by Denise Simon, Stand Up America
“Just pay a settlement, admit no guilt, and It’s back to business as usual.”
These are words of comfort, often unspoken, but a well known bastion global “Wall Streeters” rely upon. They know, no matter what happens, they get a slap on the wrist, likely an easily absorbed fine, and its right back to the wheeling and dealing. Even if they robbed hedge funds, investment houses, committed extortion, or used segregated customer accounts, it’s just a sign off by one or more of the twenty plus high powered government agencies.
In late 2009, Barack Obama signed yet another Executive Order, #13519 that created the ‘Financial Fraud Enforcement Task Force’, to be led by the Department of Justice, and appointed Eric Holder as its Chairman. ‘Operation Broken Trust’ was soon unleashed.
By December 2010, the new task force released this:
“Operation Broken Trust is the first national operation of its kind to target a broad array of investment fraud schemes that directly prey upon the investing public.”
The dragon slayers were unleashed, hunters were sent in by Holder to ensure that the American public was being rid of fire breathing fraudsters. The citizenry’s finances and net-worth would be safe. As a result of these “bold and thorough” investigations, an agreement was reached:
“… reached a landmark $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The agreement provides substantial financial relief to homeowners and establishes significant new homeowner protections for the future.”
“This one sweep alone involves fraud schemes that harmed more than 120,000 victims. The schemes may change, but the underlying greed does not. Working with our partners, we in the FBI will use all the investigative techniques in our arsenal, including undercover operations, to bring those responsible to justice.”
But what came of this? Yes, they reached an agreement…did anyone get arrested, was anyone set to wear an orange jump suit at the Danbury, Ct. Spa? A clear pattern emerged, one where global and fully integrated investment banks have fallen, and yet no one is prosecuted. $25 billion is a big number to the public, but these dragons just absorb that because they have thick hides. The protections they have far out-weight this grandstanding to the public; the spears just bounce off. Again, sounds great, but effectively, just a network protecting itself. Want proof?
Take the Bernie Madoff scandal. Whistleblowers worked for years building the case files on Madoff and factual findings were presented to the Securities and Exchange Commission. Unfortunately the SEC reply sounded like: “…yeah, yeah, yeah, we will get to it,” yet they never did.
It was not until the customers themselves found their individual accounts had been gutted and fabricated account summaries were found to be false that the Madoff scheme imploded. There was no proactive investigation; even when insider documents and communications were provided, a defense posture grew, with a serious display of memory lapses the result.
A whistleblower who repeatedly warned the Securities and Exchange Commission that Bernard Madoff was perpetrating a massive investment fraud testified Wednesday that the regulatory agency that oversees financial markets is inept, “financially illiterate” and far too cozy with the financial titans it is supposed to be regulating.
“The SEC is also captive to the industry it regulates and it is afraid of bringing big cases against the largest most powerful firms,” said Harry Markopolos, an independent financial fraud investigator. “Cleary the SEC was afraid of Mr. Madoff.”
In 2008, the alarms had sounded that a nuclear explosion was about to hit Wall Street. To save the entire financial system, the “too-big-to-fail system”, the Federal government began the bailout – TARP emerged. It was time to save the public overtly, in reality, it was time to save the network.
All the attention was given to the top criminal enterprises like AIG, Goldman Sachs, Citigroup, Bank of America, and JP Morgan. But not one person at any of the investment houses was investigated, arrested, or drawn and quartered. In fact many got bonuses later to reward their tenure in this entire set of schemes.
Some of these thieves were so exacting in their skills that the Obama administration further rewarded them with jobs within government. Their complicit lawyers were soon parking their cars at the Department of Justice instead of a limo ride to Manhattan. Now it was an employee badge at the door; a short stroll to corner offices in DC. No muss, no fuss, we saved the financial kingdom.
Just this week the announcement came; JP Morgan Chase, led by one Jamie Dimon had lost $2 billion in fiat trading losses and there are estimates this number could reach $6 billion.
“…was facing massive losses — losses of $4.2 billion were reasonably possible, he said — with trading losses totaling $800 million in the second quarter.”
On Friday, it was announced that the SEC would begin a cursory investigation, the Obama team to the rescue. The dragons must be slain once again, don the armor and the rhetoric.
It’s important to remember that the Treasury Department regulates this industry, these investment houses. With Timothy Geithner at the helm, we are safe. But there are two types of “we”!
Recent history tells us, it is unlikely that anyone at JP Morgan will be taking a perp-walk. When MF Global erupted, or rather, imploded, Jon Corzine seemed to just skate. Yes, we saw the outrage in the Congressional hearings, and even witnessed Corzine’s story ‘evolve’. But where is Corzine now? There was no perp-walk, no ankle-bracelet; but there certainly was a lot of ‘elbowing’ and cajoling going on as he ‘bundled’ massive amountsof Wall Street dragon cash for the Obama 2012 campaign. Crickets…
Investigators probing the collapse of bankrupt brokerage MF Global said Tuesday that they have located the $1.6 billion in customer money that had gone missing from the firm. But just how much of those funds can be returned to the firm’s clients, and who will be held responsible for their misappropriation, remains to be seen.
James Giddens, the trustee overseeing the liquidation of MF Global Inc, told the Senate Banking Committee on Tuesday that his team’s analysis of how the money went missing “is substantially concluded.”
“We can trace where the cash and securities in the firm went, and that we’ve done,” Giddens said.
JP Morgan, now JP Morgan Chase already had a hand in past “cliff hanging”. Prior to WWI:
“By way of historical background, it was Morgan bankers who were the principal architects of the Federal Reserve System, masterminding its strategic offensive against the gold standard and thus enabling the state to get those presses in high gear.”
“…the House of Morgan that floated war loans for Britain, effectively breaking US neutrality and financing a steady flow of supplies across the Atlantic.”
Then, like now, the banks acted more like the government, setting policy, and instead of the governments of the western world being the referees, the just handed the reins to the world banks, JP Morgan in the lead.
“Private companies aren’t supposed to assume the functions of elected governments, yet this is precisely what JP Morgan has been doing for the better part of a century.”
It’s plain to see, JP Morgan Chase, like most other large investment houses, are the same Ponzi schemes, no different than Bernie Madoff. These Ponzi schemes are powder kegs as we saw prior to WWI and WWII. Now the fuse is lit once again.
“The latest quarterly report from the Office Of the Currency Comptroller is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system.”
“Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding … among the Top 25 commercial banks … a mere 5 banks … account for 95.9% of all derivative exposure.”
“The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure.”
“… definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high…” (Read the rest here.)
Lanny Breuer and Eric Holder
As these global “game changing” scandals play out, also remember that at the DoJ is Mr. Lanny Breuer, a name now synonymous with Fast and Furious, along with his boss, Eric Holder.
“U.S. Attorney General Eric Holder and Lanny Breuer, head of the Justice Department’s criminal division, were partners for years at a Washington law firm that represented a Who’s Who of big banks and other companies at the center of alleged foreclosure fraud, a Reuters inquiry shows.” (Read the rest here.)
These two men are as embedded as any two can be outside Wall and Broad, in fact so much so, that they had to recuse themselves on financial fraud investigations, yet C&B’s client list are the very target of their dragon hunt.
Another prominent name, Gary Gensler, is the chairman of the U.S. Commodity Futures Trading Commission under President Barack Obama. He was Undersecretary of the Treasury and Assistant Secretary of the Treasury. Barack Obama selected him to lead the Commodity Futures Trading Commission, which has jurisdiction over $5 trillion in trades.
He was also the senior advisor for Paul S. Sarbanes (Sarbanes Oxley), and was also a fundraiser for Hillary Clinton’s 2008 Presidential election run. Last but not least, Gensler worked as the Treasurer for the Maryland Democratic Party.
Gensler also worked at Goldman Sachs and was the Aide de Camp for Jon Corzine, creating the Sarbanes-Oxley law and he also authored most of the Dodd-Frank Act. If that were not enough, he was deeply involved with MF Global as an experienced Wall Street advisor to Jon Corzine.
James W. Giddens, HHR and Sidely Austin
The next player you should meet is James W. Giddens. This is where some real history tracks with current day events. Giddens was assigned as the bankruptcy trustee for MF Global, however prior to MFG, Giddens performed the very same role at Lehman Brothers Holdings.
He was chosen as the ‘go to’ lawyer to oversee the events at Lehman and MF Global because of his normal day job at Hughes Hubbard and Reed (HHR) which continues to be paid from a fund set aside by Lehman and MF Global. HHR is also involved with the Biotechnology Industry Organization represented by Covington and Burling, and Sidley Austin, LLC was the previous lobby firm of record for that organization.
Alarmingly, Sidley Austin is a hotbed of radical lawyers that once included Michelle and Barack Obama, along with Bernadine Dorhn of Weather Underground fame. Incidentally, Dorhn also sits on the board of the W. Haywood Burns Institute, the recent recipient of a DoJ grant in excess of $400,000.
Of note, in the last three years, the Obama administration has paid out billions in failed venture capital investments to biotechnology start-up firms. Barack Obama also promotes algae as part of the United States energy policy. Another pattern is established.
From Spain, Caruanawas previously the Governor for the Bank of Spain and is presently the General Manager for the Bank for International Settlements which is the Allah of all banks on the planet. Remember, Spain is just a rung above Greece in the whole Euro implosion.
In this capacity, Caruana holds a seat at the Group of 30, also known as the Group of Thirty which rules the world’s leading countries’ comprehensive policies for the rest of the globe.
His voice and pull reaches far and wide when it comes to financial and currency framework for all integrated worldwide central banks, in other words he has created the machine to govern markets and economies worldwide, a global financial system.
Tim Geithner has been working diligently, tracking and finding large sums of currency to prop up domestic financial systems alongside Caruana. In a committee assignment, sanctions have been applied to Iran that include seizing funds out of their banking system and larges caches of dollars that belonged to Muammar Kaddafi of Libya that have gone missing from Goldman Sachs.
Bashir al Assad, leader of Syria and his brother moved large deposits out of the country for family safe-keeping. What is left to keep the country somewhat functional is now threatened by Geithner. Syria is now forced to sell of gold at discounted prices. Then just this week, Geithner added a few Narco king ping cartel members to the U.S. Treasury sanction list, where once again, money is being seized.
Countless billions are lost and then found in other locations that are unrelated and the intelligence hub begins with Goldman Sachs. It moves globally and ends at the U.S Treasury without oversight or explanation. Funds are purposely allowed to implode, with purpose and without prosecution or investigation while large sums are being re-routed with unknown destinies.
There is no fear of legal threat by the Department of Justice or investigation by the Securities and Exchange Commission. There is no threat to any global banker because they are all playing a larger monopoly game for the sake of a single economic system, just as Jaime Caruana describes.
Each of these power brokers in DC, inside Congress, and within the White House play on these insider tips. Wealth is cornered by those who are supposed to police it as recent revelations from 60 minutes, Judicial Watch and others have exposed.
John Kerry, a much anticipated candidate for replacement for Secretary of State should Hillary Clinton leave, seems to be the smartest man in the room when it comes to making deals, likely based on his committee assignments.
Ladies and Gentlemen, this is a critical matter for all. Your tax dollars bailed out Goldman Sachs and AIG and more dollars are being poured into Fannie and Freddie with no relief in sight. Selective investigation and prosecution is policy at the Department of Justice, where justice is never levied on behalf of the American citizen over crooks like Jamie Dimon or Jon Corzine. Their reputations take a small hit but they will rebound. Of that there is no doubt unless the public gets properly outraged and forces the issue.
“Just pay a settlement, admit no guilt and it is business as usual.” It is merely an administrative cost for doing ‘business’, made legal by key lawmakers and the Justice Department.
Edited and Posted by Scott W. Winchell