Tag Archives: banksters

Andrew Ross Sorkin’s Attempt to Make Tim Geithner a Hero

By William K. Black
February 12, 2017       Bloomington, MN

I am watching the film Too Big to Fail based on Andrew Ross Sorkin’s book of the same name.  It led me to check out the price of the used book, which has fallen to $1.02, which is low enough that I am willing to buy a copy of the book, particularly since not a penny will go to Andrew Ross Sorkin.  The financial analytics displayed in the movie and the book are so poor and dishonest that I need to have a copy by my keyboard as an inspiration to keep trying to cut through the calculated dishonesty about Wall Street pumped out nearly every day in the pages of the New York Times.

The movie starts with the imminent failure of Lehman.  It is an astonishingly sympathetic portrait of Wall Street, Hank Paulson, Tim Geithner, and Ben Bernanke.  The movie invents a scene in which the Treasury leadership explains “in English” the causes of the crisis to the Treasury PR person.  There is not a word about the three fraud epidemics that hyper-inflated the bubble, drove the crisis, and produced the Great Recession.  As one expects of a Sorkin tale, it is all about personalities and “great men.” (Women are rare and powerless, even FDIC Chair Sheila Bair.)  The movie and book have a patina of financial jargon that Sorkin thinks constitutes analytics, and a nearly total failure to probe the Wall Street BS about the crisis.

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Will the Crisis of Confidence at Deutsche Bank Spread?

NEP’s Bill Black recently appeared on [email protected]’s radio show discussing the issues related to the settlement the DOJ is pursuing from Deutsche Bank. It has also appeared on the website. You can view it here.

‘Two Million Felonies’: Will The Wells Fargo Scandal Finally Change Wall Street?

Nothing clarifies the mind of a bank board member than the loss of lucrative business deals. Wells Fargo’s CEO says he will pay a penalty for presiding over his bank’s fraud wave. Could stricter sanctions follow, perhaps even a criminal investigation?

We spoke with William K. Black Jr., economist and white-collar criminologist, about the implications of the Wells Fargo case and the laws that might have been broken.

Rest of the post is at Huffington Post. Read it here.

Deutsche Bank is Too Big to Fail, Too Big For Big Fines?

NEP’s Bill Black appears on The Real News Network. Topic of discussion is Deutsche Bank, the German bank that was at the center of the LIBOR scandal and is likely to face upwards of $5 billion in a settlement with the Justice Department. Video is below. If you would like to see with a transcript, it is here.

Robbing Banks

NEP’s Bill Black appears on the Ralph Nader Radio Hour.

Nowadays we have zero prosecutions of any of the people that led the three fraud epidemics that drove this crisis. And now they are highly skilled and have seen that they can get away with financial murder. And so they are already back in the business, already selling other toxic stuff and they’re going to produce the next crisis…

You can listen to the podcast here.

Mankiw Morality in a Mash Up with Mankiw Myths

By William K. Black
May 8, 2016     Kansas City, MO

N. Gregory Mankiw writes leading textbooks in economics that present neoliberal economic nostrums as economic “principles.” Mankiw wrote a column in the New York Times entitled “The Economy Is Rigged, and Other Presidential Campaign Myths.” The title reflects the central nature of his attack on Bernie Sanders explaining how the economy is rigged in favor of elite bank fraudsters.  This first column in a series responds to Mankiw’s myths about the rigged financial system.  The next column deals with Mankiw’s myths about the trade deals.

Mankiw misfires immediately because he does not even attempt to refute Bernie’s explanations of how finance is rigged.  Instead, Mankiw conflates income inequality and the rigging of finance.

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Bloomberg Tells Michigan Grads They Must Defeat Bernie’s Plan to Jail Wall Street Felons

By  William K. Black
May 2, 2016      Bloomington, MN

Michael Bloomberg has just published, in Bloomberg, what he describes as “an adaptation of an address to the University of Michigan’s class of 2016.”  Having graduated twice from Michigan, as did our eldest, I was intrigued.  Bloomberg’s title was “Here’s Your Degree.  Now Go Defeat Demagogues.”  What Bloomberg means is that he is frightened that so many young people supported the “Occupy Wall Street” movement and support Bernie Sanders.  I’ve written before about Bloomberg, a Wall Street billionaire, and the myths he tries to spread about Bernie.  Wall Street elites fear Bernie.  They know he won’t take their money, he will end the systemically dangerous banks, and he will imprison their leading felons.  Bloomberg’s hate for, and fear of, Bernie is perfectly rational.  Why he thinks that Michigan students will take his advice and learn to love Wall Street’s felons is a lot less clear.

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Bill Black on The Vinny Eastwood Show

NEP/BWU’s Bill Black appears on the Vinny Eastwood show out of New Zealand. Topics of discussion are Financial Fraud, and the Panama Papers.

Obama’s Great Lie: What’s Good for Wall Street Felons is Good for America

By William K. Black
April 30, 2016     Bloomington, MN

To no one’s surprise, President Obama lobs periodic attacks on Bernie Sanders’ plans to restore the rule of law to Wall Street elites.  Obama launched his latest attack, fittingly, through Wall Street’s sycophant-in-chief, Andrew Ross Sorkin.  Sorkin’s column expresses his shock at how Obama repeatedly extended their interview for hours beyond its scheduled length.  No one else is shocked that Obama, trying to make the case that bailing out the Wall Street felons was an act of supreme genius, would find Sorkin’s relentless sycophancy towards those felons and their political cronies so endearing.  This is the first segment of my response.  It focuses on the Obama administration’s great lie – the only policy “tools that work” in response to a financial crisis are getting “in bed with the banks” and making even wealthier through federal bailouts the bankers who grew wealthy by leading the fraud epidemics that caused the crisis.

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Paul Krugman and Holman Jenkins Shill for the Giant Banks

By William K. Black
April 20, 2016     Bloomington, MN

Holman Jenkins, the ultra-conservative Wall Street Journal columnist who specializes in global climate change denial and elite financial fraud denial, has written recently to join Paul Krugman in defending the systemically dangerous banks.  Jenkins is a member of the WSJ’s loopy editorial board.  Jenkins’ title was “Big Banks Aren’t the Problem.”  Jenkins’ thesis raises obvious and vital questions – he ignores each of them because answering them would falsify his thesis.

The 2008 crisis did not begin in a handful of too-big-to-fail banks, but in incentives cast far and wide among home buyers, mortgage brokers, lenders and others to underwrite tax-advantaged, one-way bets on home prices.

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