Former Regulator: Clear Fraud in Financial Crisis -- Why Isn't Anyone in Jail?

[DogPoundPup]

Source: Yahoo / Finance

In the aftermath of the corporate scandals earlier this decade, investor confidence was (partially) restored by a parade of "perp walks" of fallen chieftains like Ken Lay, Bernie Ebbers, and Dennis Kozlowski.

But nearly two years into the bursting of booms in housing and mortgage securities, scant few related arrests have been made — and most of those have been focused on individual mortgage brokers vs. major industry leaders.

"There is no poster child because you need to investigate, and you need to bring cases and we haven't done either against the major players," says William Black, Associate Professor of Economics and Law at the University of Missouri — Kansas City and a former federal regulator.

Black, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis and blew the whistle on the "Keating Five" in 1989, says investigations have shown fraud incidence of 50% at (once) major subprime lenders like IndyMac and Countrywide.

(with video)

Read more: http://finance.yahoo.com/tech-ticker/article/133224/Former-Regulator-Clear-Fraud-in-Financial-Crisis----Why-Isn%27t-Anyone-in-Jail?tickers=BAC,WM,CFC,XLF,JPM

[aquart]

1. Oh, honey, I've been asking that for 8 years.

[UpInArms]

2. seems there is no there there - no one is minding the store and the doors

are unlocked - leaving the looters free to continue to take whatever is not nailed down

:shrug:

[sam sarrha]

3. Bu$h would just pardon them.. wait a while...

[Sinti]

4. It's kind hard to jail someone when the police are also players in the con n/t

[KakistocracyHater]

5. All those people who refused to

do their jobs.....all the cooperation to beget this nightmare, speaks alot about human nature. Anyone who tries to stop the madness is arrested, yet I keep seeing others saying we're "doing nothing", tell that to those who tried a citizen's arrest of Rove, of Bush-what now?

[Why Syzygy]

6. This is what keeps me awake at night.

What of Justice?

[Waiting For Everyman]

7. I'd go after the securitizers at the top of the pile first, and the ratings companies.

The fraudulent subprime mortgages themselves should be prosecuted, but they were just the raw material used by the big hustlers at the top.

Also the huge speculators and market manipulators. I want the big fish for a change, instead of just a bunch of token little fish. Let's start with Phil Gramm! If he doesn't get charged with something, there is no justice.

[Window]

10. Sounds like a great idea to me..."...start with Phil Gramm."

[Nipper1959]

24. Start with Graham

and continue with the regulators that acted as advocates for these sleazy fucks!
See story at link.

http://www.msnbc.msn.com/id/27865780/

[sasquatch]

8. "Why Isn't Anyone in Jail?"

The answer to that question is that they've paid up to the right people.

[Joe Chi Minh]

11. Who says they aren't? Jailed men walking.

[heliarc]

9. If anything influences uncertainty in the marketplace...

its the fact that the laws that are meant to regulate the market aren't being enforced. Makes me sick to my stomach.

[Hubert Flottz]

12. "Why Isn't Anyone in Jail?"

The "Rule Of Law" is off the table...

[rhett o rick]

15. The Rule of Law is off the table. Well said. nm

[D-Lee]

13. Ahh .. because ACORN was a bigger threat to the country? (sarcasm)

Just let corporate greed inflict damage on the country ...

And twist the arms of US Attorneys to prosecute ACORN so hard that the ones who said "Hey, nothing there worth our time" got fired ...

Yup, those conservatives sure are so great at identifying dangers to the country and are great patriots protecting the US!

(Sarcasm)

[Miss Chybil]

14. Credit Default Swaps

Those who sold them are the one's who should be in jail.

[rhett o rick]

16. All bailouts need to include the firing of Paulson and Berdicky (and Rove too just for drill). nm

[Duppers]

17. TOO important not to kick

Rec'd too.

[bluesmail]

18. It's like the DOJ: Politicized. They go after the small fries.

The little guy. The Man in the Middle (MIM). Taxpayers, if they understand this, are probably happy that a small portion of their taxes went to something other than 'That War'.

[BlueJac]

19. Just look the other way..........

it is clearly the workers fault and the union workers the most. I give the fuck up. Those people in congress have not even one nut in their sack.

[riverdeep]

20. Jail? We're too busy handing over more of our money.

Thank you sir, may I have another!

[specimenfred1984]

21. Few people want to jail them, think "redemption" for criminals is easier

Then, the criminals just come back and rip them off all over again.

[tclambert]

22. Good action item to add to the new President's to do list.

Evict former tenants. Buy new drapes. Get girls a puppy. Investigate corporate malefactors. Undo everything previous guy did.

[rocktots]

23. If they get away with this...

What can't they get away with?

But we never asked what happened to the 2 trillion the Pentagon misplaced...never heard a word,

Mind you, the DEMOCRATS control the congress now, so who is the LEADER on this issue?

Elitists all....