Phil Angelides Discusses America's Dual Justice System: One For Wall Street And One For Everyone Else

Tyler Durden's picture

Lisa Murphy of Bloomberg interviewed the chairman of the now defunct FCIC, Phil Angelides to discuss the findings presented yesterday by Carl Levin. The topic was the "greased pig" that is Wall Street. The conclusion is that America now has a dual justice system: "One for ordinary people and then one for people with money and enormous wealth and power." As for crime deterrents, considering that to this day not one person has gone to prison, even an idiot can foresee what Angelides has to say on this issue: "To the extent laws were broken, we need deterrents. If someone robs a
7-11, they took $500 and they were able to settle the next day for $50
and no admission of wrongdoing, they'd knock over that 7-11 again.
And
we've seen time after time where people and firms have made tens, one
hundreds, billions of dollars. They've settled charges for pennies on
the dollar. At Citigroup for example they represented that they had $13
billion of subprime mortgage exposure when they really had $55 billion.
The penalty to the chief financial officer who made $19 million that
year, 2007, was $100,000. Goldman was fined $500 million but the date
they settled their stock moved up $2 billion. There's been no real
consequence." Too bad there is no acknowledgment that it is people like Angelides who through their corrupt behavior over the years allowed Wall Street to singlehandedly usurp the democratic process and replace it with that of a fascist corporatocracy. But that's irrelevant: at some point, sooner or later, the American peasantry will snap. Maybe not tomorrow, maybe not the day after the Apple borg hypnosis ends, and the fascination with American Idol expires, but at some point thereafter, absolutely. And the primary reason will be the glaring trampling of the tenets contained in both the Declaration of Independence and Constitution, by the kleptocratic "superclass." Then what happens when the billions of ones and zeros held in some bank vault and imparting some ephemeral monetary greatness to these people, finally is exposed for the sham it is, and they have nothing to protect them from the hordes of hungry, angry and very well armed? We can only hope they will be able to bribe their way to the top in that world order as well as they can in the current one. Somehow we doubt it.

Highlights from the Angelides interview:

I think there's a great concern in this country on two fronts. One is there's a question here, do we have a dual justice system? One for ordinary people and then one for people with money and enormous wealth and power. Secondly, we need deterrents. To the extent laws were broken, we need deterrents. If someone robs a 7-11, they took $500 and they were able to settle the next day for $50 and no admission of wrongdoing, they'd knock over that 7-11 again. And we've seen time after time where people and firms have made tens, one hundreds, billions of dollars. They've settled charges for pennies on the dollar. At Citigroup for example they represented that they had $13 billion of subprime mortgage exposure when they really had $55 billion. The penalty to the chief financial officer who made $19 million that year, 2007, was $100,000. Goldman was fined $500 million but the date they settled their stock moved up $2 billion. There's been no real consequence.
    
Well I think there's two things here. Number one is it's up to the prosecutors to do thorough investigations. That's what we should expect. We don't want hangmen justice. We don't want vengeance, but we want thorough investigations. And if people crossed a line they ought to be prosecuted. But there were a lot of people who bellied up to the line and conducted themselves in a way without the highest standards of ethics or moral conduct that hurt the economy badly.

And I think one of the things that's most troubling to people is there seems to be very little relationship between who drove this crisis, the big financial institutions, the CEOs, regulators who didn't do their job, and the people who are paying the price, which are millions of people who have lost their jobs, lost their homes, lost their life savings.
    
But what we're seeing is from the House of Representatives, the new Republican-controlled House of Representatives, efforts to cut the budget of the Securities and Exchange Commission, cut the budget of the Commodities Future Trading Commission, a real push back on reform in the wake of this devastation. And I think that is very dangerous.
    
You also need to attract talent. Look, Wall Street is nimble, it's quick, it's smart. It's a little bit like a greased pig.  They move fast, they're hard to catch. We need to do a better job of recruiting people of talent into the public sector, paying them, making sure we have regulators who can frankly match up with Wall Street.
 
h/t MM

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zerozulu's picture

Can we say,"this has become a country of no morals."

the mad hatter's picture

It's all about controlling the money supply.

Bankers have an unchecked power. They are above the law because they buy the people that make the laws.

"Financial institutions are more powerful than standing armies..."

TheFourthStooge-ing's picture

FASB = Fuck America, Serve Bankers

 

Thomas's picture

Angelides is wrong: I want hangman justice.

AldousHuxley's picture

Wall St. was supposed to steal from rich dumbos in foreign countries. They got so greedy that that wasn't enough. They needed to eat their own kind.

rocker's picture

When they put at least two of these guys in Jail, Lloyd Blankfein, Hank Paulson or Neel Kashkari, I'll buy my first financial stock.

Until then, Fuck all the Banksters. 

DeadFred's picture

Lowes and Home Depot don't sell the good kind of pitchforks.  Have to look in a good farm supply store.

Bananamerican's picture

"We need to do a better job of recruiting people of "talent" (hmm, there's that word again..) into the public sector, paying them, making sure we have regulators who can frankly "match up" with Wall Street."

SUCCESS!!!

in fascist oligarchy, target investigates YOU

 

 

AldousHuxley's picture

That is the new American Dream....become a Wall St. regulator with the government, get lifetime pension and healthcare, then retire to a Wall St. consulting/lobbyst gig.

lynnybee's picture

correct on the cheap pitchfork comment from LOWES or HOME DEPOT.    I have a really good pitchfork from 1910 ..... my dear departed grandma jo's pitchfork, the good sturdy kind that has hand-forged iron tongs, nice & rusty for inflicting major damage.    

never forget what my grandma jo said (born in 1915, god rest her soul) :    Do not trust the government & never go into the stock market .

 

 

laughing_swordfish's picture

Put them in Jail...AFTER we guillotine Bernanke, Geithner and Summers.

Moe Howard's picture

I don't think we are 'their own kind'.

Eating us, for them, is not cannibalism.

Mae Kadoodie's picture

George Taylor: Oh my God. I'm back. I'm home. All the time, it was... We finally really did it.
[screaming]
George Taylor: You Maniacs! You blew it up! Ah, damn you! God damn you all to hell!

penisouraus erecti's picture

Does anyone else find themselves increasingly muttering 'WTF' to themselves these days?

cswjr's picture

More and more every f'ing day.  WTF seems to follow the power law.  Not just that, but highly skewed WTF-ness, sort of like the VIX.  Someday it'll probably stop, but the problem with self-organized-criticality is that shifts are inherently unpredictable.

Amish Hacker's picture

Oh, that WTF. I thought you meant Win the Future.

Cleanclog's picture

+ 1000.  Wonder if they thought about that when they came up with this version of Win the Future.  I was distracted by the Charlie Sheenness of "Winning", but WTF is even more awesome.  What a terrible tag line.  Change you can believe in and Hope and especially the Audacity of  were so much better. Not looking good for 2012.  Wonder if the Dems will change horses?

plata pura's picture

End corporate personhood.

Oh regional Indian's picture

Perhaps if most people became persons, instead of sheep, corporate personhood could not exist. If there is to be change, it has to be at the individual level. Any mass over-throw, revolution etc., just concentrates power in the hands of a new group of power-hungry/mad people.

Watching TV, drinking copious amounts of alcohol, eating copious amounts of cheap meat and going to work everyday destroys real person-hood.

But it's difficult to reverse habitual courses. All talk till we take individual action.

ORI

http://aadivaahan.wordpress.com/2011/04/11/wisdom-for-warriors-8/

gordengeko's picture

It's an installed ideology that is rotten at it's core.  And it's taken over most of humankind.  It wasn't always that way, we have been subverted and can only win this battle (which is really the battle for the rights to own your soul) by awakening within and installing a new ideology that benefits mankind instead of destroying it allowing the criminals to roam free and rule.

Corn1945's picture

By the time these "well armed" people wake the fuck up it will be too late to do anything.

6_7_42's picture

"We don't want hang man justice."

Bullshit, I wan't Wall St lynching!

obelisks's picture

I will pay your fine !!!

chindit13's picture

Remind me again why we don't want hang man's justice...it seems to have slip-(knot)-ed my mind.

monoloco's picture

Firing squad justice, line them up, charge their families for the bullets!

jeffgroove102's picture

Make politicians wear flame retardant suits like the nascar guys that discloses their corporate handlers.

Two Face's picture

I don't think that there would be enough surface area on those jump suits in order to allow for full disclosure ... even if you were to use 6 point font.

AldousHuxley's picture

Someone asked "Why Isn't Wall St. in jail?"

We should ask "Why are they still alive?"

How many real guillotines do we have in NYC and DC anyway?

laughing_swordfish's picture

+ 100

Bring on the 18th of Brumaire...Guillotines and Tricoteuses...

falak pema's picture

18th Brumaire is post guillotine...never mind...good try! Germinal l'an 2 would be closer...

Demogorgon's picture

America is dead. Long live Amerika.

gordengeko's picture

I asked for meat and meat there is, awesome.  This is a full scale battle and we need help from media that ain't corporate owned.  We need to subvert them from within, their ties run deep.  Can't win this with chaos and protests.  You have to wonder now if people like Phil who graduated at Hardvard (Red Shield funded Ideals) suddenly had a moment of epiphany or are part of the plan of slowly releasing bits of info to stir up the pot and try to instill chaos and upheaval to then usher in NWO and police controlling nannies.  Personally I'm not buying it, they want us to revolt and go crazy.  Have to be smarter than that.

gordengeko's picture

Not to keep pounding this "ideal" but red shield-british empire-eugenics-keynesian economics-ivy league-business-politcs-banking=own and run everything. Kennedy bros were our last attempt at subversion from within, guess how they ended up? At least we were close

tip e. canoe's picture

been thinking the same since the beginning:  "revolution" (as we have come to know & love it) is a mousetrap with a big juicy slice of golden cheese on the trigger.

ask the youth in Egypt how that revolution is going.  oh wait, the savior Ghonim is having a meeting with the IMF.   oh wait, they're detaining the evil Moobaraks for 10 days in their seaside resort.

same as it ever was...on to the next one...time to take WTF to an entirely different level.

Moe Howard's picture

Yes, he is one of them. He is one of those who were paid to 'look the other way'. Now he is crying that the funding for those who 'look the other way' and allow this banksterism to continue, [in fact are part of it] may be cut. Since they did not put a single bankster in jail, why do we have them?

I think he is what is called a Judas Goat, leading the gullible out in the open to be monitored or worse.

gordengeko's picture

That's absolutely right, this is a giant chess game.  Which is why you see a reoccuring theme in murals and such with chessboard tiles.  They own the board and control the pieces, each move on their part is a strategic one.  Need to be smarter and out think them...But don't forget someone created the game which includes the pieces.

Big Corked Boots's picture

If you steal $100, and get penalized $10, you don't have justice. You have a partner.

AldousHuxley's picture

When you steal $100, it is more like $160 pre tax income. Plus you qualify for welfare bennies as if you had no money.

 

Rick64's picture

 Funny I just read this today about Angelides. They are really going all out on the illusion of cracking down on Wallstreet to get Obama re-elected campaign. 

  In a January 2010 memo, Brad Bondi and Martin Biegelman, two assistant directors of the commission, outlined their recommendations for investigative targets and hearings, according to Tom Krebs, another assistant director of the commission. Countrywide and Mr. Mozilo were specifically named; the memo noted that subprime mortgage executives like Mr. Mozilo received hundreds of millions of dollars in compensation even though their companies collapsed.

However, the two soon received a startling message: Countrywide was off limits. In a staff meeting, deputies to Phil Angelides, the commission’s chairman, said he had told them Countrywide should not be a target or featured at any hearing, said Mr. Krebs, who said he was briefed on that meeting by Mr. Bondi and Mr. Biegelman shortly after it occurred. His account has been confirmed by two other people with direct knowledge of the situation.

Mr. Angelides denied that he had said Countrywide or Mr. Mozilo were off limits. Chris Seefer, the F.C.I.C. official responsible for the Countrywide investigation, also said Countrywide had not been given a pass. Mr. Angelides said a full investigation was done on the company, including 40 interviews, and that a hearing was planned for the fall of 2010 to feature Mr. Mozilo. It was canceled because Republican members of the commission did not want any more hearings, he said.

tip e. canoe's picture

"They are really going all out on the illusion of cracking down on Wallstreet to get Obama re-elected campaign."

it's so obvious it's not even funny.  tell Uncle O that the only way i'd vote for him is if I can pass Princess Dimon naked in a steel cage getting his butt massaged by a Chelsea boy on the way to the voting booth.

that or he does his black Godfather routine to legalize hemp before the election.  otherwise, color me Bartleby.

fajensen's picture

Obummah does not need your vote, he's got Diebolds!

RockyRacoon's picture

You got junked because you used the word "Republican" without a glowing comment and bowing before the political altar.   That's a no-no around here.   Let's see how many of the lemmings junk me for stating that truism.

King_of_simpletons's picture

No surprises here. Has been for ages. May be 2012 age of aquarius vibes is bringing more sense into people.