Schneiderman’s Financial Fraud Task Force Takes Credit for Busting Barclay’s on Libor

As the “Saga of the Banks”, now facing international – READ: Global Proportions, meaning that they are going to have the face the music sometime, goes forward, there is a lot to comment on. As it stands, Scheiderman, who has similar power to Obama, was the “Barclay Buster” and then some. nakedcapitalism reports: ……Normally I try to avoid dumping on the same person twice in a short period of time, no matter how much they deserve it, but a post by masaccio at Firedoglake on the PR exercise known as the Financial Fraud Task Force deserves amplification. Recall when Schneiderman turned Quisling to the efforts by a small group of state attorneys general to craft a decent mortgage settlement, his shiny prize was being appointed as one of a number of co-chairmen to the so-called Financial Fraud Task Force. This was actually an effort to wrestle new propaganda value from an initiative that has been largely moribund since its creation in 2009 (technically, the 2012 effort is called the “Residential Mortgage-Backed Securities Working Group” of the Financial Fraud Task Force). Occasionally, various interested parties look for signs of life from this group. They’ve consistently reported back that perilous little appears to be happening. Masaccio looked through press releases on the official website, and found they confirmed one of the theories voiced by Neil Barofsky and your humble blogger, among others, namely, that the task force was merely consolidating existing efforts, and not adding much (if anything) new. Masaccio’s reading showed that the few big fish, such as the fines for Barclays over Libor-rigging and further fallout from the Bernie Madoff Ponzi scheme, were ongoing efforts on which some members of the task force arguably played a role, and had nothing to do with the State of the Union head fakery. And the few announcements that were mortgage related were so penny-ante so as to prove that there is still no intent to go after big players, despite widespread evidence of rampant fraud. Some of the howlers: 3. Two Alabama Real Estate Investors and Their Company Indicted for Conspiracies to Rig Bids and Commit Mail Fraud for the Purchase of Real Estate at Public Foreclosure Auctions . FBI Acting Special Agent in Charge Patrick Kiernan reaffirmed his commitment to pursuing these complex economic investigations stating, “This investigation has sent a strong message to the community at large, and the real estate community specifically, that abuses within the real estate industry will not be tolerated. The fraud ran from 2004 to 2007.Five years later, the community is warned. Ho-hum… 7. Loan Officer Sentenced to 54 Months in Prison for Role in Mortgage Fraud Scheme That Resulted in More Than $9.2 Million in Losses . Hit the little guy, not the bosses at Countrywide or WaMu or Long Beach or …… 10. More mortgage fraud , this one in the range of $8 million. Apparently it didn’t require the assistance of the FFETF. Nor does it involve New Century… I’ve gone back through February looking at the press releases, and this is a fair sample of the work of the FFETF. There is not a single case related to fraud in the creation, sale or operation of real estate mortgage-backed securities, the frauds that led to the Great Crash. The FFETF is a random collection of people working on cases that can be tied to financial fraud. And rest assured, when the election approaches, this sorry list will be tallied up in some way so as to sound impressive and used upon occasion as a talking point (“Y prosecutions of financial fraud”). So keep asking, “And how many executives at big financial firms went to jail?” Try none – basically – very few and the process is in the works but we’re simply seeing more fraud cases pop up and ridiculous CEO paychecks and bonuses now being hid behind corporations and then some.

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