Federal Judge Hammers Justice Department for Not Prosecuting Wall Street Executives
NO ADVERTISING, GOVERNMENT OR CORPORATE FUNDING
DONATE TODAY


  December 23, 2013

Federal Judge Hammers Justice Department for Not Prosecuting Wall Street Executives


Bill Black: Federal judge Jed Rakoff criticized the Justice Department's failure to prosecute Wall Street executives for the financial crash, saying high-level government officials fear that they too may be revealed as bearing some responsibility
Members don't see ads. If you are a member, and you're seeing this appeal, click here
   



audio

Share to Facebook Share to Twitter



What a hidden gem - Jack
Log in and tell us why you support TRNN


biography

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.


transcript

Federal Judge Hammers Justice Department for Not Prosecuting Wall Street 
ExecutivesJESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I'm Jessica Desvarieux in Baltimore. And welcome to this edition of The Black Finance and Fraud Report.

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

Thanks for being with us, Bill.

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

DESVARIEUX: So, Bill, what major story are you tracking this week?

BLACK: Well, it's a really extraordinary thing. It's a followup on a speech that Judge Rakoff gave. And Judge Rakoff is a judge that hears many cases involving sophisticated financial frauds and has a background in prosecuting. And he excoriates the Department of Justice for the failure to prosecute the elite individuals that the Department of Justice says drove the frauds that drove much of the crisis. And he goes through the excuses that the Justice Department has offered for failing to prosecute, and he says that each of them makes no sense.

It was a powerful speech, a bit off-the-cuff, which he's now put in article form. And, you know, if anything's going to pressure the Justice Department to at least bring a few prosecutions, this is the type of thing.

Obviously, your regular listeners know that we've been trying to keep the Department of Justice's feet to the fire for years, but we're still at a point where there are zero prosecutions. So Rakoff--this is an extraordinary thing for a judge to do. He hasn't violated any of the judicial canons. He hasn't talked about any pending cases. He's made sure to keep it in policy terms. But he points out that these cases can be prosecuted and that they should be prosecuted as a matter of justice if the Department of Justice believes what it says in its complaints, and that you will not get effective deterrence unless and until you prosecute the elite individuals, so, many things, again, that the listeners to this program had been hearing for years now adopted and emphasized from one of the most prestigious district court judges in the entire federal judiciary.

DESVARIEUX: And, Bill, shouldn't there be a sense of urgency? Because the statute of limitations is running out, right?

BLACK: Yes, it's already run on everything that occurred that drove the crisis, unless it involved an insured financial institution, where there's a special ten-year statute of limitations, which actually we got in the FIRREA legislation in 1989. But even if you're within the statute of limitations, simply memories fade and such. So they should have a sense of urgency anyway.

And Matt Taibbi has a recent article where the Justice Department simply, the courts decided, waited too late in terms of the statute of limitations. These are not the frauds that drove the crisis, and they're more minor people, but even in that context, the Department of Justice simply has not gotten its act together and acted like a group of professional prosecutors against these elite frauds.

DESVARIEUX: Alright, Bill Black, regular contributor to The Real News, always a pleasure having you on.

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

latest stories

Trump and the Social Basis of Fascism
Clinton vs. Trump Debate: Is One Section of the Oligarchy More Dangerous?
Did America Dodge a Bullet?
24 Arrested Outside Hofstra University While Demanding An Open Presidential Debate
Trump's Position on Jerusalem Puts Him on the Side of the Settler Movement
Comply or Die: What the Shootings in Tulsa and Charlotte Reveal About Policing in America
BDS Town Hall with the Former Green Party of Canada Justice Critic
Corbyn Wins Leadership, But Can He Unite the Labour Party?
Danny Glover on the Struggle for Democracy in Haiti
Should Third Parties Be Included in Televised Debates?
Anti-BDS Campaign Aims to Undermine Academic Freedom and Free Speech on Palestine
Ecuador Proposes Worldwide Elimination of Tax Havens
Did America Dodge a Bullet?
Why the Federal Reserve Needs To Go Beyond Interest Rate Policy
'Hands Dripping with the Blood of the Afghan People': US Agrees to Pardon and Reward Warlord
Recall Referendum on Maduro Moves to Next Phase in spite of "Irregularities"
Gary Johnson Supporters: Privatize Everything, But Not the Commission on Presidential Debates
TPP Will Effectively Kill Climate Treaties
US National Security Policy for Climate Change Seeks Security for Corporate-Controlled Assets
U.S. Policy in Syria: Regime Change or Regime 'Facelift'?
Berlin Election Outcome Signals Merkel's Tenuous Grip on Chancellorship
Charlotte Protests Escalate as Police Refuse to Release Video
Dangers of the Proposed Bayer-Monsanto Merger
Police Killings from Charlotte to Tulsa Spark Calls for Boycotts and Justice
SEC Accusations Against US Billionaire Highlights Centrality of Insider Trading to Hedge Fund Profits
MST Occupies Government Building in Salvador, Bahia
Baltimore City Council Candidate: Neighbors Need to Organize to Change the City
Israeli Arms Industry Faces Existential Threat in New US Aid Agreement
Trudeau's Liberals Adopt Harper Government's Carbon Targets
Corbyn and the Roots of Labour's Discontent

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