Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds? « naked capitalism

 Interesting article by Bill Black published at Naked Capitalism. 

The Wall Street Journal ran a story yesterday (12/27/11) entitled “SEC Ups Its Game to Identify Rogue Firms.” “Rogue” is an interesting word with a range of definitions. When it is used as an adjective its meaning is: “a playfully mischievous person; scamp.” The trivialization of the most destructive elite frauds is one of the most common forms of what criminologists call “neutralization” of the moral content of wrong doing. Neutralization increases crime.The actual story makes it clear that the criminals that the SEC was identifying were not “rogues.” They were the CEOs of seemingly legitimate firms. The SEC is identifying “accounting control frauds” – the frauds that cause greater financial losses than all other forms of property crime combined. The SEC is not identifying a few rotten apples, but roughly 100 hedge funds likely to have engaged in accounting fraud. The WSJ describes the SEC’s identification system:

read the full article by following the link below.  

Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds? « naked capitalism

The end of capitalism underway?

New York times actually not siding with the banks in the settlement that the Obama Administration is pushing. Anything Obama is pushing should be seen as problematic. They have let the economy fall so far and the housing market go so long while be slapped around by the banks that they are desperate to do anything that might get people to forget how much they screwed things up. They mistakenly believe that a settlement letting banks off the hook would be good for the economy and good for the country. The only party a settlement would be good for would the banks. The bank execs could keep their huge salaries and ridiculous bonuses they gotten for running the economy in to the ground.



We have seen two major failings of our government in the past 10 years. The first was 9/11 as the government failed to protect our borders from attack costing thousands of lives. The second was the Tarp program and the fleecing of the country by the banks and Wall Street that has been never been held accountable for any of their criminal activity.


We are now looking at a 3rd major failing of our government. It will be a travesty if the Obama administration gets their wish and gets this silly settlement to go through with the banks. The government is supposed to look after the people and look out for their interests. The SEC failed for years and now the White House is taking up the battle to screw the people. They are going for the hat trick of major screw up all within the past 10 years.

Yet we are still supposed to believe that this is a government by the people of the people. We are hitting the end of the democratic republic. This form of government will only last for so many years until the government corruption and corporate influence squeeze out the middle class leaving the poor and the ruling class. Sounds Crazy Doesn't It? We are not that far off.










Make big money in penny stocks today