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Why nobody went to jail. The truth of the 2008 financial collapse
New York Post ^ | 03/01/2011 | Charles Gasparino

Posted on 03/01/2011 7:18:05 AM PST by SeekAndFind

'Not a single financial executive has gone to jail, and that's wrong," bellowed Charles Ferguson at Sunday night's Academy Awards. Is it really?

Consider the source: "Inside Job," Ferguson's Oscar-winning documentary on the financial collapse of 2008, proudly features Eliot Spitzer -- who, as New York's attorney general, went on a tear against the big brokerages and their executives over various alleged crimes. In the film, Spitzer discusses how he uncovered various misdeeds, and claims the feds could have used their investigative powers to bring the bad guys to justice before it all blew up.

But why didn't Spitzer do it? He had even more expansive powers than the Justice Department or the Securities and Exchange Commission. New York's Martin Act gives the state AG a lower threshold than the feds to charge either firms or individuals with fraud.

Yet Spitzer's record was middling at best: He brought some good cases, but all the ones against the big banks were civil, not criminal -- and he ultimately settled for headlines and a modest fine.

Some of his targets, such as Sandy Weill, the former CEO of Citigroup, were never charged with a crime or even a misdemeanor. Others, like former New York Stock Exchange Chairman Dick Grasso, ultimately beat back charges in court. And former AIG CEO Hank Greenberg settled with the SEC in a manner that made the shock value of Spitzer's initial accusations appear wildly overstated.

In fact, for all his bluster and legal might, Spitzer didn't put one Wall Street miscreant at a major firm in jail. The one time he actually tried, he lost in court.

The point is, what looks like a crime -- at least as presented by a publicity-hungry AG or an agenda-driven filmmaker -- often isn't one.

(Excerpt) Read more at nypost.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: 2008; financialcollapse; mortgagecrisis; subprime
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1 posted on 03/01/2011 7:18:08 AM PST by SeekAndFind
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To: SeekAndFind

Nobody went to jail because of ‘discovery’..............


2 posted on 03/01/2011 7:19:13 AM PST by Red Badger (Want to be surprised? Google your own name. Want to have fun? Google your friend's names.....)
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To: SeekAndFind

—”Attorney General” usually can be translated as “Aspiring Governor”—leads to a need for publicity—


3 posted on 03/01/2011 7:20:46 AM PST by rellimpank (--don't believe anything the media or government says about firearms or explosives--)
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To: SeekAndFind

I’m not getting the WHY?... part...


4 posted on 03/01/2011 7:23:40 AM PST by hosepipe (This propaganda has been edited to include some fully orbed hyperbole....)
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To: SeekAndFind
No Crooked CEO got charged with theEconomic Bust...but oh those G.D. Unions!!!!!
5 posted on 03/01/2011 7:25:14 AM PST by gitmogrunt
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To: SeekAndFind

Will someone please tell Charles Ferguson who the current President is, and who appointed the current Attorney General.

That way, next time Ferguson starts a rant about officials doing nothing, he can actually name names.


6 posted on 03/01/2011 7:26:09 AM PST by Leaning Right (Why am I carrying this lantern, you ask. I am looking for the next Reagan.)
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To: SeekAndFind

http://www.washingtontimes.com/news/2011/feb/28/financial-terrorism-suspected-in-08-economic-crash/


7 posted on 03/01/2011 7:29:28 AM PST by gitmogrunt
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To: SeekAndFind

/* BEGIN RANT

Sent to jail!!? They got a trillion dollar bailout. Because the whole deal is basically a complicated syndicate designed to rip off the taxpayer. That’s what they do. That’s all they do.

END RANT */


8 posted on 03/01/2011 7:36:26 AM PST by swain_forkbeard (Rationality may not be sufficient, but it is necessary.)
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To: Bigg Red

MARK


9 posted on 03/01/2011 7:37:15 AM PST by Bigg Red (Palin in 2012)
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To: gitmogrunt
My gosh...are they ever reaching! That article strains credulity beyond belief.

Now we're to believe MERS was operating from a cave in Tora Bora and all the robo-signers were Taliban members.

10 posted on 03/01/2011 7:40:54 AM PST by Chunga85 ("Foreclosure Fraud", TARP, "Mortgage Crisis", Bailout)
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To: SeekAndFind
It's a left-wing myth that CEO’s caused the melt-down. The financial melt-down was due mainly to rampant real estate speculation, which, in turn, was generated by (a)government loan guarantees and (b) demand caused by government policies forcing banks to lend to borrowers with weak finances (Community Reinvestment Act, no law enforcement against ACORN bank bullies, etc.) Here in Virginia, Latinos with no capital were flipping houses. Also, some loans surely went bad simply because of the recession, as folks lost their jobs and their ability to make mortgage payments.
11 posted on 03/01/2011 7:59:28 AM PST by Socon-Econ (Socon-Econ)
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To: SeekAndFind
Collusion thats why those big global banks supported obama and here's an interesting tidbit..

How Attorney General Eric Holder Colluded With Bank Of America To Destroy Wikileaks

To get to the heart of what went wrong with the report released yesterday by the Financial Crisis Inquiry Commission, check out its account on page 254 of how the largest investor in a cash fund managed by Bank of America suddenly pulled out $20 billion of its money in November 2007.

While $58 billion of your tax dollars — or more accurately, your children’s tax dollars — are being used to pay foreign banks, a substantial portion of that money ($43.5 billion) is being used to pay American banks, including Goldman Sachs, Merill Lynch, Bank of America, Citigroup, Wachovia, Morgan Stanley, AIG International, and JP Morgan.

Banks in Need of Even More Bailout Money

Bank of America Lent DNC Millions with Private Donor List as Collateral

Barack’s Wall Street Problem is Now America’s

JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats

12 posted on 03/01/2011 8:01:50 AM PST by FromLori (FromLori">)
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To: FromLori
Financial terrorism suspected in 2008 economic crash
13 posted on 03/01/2011 8:04:55 AM PST by FromLori (FromLori">)
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To: SeekAndFind

Must read.

http://www.freerepublic.com/focus/f-news/2681741/posts


14 posted on 03/01/2011 8:05:02 AM PST by Marty62 (Marty 60)
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To: Chunga85

Did you actually read the entire 111 page report or just Gertz’s column? If you didn’t read the actual report I can understand your comment. The report is a Defense Dept analysis of what other outside influneces MIGHT have occurred that enhanced what happened.

Your MERS comment is intellectually childish. A major part of the analysis was the Oil price increases three years ago and how much of it was possibly driven by Middle Eastern money buying up contracts to raise the value of their reserves.

The second part of the analysis concerns Bear Raids on financial stocks that were vulnerable, like Bear Stearns.

The third part is speculation about dumping Treasuries and driving down the dollar. If you’ve forgotten there was a scandal where $135 Billion of Treasuries in bearer form that were conuterfeited, but luckily found on a border inspection outside the country.

I suggest you ACTUALLY READ the whole document. It is not Pie In the Sky.


15 posted on 03/01/2011 8:05:57 AM PST by LRoggy (Peter's Son's Business)
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To: LRoggy

I confess. I didn’t read the report. However, I’m still a kid at heart and reserve the right to make childish statements.


16 posted on 03/01/2011 8:21:41 AM PST by Chunga85 ("Foreclosure Fraud", TARP, "Mortgage Crisis", Bailout)
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To: FromLori
Investor Lawsuits Are Raising the Heat on Bank of America for 'Putbacks'

Breaking News: JPMorgan May Need Another $4 Billion For Legal Losses

17 posted on 03/01/2011 8:21:58 AM PST by FromLori (FromLori">)
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To: SeekAndFind

W took Paulsen’s advice and screwed the tax payers out of billions of dollars so Paulsen’s buddies (and W’s) could be paid off. Just for listening to Paulsen made it hard to defend W when liberals called him stupid. So, if anyone should have gone to jail it should have started at the top.


18 posted on 03/01/2011 8:43:19 AM PST by Terry Mross (We need a SECOND party.)
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To: Socon-Econ

I like you’re rant... let me add:

and people (inside fixers) like Franklin Raines and Jamie Gorelick walked away from their roles and responsibilities at Fannie Mae having “earned” (looted) $120MM and $40-50MM, respectively. I guess Mr. Raines was pressed to give-back about $20MM, so I’m sure he feels very put-upon. And both, I’m sure, are still sitting on boards and providing easy access to “those in power” for more “fixing”.

Of course, Fannie Mae was providing an important “social good” with their Alt-A lending. /sarc


19 posted on 03/01/2011 8:49:37 AM PST by ReleaseTheHounds ("The problem with Socialism is that eventually you run out of other people's money." M. Thatcher)
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To: Terry Mross

And GWB, ever the squish even admitted that he had to ‘destroy the free market to save it’ or some facsimile of that idea. I’m OK with putting GWB on the stand as long as many other gov crooks from at least the last 3 administrations are also investigated.


20 posted on 03/01/2011 9:25:29 AM PST by iopscusa (El Vaquero. (SC Lowcountry Cowboy))
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