Share on Google Plus Share on Twitter Share on Facebook 10 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit 1 Share on StumbleUpon Tell A Friend 36 (47 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   85 comments

General News

Retiring Obama Administration Prosecutor Says the SEC Is Corrupt; Prior Reports Indicate Administration's Corruption

By (about the author)     Permalink       (Page 1 of 2 pages)
Related Topic(s): ; ; ; ; ; ; , Add Tags Add to My Group(s)

Must Read 11   News 10   Well Said 6  
View Ratings | Rate It

opednews.com Headlined to H1 4/9/14

Become a Fan
  (75 fans)


(image by US Govt)

Bloomberg News reported, on April 8th, that a Securities and Exchange Commission prosecuting attorney, James Kidney, said at his recent retirement party on March 27th, that his prosecutions of Goldman Sachs and other mega-banks had been squelched by top people at the agency, because they "were more focused on getting high-paying jobs after their government service than on bringing difficult cases." He suggested that SEC officials knew that Wall Street would likely hire them after the SEC at much bigger pay than their government remuneration was, so long as the SEC wouldn't prosecute those megabank executives on any criminal charges for helping to cause the mortgage-backed securities scams and resulting 2008 economic crash.

His "remarks drew applause from the crowd of about 70 people," according to the Bloomberg report. This would indicate that other SEC prosecutors feel similarly squelched by their bosses.

Kidney's speech said that his superiors did not "believe in afflicting the comfortable and powerful."

Referring to the agency's public-relations tactic of defending its prosecution-record by use of what he considered to be misleading statistics, Kidney said, "It's a cancer" at the SEC.

Two recent studies have provided additional depth to Kidney's assertions, by showing that Obama and his Administration had lied when they promised to prosecute Wall Street executives who had cheated outside investors, and deceived homebuyers, when creating and selling mortgage-backed securities for sale to investors throughout the world.

President Obama personally led in this lying.

On May 20, 2009, at the signing into law of both the Helping Families Save Their Homes Act and the Fraud Enforcement and Recovery Act, Obama said: "This bill nearly doubles the FBI's mortgage and financial fraud program, allowing it to better target fraud in hard-hit areas. That's why it provides the resources necessary for other law enforcement and federal agencies, from the Department of Justice to the SEC to the Secret Service, to pursue these criminals, bring them to justice, and protect hardworking Americans affected most by these crimes. It's also why it expands DOJ's authority to prosecute fraud that takes place in many of the private institutions not covered under current federal bank fraud criminal statutes -- institutions where more than half of all subprime mortgages came from as recently as four years ago."

Then, in the President's 24 January 2012 State of the Union Address, he said: "Tonight, I'm asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis.   (Applause.)   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. Now, a return to the American values of fair play and shared responsibility will help protect our people and our economy."

However, two years later, the Inspector General of the U.S. Department of Justice issued on 13 March 2014 its "Audit of the Department of Justice's Efforts to Address Mortgage Fraud," and reported that Obama's promises to prosecute turned out to be just a lie. DOJ didn't even try; and they lied even about their efforts. The IG found: "DOJ did not uniformly ensure that mortgage fraud was prioritized at a level commensurate with its public statements. For example, the Federal Bureau of Investigation (FBI) Criminal Investigative Division ranked mortgage fraud as the lowest criminal threat in its lowest crime category. Additionally, we found mortgage fraud to be a low priority, or not [even] listed as a priority, for the FBI Field Offices we visited." Not just that, but, "Many Assistant United States Attorneys (AUSA) informed us about underreporting and misclassification of mortgage fraud cases." This was important because, "Capturing such information would allow DOJ to ... better evaluate its performance in targeting high-profile offenders."

Privately, Obama had told Wall Street executives that he would protect them. On 27 March 2009, Obama assembled the top executives of the bailed-out financial firms in a secret meeting at the White House and he  assured them that he would cover their backs; he promised "My administration is the only thing between you and the pitchforks". It's not on the White House website; it was leaked out, which is one of the reasons Obama hates leakers. What the DOJ's IG indicated was, in effect, that Obama had kept his secret promise to them.

Here is the context in which he said that (from page 234 of Ron Suskind's 2011 book, Confidence Men ):

The CEOs went into their traditional stance. "It's almost impossible to set caps [to their bonuses]; it's never worked, and you lose your best people," said one. "We're competing for talent on an international market," said another. Obama cut them off.

   "Be careful how you make those statements, gentlemen. The public isn't buying that," he said. "My administration is the only thing between you and the pitchforks."

   It was an attention grabber, no doubt, especially that carefully chosen last word.

   But then Obama's flat tone turned to one of support, even sympathy. "You guys have an acute public relations problem that's turning into a political problem," he said. "And I want to help. But you need to show that you get that this is a crisis and that everyone has to make some sacrifices." According to one of the participants, he then said, "I'm not out there to go after you. I'm protecting you. But if I'm going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation."

Next Page  1  |  2

 

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

First Examination of Malaysian MH-17 Cockpit Photo Shows Ukraine Government Shot that Plane Down

Indications that the U.S. Is Planning a Nuclear Attack Against Russia

Harry Reid Effectively Kills Obama's TPP and TTIP International Trade Deals

MH-17 'Investigation': Secret August 8th Agreement Seeps Out

The Propaganda War About Ukraine: How Important It Really Is

Elizabeth Warren Comes Down Hard Against Global Warming, Separates Herself From Hillary Clinton on Climate Change

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
17 people are discussing this page, with 85 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Congressman Henry B. Gonzalez- "The situation in ... by Harry Lord on Wednesday, Apr 9, 2014 at 3:13:07 PM
"In the unlikely story that is America, there ha... by Rob Hager on Wednesday, Apr 9, 2014 at 6:17:22 PM
Pitchforks would be good. If only . . . . ... by Daniel Vasey on Wednesday, Apr 9, 2014 at 7:28:12 PM
... you mean against Barack Obama, for protecting ... by Eric Zuesse on Sunday, Apr 13, 2014 at 6:37:48 PM
"Obama and his Administration had lied when they ... by BFalcon on Wednesday, Apr 9, 2014 at 11:39:17 PM
The investigation and report by Senator Carl Levi... by Eric Zuesse on Thursday, Apr 10, 2014 at 7:55:22 AM
"Auditing and ending the Fed and allowing Ameri... by Lance Ciepiela on Thursday, Apr 10, 2014 at 10:43:53 AM
You did not provide support for your claim that: ... by BFalcon on Friday, Apr 11, 2014 at 12:12:13 AM
Re. your "I think that the president should not g... by Eric Zuesse on Friday, Apr 11, 2014 at 6:19:40 AM
Charles Roll summed it up beautifully below: "Is... by BFalcon on Friday, Apr 11, 2014 at 7:42:50 AM
Do you really believe that George W. Bush's prose... by Eric Zuesse on Friday, Apr 11, 2014 at 12:28:40 PM
I don't believe any of that, that is why I was opp... by BFalcon on Friday, Apr 11, 2014 at 11:13:51 PM
So, George W. Bush was to blame for the bad things... by Eric Zuesse on Saturday, Apr 12, 2014 at 5:45:19 AM
Again, please focus. GWB was to blame for using p... by BFalcon on Saturday, Apr 12, 2014 at 9:06:38 AM
I think I see the problem. You're concerned that i... by Jim Arnold on Saturday, Apr 12, 2014 at 10:19:38 AM
You do see it right. And "my solution" is how it... by BFalcon on Saturday, Apr 12, 2014 at 9:47:34 PM
The President appoints the attorney generals who p... by kappie on Thursday, Apr 10, 2014 at 9:22:37 AM
As I explained above, may God protect us from pre... by BFalcon on Friday, Apr 11, 2014 at 12:16:24 AM
Is the president supposed to prosecute?  - B... by Charles Roll on Thursday, Apr 10, 2014 at 8:32:30 PM
Thanks, I fully agree. This is the main point. ... by BFalcon on Friday, Apr 11, 2014 at 12:23:56 AM
Reply to Charles Roll & BFalcon: You're wr... by Eric Zuesse on Friday, Apr 11, 2014 at 1:38:31 PM
Please focus. I never said anything about blame g... by BFalcon on Friday, Apr 11, 2014 at 10:57:14 PM
Carl Levin handed his committee's study expecting... by Eric Zuesse on Saturday, Apr 12, 2014 at 5:50:12 AM
Prosecute is not to convict (not always) but I do ... by BFalcon on Saturday, Apr 12, 2014 at 9:02:12 AM
Re. your "it would be highly improper and likely ... by Eric Zuesse on Friday, Apr 11, 2014 at 4:07:42 PM
You didn't understand Charles so let me spell it ... by BFalcon on Friday, Apr 11, 2014 at 11:03:44 PM
"Illegal"? Under what law? Evidence in many stud... by Eric Zuesse on Saturday, Apr 12, 2014 at 5:56:41 AM
"Obstruction of justice" has two faces: preventin... by BFalcon on Saturday, Apr 12, 2014 at 9:00:16 AM
To insist that a prosecutor do his job and prosec... by Jim Arnold on Saturday, Apr 12, 2014 at 9:51:20 AM
You are a very intelligent and knowledgeable pers... by BFalcon on Saturday, Apr 12, 2014 at 9:32:06 PM
Doesn't this prove that Obama simply doesn't have ... by Simon Leigh on Thursday, Apr 10, 2014 at 7:46:52 AM
Republicans in Congress blocked him from closing G... by Eric Zuesse on Thursday, Apr 10, 2014 at 8:05:07 AM
LMAO.Are you serious? ... by George W.Reichel on Thursday, Apr 10, 2014 at 2:12:27 PM
Totally wrong: He has hire-fire power over all me... by Eric Zuesse on Thursday, Apr 10, 2014 at 2:26:54 PM
"Obama has hire-fire power over all members of hi... by Charles Roll on Thursday, Apr 10, 2014 at 9:15:26 PM
Re. your "Obama simply doesn't have the power to ... by Eric Zuesse on Friday, Apr 11, 2014 at 1:51:57 PM
In attempt to refute statement (Simon Leigh), and... by Charles Roll on Friday, Apr 11, 2014 at 4:14:25 PM
You say that US Attorneys "do the President's bid... by Charles Roll on Friday, Apr 11, 2014 at 4:21:26 PM
Look at an example to see how things work in prac... by Charles Roll on Friday, Apr 11, 2014 at 4:23:35 PM
Let's be specific. If the President has the count... by Jim Arnold on Friday, Apr 11, 2014 at 5:26:29 PM
As President he has the power to hire and fire --... by Charles Roll on Friday, Apr 11, 2014 at 7:53:42 PM
Your presumption that the President believes that... by Charles Roll on Friday, Apr 11, 2014 at 8:01:44 PM
What Obama mainly knows is that the push from the... by Charles Roll on Friday, Apr 11, 2014 at 8:07:28 PM
"Your presumption that the President believes tha... by Jim Arnold on Friday, Apr 11, 2014 at 8:47:14 PM
I think it misses the point to focus the corruptio... by Charles Roll on Saturday, Apr 12, 2014 at 2:23:52 AM
Your assumption is that what William K. Black, wh... by Eric Zuesse on Saturday, Apr 12, 2014 at 6:06:06 AM
EXCELLENT link, Eric. I had to laugh at Black's q... by Jim Arnold on Saturday, Apr 12, 2014 at 9:38:04 AM
There is no denying it Obama is a corruptionist an... by kappie on Thursday, Apr 10, 2014 at 9:18:44 AM
There is no denying it Obama is a corruptionist -... by Charles Roll on Friday, Apr 11, 2014 at 4:30:24 PM
On 17 September 2013, Bill Moyers interviewed Bill... by Eric Zuesse on Saturday, Apr 12, 2014 at 6:14:52 AM
On 17 September 2013, Bill Moyers interviewed Bil... by Charles Roll on Saturday, Apr 12, 2014 at 5:24:39 PM
Silverado - from wikipedia article The U.S. Office... by Charles Roll on Saturday, Apr 12, 2014 at 5:40:25 PM
We are the 'Enablers'. We continue to play their ... by Paul Repstock on Thursday, Apr 10, 2014 at 11:41:56 AM
Won't everyone be "shocked", when the Circuit Br... by Paul Repstock on Thursday, Apr 10, 2014 at 2:02:57 PM
In case you doubt me: The 2% drop in the S&P ... by Paul Repstock on Thursday, Apr 10, 2014 at 2:29:22 PM
Isn't it when Circuit Breakers are activated that ... by Charles Roll on Thursday, Apr 10, 2014 at 9:20:33 PM
Given a delay (or 'latency') between the informat... by Paul Repstock on Thursday, Apr 10, 2014 at 11:41:39 PM
Great comment by Repstock on the financial markets... by Charles Roll on Friday, Apr 11, 2014 at 8:10:26 PM
Bush and Cheney fired US attorneys who wouldn't p... by Jim Arnold on Friday, Apr 11, 2014 at 11:16:28 AM
Thanks for explaining that, Jim. I hadn't, because... by Eric Zuesse on Friday, Apr 11, 2014 at 12:32:32 PM
Bush and Cheney fired US attorneys who wouldn't p... by Charles Roll on Friday, Apr 11, 2014 at 6:18:55 PM
You seem to be misunderstanding me, and the const... by Jim Arnold on Friday, Apr 11, 2014 at 8:33:00 PM
Leave those posts unfilled, and render law-enforc... by Charles Roll on Saturday, Apr 12, 2014 at 4:26:02 PM
"No one here has defended Obama's appointments... by Charles Roll on Saturday, Apr 12, 2014 at 4:42:33 PM
"Thank you for acknowledging that no one has been... by Jim Arnold on Saturday, Apr 12, 2014 at 7:08:46 PM
We really don't have enough common ground to cont... by Charles Roll on Saturday, Apr 12, 2014 at 11:18:51 PM
Here are issues that I would rather talk about th... by Charles Roll on Saturday, Apr 12, 2014 at 11:33:46 PM
I didn't call Obama a coward. He's certainly lack... by Jim Arnold on Sunday, Apr 13, 2014 at 8:58:35 AM
I agree with you completely. ... by Charles Roll on Sunday, Apr 13, 2014 at 3:54:27 PM
You are assuming the innocence of the people (suc... by Eric Zuesse on Saturday, Apr 12, 2014 at 6:22:04 AM
You are assuming the innocence of the people (suc... by Charles Roll on Saturday, Apr 12, 2014 at 4:28:58 PM
Corruption loves a vacuum.  It will fill ever... by Heywood Jablome on Saturday, Apr 12, 2014 at 8:21:58 PM
Section 3 of Article II of the Constitution specif... by Blaine Kinsey on Saturday, Apr 12, 2014 at 10:03:49 PM
Contrary to apologists for the Obama Administrati... by Charles Roll on Saturday, Apr 12, 2014 at 11:51:31 PM
About the financial problems that beset us and th... by Charles Roll on Sunday, Apr 13, 2014 at 12:22:04 AM
Great scoop!  You can't make this stuff up.&n... by Michael Collins on Sunday, Apr 13, 2014 at 1:50:41 PM
It is silly for Charles Roll to state that "(f)or ... by Blaine Kinsey on Sunday, Apr 13, 2014 at 4:06:08 PM
Thank you for stating this! ... by Eric Zuesse on Sunday, Apr 13, 2014 at 5:07:28 PM
Although I sometimes disagree with you, I appreci... by Blaine Kinsey on Sunday, Apr 13, 2014 at 6:07:53 PM
Re. your "Although it appears that President Obam... by Eric Zuesse on Sunday, Apr 13, 2014 at 6:33:17 PM
I think that you are misreading my comment.  ... by Blaine Kinsey on Sunday, Apr 13, 2014 at 7:12:17 PM
CORRECTION FOR GRAMMAR:I think that you are misre... by Blaine Kinsey on Sunday, Apr 13, 2014 at 7:24:07 PM
We must Impeach and subsequently ail Obama, then ... by Alexander Hamilton on Monday, Apr 14, 2014 at 12:12:48 AM
I agree. Clearly, Republicans don't care at all a... by Eric Zuesse on Monday, Apr 14, 2014 at 6:01:50 AM
It is not just the Obama administration that is co... by S. Juniper on Monday, Apr 14, 2014 at 7:11:18 AM