Charlotte, N.C. against Bank of America for defrauding investors.

“Today's filing marks the latest step forward in the Justice Department’s ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct,” said Attorney General Eric Holder. “As this action proves, President Obama’s Financial Fraud Enforcement Task Force will continue to take an aggressive approach to combating financial fraud and uncovering abuses in the residential mortgage-backed securities market. As we proceed with this case, and pursue a range of additional investigations, we will continue to use every tool, resource, and appropriate authority to ensure stability, accountability, and – above all – justice for those who have been victimized.”

http://thehill.com/blogs/on-the-money/banking-financial-institutions/317965-holder-more-wall-street-prosecutions-on-the-way

Jonathan Easley - 08/20/13 07:51 PM ET

Attorney General Eric Holder on Tuesday put Wall Street on notice with a vague threat, saying that the Justice Department may be gearing up for civil or criminal prosecutions against those responsible for the 2008 financial meltdown.

“My message is, anybody who's inflicted damage on our financial markets should not be of the belief that they are out of the woods because of the passage of time,” Holder said in an interview with The Wall Street Journal.
......

August has been a busy month for DOJ action against some of the U.S.’s largest banks.

Earlier this month, Justice announced it was suing Bank of America for hiding risks about mortgage-backed securities from investors in 2008, and last Wednesday, revealed that JPMorgan Chase was the subject of a criminal investigation for knowingly dumping toxic mortgage securities on unwitting investors in the run-up to the crisis.

So, I guess all those who have been complaining about "no prosecutions" of banks and Wall Street haven't been paying much attention.

[AgingAmerican]

1. List a few of those who have been prosecuted

How many have been jailed? How many were prosecuted in his first term?

As with everything that comes from this administration, I reserve the right to believe it when I see it.

[jazzimov]

2. Fair enough - as long as I get an apology

when you see it.

[AgingAmerican]

3. Im waiting

....

[tazkcmo]

8. Personally, I'd love to.

I will apologize profusely when/if any CEO's are frog marched to jail and HUGE fines issued. By huge, I mean the fine is equal to or greater than the actual damage done. You will get NO apology for low level sacrificial lambs or fines so small they are just the cost of doing business, so don't get too excited.

And I'd love to see that list that shows the current "body count" of prosecuted, high level executives that are in prison and all their ill gotten riches confiscated also.

[AgingAmerican]

16. Yep

The more the merrier.

CEOs especially, not low level peons.

[ProSense]

12. Start here:

http://www.stopfraud.gov/news-index.html

[Tigress DEM]

4. This is awesome and while I get it that Obama can't do everything at once....

This is still just gaining ground.

I THINK that the DEMs really DO have to BPM loudly to give Obama the clout to do the things that need doing. It's almost like he has to show he's REALLY only following the will of the people.

Seems it keeps going back to WHAT IS MOST IMPORTANT to the voters? Because 2014 is always on the minds of people wanting to make positive change, they got to keep the most people happy at any one time.

[Tx4obama]

5. I've started a saved file with links - anyone have any more that I've missed to add to the list ?

Department of Justice Financial Task Force

January 2012
New Justice Dept. Task Force Issues Subpoenas to 11 Financial Institutions in Expanded Probe
Here: http://www.democraticunderground.com/1002231600

August 2013
Eric Holder Vows ‘Significant’ Financial Crisis Prosecutions Against Banks
Here: http://www.democraticunderground.com/1251320503

August 2013
Department of Justice Sues Bank of America for Defrauding Investors in Connection with Sale of Over $850 Million of Residential Mortgage-Backed Securitie
http://www.justice.gov/opa/pr/2013/August/13-ag-886.html

September 2013
Holder: Those responsible for financial meltdown not 'out of the woods'
http://thehill.com/blogs/on-the-money/banking-financial-institutions/317965-holder-more-wall-street-prosecutions-on-the-way

September 2013
President Obama’s Financial Fraud Enforcement Task Force
http://www.democraticunderground.com/10023670397


Medicare Strike Force

October 2012
U.S. Arrests 91 In Massive $430 Million Medicare Fraud Bust
http://thinkprogress.org/health/2012/10/05/966831/massive-430-million-medicare-fraud-bust/

February 2013
Obama’s Attack on Medicare Fraud Reaps Record Results for Second Year in a Row
http://www.democraticunderground.com/1251286685

May 2013
U.S. charges 89 people in $223 million Medicare fraud schemes
http://www.democraticunderground.com/1014483461

February 2013
Scooter Store Raided; Workers told to leave, call FBI
http://www.democraticunderground.com/1014404075

September 2013
Scooter Store at end of road
http://www.democraticunderground.com/1014594680

[delrem]

6. After 5 yrs of being (deliberately) asleep at the switch.

I'm not inclined to be generous.

[OnyxCollie]

7. In major policy shift, scores of FDIC settlements go unannounced

In major policy shift, scores of FDIC settlements go unannounced
Since the mortgage meltdown, the FDIC has opted to settle cases while helping banks avoid bad press, rather than trumpeting punitive actions as a deterrent to others.
http://articles.latimes.com/2013/mar/11/business/la-fi-fdic-settlements-20130311

Since 2007, 471 U.S. banks have failed, nearly depleting the FDIC deposit-insurance fund with $92.5 billion in losses. Rather than sue, the agency has typically preferred to settle for a fraction of the losses while helping the banks avoid bad press.

Under the Freedom of Information Act, The Times obtained more than 1,600 pages of FDIC settlements, made from 2007 through this year with former bank insiders and others accused of wrongdoing. The agreements constitute a catalog of fraud and negligence: reckless loans to homeowners and builders; falsified documents; inflated appraisals; lender refusals to buy back bad loans.

Defendants benefit by settling because they can avoid admitting guilt and limit the damages they might face in court. The FDIC benefits by collecting money without the hassle and expense of litigation. The no-press-release arrangements help close those deals.

~snip~

Overall, the FDIC collected $787 million in settlements by pressing civil claims related to bank failures from 2007 through 2012 — a fraction of its total losses.

...

We've been paying attention, that's why your spin won't stick.

[felix_numinous]

9. About that last paragraph jazzimov

We have all been paying attention and so far have not seen this kind of challenge taken against bank fraud.

We CAN choose not to say crappy things to to each other. Really, it created division where we COULD all agree to be happy about something.

This is great news and I ask that you remove your last paragraph as it is very unnecessary and insulting to fellow DUers on this site.

[L0oniX]

10. Goldman Sachs conspicuously missing?

[Dawson Leery]

11. kick

[woo me with science]

13. HA HA HA HA HA HA HA HA HA HA HA HA HA

Their timing is perfect for the One Percent:

Wall Street will get away with massive wave of criminality of 2008 - Statute of Limitations expiring on 2008 crash crimes
http://www.democraticunderground.com/10022516719



See also: the much longer, bloody list of financial betrayals: http://www.democraticunderground.com/?com=view_post&forum=1002&pid=3671507

[kelliekat44]

14. The evidence for fraud is difficult to gather but give them a chance. At least they are trying to b

bring charges. It's not as easy as it looks when you can pay for some of the best legal minds in the country to fight against the government.

[Katashi_itto]

15. let me guess the fine is $1,000.00 and no acceptance of guilt.

Justice is now served will be the proclamation!