ANSWER: 1% BAILS OUT THE WINNERS THEY NEVER BAIL OUT THE LOSERS THIS IS THE VERY DEFINITION OF BOODLE BOYS
On #Lehman Anniversary, #ElizabethWarren calls for release of #financial crisis FBI investigations re: FCIC docs
Phil Angelides, former California state treasurer and commissioner of the Financial Crisis Inquiry Commission, discusses the investigation into the 2009financial crisis and the Commission’s referral for potential prosecution of some of the BOODLE BOYS like Rubin,Robert Charles Prince and Stanley O’Neal.
Phil Angelides @PhilAngelides
Chairman of the Financial Crisis Inquiry Commission (2009-2011). California State Treasurer (1999-2007). Advocate for Financial and Economic Change. California philangelides.com
“A review of these documents conducted by my staff has identified 11 separate FCIC referrals of individuals or corporations to DOJ in cases where the FCIC found ‘serious indications of violations[s]’ of federal securities or other laws. Nine individuals were implicated in these referrals (two were implicated twice). The DOJ has not filed any criminal prosecutions against any of the nine individuals. Not one of the nine has gone to prison or been convicted of a criminal offense. Not a single one has even been indicted or brought to trial. Only one individual was fined, in the amount of $100,000, and that was to settle a civil case brought by the SEC.” This particular paragraph is a Pandora’s Box by a factor of $2.5 trillion. The two individuals Warren refers to who were “implicated twice” in the FCIC’s criminal referrals are Robert Rubin, the former Treasury Secretary in the administration of Bill Clinton, who in the lead up to the crash of Citigroup in 2008 served as Executive Committee Chair of Citigroup’s Board of Directors. (After advocating for the repeal of the Glass-Steagall Act, which allowed Citigroup to own both an insured depository bank, an investment bank and brokerage firm, Rubin went straight from his post as Treasury Secretary to the Board of Citigroup, where he collected $126 million in compensation over the next decade.) The other individual whose name appears twice is Chuck Prince, Citigroup CEO during its implosion. A third Citigroup executive’s name appears as well on the list: Gary Crittenden, the Chief Financial Officer of Citigroup at the time of its crash. One other individual’s name should have been on this list: Ben Bernanke, the Chair of the Federal Reserve who allowed the funneling of over $2.5 trillion in cumulative, secret loans to Citigroup during the crisis – despite the fact that it was insolvent and thus not legally eligible for the loans. Citigroup was the largest bailout recipient in the crisis, notwithstanding that its share price at one point reached 99 cents.
2016 Prosecution of Financial Crisis Fraud Ends With a Whimper
FROM 2008 – 2016 NOTHING GOT ACCOMPLISHED FOR THE CITIZENS BY THE LAWYERS WHO ARE THEIR TO SERVE AND PROTECT THEM.
One source of great frustration from the financial crisis has been the dearth of cases against individuals over subprime lending practices and the related securitization of bad loans that caused so much financial havoc. To heighten the frustration, I offer Aug. 22, 2016, as the day on which efforts to pursue cases related to subprime mortgages were put to rest with no individuals — save perhaps the unfortunate former Goldman Sachs trader Fabrice Tourre — held accountable.
The likelihood that the Supreme Court will take up the appeals court’s decision appears to be low. The issue about what constitutes fraud in a contractual relationship is narrow, raising arcane questions about how a court should construe an agreement between sophisticated parties and when full disclosure is required. This is the type of claim that is usually pursued in a private lawsuit rather than through a federal enforcement action, so the justices may not want to be dragged into a dispute that will have little precedential impact on the application of federal law.
The lack of cases identifying individuals for any misconduct related to the financial crisis has become an all-too common complaint. What will be additionally disheartening to many is that even those few cases that were brought have now ended up largely as defeats for the government.