Preet Bharara Explains Why He Let Wall Street Bank Executives Avoid Prison

Tyler Durden's picture

Authored by Mike Krieger via Liberty Blitzkrieg blog,

Recently dismissed U.S. Attorney for the Southern District of New York, Preet Bharara, is suddenly being celebrated as an aggressive warrior in the fight against Wall Street corruption.

Really? You could’ve fooled me. Perhaps I was in a coma when a string of big bank executives were arrested and sent to prison.

No, what actually happened is one of the most powerful attorneys in the nation came up with a mealy-mouthed, cowardly rationale for why he let these financial thieves off the hook.

Crain’s reports:

Bharara was nowhere to be found when it came to charging the top executives whose actions led to the collapse of Lehman Brothers, Merrill Lynch and AIG, and who made all manner of misleading statements to cover up how sick their firms were. Goldman Sachs executives sold institutional investors a mortgage-backed security that sales staffers described as “one shitty deal.

 

Where was Bharara when it mattered most?

 

We don’t have to wonder for too long because the prosecutor explained his actions—or lack thereof—at a Crain’s forum three years ago. Bharara said at the time that he didn’t think he could win a case against Wall Street top dogs because they had hired advisers assuring them what they were doing was legal.

 

“What you do have to prove is criminal intent,” he said. “And it’s very difficult if a bank president has in his hands a letter or opinion from a law firm or accountant saying, ‘If you do X, Y and Z when you sell these mortgage-backed securities, you’re good.’

 

“Now it may make you angry,” he told the audience. “But if you have the opinion, it is a very difficult thing [for a prosecutor] when they say, ‘I asked my lawyers to do the best they could to tell me what I’m supposed to do.'”

 

Read those statements again. The leading white-collar prosecutor in the country said that advice from the right lawyer or accountant is tantamount to a get-out-of-jail-free card.

 

Jesse Eisinger, a Pulitzer Prize–winning business reporter, will soon have a book out explaining how federal prosecutors lost their nerve to bring Wall Street leaders to justice. Its title is The Chickenshit Club.

Now that sounds like a book worth reading.

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LetThemEatRand's picture

Two sets of rules.  One for us, one for them.  This is just a fancy way of saying that.

localsavage's picture

And now.....He will be hired by these same big banks.

jcaz's picture

Apu was always cutting side-deals with the banks-  Trump heard about that shit years ago.

Bye-bye, Apu- back to 7-11.....

NoDebt's picture

Add him to the long list of regulators and prosecutors who only became "tough guys" AFTER they were no long in a position to do anything about it.

System works against you?  Tough shit.  You prosecute anyway and let the chips fall where they may.  Maybe you get lucky, maybe you don't.  But you make them defend themselves in front of jury of their peers.  Again and again and again.  If you can't nail them with the crime, you make them pay in other ways- by making them professional defendands who spend their lives and fortures in court defending themselves against charge after charge.  You make them RADIOACTIVE.  Unemployable.  You disassemble them one piece at a time to get your message across.

None of which he did or had any interest in doing despite controlling the system with which has the capacity to do exactly that and HAD EXACTLY DONE THAT to much lower-ranking offenders.

You're a piece of shit.

Stuck on Zero's picture

Anyone here ever get bad advice from an attorney?

jeff montanye's picture

william k black, under george h.w. bush, put hundreds of savings and loan executives in jail for serious time no matter what their fucking lawyers said, to them or at trial.  you want to see the same thing happen again?  put the same guy or his designees in charge of a well funded, well protected swat team and watch the banksters crap their pants trying to get short stays in nice places like eglin air force base.  the clinton, bush and obama administrations were corrupt from start to finish and from the bottom to the top.  

chickenshit indeed.

http://www.democraticunderground.com/10026976393

decon's picture

I was hoping Trump would nominate Bill Black to a prominent role such as Tres Sec or Att Gen.  Very disappointed with many of Trump's nominations so far.

Pinto Currency's picture

A little bit about the fraud on Wall Street.

A whole series of Wall Street deceptive concealment fraud cases where charges never brought by Obama justice Dept.

The Veneer of Justice in a Kingdom of Crime

https://www.youtube.com/watch?v=eHgbRYgpGGs

xythras's picture

Anyway seems Trump is losing his mojo.

I have the feeling he moved in the backseat.

detached.amusement's picture

BAR = British Accredited Registry

"Attorneys at Law" are a trojan horse

BobEore's picture

Most species of 'dump on the Darkie' so vividly on display here are but variations pon the theme of envy n hate for some guy who followed the exact script by which Merika is supposed to fulfill it's destiny as the melting pot where a meritocracy of men without prejudice to their humble beginnings is the rule and model. It's that simple... dump your spleen - and bladder - on the guy who made it up the ladder.

That aside, the tsunami of posts designed to 'excrete on the Preet' here are clear signs of worry that the behnd the scenes moves to extinguish any and all remaining opposition to the GOLDMAN REGIME now showing it's ugly face may not be working as good as expected.

Yes, far too many of us remember those days when it would have been absolutely preposterous to have even mooted the idea that a debt-laden reality tv star with way too many ties to the ashkenazi mob might not only make it to POTUS... but bring with him the very crew who we...

back in those now forgotten times - would endlessly fulminate against on these very pages - as the "SQUID," "Vampire of Wall St.," etc., etc. Unfortunately, those with intact memories seem to be much in the minority here now, their voices drowned out by the sea of serial amnesia victims shillin for da man!

jeff montanye's picture

horseshit.

of the two choices on offer, trump and clinton, trump had fewer of the ashkenazi mob and the subset of them, the vampire squid, at his back and inside his u trou.  by chance do you remember this?

https://www.google.com/search?client=safari&rls=en&q=goldman+sachs+emplo...

BobEore's picture

Kinda glad you prefaced your response with a disclaimer as to what woud follow: http://www.silverdoctors.com/wp-content/uploads/2017/03/232110-1.gif

if a  game  of subjective reasoning - as in - my piglet stinks less than the rest of them, cause he wallows in sweeter shit...

is all you've got to come back with, looks like we've pretty much reached the end of that honeymoon period where we need to be fair to the incoming new guy. The pathetic excuses are to why he has failed to cut the mustard have pretty much been drained away - into those culverts we thought were gonna be used to 'drain the swamp' instead.

You promised 'horsehit' - and damned if you didn't deliver! (Hey - that's "mighty white o ya!)

and you still need to play red vs blue games - this one should whet your whistle -

http://lawnewz.com/uncategorized/president-trump-on-witness-list-in-case...

Omni Consumer Product's picture

I see that some kid got into the Turing Machine generator again...

Escapeclaws's picture

That's quite a tirade, Hillary. What does Bill think?

BobEore's picture

Dunno bud.

But I think your continued inability to pull yourself out of your red/blue factionalism obsessions...

is likely to be the death of you. And the place you live.

 

sees ya on the flip side of dat one genius!

Mute Button's picture

Hey Preet: Birdie Num Num...

junction's picture

Bharara is a lying fuck who went after the equivalent of brokerage clerks instead of the criminals in Armani suits who wrecked the American economy.  He and his patron, Chuck Schumer, below in adjoining cells at Supermax.

East Indian's picture

Only one set of rules. For the hoi polloi. 

SloMoe's picture

Ah, he knows who butters the bread. When's his job interview with Blankfein?

indygo55's picture

I'm pretty sure he already is working there. started the day he got fired. It was all planned. 

Mini-Me's picture

They call them "banksters" for a reason.

pods's picture

So when they sold them and immediately bet against them doesn't show that they knew they were steaming piles of shit? Oh wait, they also said that too. 

pods

LN's picture

https://www.youtube.com/watch?v=i5dBZDSSky0

Thanks George, how you knew when you knew, I'll never know.

LN

Pork Rind's picture

Preet, Preet the magical tweet. The more you tweet, the better you feel. So lets have Preets for every meal.

Beans, beans the magical fruit. The more you eat the more you toot. The more you toot the better you feel. So let's have beans for every meal.

cbxer55's picture

Well, not just beans. Chili with lots and lots of beans. Toot-toot!  ;-)

Pork Rind's picture

James Catherwood Hormel (born January 1, 1933) is an American philanthropist and a former United States Ambassador to Luxembourg; appointed by U.S. President Bill Clinton in 1999, Hormel was the first openly LGBT person to serve as a U.S. Ambassador[1] and is a noted LGBT activist. - Don't buy Hormel canned chili - Hormel is owned by the gay Jew James Hormel - Luxembourg was aghast when Clinton appointed the gay Jew Hormel as ambassador to Luxembourg - you'll find that most of the US ambassadors are Jewish, that's why Trump got rid of them right away - Hormel canned chili is really subpar compared to the other chili brands - try Kelly's canned Chili or Wolf's, you'll see right away that Jew Hormel chili is subpar

cbxer55's picture

I don't even consider hormel to be chili. Not sure what it is exactly. Best canned chili I've had is Chunky Fire House. Saw an article on chili once, and it said Chunky Fire House was as close as you can get to home made in a can.

indygo55's picture

Does anyone understand that Ben Shalom Bernanke works for Citidel? You all know what Citidel is, right? 

Nona Yobiznes's picture

This is nutty. So who is responsible then, the legal advisors? Fuck this shit, the bankers knew exactly what they were doing and every prosecutor in the country knows that. Are they being bribed? Blackmailed? Obviously something is going on, because I cannot think of another reason. 

chiquita's picture

It's all a load of horseshit.  The banksters' legal advisors had letters of intent that absolved them of any wrong doing? COME ON!  If that was all that is needed to get out of trouble, anyone could go into court with a letter from a lawyer explaining just about anything including justifiable homicide.  It's the fucking prosecutor's job to show the damage that was done and that this was going to be the result whether the perps were fully aware or not.  Some things don't need to be known to cause damage before they happen to be criminal.  The problem is much of what happened during those years were known.  When derivatives first came up and were questioned as being irregular and possibly problematic, I believe it was Larry Summers who insisted that they be allowed and so they were.  We see how well that turned out.  When Wall Street dictates the legal system and how it will or rather will not punish them, until someone (hopefully Trump) changes the legal system or gives it back its backbone, we can't recover.

BobEore's picture

Ah yes.

When derivatives first came up and were questioned as being irregular and possibly problematic, I believe it was Larry Summers who insisted that they be allowed and so they were.

Wankers here be so far down the talmudist wabbit hole that they cannot read what is literally right in front of their schnoozles - IN BIG BOLD LETTERS.

wtf do you think this "wall street" you speak of is about? Bunch of Ivy League WASP good ol boyz? Who is "Larry Summers" - and how many passports does he carry?

Ever since the grandson of ashkenazi immigrant Sam Lapowski changed his name to the more conventient "C. Douglas Dillon," looters posing as Secretaries of the US Treasury have been imposed upon a witless America now fully under the yoke of noahide law. Every damn one of them!

Who the hell do you imagine was responsible for the creation and imposition of the derivative weapon of mass economic destruction chumly? The same blithering idiots who blather on endlessly about Hungarian George Soros and the like have nothing to say when it is exposed that other "Hungarian" ashkenazi dual passporters like Ricky Sandor were the genius behind that scam to move more moolah into the paws of the moneychanger caste!

While I used to feel sorry for y'all, and feel obliged to try and point out that the object which you are all running to hide under is a bus which will one day soon nuff move forwards and backwards in a manner which will leave you as no more than impressions pon the pavement...

I'm beginning to think that you may just deserve everything coming to you - as the advocacy of of an agenda which will bring ruin to the once mighty Republic is a crime not just against it, but a violation of every instinct of self survival and common sense.

Salzburg1756's picture

Toture him and them scientifically for a very long time.

LawsofPhysics's picture

Full FAITH and credit...

espirit's picture

Full FAITH and credit... Bitchez.

There, fixed it.

MuffDiver69's picture

I'm gonna try this on the wife next time she won't give it up...I have letters.....lots of letters...from very important people...

Mena Arkansas's picture

So you charge the attorneys and accountants and get them to roll over on the bankers.

Didn't they teach you that in the Punjab?

Blazing in BC's picture

Good thing I have a friend who is an accountant and a facial advisor.

adr's picture

Well I hired an advisor that says it is perfectly legal for me to cut Lloyd's head off. 

So you can't charge me. 

Oh and that advisor says I don't have to pay taxes either. 

And he said that I can pull Moochelle's pants down in public so everyone can see it's dick. 

G-R-U-N-T's picture

Big banks own Washington along with the New York judges. Until an independent council is appointed to serve justice, they will continue the same behavior. Government revenue gained by fines, fee's and penalties were more important than the moral hazard and extensive criminal behavior for the likes of this pussy prosecutor and his bumbling idiotic anti-American, anti-Constitutional cohorts. These men haven't character they are characters.

Don't know if Trump can start the ball rolling and bring back the rule of law, we'll probably crash and burn before he can put a dent in this mess.

williambanzai7's picture

So have the lawyer who issued the opinion disbarred, fucking mealy mouthed moron.

And someone please show me which legal opinions said it was OK to forge signatures and create fraudulent mortgage documents, or to create bank accounts without the consent of the customer, or to rig Libor, PM, FX, yadda fucking yadda...

Preet Baharvard is a fucking bankster dildo who will wind up a partner at Dewey Cheatem and Howe.

Cabreado's picture

"Preet Bharara, is suddenly being celebrated as an aggressive warrior in the fight against Wall Street corruption."

I missed that part -- who is celebrating?

cbxer55's picture

All the banksters he refused to prosecute.

LeftandRightareWrong's picture

Mess up your tax return and tell the gov your advisers OK'ed it.  See how that defense works for you.

TeethVillage88s's picture

Preet, Preet, Preet!

TeethVillage88s's picture

Crain NOT CRAIN!!!

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oobilly's picture

After MFGlobal he has no excuse.... Corzine steals 1.6 billion from customer accounts and he cant lay charges?

TeethVillage88s's picture

President Trump, Jeff Sessions, Eric Holder, Loretta Lynch... I plea before the Court of Opinion, before both US Houses, before the AGs of New York, before the FBI, before all AGs of US States hurt, before European States hurt in 2006-2011 Financial Collapse... Before those given Private Federal Reserve LIRP Loans to keep them quiet... to those that know the US Screwed the world then Bribed the world to avoid recriminations and taint on our US Reputation...

Prosecute the Fraud, Wire Fraud, Market Fixing, Financial Ratings Fixing, Accounting Fixing... at minimum the world is ... Waiting on you in the Federal Reserve/FDIC/OCC/Treasury/DOJ/FBI/SEC/FINRA/FTC to fix THE DAMN FINANCIAL/BANKING/RATINGS/FIRES System!

“What you do have to prove is criminal intent,” he said. “And it’s very difficult if a bank president has in his hands a letter or opinion from a law firm or accountant saying, ‘If you do X, Y and Z when you sell these mortgage-backed securities, you’re good.’"

who might be responsible and held accountable?

Office of the Comptroller of the Currency, John C. Dugan, John D. Hawke
Treasury Secretary, Jack Lew, Timothy Geithner, Henry Paulson, John Snow, Larry Summers, Robert Rubin
FDIC Chairman, Martin J. Gruenberg, Sheila Bair, Donald E. Powell, Donna Tanoue
SEC Director, Mary Jo White, Elisse Walter, Mary Schapiro, Christopher Cox, William Donaldson, Harvey Pitt, Arthur Levitt
FINRA Directors, Mary Schapiro,
DOJ Director, Eric Holder
FBI Director, Robert Swan Mueller III, James B. Comey
President of the US, Barack Obama
Obama National Security Advisor

1971, Nixon Shock, President Nixon consulted chairman Arthur Burns, John Connally, Paul Volcker.