Washington & Wall Street: Obama Does Nothing Prosecuting Subprime Perpetrators

Last week, the Obama Administration continued to lay down a smoke screen to hide its negligence when it comes to investigating the criminal acts which caused the subprime crisis. The Securities and Exchange Commission and the Department of Justice announced civil lawsuits against Bank of America and JP Morgan Chase, but neither of these civil cases is really worthy of mention.
 
William Black, author of “The Best Way to Rob a Bank Is to Own One” and an associate professor of economics and law at the University of Missouri-Kansas City, wrote a scathing assessment of what he calls the DOJ’s “pathetic” lawsuit on Alternet:

The Department of Justice’s (DOJ) latest civil suit against Bank of America (B of A) is an embarrassment of tragic proportions on multiple dimensions. I’m “only” going to explore seven of its epic fails here. There are many more. The two most obvious fails (except to most of the media, which failed to mention either) are that the DOJ has once again refused to prosecute either the elite bankers or bank that committed what the DOJ describes as massive frauds and that the DOJ has refused to bring even a civil suit against the senior officers of the banks despite filing a complaint that alleges facts showing that those officers committed multiple felonies that made them wealthy by causing massive harm to others. Those two fails should have been the lead in every article about the civil suit.

Bill Black knows his topic.  He spent years working on regulatory policy and fraud prevention as executive director of the Institute for Fraud Prevention, litigation director of the Federal Home Loan Bank Board and deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement, among other positions. Black continues…

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