Remember when in July, 2016 that the FBI Director James Comey announced the FBI’s decision not to criminally charge the democratic presidential nominee, Hillary Clinton for her mishandling of emails while she was secretary of State. It is a standard practice that if the FBI does not pursue an indictment, then they will not publicly disclose any material garnered during the investigation process.
Director Comey stated that the FBI was making an exception in the case for Hillary Clinton because this was a case of intense public interest and this is how he justified reading and discussing the FBI’S critical report in front of a congressional hearing in addition to making public all of her emails within the FBI’s possession.
If he chose not to charge Mrs. Clinton regarding her email management, it was only because he has no case. Other than maintaining records for FOIA requests and for history,, at the time she was Secretary of State from 2009-2013, none of the rules she was obligated to follow had not been codified into law until 2014.
Now for the rest of the story, we turn back the clock to the year 2008…
This evening (9/20/16), I was watching the Rachel Maddow Show as she was talking with her guest, Senator Elizabeth Warren. The senator mentioned the Financial Crisis Inquiry Commission, which was assigned the task of finding out how the financial crisis happened as well as who was responsible. Those who participated on this project worked diligently for numerous hours to uncover the truth. When the commission’s report was published, it was not made public. However, it is now more than 5 years since the analysis was published ( January, 2011) which means the data contained within its pages are now part of the public domain. The PDF Commissions Report is footnoted below. It thoroughly covers everything and anything that you ever wanted to know about the 2008 financial crisis. It even includes dissenting opinions. Here is the link to read her letter: elizabeth-warren-letter-to-fbi-director-james-comey-september-15-2016
Here is the punch line: According to Senator Warren the FCIC commission IN 2010 also forwarded to the DOJ and FBI a list of nine names and 14 companies to be investigated for fraud etc. These were the those that the commission was convinced were directly responsible for the U.S. economic collapse. Yet, the public was never even aware of this information The senator argues this data should be shared with the public based on his precedence of making information public when there is intense public interest. She is inquiring as to all the data pertinent to the FBI’s decision not to pursue any criminal charges against these nine individuals and 14 financial institutions. On her official website, she writes that there were “serious indications of violation(s)” of federal or other laws. But none of these individuals or corporations has been criminally prosecuted.”.
On pages 16 and 17 of the commission’s report, can be found the following comments about the 2008 financial crisis:
This was a fundamental disruption—a financial upheaval, if you will—that wreaked havoc in communities and neighborhoods across this country. As this report goes to print, there are millions of Americans who are out of work, cannot find full-time work, or have given up looking for work. About four million families have lost their homes to foreclosure and another four and a half million have slipped into the foreclosure process or are seriously behind on their mortgage payments. Trillions in household wealth has vanished, with retirement accounts and life savings swept away. Businesses, large and small, have felt the sting of a deep recession. There is much anger about what has transpired, and justifiably so. Many people who abided by all the rules now find themselves out of work and uncertain about their future prospects. The collateral damage of this crisis has been real people and real communities.”
“But our mission was to ask and answer this central question: how did it come to pass our nation was forced to choose between two stark and painful alternatives—either risk the total collapse of our financial system and economy or inject trillions of taxpayer dollars into the financial system and an array of companies, as millions of Americans still lost their jobs, their savings, and their homes? In this report, we detail the events of the crisis.”
“While the vulnerabilities that created the potential for crisis were years in the making, it was the collapse of the housing bubble—fueled by low interest rates, easy and available credit, scant regulation, and toxic mortgages— that was the spark that ignited a string of events, which led to a full-blown crisis in the fall of 2008.”
“We conclude this financial crisis was avoidable. The crisis was the result of human action and inaction. The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand, and manage evolving risks within a system essential to the well-being of the American public. Theirs was a big miss, not a stumble. While the business cycle cannot be repealed, a crisis of this magnitude need not have occurred. To paraphrase Shakespeare, the fault lies not in the stars, but in us.”
” Despite the expressed view of many on Wall Street and in Washington that the crisis could not have been foreseen or avoided, there were warning signs. The tragedy was that they were ignored or discounted. There was an explosion in risky subprime lending and securitization, an unsustainable rise in housing prices, widespread reports of egregious and predatory lending practices, dramatic increases in household mortgage debt, and exponential growth in financial firms’ trading activities, unregulated derivatives, and short-term “repo” lending markets, among many other red flags. Yet there was pervasive permissiveness; little action was taken to quell the threats in a timely manner. The prime example is the Federal Reserve’s pivotal failure to stem the flow of toxic mortgages, which it could have done by setting prudent mortgage-lending standards. The Federal Reserve was the one entity empowered to do so and it did not.”
“The record of our examination is replete with evidence of other failures: financial institutions made, bought, and sold mortgage securities they never examined, did not care to examine, or knew to be defective; firms depended on tens of billions of dollars of borrowing that had to be renewed each and every night, secured by subprime mortgage securities; and major firms and investors blindly relied on credit rating agencies as their arbiters of risk. What else could one expect where there were neither speed limits nor neatly painted lines?”
“We conclude dramatic failures of corporate governance and risk management at many systemically important financial institutions were a key cause of this crisis. There was a view that instincts for self-preservation inside major financial firms would shield them from fatal risk-taking without the need for a steady regulatory hand, which, the firms argued, would stifle innovation. Too many of these institutions acted recklessly, taking on too much risk, with too little capital, and with too much dependence on short-term funding. In many respects, this reflected a fundamental change in these institutions, particularly the large investment banks and bank holding companies, which focused their activities increasingly on risky trading activities that produced hefty profits. ”
They took on enormous exposures in acquiring and supporting subprime lenders and creating, packaging, repackaging, and selling trillions of dollars in mortgage-related securities, including synthetic financial products. Many of these institutions grew aggressively through poorly executed acquisition and integration strategies that made effective management more challenging… In this instance, too big to fail meant too big to manage. Financial institutions and credit rating agencies embraced mathematical models as reliable predictors of risks, replacing judgment in too many instances. Risk management became risk justification.
Financial Crisis Inquiry Commission report – US Government ...631 pages… https://www.gpo.gov/…/-.pdf US Government Publishing Office
Reblogged this on It Is What It Is and commented:
More, detailed info … A ‘must read’ …
Dear Horty, Let’s see how the FBI responds to Senator Warren’s letter. Thanks a million times over for all of your support and for this reblog. Hugs, Gronda
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Sure hope they do something. Not holding my breath. Hugs!!
Well, what to say? The sheeple were royally fleeced again, and nary a one complained. And it’s building up again… and still no serious complaint. If thieves keep coming into your house to steal your stuff and you let them, isn’t it logical to conclude that they will continue to come into your house and steal your stuff until they steal your house and you’re out on the street homeless? By the way, the only vaccination against bankers’ greed I know is the guillotine. I can build one if you want…
Dear Sha’Tara, WELCOME!! I am convinced that what happened in 2008, was partly what has caused some to be so angry that they will be voting for the likes of Donald Trump. So many lost their homes, then their jobs pension savings etc. There has been virtually no wage increases while the fat cats on Wall Street have been earning more than double digit increases. And the crooks who caused all this harm have not been held accountable. And as we saw with the Wells Fargo CEO, John Stumpf, they are still up to their crooked ways while they fight any reasonable government regulations. This is why I was so thrilled to watch Senator Warren dress him down in front of the world. The guillotine sounds lovely but I’d be content with some of these folks doing jail time. Thanks for stopping by for a visit, Gronda
Yes, well, jail time sounds good but remember the movie “Wall Street” with Michael Douglas? The insider trader goes to jail for 8 years, comes back and proceeds to be way worse than he was before. Jail was his “free” time at tax payers’ expense to figure out how to profit from the System. Jail is no good. They cause the world’s wars, they are war criminals and they deserve the death penalty. Take them all the some neutral spot, Iceland will do if they would allow it, have a “Nuremberg” style trial and hang them. Case closed.
I’ ll drink to that. IT makes for a great fantasy. If the DOJ, the SEC, the FBI does not make Wells Fargo top executives pay a price to demonstrate that there will be accountability for wrongdoing, fraud, etc., then the American public will not believe that when and if there is another financial meltdown, that it won’t be the taxpayers paying the price again. .
The movie “The Big Short” is worth watching as it shows how people failed to do their job and violated one huge premise – a bundle of bad risk does not make it better, it makes it catastrophically worse. The bankers and bundlers who sold this crap to investors should have known better.
I also recommend reading the “Crash of the Titans.” The people who questioned these things were run out of organizations as not being team players. Many CEOs masked the impact to their Boards until it was too late. My favorite story is one of Big Short guys told the Bear Stearns’ CFO that they were going to fail a year before they did. When he was laughed out of their office, he said well I am going to bet against you. He did and won big.
Dear Keith, I am going to go out and purchase the book, “Crash of the Titans” and I’ see if I can’t find the movie, “the Big Short.”
In my answer to your comment on my blog, Wells Fargo And Others Have Become Enamored Of The “Cookie Cutter” Call Center Business, I mentioned that I am virtually certain that there have been employees that have attempted to address the issue of cross selling problems with management and the big wigs but they were marginalized until they were pushed out of Wells Fargo.
Remember THE VA scandal (2014?), there was a doctor who retired and then went public. This is only after he tried within the organization. The current VA director, Bob McDonald, who has the approval of all the military groups, has been making dents in the culture but he needs help. The senate has legislated all his requests and passed it on a bipartisan manner but it is now languishing in the U.S. congress.
What else is new, Gronda
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