Tag Archives: the great financial crisis

Will those who led the financial system into crisis ever face charges?

This is Terry Carter’s latest work and appears in the American Bar Association Journal. He interviews Bill Black along with other prominent figures about the lack of prosecution brought against those responsible for the financial crisis. You can read it here.

Key House Republicans Almost Get Accounting Control Fraud

By William K. Black

To prepare myself for a guest lecture to a class at the University of Kansas I did some research about the House Financial Services Committee, now chaired by Jeb Hensarling (R. TX).  I was pleased to learn that the Committee’s home page emphasizes the key role that accounting control fraud played at Fannie and Freddie.  The home page has a “spotlight” section designed to draw the reader’s eye to a short series of documents designed to support passage of the Protecting American Taxpayers and Homeowners (PATH) Act, which focuses on eliminating Fannie and Freddie.  The documents largely stress that Fannie and Freddie were accounting control frauds.

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Bank Failures are “Inconceivable” under the Latest Neoclassical Fantasy

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

Only theoclassical economics constantly recycles variants of its worst ideas that have proven disastrous when they have influenced policy.  Other fields advance because they embrace the scientific method.  Theoclassical economists repeat their worst errors because they embrace anti-governmental dogmas that blind them to the inherent weaknesses of the corporate form and limited liability.  This represents a dramatic regression in understanding from over 200 years ago when classical scholars like Adam Smith were warning that corporations were inherently criminogenic and likely to produce what we now label “control frauds.”

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Andrew Ross Sorkin Unmasks as Leading Occupy Wall Street’s (Three Star Restaurants)

By William K. Black

Andrew Ross Sorkin (ARS), long believed to be the sycophants’ sycophant who composes his odes to elite bank CEOs from his perch at the New York Times and CNBC has unmasked himself in a video entitled “Two Myths and One Reality.”

“If there’s one question that I get just about more than any other, ‘So why didn’t anybody go to jail, and did nobody try?’ And there’s an answer to that too.

A lot of people had an incentive to try to find a way to bring not justice, but to put people away.  Prosecutors, law enforcement, journalists; it would have been a better story.  But for the last five years we’ve tried, all of us have tried, to find that criminal element.”

ARS revealed in his video that he has posed as the modern-day leader of the League of the Scarlet Pimpernel, the undercover group of English aristocrats, led by an English baronet (“one to command, and nineteen to obey”) who saved French aristocrats from the Great Terror.  The twist is that ARS’ League is composed of financial journalists who pose as sycophants and that the modern-day French aristocrats are the elite bankers whose misconduct caused the Great Recession.  The purpose of ARS’ deception was to lure the elite bankers into admitting their misconduct so that they could be held accountable rather than aiding French aristocrats’ efforts to escape accountability.  ARS was the anti-Scarlet Pimpernel, the aristocrat posing as the friend of the aristocrats in order to “find that criminal element.”

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