Government To Pretend It Will Prosecute Wall Street

Tyler Durden's picture

In what is merely the latest act in the neverending play of fraud and corruption, the bipartisan panel appointed by Congress to investigate the financial crisis has concluded
that several financial industry figures appear to have broken the law
and has referred multiple cases to state or federal authorities for
potential prosecution reports the Huffington Post. "The sources, who spoke on condition they not be named, declined to
identify the people implicated or the names of their institutions. But
they characterized the panel's decision to make referrals to prosecutors
as a significant escalation in the government's response to the
financial crisis." Well, it would be so easy to believe that this is not merely the latest political attempt at cowardly subterfuge before their Wall Street overlords by the corrupt Congressional puppets if this same ploy had worked out a little better the last time, oh, precisely zero bankers were thrown in jail. That said, the semi-informed public who sees massive fraud and endless lies now on a daily basis will get more disclosure on Thursday when the "final report" is expected to be released. Said semi-informed people will be shortly disappointed when nothing at all comes out of this. As for the 99% of the less than semi-informed US population, well, they couldn't care less.

From HuffPo:

In the three years since major lenders teetered on the brink of collapse, prompting huge taxpayer rescues and amplifying an already painful recession into the most punishing downturn since the Depression, public indignation has swelled while few people who played prominent roles in the crisis have faced legal consequences.

That may be about to change. According to the law that created the Financial Crisis Inquiry Commission, the panel has a responsibility to refer for prosecution any evidence of lawbreaking. The offices that have received the referrals -- the Justice Department, state attorneys general, and perhaps both -- must now determine whether to prosecute cases and, if so, whether to pursue criminal or civil charges.

Though civil charges appear a more likely outcome should prosecution result, one source familiar with the panel's deliberations said criminal charges should not be ruled out.

Surely, Lloyd, Vic and Jamie are shaking in their boots. And just to extend the subreality distraction show by a few more days, while something far more criminal is likely taking place behind the scenes, the general public has two more days in which to imagine that one day someone may go to jail for the biggest legal heist in US history.

The commission's decision to refer conduct for prosecution underscores the severity of the activities it has uncovered and plans to detail in its widely anticipated final report, the sources said.

A spokesman for the commission declined to comment. "I cannot comment on the commission's report or its activities until January 27th," said the spokesman, Tucker Warren.

More here.


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topcallingtroll's picture

Woohoo! Lets catch a couple of little fish and make an example of them.

In Fed We Trust's picture

As a bank, you are either a member of  cartel or you are not a member.  Seeing how there is only 8-10 members of the cartel, then chances are you are not part.

Obviously Madoff was not part of the cartel and was offered up.

All you small fish banks will be broken up into small bite pieced by the FDIC for the member banks.

A number of hedge funds, broker dealers etc, (non members) will be offered up in this pretend to go after Wall ST period.

Quixotic_Not's picture

When swimming with sharks, make sure to either:

A.  Have no open wounds...

B.  Take aggressive action(s) to ensure that others more wounded than you...

C.  Hide the injury in an air-tight seal, effectively masking the wound from even a smell test.

Small fish banks = Chum

Malcolm Tucker's picture

Algeria might be the next domino to fall because of Bernanke and company. Here are videos of the riots and even the hacking group Anonymous is getting in on the action!

Popo's picture

Will you be pimping your blog with the same unrelated comment on every thread?

Hedge Jobs's picture

'Obviously Madoff was not part of the cartel and was offered up"

Obviously you havent looked in to the Madoff case very closely IFWT the guy was nasdaq chairman and was not offered up. His fraud and usury was just so blatantly in your face not even the MSM could put a positive spin on it. Before he went away though all the money had already been sent to isreali interests, his demise had been well orchestrated to maximise losses for his investors and maximise illegal profits for his synagogue buddies. Why do you think he is the only one in jail over it? You really think one person alone can run a multi decade $50 billion fraud? Common sense would suggest not.

I think I need to buy a gun's picture

10 cops dead around the nation in 24 hours. Abc world news tonight said "the experts" couldn't figure out why.......

StychoKiller's picture

Respect for religion must be reestablished. Public debt should be reduced. The arrogance of public officials must be curtailed. Assistance to foreign lands must be stopped or we shall bankrupt ourselves. The people should  be forced to work and not depend on government for subsistence. - Cicero, 60 B.C.

AnAnonymous's picture

Woohoo! Lets catch a couple of little fish and make an example of them.


Some people must sleep sleepless nights.

"Am I part of the gang?" "Will I be run under the train to satisfy the US mob spirit?"

The US is all about groups. People who are not part of the right groups either no longer sleep or are under heavy medication. Their acts do not really matter. Caught people will be the less efficient actually.

A kind of meritocracy.

sushi's picture

Even if convicted they will just pretend to serve time.

lynnybee's picture

"  As for the 99% of the less than semi-informed US population, well, they couldn't care less. "

I care.   I care a lot.   I care for myself, for my kids & grandkids.   I'm buying silver, gold & a gun & NO ONE, especially no stinking gov't-types are going to take away my god-given rights.    I've come full circle; from being scared shitless to being so angry (& educated)  that NO ONE is going to ever take advantage of me again .

The Count's picture

"...It Will Prosecute Wall Street"

Hahaaaah haaaaaa ha hahaaaaaa


Rick64's picture

Well would you believe remorseful testimony and berating from the Financial Crisis Inquiry Commission? No

Well would you believe deferred bonuses up to a year?

Gimp's picture

They ain't going to bite the hand that feeds them, let's get real.


JW n FL's picture

the new team could not find the paper trail here, google was down the 1 time they searched (over a 3 year period)...

Lucius Cornelius Sulla's picture

Paulson, Dimon, Mozilo and Blankfein are all shaking in their boots .... NOT!

knukles's picture

Anonymous sources decline to name names and somebody thinks this comes from Realityland?

Let me be the first to call Bullshit!


A spokesman for the commission declined to comment. "I cannot comment on the commission's report or its activities until January 27th,"
Insightful comment.
God's grace has been bestowed upon us, once again. 

JW n FL's picture

When the 10-member panel was first convened in late 2009, participants emphasized that they did not intend to focus on prosecution, but were rather intent on illuminating the root causes of the crisis.

Indeed, the fact that the body has opted to make referrals adds an unexpected coda to a proceeding that some observers have written off as just another bit of Washington stagecraft aimed at generating headlines.

"Few will notice its absence," said Michael Perino, a law professor at St. John's University School of Law in New York and an expert in financial history, in an opinion piece published in the New York Times last October. It "had no discernible influence over the financial reforms." He added: "How did this commission fail so badly?"

But the decision to refer cases for potential prosecution could provoke a different conclusion: It may yet satisfy public craving for what Treasury Secretary Timothy Geithner once referred to as the "very deep public desire for Old Testament justice."


Stuck on Zero's picture

We've seen this before.  Prosecutors will go after the upstart competitors to the hardcore banksters.

High Plains Drifter's picture

Yeh they round up all of the Italians but they don't even worry one bit about the thugs on wall street etc.

Cdad's picture


Call it my mantra.  Anyway, it is fact.  If folks cannot TRUST other folk to treat their money will not form. Without capital formation, there is not economic recovery in America.  OH...and this, BTW, is why Ben Bernanke is currently counterfeiting the crap out of our currency.

It must be stopped.  Confidence must be restored.  There are no half measures in justice that is backed by the law.

OR...we are lawless. 

Either way...say it, Uncle Sam.  Say it, Banana Bernanke.  If we are no longer a nation of laws...say it!

JW n FL's picture

This week the Financial Stability Oversight Council put out a study and recommendations on the Volcker Rule, providing a road map toward the rules that will come out within a few months.

According to the New York Times, the hurdle they face is simple: there is no easy way to tell a proprietary trade from another kind of trade, particularly given the exemptions worked into the law.

Yet in the end, the Volcker Rule may work, even if there are ways around it, says Times columnist Floyd Norris, who interviewed 83-year-old Paul Volcker.

"I may not understand modern financial attitudes," Volcker said, "but I don't think a bank wants to be conducting financial activities that will be revealed as simply skirting the law."

JW n FL's picture

ZURICH - Police will question former banker Rudolf Elmer on Thursday over possible fresh breaches of Swiss bank law for giving data to WikiLeaks this week, a day after he was found guilty of violating bank secrecy.

Authorities have 48 hours from Elmer's arrest to decide whether they have grounds to hold him in custody for longer, state prosecutor Peter Pellegrini said on Thursday.

JW n FL's picture
SEC May Review Asset-Backed Securities Standard


WASHINGTON - U.S. regulators are mulling rules requiring asset-backed securities issuers to conduct a more thorough review of underlying assets to better inform investors, according to a person familiar with the matter.

The Securities and Exchange Commission is set to adopt new rules Thursday designed to make sure investors know the quality of the assets after those linked to toxic mortgages led the United States into a deep financial crisis. The rules were required under the Dodd-Frank Wall Street reform law.

Mitchman's picture

Oops.  Is it time to take Holder out of the refrigerator again?

weinerdog43's picture

Inaction Jackson!  To the Rescue!  Not.

99er's picture

From Jesse...

America is caught in a confidence or credibility trap, in which the changes, investigations, and reforms necessary to restore trust to an economy or market are rendered unlikely because doing so would expose a pervasive corruption that the principals fear would destroy any remaining trust.  It could also endanger the careers of politicians and business people who may have permitted and even appeared to facilitate the control fraud that caused the financial crisis in the first place. Personal risk trumps public stewardship.


jomama's picture

systems that cannot be sustained will ultimately fail.

i'll pretend to buy the line and continue to build up my PM collection.

it's the most effective way to say FU to the despicable establishment.

Crassus's picture

Perhaps they'll prosecute Martha Stewart again.

lynnybee's picture

Now who in the world would junk me !  For the life of me, I can't imagine anyone junking a sincere statement of commitment & caring !  ............. It must be someone from the government incognito !!!!! .......... go away government person !

CrashisOptimistic's picture

Shanghai continues falling.

jeffca's picture

Statue of limitation...5 years!  Bankers almost won.

buzzsaw99's picture

The Empire of Fraud is going to root out the fraud? No fraud, no empire.

satansanus's picture

really blankie went nutty with his fail to delivers along with BAC and BCS... funny not many folks are holding the torch to BAC and BCS dmm shops that were litterally stealing everyday in 2008


Perp walks for H Paulson, Jamie Dimon, Llyod and whoever the douchetwats at state street and regions were

Bruce's picture

Yes, here's the "change" that we were all promised.  
Business as usual.  No change.  No Pecora Commission.  
No convictions. Only maximum moral hazard.
Oligarchy.  Plutocracy.  Complete legislative and
regulatory capture.  One day justice will be served.  
If not in this world, then the next.


Yancey Ward's picture

No problem.  I only pretend to believe them.

firstdivision's picture

While Lloyd may be the CEO of GS now, let's not forget who was at the helm during most of the robbing and lying.  None other than Hank Paulson.

Rick64's picture
Implicit simplicit's picture

I hope Brooksley Born remembers how she was hushed when she tried to bring the derivative debacle to the forefront. Summers is hiding over at Harvard; probably gets plenty of bankster contributions for the politico alumni fund for his good deeds. 


akat's picture

  I'm sure if Joe Doe robbed a bank they would be sure not to release his name in order to protect his feelings and delicate sensitivities.  Not giving names or details is certain to mean the fix is in and there will be no prosecution of any signifigant players in the Wall Street criminal casino.

Ahmeexnal's picture

When a thousand hungry lions fight over one scrap of food, small dogs should hide with whats in their belly.

Bruce's picture

Just to rub salt into the wound
US Taxpayers paying to defend
the criminals:

U.S. Covers Millions in Legal Fees
for Ex-Freddie, Fannie Executives

Taxpayers have spent more than $160 million defending
executives of Fannie Mae and Freddie Mac, infuriating
lawmakers who want to know why taxpayers are footing
the bill for heads of agencies that have already cost
Americans at least $150 billion.

Quixotic_Not's picture

Here's a name that's up there with Benedict Arnold:

Franklin Delano Raines - Former Fannie Mae CEO/FraudMaster extraordinaire!

Obama's inside-TBTF-man that got ol' Barry in-like-flint...

Too bad, so sad that the average 'MeRiKan probably didn't even have the attention span to read what I just wrote, no less ponder its weight.

knukles's picture

Before the poop blew up at Fan/Fred Yomama had Raines short listed for Secretary of the Treasure.