Tag Archives: bank fraud

The WSJ Rages that Bank of America Was Sued for “Only” Committing a $9 Billion Fraud

By William K. Black

The Wall Street Journal is deeply upset that almost none of the banks and none of the banksters that became wealthy by leading the three epidemics of mortgage fraud that drove the financial crisis are being subjected even to prosecution-lite cases.  The WSJ wants us all to know that “almost none” and “prosecution-lite” are both excessive.  The WSJ rant demands that we bestow the thanks of a grateful nation to the banks and banksters that committed the frauds.  This financial crisis is the first Virgin Crisis – conceived without sin in the C-Suites.  This second column in my series on the WSJ rant responds to the WSJ’s claim that mortgage frauds that are “only” $9 billion in magnitude do not warrant even civil sanctions.

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The Wall Street Journal’s Choleric Rant about Cholera and Bank Fraud Epidemics

By William K. Black

I wrote this column in Bogota, Colombia where I was presenting five talks at the Universidad Central’s economics conference, so I was struck by the title of a choleric rant by the Wall Street Journal entitled “Banking in a Time of Cholera.”

The WSJ’s title is a play on words on the title of a novel, “Love in the Time of Cholera,” by Colombia’s greatest writer, Gabriel García Márquez (“Gabo”).  The novel is set in a city that appears to be based on Cartagena, the city famous for being looted repeatedly by pirates.  In this first of several columns responding to the WSJ rant I discuss its failed literary allusions and tie these failures to some of the WSJ’s analytical and factual errors that render their rant risible.

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Europe’s Lousy Bank Loans Expose the “Recovery” Myth

By William K. Black

One of the great lies of the financial industry is that it is the engine of Main Street’s growth.  Giving the finance industry an enormous share of total business profits was supposed to super charge Main Street’s growth.  It has never delivered on this promise.  The truth is the opposite.  The efficiency condition for a middleman like finance is that its size and profits should be minimized.  Finance’s fraud epidemics blew up the world economy and devastated Main Street.  Finance is a parasite that saps Main Street.  The latest example of this comes in a New York Times article about European bank’s bad loans.

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TRUSTEE BANKS SUED FOR $250 BILLION

By L. Randall Wray

Here’s another story in the continuing saga of Bankster fraud.

As I’ve argued since 2008, it is likely that all—or nearly all–of the residential mortgage backed securities (RMBSs) are fraudulent. The Banksters engaged in fraud at every link in the RMBS food chain.

They defrauded the borrowers. They forced the appraisers to commit fraud (pressured them to overvalue property). They conspired with ratings agencies to overvalue the RMBSs. They created MERS to destroy property records and to cheat local governments out of recording fees. They separated the promissory notes from the deed of trust, invalidating the lien. They hired BurgerKing Robo-signers to create forged documents. They lie in court, committing perjury. They steal homes from owners who don’t even have mortgages. And on, and on, and on. Their depravity knows no bounds.

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EGREGIOUS FRAUDSTER: INTRODUCING BOB RUBIN’S CITICORP

By L. Randall Wray

By now you’ve heard that Citigroup admits—yet again—that it engaged in fraud. Heck, it was the business model under Bob Rubin. If you want to blame three individuals for the Global Financial Crisis, only Larry Summers and Alan Greenspan deserve more credit than Rubin.

Together they “softened-up” Congress so that it would free the Banksters, and then he ran Citi into the ground as he sucked gazillions of dollars of executive compensation out of the bank. Like all the CEOs of the biggest banks, he oversaw fraud on a scale never imagined—let alone seen—in the history of the globe.

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James M. Cirona: In Memoriam

By William K. Black
(Cross posted and Benzinga.com) 

The death of a successful banker and regulator

James M. Cirona died January 4, 2014.  I doubt that many readers know of Jim’s work even if they follow finance.  That is a shame for Jim was one of the most important reasons the savings and loan debacle did not cause a financial crisis and a Great Recession.  The reason Jim was so effective was that he understood that the factor driving the debacle was a surging epidemic of accounting control fraud and he had the leadership abilities and the courage to expand and focus the resources of the Federal Home Loan Bank of San Francisco (FHLBSF) to stop that epidemic.

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Kudos for William Black’s Performance on CNBC

Columbia Journalism Review (CJR) has a post giving kudos to William Black for his performance on CNBC’s Closing Bell. The episode’s topic was whether or not Goldman Sachs should or could be prosecuted on fraud charges for their part in the financial crisis.

 

Krugman Now Sees the Perversity of Economics’ “Culture of Fraud”

By William K. Black

Paul Krugman has written an article entitled “Culture of Fraud” about the Romney economics team.

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W. Black’s 8/10 Appearance on CNBC’s Closing Bell

By William K. Black

My August 10th appearance on CNBC’s Closing Bell opposite Bethany McLean. The debate topic was the failure to prosecute Goldman Sachs for any role in the financial crisis.

 

 

L. R. Wray’s Appearance on “Beneath the Surface” with Suzi Weissman

By L. Randall Wray

Podcast of my August 3rd appearance on Suzi Weismann’s Beneath the Surface on KPFK. Further discussion of “Why We’re Screwed”.

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