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



I support the Real News because without The Real News we would have no real news at all. - WWH
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

Racially Charged UK Election: Londoners Elect New Labour Party Mayor Sadiq Khan
Venezuelan Opposition Activates Recall on Maduro's Presidency
'Recall Gov. Richard D. Snyder' Campaign in Michigan Gains Momentum
Supreme Court Just Made it Easier for the FBI to Hack Your Computer
The Real News of the Day - May 5, 2016
Glenn Greenwald: President's Impeachment Process in Brazil is a Trojan Horse for Neo-liberalism
Republican Mayors Opt for 100% Renewable
Detroit Begins Water Shutoffs for 20,000 Residents
The Real News of the Day - May 4, 2016
Is Sanders the Better Candidate to Defeat Trump?
Greenpeace Leaks Secret Pro-Corporate Trade Agreement
Indiana Primary: Trump Knocks Out Cruz & Sanders Upsets Clinton
Four Men Arrested for the Murder of Berta Caceres
Baltimore Election Under Intense Scrutiny
Spontaneous Protests in Baghdad Green Zone Show Cracks in the Security Apparatus
Detroit Teachers Shut Down Schools for Second Day Over Lack of Pay
Days of Revolt: The Assault of the Animal Agriculture Industry
The Real News of the Day - May 3, 2016
Chris Hedges: Activist Rev. Berrigan Targeted by Church Hierarchy
"Soft Coup" in Brazil is Destroying the Workers' Party and Social Programs
Before Freddie Gray, there was Tyrone West
Activists March Against Police Shooting of a 14-Year-Old in Baltimore
The Real News of the Day - May 2, 2016
A Global Roundup of May Day Marches and Protests
US and UK Arms Sales Fueling War Crimes in Yemen
If We Don't Get It Shut It Down!: Theatre as a voice of the people.
Sanders Supporters on Road to Insurrection in Democratic Party?
Jobless Economy and Citizenless Democracy (3/3)
Allegations of Anti-Semitism Fired up Ahead of Pivotal UK Local Elections
Jesse Jackson and Bernie Sanders: Comparing Two "Movement" Campaigns

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