Posted by Karl Denninger
WASHINGTON (Reuters) – U.S. Attorney General Eric Holder said a new inter-agency task force is focussing on halting fraud involving mortgages, securities, economic stimulus programs and government bailouts.
“To those who see victimization of others as an avenue to wealth, take notice: If you fabricate a financial statement, if you propagate an investment scheme, if you are complicit in an act of financial fraud, you are writing your ticket to jail,” Holder said.
Wake me up when the big investment banks are served with a hundred criminal complaints – each. When the ratings agencies are served with a similar number. When Fannie and Freddie’s executives are indicted for material misrepresentation of the quality of paper they were buying. When the hundreds of mortgage brokers, real estate agents who pressured appraisers to “hit the number” and homeowners by the literal millions that falsely claimed income they didn’t have are all prosecuted.
None of this is going to happen, and Holder knows it.
This is nothing more than Kabuki Theater intended to misdirect and appease the public – a public that is increasingly, and rightly so, calling for heads to roll and sentences to be handed out in what has been the biggest heist of all time.
“Last year, Allen Stanford, Tom Petters and, most recently, Fort Lauderdale attorney Scott Rothstein, who is alleged to have run a $1 billion investment scam, joined Bernie Madoff in becoming headline news and household names,” Holder said. “I’m proud that these men along with more than 450 others convicted of corporate and securities fraud in 2009, have been taken out of the game.”
Small potatoes Eric, and you know it.
Yeah, Madoff was a $50 billion scam along with dozens more.
But the housing bubble and the scams related to securitization – the sale of worthless securities that were backed with even more worthless credit default swaps was a LITERAL MULTI TRILLION DOLLAR FRAUD.
There is exactly NO prosecutorial effort being put forward to lock those crooks up, yet they were the proximate cause of both the bubble and economic bust.
Yes, Mr. Holder, I’m glad Madoff got nailed, along with the alleged other fraudsters that have been busted.
But you, and the administration before you, have and continue to willfully ignore the biggest scammers and fraud artists in this entire mess.
I’ll be impressed when I see you doing perp walks by the hundreds on Broad and Wall Streets – and not before.