Posted on 04/28/2012 5:24:47 PM PDT by Libloather
Grumbling grows on left over slow-going in Wall Street crisis investigations
By Peter Schroeder - 04/26/12 07:30 AM ET
Roughly four years after the financial crisis hit, some on the left are wondering when, or even if, the Obama administration plans to pursue criminal prosecutions of the Wall Street figures that played a major role in the meltdown.
Top White House officials, including the president himself, have vowed the slow, steady work of investigations is underway, and that those who broke the law on Wall Street will ultimately be held accountable.
But despite those promises, there is scant public proof of progress, leaving some wondering how long it will take for the government to assign blame for the financial crisis.
"There's a little bit of mystification ... about just when and if the administration is going to do what it has said about the prosecutions," said Roger Hickey, co-director of the liberal Campaign for America's Future. "Many groups that are based in the Democratic Party just feel like they're getting the runaround."
Many of those groups were heartened when the president announced in his January State of the Union address that he was establishing a team within the Department of Justice devoted specifically to rooting out wrongdoing in the housing market that precipitated the financial meltdown.
"This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans," the president told lawmakers.
Further driving hopes was the fact that Obama tapped New York Attorney General Eric Schneiderman, who had built a reputation recently as being particularly tough on the banking system, to lead the team.
Since then, however, there has been little to publicly show for it.
Initially, the Justice Department announced the team would consist of “at least” 55 investigators, further driving concern that the president's announcement was more about garnering positive headlines than actually pursuing justice.
“Almost four years after multi-trillion losses from the largest Wall Street-created financial collapse since the Great Depression and the crooks are still running free. That proves that the so-called mortgage fraud task force is a joke," said Dennis Kelleher, president and chief executive officer of Better Markets, a Wall Street reform group.
"It is just PR spin by people who want to sound like they are doing something while doing almost nothing at all… If the President is serious, then he has to order the Department of Justice and the FBI to put hundreds of senior, experienced agents and prosecutors on the job,” Kelleher said.
This past week, both Treasury Secretary Timothy Geithner and Obama himself were pressed on when the public can expect to see criminal charges filed against some for their role in the meltdown.
At an event in Oregon on Wednesday, Geithner was asked by an interviewer when Americans could expect to see "heads on plates."
"The wheels of justice are turning now," he assured the audience. "They're not turning as fast as people would like, but we have the best justice system in the world for making sure we can enforce the laws of the land."
In an interview with Rolling Stone, Obama faced a similar question -- when will the White House pursue charges against Wall Street giants for fraud and manipulation leading up to the collapse?
“There's still possibilities of criminal prosecutions,” he promised. “But what I've instructed the Attorney General to do is to follow the evidence and follow the law. That's how our system works.”
Despite their vows, both men also indicated that while there may have been plenty that went wrong on Wall Street during the collapse, that does not mean it was all illegal. They hinted that the final product of a comprehensive investigation may be fewer criminal charges than many would like.
“We’re a nation of laws,” said Obama. “In some cases, really irresponsible practices that hurt a lot of people might not have been technically against the law. They might have been the wrong thing to do, but prosecutors are required to actually build cases based on what the law is.”
Geithner took things a step further, suggesting that it was primarily human nature, not criminal actions, that caused the crisis.
“Rarely is an actual crime a material source of the damage. This is a tragic thing. I wish it were different,” he said. “You cannot legislate away stupidity and risk-taking and greed and recklessness.”
Geithner’s remark set off some liberal groups, who saw it as evidence that the White House did not view the financial crisis as primarily a matter of criminal misdeeds.
“When you have remarks like Geithner's…it makes you wonder why they've set up the task force in the first place,” said Hickey.
The White House, in conjunction with state attorneys general, did hammer out a $25 billion civil settlement with the nation’s largest banks in February. Under the agreement, the funds will be used to provide relief to homeowners hurt by widespread mortgage servicing problems, and Obama pointed out in his interview that that deal offered no criminal immunity to those involved.
On Thursday, Schneiderman testified before members of the House Progressive Caucus, where the work of his task force was met with similar scrutiny. He was presented with a letter signed by 42 House Democrats, where they aired concerns that the investigation had “stalled.”
Echoing Obama and Geithner, he said that investigative work is underway, and promised that when it is all said and done, those who broke the law will have to answer to the government.
“On multiple fronts, we will continue to investigate the mortgage crisis that has devastated hardworking families in every corner of this country, and ensure that justice and accountability prevail,” he said.
Not really.
Report: It Looks Like Corzine Will Likely Stay Out Of The Slammer
Put Corzine in leg-irons.... The bastard is guilty of something...even speeding...
Enron was in the news 24/7. The silence on Corzine is criminal.
They would have to prosecute there own friends!
That won’t happen as long as Nasty Pelousy, Harry Reid, Chuck Schumer and the rest of those communists are still in elected positions!
Meanwhile Corzine is still busy bringing in the cash for Obama’s campaign.
Oh boy, they’re going after Frank, Dodd, Raines, Gorelick, et al. I can’t wait to see them in the slammer. (dream mode off)
Dear left type people,
Obama has been in bed with Wall Street for a long time. Obama and company was behind creating the crisis. Nothing could be done without incriminating most of the people that backed him.
You lefties need to quit grumbling because nothing can be done without indicting your own.
Are they really this moronic?
The Democrat Party is a Criminal Enterprise
I am on the right and I want to see prosecutions for corruption on Wall Street.
I know it will lead to the uncovering of corruption in DC. They will all rat each other out. GOPe and the DNC would be in the hole with their corrupt globalist friends.
Justice would be such a relief. As it is, these rats think they are above the law and they will strike us again. They are running a protection racket at our expense.
Obama aint going to put no campaign fund raisers in no jail no how.
Sorry for killing the English Language.
I certainly agree, but I don’t look to see anything happen.
John Corzine still walks around like he did nothing.
Where are all the people he screwed out of their money?
I think I have seen one guy who he screwed trying to go after him.
Good luck with that buddy. LOL. There is no shame anymore. When the fish is rotten from the top, so goes the rest of it.
obama is still using enron to bash republicans with it
The irony of it too. Obama was saying, if we have free market, we get companies like Enron, but without free market we have governments like Enron. Government hate competition in phony accounting and criminal activity
I read a thread here about how the Washington Post proved that there is now political bias in the media.
What Corzine did must be considered charity work by the MSM .
When the BIG Criminals investigate their “LITTLE” criminal cohorts, nothing will happen. The “Littles” know too much and will spill the beans if they are not protected.
I think this is called “BLACKMAIL” in a law abiding system but with Holder in charge, this is NOT a law abiding system. More like PUTIN’s RUSSIA, a criminal empire/enterprise.
“Meanwhile Corzine is still busy bringing in the cash for Obama’s campaign.”
I really tried to comment on this post three times, but each one was more and more likely to get me banned or even worse, and I just couldn’t do it. Let me just say that people who complain about getting thrown in the slammer for drugs, petty crime, and other non-violent offenses have a legitimate beef in my opinion as long as that piece of #$#$ on two feet is a free man.
BTW, the then heads of Freddie Mac and Fanny Mae needs to face criminal charges also.
After all, in 2008 the problem was the bursting of THE FANNY BUBBLE.
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