Alan Grayson On Mortgage Fraud (Lack Of) Accountability: "President Obama... Let These Crooks Off The Hook"

Tyler Durden's picture

Now that Alan Grayson is no longer in Congress, Fed hearings have certainly lost that certain dose of panache which only a man, wearing a dollar sign tie, and cross examining the Fed's General Counsel which grinning like a diabolical Tasmanian Devil, would bring to the table. We managed to catch up with Grayson during today's session of Radio Free Dylan, in which the traditionally opinionated Fed critic had some very choice words about the President. In essence, the former Florida Democrat said that it is none other than the President, who is the reason there have been no prosecutions on banks: " I am not only blaming the Obama administration, if the Bush
administration had its head on straight they would have prevented a lot
of these things from happening to start with. But the President Obama administration said at the beginning, we are
going to look forward and not back and therefore in the process of
making that decision basically let these crooks off the hook
." But that's ok - see the SEC, which incidentally has to give a person by person org chart and job description of its 3,500 porn addicts before it receive one additional penny of funding, is about to catch one or two criminal masterminds who bought some NYX calls after the information of today's merger, which was so badly leaked that virtually everyone knew about the deal ahead of the announcement, are about to spend some time in prison. In the meantime, all those who knowingly and willfully committed crimes in the great housing pump and dump (up to and including misrepresenting underwriting documents), are about to get away scott-free. Thank you Mr. President. That's some might fine change you got there.

More choice selections from the Ratigan-Taz interview.

On the complete lack of prosecutions and Obama's responsibility:

DYLAN:  Couple of last questions and then I will let you go. One thing that came out in the FCIC report and Bill Greider did a great job of highlighting this — was the explicit introduction of known to be fraudulent mortgages.  They have been audited by Clayton Holdings which is one of the bigger auditing firms if not the biggest auditing firms of these documents.  They were knowingly and knowingly insofar as they had been reviewed by Clayton Holdings, then installed inside of investments and sold to pension funds, et cetera et cetera, where then the banks would go out and buy insurance on that that obviously paid a lot of money when the government stepped in to bail out AIG who was one of the big insurers.

How is it that after the Great Depression, there were blue sky laws that said it is illegal to sell a worthless piece of paper as if it is stock in the company if its just Alan Grayson and Dylan Ratigan have gone downtown with a piece of paper with their names on it and they are selling it for money even though there is actually no business.  We created laws to prevent people from doing that sort of thing. And yet we found here that mortgages that have been deemed by some official authority — an auditor in this case — as nonconforming, will not get paid back, noncompliant with illegal investment standards for you, American pension fund, for you American mortgage buyer, Fannie Freddie etcetera, and then the FCIC comes out, shows that these fraudulent mortgages were being packaged and sold by Goldman, Deutsche, Morgan, the list goes on and yet, we have yet to see a single meaningful fraud investigation. I mean these guys makes Bernie Madoff look like Romper Room.

REP. GRAYSON: Well that’s right, and what it comes down to is they have been protected by one thing and one thing only which is prosecutor discretion. There is no doubt in a situation like that that people committed crimes, but in order to prosecute them for that you need to have a prosecutor who is willing to do it. And that is something that seems to have eluded us in the past, I guess, three years now. I am not only blaming the Obama administration, if the Bush administration had its head on straight they would have prevented a lot of these things from happening to start with.

But the President Obama administration said at the beginning, we are going to look forward and not back and therefore in the process of making that decision basically let these crooks off the hook.

DYLAN: And what does that sort of decision make, I call Obama the “turn the page president” whether it is war crimes, banking crimes or anything else, is there a point where the decision not to prosecute blatant crimes that are destructive to society really starts to breach the public trust with the government just because the President doesn’t really want to deal with the mess?

REP. GRAYSON:  It’s actually worst than that. The same people who were committing fraud and crimes at Bear Stearns, they are now committing fraud and crimes at Bank of America, at Goldman Sachs and other institutions, because it turns out that crime does pay. It turns out that if you steal a large amount of money that leads to the collapse of your institutions, there’s jobs for you somewhere else.

On the auditing the Fed process, for which Grayson, alongside Paul, had a major contribution in getting at least some partial disclosure from Bernanke:

Tim Geithner said when it was time to finish the bill on financial reform, he told people that his highest priority was to make sure – and this is the bill that was supposed to save America — to keep us from having a bail out — make sure that we didn’t have a total collapse of the economic system.

He said that his highest priority was to make sure that there was no auditing of the Fed! (laughs) So, in the fact of that kind of resistance, we were able to win and win big.  I mean we have now the first independent audit and nothing really bad has happened so far. People were saying well if you audit the Fed, the economy will collapse. Hasn’t happened yet and I think that people are going to realize the Fed  should be a responsible government body just like every other government body. We need to look behind the curtain and find out exactly what’s going on.

DYLAN:  What do you think Tim Geithner is so afraid would be found?

REP. GRAYSON:  I don’t know but I am sure that Tim Geithner didn’t want the Fed audited because Tim Geithner didn’t want Tim Geithner audited, he worked for the New York Fed, led the New York Fed for years before he became Treasury Secretary — and frankly it sounded a bit self serving to me that he said that.
DYLAN:  And what do you and not just you but I’ll add Dr. Ron Paul to it — what do the two of you think was so important about auditing the Fed?

REP. GRAYSON:  Well, what I think we are going to find is something that we’ve already have a little taste of here and there, which is that the Fed has made an enormous deals with entities like Citibank on terms that were completely unfair to the taxpayers. We got a little shred of information about that because one of those deals happened to be one involving the treasury, it has to be a released to us and we found that the Fed had assumed $238 billion dollars of liability from Citibank on mortgage back securities in exchange for nothing. I think we are going to find more deals like that and people are going to scratch their heads and say why are we doing this? Why are we allowing our money to be used in the secret bailouts of three or four or five or six institutions without people even finding out about it except for the fact that we pass this legislation to help to find out. The fed has been out of control now for quite a while and helping its friends at the expense of the rest of us.

DYLAN:  And why are we doing that? Why are we – why have we accepted a system in your opinion that allows a relatively anonymous, highly secretive group of people to provide infinite access of money to people who not only create no apparent value but creates lots of apparent loss?

REP. GRAYSON:  Because the banking system and the bankers, the people in charge of the system have created this meme that the Fed can do no wrong and it has to remain independent of everybody and everything. It is almost as if they believe that the Chairman of the Fed is the Wizard of Oz and it’s not true. I mean the Fed has the authority to create money but it should not have the authority to make the kind of deals that we’ve been seeing where they create massive liability off the books of their favorites while small community banks and small businesses suffer and get nothing. At one point we demonstrated that they had – lent so much money to the Central Bank in New Zealand that it corresponds to $4,000 for every single person in New Zealand. Wouldn’t it be nice if the Feds can extend that kind of credit to Americans?

And on Grayson's next steps:

DYLAN:  Last question, whether you are serving in the United States Congress or not, you are a well-versed and well-educated man, you are a young man and you are a man of immense passion, and a very strong point of view and capacity to deliver impactful blows in the advocacy or the things that you believe most passionately in. Which is an extraordinary long way of my asking you, what are you going to do next to keep having an impact on American culture, American policy and the future of America’s development and eternal quest for fairness?

REP. GRAYSON: I don’t know but I will tell you that one of my personal heroes is Howard Dean because Howard Dean came within a few inches of the Presidency, and didn’t make it in a way that must have had some serious effects on his point of view of the kind of person he was and what he meant to the world. And after he lost and had gotten knocked down, he dusts himself up, picks himself up and gave the Democratic Party through his work with the DNC a majority in the House and in the Senate and ultimately the White House. So maybe there is no second act in America life or maybe there is, we will just have to see.

Full interview can be heard here.

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DirtySouth's picture

I Am Jack's Medulla Oblongata

slewie the pi-rat's picture

i yam jill's corpus colostomy.

i sure hope folks don't start talking about how hot  dylan ratigan is, and go off-topic for life, again.  speaking of which, i ran out of money.  or green stamps, i should say, again, so, i've been a bit behind the curb. {intentional}.  i just finished a 3-bowler on the shoe theme, which is now on p. 2, prob.  so, in the interests of staying gonzo-centered in the hunter s/ thompson time zone, here:

unnecessary background:  someone was raving almost coherently about something---young?  with phones?  canadians?  wesson oil.  it all made sense, early in another lifetime.

YouTube - Neil Young & Pearl Jam!


neil's gettin so old, he may soom BEcum the great grandaddy of grunge.  hey!  so am i!  getting old, i mean.  so are you.  i hope he's still got his '59 caddy.  in the picture i have of him sitting on it, it looks pretty dirty.  so maybe we have that in common, too:  wash the car every six months whether it needs it, or not.    "got fuel to burn. got roads to drive." 

if there's a point to this shoe, it is that the slaves of the nation are divided.  polls show it.  oh, shit!  what if THAT isn't true, either?  if we get lies about all the facts, the opinions are probably still ok, right?  hmmm... i mean,  here we are, all waiting for some shoefly or shoedrop, while we keep getting told what our opinions are and it must be true, b/c it's scientificthat's reassuring, eh? 

we do have different interests, but are we really as diametrically opposed to each other as the goobermint keeps saying?  the old want to eat, sleep, shit, and fuk.  the young people i know don't have a problem with that.  they understand those needs and desires, except the last one, if i recall, correctly.  and don't we all want about the same things from the goobermint, in general?  fairness. justice. peace.  don't all the different races want to put food on the table for their kids and get them educated and the hell outa the house?  jeeez!  maybe postmodernism works!  maybe all we hafta do is sit tight and watch this giant pyramid of lies and hoohah collapse, so we can all...ok.  i'm flexible.  let's wait a while longer.  how about two more days? 

people knew judi barry b4 she "got sick".  people were IN seattle.  toronto. in DC,  when the hasidic jew head bangers showed up and gave a great curly-haired middle finger to zionism, netanyahu AND obama in july. one of my FBI moles was there, keeping his eye on the ever-dangerous cindy sheehan for us, who was also there, awaiting trial for throwing a shoe or nine.  he said that when these hasidic men in black came up outa the subway and started screaming,  telling netdayahoo that he was a fascist cunt and they would like for him to pretty please stick his zionism up his OWN ass,  it was the BEST part of the whole hot stinkin waste of time day. common citizens.  all over the place. even canada. freaking hosers!

hey!  i just thought of something else neil young and i have in common:  when we do the housekeeping, we use a large rake.

ok, zeroheads:  it's SHOETIME!!!

blindfaith's picture

Hey Slewie, it might help your cause if you took a course in English grammar, punctuation, and spelling.

Can't tell if your periods are commas, can't tell where your sentences start and end.  Can't read you again.


Gully Foyle's picture

What the fuck is Harry Blackstone doing on the front page?


For those who understand the loss Earle Montaigue died Wednesday 26th January 2011. No one posted it nor claimed his death was part of the same conspiracy which took Bruce Lee, Brandon Lee and Count Dante.

Probably tied to banksters in some way.

Cursive's picture

Tasmanian Devil?  Grayson with the goutee soooo looks like the evil Spock from the alternate universe in "Mirror, Mirror".  As a previous ZH commentator said years ago, he's a crazy mofo, but he's our crazy mofo.

chumbawamba's picture

He reminds me of Evil Cartman from the South Park parody of the same.

Grayson, for all his anti-banker antics, is still a statist douche.

I am Chumbawamba.

atomicwasted's picture

Evil Spock +1.

But the enemy of my enemy is my friend, at least on an issue by issue basis.  Grayson at least appears to have some integrity and intelligence, and while we may disagree on a number of things, I will always admire that he had the balls to stand up with Paul and challenge the Fed.  That's more courage than a lot of congresssheep had.

tarsubil's picture

He stood up to the Fed because they didn't want to let a certifiable maniac in on the action. So now he's following through on his attempts at extortion (can you extort thieves?) while at the same time trying to get some notoriety to sell.

Or... they hired a certifiable maniac as a way to discredit the anti-Fed movement.

hedgeless_horseman's picture

It turns out that if you steal a large amount of money that leads to the collapse of your institutions, there’s jobs for you somewhere else.

Also, it turns out that if you accept a large amount of money to legislate spending that leads to higher taxes and less liberty for your constituency, there’s jobs for you somewhere on Wall Street.

New_Meat's picture

dang, and I wonder what the world's most perfect university has wrought.

Early life and education

Grayson was born in the Bronx, New York. He graduated from Bronx High School of Science and worked his way through Harvard University as a janitor and nightwatchman,[2] graduating summa cum laude in three years. He was also a member of Phi Beta Kappa. He returned to Harvard for graduate studies. Within four years, he earned a law degree with honors from Harvard Law School, a master's in public policy from the John F. Kennedy School of Government, and completed the course work and passed the general exams for a Ph.D. in government.[2][3]

Camelot High, zone of Our Dear Leader's tenure as the head dude of the Law Revue ...

How did he come across his millions?

- Ned

find Carol Pratt Liebow, Our Dear President's successor at the perfect Law Review.

slewie the pi-rat's picture

How did he come across his millions? - Ned

being a janitor at harvard, he took coffee breaks with the custodians from MIT.  when the MIT blackjack team guy was so tired after getting back from Caesar's or wherever, and forgot the bag of money in the classroom, grayson, looking for a donut, or a torus as they're called at MIT, found it.  he grabbed about half the cash and that was how he got his start.

i think grayson is a third rate rate janitor, at best.  cab calloway, pouring drinks in the basement of the orphanage has to be #1.  jake and elwood, after all, not to mention princess leia in the tunnel.  she was so heavily armed that if jake hadn't been on a mission from god, he never woulda dropped her in the slime and mud.  as rodney might say:  #2?   well, i'll give to the, uh, princetonian janitor, julian jaynes, for "The Origin of Consciousness in the Breakdown of the Bicameral Mind." 

New_Meat's picture


thx for the background

u a tech tool?  Just wonderin' (and no offence with the question, just shorthand, got a handfull of good friends who call themselves that).

- Ned


slewie the pi-rat's picture

lol.  if i'd said judy and cindy studied this book with me, i coulda got junked for not including the right, er, proper, peeps in my example. 

gwar5's picture

Not a fan of Grayson, but I was a fan when he spoke out about the Fed and supported auditing them. After that he was demonized by the left and was toast.

He got in real trouble when he said something about their head female lobbyist -- The Fed has their own lobbyists! If that doesn't prove to doubters the Fed is a private corporate special interest with unlimited deep pockets nothing will.

apberusdisvet's picture

Grayson used to be clean shaven.  Did Banzai photoshop Erin Burnett's snatch on his face?

williambanzai7's picture

I tried, but I couldn't get Erin to take the beer of the top of her head.

hedgeless_horseman's picture

Don't you touch my beer, William!

flacorps's picture

So no Pecora. I'm sure there's a Robespierre waiting in the wings. Scot-free only for the moment.

Boilermaker's picture

No kidding?  There's a old-boy's network of fucking crooks cornholing the rest of us and getting away scot-free?  Really?

Hey, futures are up!

buzzsaw99's picture

That's it, Grayson is off turbo timmy's xmas card list.

f16hoser's picture

Perhaps Grayson would still be in Congress had he not taken Bernanke to "Happy Hour" after the financial hearing. You know, the one where he was very polite to the FED chairman. Just another politician full of hot-air.

Payable on Death's picture

To quote Grayson is to lose credibility.

DaveyJones's picture

absent a few, you could say that about any congressman

slewie the pi-rat's picture

i thought blue sky laws were where you couldn't buy beer on Sunday.

Piranhanoia's picture

could be first indie candidate to get the job at the casablanca?

essence's picture


Making the Internet, info rounds this morning, I was surprised, shocked even to see Bill Bonner actually coming out and stating the U.S. gov is controlled by banksters and that control of the Fed and bribing politicians is their method to power (actually he did it in a smooth way as is his talent, but make no mistake, this was huge).

Not that I didn't know this, but... one by one, name figures are coming out calling a spade a spade. Our government has been hijacked, the terriorist are in Washington & New York and wearing suits. If you oppose them they label you a 'terriorist' and sick home(father)land  goons on you.

We don't have a financial crisis here in the U.S. to the degree we have a politicial crisis. As more than one standing Senator has stated in public when speaking about the big banks and Washington DC  ... "Frankly, they own the place".


P.S.   also came across the discovery that Obamas wife has a staff of 22 people.

It was amazing... like there's an assistant to the assistant of the media director and that sort of thing. And a '1st hair stylist'. 
22 people! Damn ... that's probably more than the queen of England.

That's "change you can believe in".




slewie the pi-rat's picture

well he's back in baltimore, too.  i'd give him the benefit of the doubt and just say he didn't know where he was.  again.  he talked about slave societies, too:  "Some of the most remarkable and successful societies have been ruled by slaves."  The Golden Jackass, jim willie, himself, teed off this morning on goldseek with: Mythology & Official Nonsenseall these guys are great.  but, for me, nobody hangs outa their picture frames like zeroheads.

slewie the pi-rat's picture

22?  she won't pass cleopatra till the third year of the second term.  i like michelle, tho.  and, i hear she's related to thom. jefferson. too! 

essence's picture

"related to thom. jefferson"

ha ... that's good.

tallystick's picture

I still like a Paul-Grayson ticket for the WIN!  I believe Paul can reign in the aspects of Grayson that I find troubling, and Grayson will inject energy and youth into the ticket.

Seymour Butt's picture

It will never happen. Sheeple are too stupid to vote and choose correctly. Don't underestimate the power of stupidity.

By the end of this decade, we'll remember with fondness the golden years of 2010-2011. And, don't fool yourselves - it will get much worse.


jmc8888's picture

Of course it was his responsibility.  Which is why I was smashing him then.  The writing was on the wall once the list of cabinent members was 'leaked'.  You knew then, we got another whore in office.

Sadly Grayson didn't go far enough and smash Nero early.

Since then we've seen almost a complete transformation into a Keyneisan/Austrian.  Start cutting obama (like LIHEAP...1 year of heating for the poor = 1/2  of ONE POMO day...I so see the need to cut it then)...Then medicare/ss/space program and wow you're there.

(like) Roll Tide



lunaticfringe's picture

There can be no restorative justice, no healing, until this is dealt with. If it is not, or if these largesse sucking lefties give him a second term- I expatriate. It's that simple. Because at that point in time, we have lost any rule of law here- the elite rule has begun. Make no mistake about what happened in 2008. The class war is over. The elite won. Check mate.

jomama's picture

apparently this news to you, the elite aren't lefties, they play both sides of the aisle.  

go right on and keep lying to yourself, however.

slewie the pi-rat's picture

jomama,  he might be very threatened if folks started to transcend their differences and wake up to their commonality.  fight club is great on free speech;  i couldn't resist, myself.  this is better than making films!  people who have online business and websites and subscribers and clients, and bills to pay and others who depend on them to keep a business plan working are here, wearing masks.  i'm not the only idiot w/ big ears, it seems.  some things take time, like understanding.  now, i'm gonna go light up some other asshole, myself!

hedgeless_horseman's picture
Five to one, baby
One in five
No one here gets out alive, now
You get yours, baby
I'll get mine
Gonna make it, baby
If we try

The old get old
And the young get stronger
May take a week
And it may take longer
They got the guns
But we got the numbers
Gonna win, yeah
We're takin' over
Come on!

Lord Koos's picture

You think this started in 2008?  Don't let the door hit you on the way out.

monopoly's picture

Just continues to make me sick that these scum go free with their hundreds of millions.

Zero Govt's picture

you mean our hundreds of millions

living on the edge's picture

Grayson will be back but in a different capacity. You can take that to the bank. Just not the Federal Reserve variety. Good night!

blindfaith's picture

I have wasted time, I have wasted money, and I have wasted two on Obama and one on Grayson.  But, wasted for different reasons, and it won't happen again.

Obama, the great promise of change and a new beginning.  What a con.  Give me back Bush, at least I knew not to trust him.

Grayson, loud and clear on real problems.  Lost his credibility on that stupid campaign ad manipulating his opponent's religious beliefs.  Man, you don't even bring up religion in Florida unless you have God standing beside you.  I won't even mention that stupid hair of his chin as if he is some twenty something...goes over big with the North & Central Florida conservatives family types.

Obama has terminally wounded Democtatic Party.  And, both parties have very likely terminally wounded America.

MaximumPig's picture

At one point we demonstrated that they had – lent so much money to the Central Bank in New Zealand that it corresponds to $4,000 for every single person in New Zealand. Wouldn’t it be nice if the Feds can extend that kind of credit to Americans?


I love Alan Grayson but, really, isn't the Fed the biggest creditor of the US right now?

chindit13's picture

Interesting to look back at the linked article from 2009 and read the comments.

NOTHING has changed.  After today's Bernanke kid gloves treatment on the Hill, it is clear nothing is ever going to change.  No investigations, much less prosecutions for wrongdoing anywhere in the financial industry. FCIC report ignored.  Everything the TARP watchdog writes ignored.  Dylan Ratigan talking to himself.  Zerohedge preaching to the choir.

All the TBTF's are still TBTF, and can take "risk" accordingly.  Small banks---the ones who used to be responsible for most of the small business loans in the country---lose two ways:  nobody is ever going to save them, and depositors who know the bank can fail will move money to the Chosen Few.  Small banks who fail find their assets are worth less than 50 cents on the dollar, though miraculously TBTF banks assets are within 3% of par. Deficit is monetized plus, where plus is the slippage involved in lifting yesterday's Treasury issuance off the ask from the PD's.  Commodity position limits exist for you and I, but not for TBTF.  The people cannot even audit the Fed's lobbyists, much less the Fed.  Indefinite ZIRP for the sole reason of handing the TBTF's even more free money.

I'm all out of swears.

Rick64's picture

 That about sums it up.

slewie the pi-rat's picture

c'mon chindit, don't lose yer chinstrap over today, ok?  they control the msm and will keep feeding us news that is 2-3 years old, so we don't notice what is happening, today.  your analysis is spot on, old chap!  so what?  the sun is gonna shine tomorrow.  'they' can't stop it anymore than 'we' can.  i find some hope in that.  the pendulum of our pretty moon will still drive the clock of earth's living surface and we shall come to terms, one way or another. 

Windemup's picture

O Gawd. He's got to lose the beard.