NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING

  • Latest News
  • Pitch a Story
  • Work with a Journalist
  • Join the Blog Squad
  • Afghanistan
  • Africa
  • Asia
  • Baltimore
  • Canada
  • Egypt
  • Europe
  • Latin America
  • Middle East
  • Russia
  • Economy
  • Environment
  • Health Care
  • Military
  • Occupy
  • Organize This
  • Reality Asserts Itself
  • US Politics
  • Wall Street Journal Considers Zero Prosecutions of Banks Excessive


    The department of Justice claims they are cracking down on bank fraud but they are mostly imposing fines and targeting small fish -   October 3, 14
    Members don't see ads. If you are a member, and you're seeing this appeal, click here


    Share to Facebook Share to Twitter


    I support The Real News Network because they do not just parrot the 24 hour news cycle of the mainst - David Pear
    Log in and tell us why you support TRNN

    Bio

    William K. Black, author of THE BEST WAY TO ROB A BANK IS TO OWN ONE, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics. Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement. Black developed the concept of "control fraud" frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management. Glen Ford is a distinguished radio-show host and commentator. In 1977, Ford co-launched, produced and hosted America's Black Forum, the first nationally syndicated Black news interview program on commercial television. In 1987, Ford launched Rap It Up, the first nationally syndicated Hip Hop music show, broadcast on 65 radio stations. Ford co-founded the Black Commentator in 2002 and in 2006 he launched the Black Agenda Report. Ford is also the author of The Big Lie: An Analysis of U.S. Media Coverage of the Grenada Invasion.

    Transcript

    Wall Street Journal Considers Zero Prosecutions of Banks ExcessiveJESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of the Bill Black report.

    Now joining us is Bill Black. He's an associate professor of economics at law at the University of Missouri-Kansas City. He's also a white-collar criminologist and former financial regulator. He is the author of the book The Best Way to Rob a Bank Is to Own One.

    Thanks for being back on The Real News, Bill.

    BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKC: Thank you.

    DESVARIEUX: So, Bill, what are you working on this week?

    BLACK: So we have one prompted by this incredibly over-the-top Wall Street Journal op-ed that thundered away about the terrible prosecutions of JPMorgan and the other main banksters. And, of course, there have been zero prosecutions of any of the banksters whose frauds caused the crisis. So The Wall Street Journal now takes the position that zero prosecutions is too many. In the course of this, the columnist threatened that they would counterattack against the government if they dared to continue to even say bad things--of course, not indict, but just criticize JPMorgan Chase--and they specifically alluded to what was done to the IRS.

    Now, this is not the current made-up scandal about the IRS. This is the 1997 made-up scandal about the IRS.

    So I look at what was that all about, since they're threatening to do the same thing to the banking regulatory agencies if they criticize JPMorgan and the other huge bankers.

    And it turns out that these--this is a whole series of hearings that were carefully orchestrated as a complete partisan hit on the IRS, in which they paraded people who supposedly were afraid for their life to testify. Now, these were supposed whistleblowers from the IRS who had typically been fired and such, and supposedly they were afraid for their lives, and they were disguising them and such and so forth. And it was immensely successful as political theater, except that when they actually looked after the facts, the GAO, the actual investigators, they found in every single case that they couldn't substantiate a single one of these charges.

    So it was completely made up, alleged that the IRS was, you know, this demonic group, and actually literally used--literally demonized it. The Republicans literally trotted out their website on Halloween to call the IRS a bunch of demons and such. That's crazy enough in itself, right? But this was in the peak of the Clinton-Gore administration, and their big thing was reinventing government, and one of the mantras of reinventing government is that government workers are not the problem; they're the solution, they're the good people. And Gore had just given a big speech about this four months earlier.

    So what did the Clinton-Gore administration do when it was faced with these partisan attacks that were completely made up, utterly scurrilous, against these four IRS officials? Well, they threw them under the bus, of course, and not only joined in the criticism without checking the facts and without allowing the government employees to give their side of the story, but actually praised--President Clinton actually praised the Republicans for holding this completely slanderous hearing.

    And then the Clinton administration, under the rubric of reinventing government, created a reform package which had 200 points in it, created by who? Bob Rubin and Larry Summers, the two top guys in Treasury. And what this did was deliberately gut the IRS's enforcement authority against the biggest tax cheats in the world.

    And the statistics from all of this are horrific, that it became the absolute norm that if people even refused to file a tax return, wealthy people refused to to file a tax return year after year after year, the most typical response from the IRS was nothing. So this is what they're threatening to unleash on the banking regulatory agencies. Last time around, the Democrats not only rolled over, but joined in this absurdity and made life safe for the wealthiest tax cheats in the world.

    And now the question is: what is the Obama administration going to do in response to this latest threat by the Republicans to kneecap the regulators?

    DESVARIEUX: [inaud.] follow what the Obama administration intends to do and check this story.

    Thanks so much for joining us, Bill.

    BLACK: Thank you very much.

    DESVARIEUX: And thank you for joining us on The Real News Network.

    End

    DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


    Comments

    Our automatic spam filter blocks comments with multiple links and multiple users using the same IP address. Please make thoughtful comments with minimal links using only one user name. If you think your comment has been mistakenly removed please email us at contact@therealnews.com

    Comments


    Latest Stories


    X: Malcolm's Final Years
    Walmart Minimum Wage Hike to $10 Still Below 1968 Levels
    Clinton Dynasty Revisited
    How Progressive Agendas Came to Dominate Chicago Alderman Races
    Winter in the Ruins of Gaza (1/2)
    Netanyahu on a Destructive Path
    HSBC Offshore Tax-Evading Scandal Widening
    The Class That Ruled Egypt Under Mubarak Remains in Power
    Nurses Unite to Stop TPP Fast Track
    Is FCC Approval of Net Neutrality a Real Win for Consumers?
    What Happened to Making Steel in Baltimore? - Mark Reutter on Reality Asserts Itself (3/3)
    Nader: Canadian Anti-Terrorism Bill Follows America's Lead
    Why the $655 Million Verdict Against the PA is Not A Victory for Human Rights
    Unions Fight Controversial Charter School Expansion Bill
    Venezuelan Gov. Releases Audio of Coup Plotters
    The Greek Debt and the German Acquiescence
    Maryland Police Reform Advocates and Opponents Speak Out Prior to Hearing
    Baltimore College Fights To Keep Accreditation Status
    An Irish-Style Banking Inquiry into the 2008 Financial Crisis
    What Role Can Social Media Play in Supporting Protests Against Egypt's Military Regime?
    Greece Now Positioned to Negotiate a New Loan Agreement
    Chicago Mayor Emmanuel Forced Into Historic Runoff
    Guardian UK Exposes Horrific Abuses at Police 'Black Sites'
    Greek Reform Proposal Preserves Privatization Commitments, Ignores Debt Restructuring
    The Modern History of the Greek Debt Crisis
    Iran's Intent is the Real Issue, Says Former IAEA Inspector
    Bill O'Reilly May Have Covered-Up a Massacre
    How Radical is the SYRIZA Party in Greece? (2/2)
    What Happened to Making Steel in Baltimore? - Mark Reutter on Reality Asserts Itself (3/3)
    Leaked RCMP Report Targets Activists as a Threat to National Security

    RealNewsNetwork.com, Real News Network, Real News, Real News For Real People, IWT are trademarks and service marks of IWT.TV inc. "The Real News" is the flagship show of IWT and Real News Network.

    All original content on this site is copyright of The Real News Network.  Click here for more

    Problems with this site? Please let us know

    Linux VPS Hosting by Star Dot Hosting