"The former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri, Kansas City. During the savings and loan crisis, it was Black who accused then-house speaker Jim Wright and five US Senators, including John Glenn and JOHN McCAIN, of doing favors for the S&L's in exchange for contributions and other perks. The senators got off with a slap on the wrist, but so enraged was one of those bankers, Charles Keating — after whom the senate's so-called 'Keating Five' were named — he sent a memo that read, in part, 'get Black — kill him dead'...Black exposes the absolute criminality behind sub-prime and the Credit Crunch. The fraudulent behaviours of the bankers were 100 per cent criminal and the de-regulation of the banking system, signed into law by the Clinton and Bush administrations, was GUARANTEED to encourage the financiers to behave as they did.
Now Black is focused on an even greater scandal, and he spares no one — not even the President he worked hard to elect, Barack Obama. But his main targets are the Wall Street barons, heirs of an earlier generation whose scandalous rip-offs of wealth back in the 1930s earned them comparison to Al Capone and the mob, and the nickname 'banksters'."
The Bush adminstration covered up the criminality, the dangers and the disastrous outcomes and now the Obama adminstration is doing the same. In fact, the man Obama chose as his Treasury Chief, William Geithner, is one of the men most responsible for removing the regulatory safeguards!
The taxpayer, from whom as much of the truth as possible is kept hidden, is, as usual, the fall guy. Here's a taster:
WILLIAM K. BLACK: "There were two really big things, under the Clinton administration. One, they got rid of the law that came out of the real-world disasters of the Great Depression. We learned a lot of things in the Great Depression. And one is we had to separate what's called commercial banking from investment banking. That's the Glass-Steagall law… WE GOT RID OF THAT LAW...
The other thing is we passed a law… to regulate one of these exotic derivatives that you're talking about. We call them C.D.F.S. and SUMMERS, RUBIN AND PHIL GRAMM CAME TOGETHER TO SAY NOT ONLY WILL WE BLOCK THIS PARTICULAR REGULATION. WE WILL PASS A LAW THAT SAYS YOU CAN'T REGULATE. And it's this type of derivative that is most involved in the AIG scandal. AIG all by itself, cost the same as the entire Savings and Loan debacle...
THE FBI PUBLICLY WARNED, IN SEPTEMBER 2004 THAT THERE WAS AN EPIDEMIC OF MORTGAGE FRAUD, THAT IF IT WAS ALLOWED TO CONTINUE IT WOULD PRODUCE A CRISIS AT LEAST AS LARGE AS THE SAVINGS AND LOAN DEBACLE. And that they were going to make sure that they didn't let that happen. So what goes wrong? After 9/11, the attacks, the Justice Department transfers 500 white-collar specialists in the FBI to national terrorism. Well, we can all understand that. But then, the Bush administration REFUSED TO REPLACE THE MISSING 500 AGENTS... THIS CRISIS IS 1000 TIMES WORSE, PERHAPS, CERTAINLY 100 TIMES WORSE, THAN THE SAVINGS AND LOAN CRISIS. THERE ARE ONE-FIFTH AS MANY FBI AGENTS AS WORKED THE SAVINGS AND LOAN CRISIS."
BILL MOYERS: "Why are they firing the president of G.M. (General Motors) and not firing the head of all these banks that are involved?"
BLACK: "There are two reasons. One, THEY'RE MUCH CLOSER TO THE BANKERS. These are people from the banking industry. And they have a lot more sympathy. In fact, they're outright hostile to autoworkers... But, when they get to banking, they say, 'contracts sacred'. But the other element of your question is: we don't want to change the bankers, because if we do, if we put honest people in, who didn't cause the problem, their first job would be to find the scope of the problem. AND THAT WOULD DESTROY THE COVER UP."
MOYERS: "The cover up?"
BLACK: "Sure. The cover up."
MOYERS: "That's a serious charge."
BLACK: "Of course."
MOYERS: "Who's covering up?"
BLACK: "GEITHNER IS... COVERING UP. JUST LIKE PAULSON DID BEFORE HIM. GEITHNER IS PUBLICLY SAYING THAT IT'S GOING TO TAKE... $2 TRILLION TAXPAYER DOLLARS TO DEAL WITH THIS PROBLEM. But they're allowing all the banks to report that they're NOY ONLY SOLVENT, BUT FULLY CAPITALIZED.
BOTH STATEMENTS CAN'T BE TRUE. IT CAN'T BE THAT THEY NEED $2 TRILLION, BECAUSE THEY HAVE MASSES LOSSES, AND THAT THEY'RE FINE. THESE ARE ALL PEOPLE WHO HAVE FAILED. PAULSON FAILED, GEITHNER FAILED. THEY WERE ALL PROMOTED BECAUSE THEY FAILED."
MOYERS: "What do you mean?"
BLACK: "WELL, GEITHNER WAS ONE OF OUR NATION'S TOP REGULATORS, DURING THE ENTIRE SUBPRIME SCANDAL... HE TOOK ABSOLUTELY NO EFFECTIVE ACTION. HE GAVE NO WARNING. HE DID NOTHING IN RESPONSE TO THE FBI WARNING THAT THERE WAS AN EPIDEMIC OF FRAUD. All this... happened under him... HE'S A FAILED LEGACY REGULATOR."Tim Geithner is now Barack Obama's Treasury Secretary and Larry Summers is his top financial advisor. Robert Rubin, Bill Clinton's Treasury Secretary and Geithner's mentor, was the boss of Goldman Sachs before he joined Clinton's Treasury team and Citigroup's CEO after he left.
On 4 December 2008, The New York Post reported thus:
"A new Citigroup scandal is engulfing ROBERT RUBIN... Director Rubin and ousted CEO Prince... ARE NAMED IN A FEDERAL LAWSUIT FOR AN ALLEGED COMPLEX COVER-UP OF TOXIC SECURITIES THAT SPREAD ACROSS THE GLOBE, WIPING OUT TRILLIONS OF DOLLARS...Rubin is Jewish. As are Larry Summers and Timothy Geithner.
The lawsuit said that when the bottom fell out of the shaky assets in the past year, Citi's stock collapsed, wiping out more than $122 billion of shareholder value. However, RUBIN AND OTHER TOP INSIDERS WERE ABLE TO KEEP CITI SHARES AFLOAT UNTIL THEY COULD CASH OUT MORE THAN $150 MILLION FOR THEMSELVES."
From the UK perpective, Gordon Brown is every bit as corrupt as those Black vilifies in this interview. Brown was there, hogging at the same trough as the Yanks for eleven long years before it all went boar-shaped.
Check out The new, black broom, Brown eyes were responsible, Luiz and
Who stole our culture?