Why is the FDIC helping banksters avoid trial?
By louisehartmann
The Federal Deposit Insurance Corp is supposed to insure deposits and regulate banks, but the agency has helped the banksters avoid trial for their crimes since the 2008 financial meltdown. The LA Times reports that the very agency responsible for investigating and prosecuting bank procedures that crashed our economy has been quietly settling charges out of court – and out of the view of the American public.
Since 2007, the agency has settled numerous charges of bankster wrongdoing, but agreed to a “no press release” clause in the settlement agreements, so the big banks have avoided public scrutiny. A spokesman for the FDIC said they only announce the settlements “when damage payments are large and media interest [is] intense.” However, the FDIC didn't announce a $54 million settlement with Deutsche Bank for causing the collapse of of The Independent National Mortgage Corporation, known as IndyMac.
And that settlement is just part of the $787 million the FDIC has recovered since 2008. The “no-disclosure” clause may have allowed the FDIC to avoid the expense of taking on the big banks in court, but the practice also allowed banksters to get away with alleged crimes, like money laundering, foreclosure fraud, and mortgage fraud. The settlements simply become a cost of doing business for the banks.
It's time to hold the banksters accountable. If too-big-to-fail means too-big-to-jail, then break up the banks and charge the banksters for their crimes.
Comments
#2
It makes me sick, they should be prosecuted and sent to jail along with huge fines.
#3
One of the most interesting stories about the monetary system was on free speech a few days ago. Watching a good narrative while being a long time student of economic, science, engineering and mathematics sometimes puts me into a trance while listening to good explanations or just thinking about formulas that run smooth. For many millenniums economic systems are mainly Gaussian now known to us, likely previously unknown to us though existing naturally. Just as early history told a huge deception to all of us that the world was flat, no its round. That’s right you live on an egg, but we are pretty sure the moon is not made of cheese. So there are plenty of stories about Gauss especially in Wiki stuff which I try to avoid since understanding it is loaded with full time right wingers playing with definitions all day.
Actually a natural sense or normal sense of economics is interpreted through the normal curve, the Gaussian speed bump, and ubiquitous “Bell Curve”. The mean where economics and science clash into each other. As in when things heat up everything starts to bump into each other. From my view people are catching on to what is behind the Gaussian curve. Some say there is a saddle point behind which is loaded with pluralities; these pluralities are what drive the rich to maintain leverage and control. But it is like an open range which can be taken over by Democratic means.
Now what the heck does all that mean? It means understanding the basis derivative. That economic thingy called a derivative that former Treasury Secretary Timothy Geithner said was very complicated. Ladies and Gentlemen the world is bombarded with derivatives all the time daily from the beginning of time. That’s why it is so laughable when Geithner says it’s so complicated. But right before everyone everyday of your life we are bombarded with derivatives. Start to learn them especially by the one Euler developed pronounced “Oiler” famous natural “e”.
These political economic people know what they are doing. Just keep on taking the sweet spot. Read any calculus book and it usually says take the derivative. Now I don’t mind just leave some for me. LOL.
#4
Wendalore: I like the rhyme game. How about "tanksters" as in tanking our economy?
#5
Talk is cheap. How do we take action ? Most of the voting public are not aware of this information and if they were would they actually act upon it ? The develo[ment of weapons in homeland security by the Pentagn are weapons for domestic civil disturbance. I believe they are preparing for the day when the majority of citizens wake up to the fact that their government, and their liberty has been seductively taken away. I don't think any of us in the private citizen sector understands when that will be but I believe it is in the itinerary. Where does the corruption come from and where will it end ? Obviously it will be a corporate cue and probably international in nature. The political climate will change from a democracy to some kind of dictatorship. The management of funds and distribution of economic wealth will be modified. It is happening as we speak with deception and stealth beyond what we imagine with very little opposition or concern. We go about out daily routines as we are instructed by our corporate gate keepers who manage us from HR offices around the world. If we are not willing to disrupt our comfort for change now while we still may, we will
be unable to secure our comfort in the future of our own free will. " Freedom isn't Free" as was so aptly pointed out to us in support of two huge illegal wars, the installment of homeland security, and the appointment of presidential powers exceeding constitutional privilege. We are slow learners in this country and sometimes we never learn. It must begin with information. From responsible journalism, whistle blowers, and concerned citizens willing to use their resources for something other than bad advertsing and bad entertainment. It must begin with a kind of folk music revival, protest music, and rock rebellion and free press.
Grass roots is the only way to gain ground through public demand for unsensored information and news.
#6
DAnneMarc: What do you think about what I think? I think Thom's blog has a "blog battle fatigue rule" that allows participants with this condition only one week away from the blog. So this means Aliceinwonderland and ken ware only have a few days of absence left, and where the heck is David Abbot? In all seriousness though I think anybody who cares enough to take the time to participate in this blog must be a pretty good citizen. We certainly don't have to agree all the time, but in general it appears to me that everyones moral compass is pointed in the same direction. So when we need to, just let it go, and fight on. We all have our bad days, hell I got so wound once that I misinterpreted Outback, I mean really blew it! So I think we all need to just hang in there.
#7
Could it be possible that the supportive interlocking of the FDIC with the banksters is simply monopoly capitalism in it's most flowering state?
I agree, break up the banks and prosecute the crimes. In my opinion, only when jail time becomes part of the cost of doing business will things change.
#8
2950-10K ~ You know what they say about too much of a good thing... I think everyone here is an intelligent and good citizen that merely needs to vent their frustrations with others that care. Most people in our lovely society simply don't care about anything that doesn't affect them directly. They're too busy having fun. They don't want to listen to us. Sometimes they tell us; other times they ridicule us. It's like that famous Bible quote:
Matthew 7:6 Give not that which is holy unto the dogs, neither cast ye your pearls before swine, lest they trample them under their feet, and turn again and rend you.
Thoughtful, responsible citizen's need a forum to vent their thoughts. A cathartic experience. They need someone who cares, listens and responds. This blog provides us all with that venue of expression. However, as with any other good thing it must be in moderation.
As far as a "blog battle fatigue rule" I certainly agree. It can happen that individuals are overwhelmed or simply tired of endless and pointless bickering. I try to stay positive because talk about gloom and doom is depressing and non productive. Too often we forget that our representatives, as well as their masters are human too. They breath the same air, eat the same food, have family's, hopes, and dreams like we do. They also get sick and die like we do. They lose loved ones like we do. We sell them short too often.
Life is too short to wallow on the "Poor me," syndrome. Fear and hopelessness are self defeating emotions and all too often can burn people out. I don't blame anyone for wanting a break from constant dialog of despair. Don't worry. Remember the lesson of Mathew 7:6. I believe they will return in short order for the same reason they came here in the first place. Patients!
#9
2950-10K Wrote: "I agree, break up the banks and prosecute the crimes. In my opinion, only when jail time becomes part of the cost of doing business will things change."
I couldn't agree more! If we get caught with a pound of any illegal substance off we go... Why should we stand for banks or any other group of individuals stealing people's money without jail time. We fine them under the table? What? Sounds to me like the FDIC is simply taking their cut.
This isn't justice! It's one criminal robbing another!
#10
2950-10K ~ BTW The answer to you question about Palindromedary I posted yesterday.
"Palindromedary is a mythological animal, a camel, with a head on both ends. It is troubled by the arrows of indecision."
Like whether or not to get out of the tub!
In case you missed it.
#11
What is most annoying about this policy is the unavoidable fact that it is the customer who must pay these settlments, the corporate executives could care less. Elizabeth Warren should be strongly encouraged to persue her questioning of regulators who quite frankly, don't seem to understand who's side they are on. That being said, the public should educate themselves on who really pays ALL the costs of corporations doing business, the customer, which in most cases is ultimately the public.
I am frankly amazed that consumer advocates ignore this fact completely.
#12
Meglo - It does not take a genius to understand how derivatives work or are composed. The problem with derivatives was they used a mathematical formula that was difficult for the average financial manager to fully understand so they simple accepted that Wall St. was wiser and would not risk defrauding people and countries around the world, so they bought into the lies the Banksters spewed out and in almost all cases ended up with worthless investments that crippled communities in Sweden to Atlanta Ga. They (Wall St. salesmen and women) simple combined a small amount of good paper with worthless paper from the American Housing Investment Mortgages, that they knew were going to go bust because the people who were sold these homes/ mortgages based on interest rates that world increase after just a few years and Wall ST. knew all hell would break lose when the defaults on the mortgages began to pour in from people who could not afford the payments when they began to rise. Basically Wall ST. Banksters knew the derivatives were worthless, but were not concerned in the long term value of the derivatives because they got their commissions up front. A very simple scam from people who were only concerned with their immediate commissions on the sales of these poison derivatives and the year-end bonuses that were in the millions. People who actually did not have the income to pay for the increase in the payments when the interest rates climbed where coaxed into lying about their income and the deregulation of the Banking Industry helped to facilitate this whole financial time bomb. There are several scenarios of why the housing bubble burst, this is just one of the main reasons. This is a simple explanation of what happened. And the Banksters are at it again by buying up the contracts on financed vehicles and combining them with other paper and selling them as secured derivatives as they did with the house notes or mortgages.
Of course the so called regulators and the F.D.I.C. are making back room deals with these Wall St. crooks (Banksters) because they all come from the same universities and are looking forward when the time comes to leave their government jobs and will a well-paid ($1,000,000 a year) job on Wall St. from the crooks they helped! These crooks like the lobbyists are all part of a revolving door scenario where one hand washes the other. Nice work if you can get it!! All of our woes are because of the massive corruption and good ole boy thinking in Washington. K.W.
#13
nachos - Sorry I did not answer your question yesterday on Vietnam and Korea. You may be too young to remember the full impact of the Cold War. In reality we and the Communists were in a type of war for fifty years were we did not fight each other directly, but instead we tried to stop the spread of Communism. The two countries had completely different political systems. The leaders of the Soviet Union stated on several occasions to the World that they will bury the United States and her allies. The theory that the United States government and her leaders believed in was called the Domino Theory. The basis of this theory was that if Vietnam fell to the Communists (China and Russia) it would spread to all the other countries in the East. At that time period the Soviet Union’s goal was to spread Communism across the entire World. With Cuba on our back door and if you recall we almost went to the level of nuclear war with the Soviets when Kennedy was President and the Russians were placing nuclear missiles in Cuba and could strike the U.S. and the Capital within 20 min., the Russians removed the missles when it came to actually getting into a war with the US., the government had already had one experience with the Soviets and wanted to stop their expansion thr threat threat to the U.S.
The Pentagon and Washington felt it necessary to stop the Communists from taking over S. Vietnam like they tried to do with S. Korea. We can sit back like a Sunday quarterback and call the game differently, but at the time the U.S. felt they had to stop the spread of Communism.
Whether you and others agree with this is up to you, but our primary reason for being in Vietnam was not to be the biggest power on the block, most Americans did not even know anything about Vietnam before we sent troops there. And for your information the Russians and the Chinese supplied all the military equipment and advisory personnel to North Vietnam to fight the South Vietnamese government so they could over throw the South's political and military leaders. The war was far more complicated than the explanation just gave you. Forty years later people on both sides of the argument still have different opinions on whether we should have been there. It is obvious what you and the Liberals think and it is clear on how I feel about the men and women who were involved with the War. Also smartass, the reason I did not respond to your question yesterday is that I was ill with the flu. Your assumption that I did not have an answer and therefore would not reply is typical of the people who see themselves as some type of superior intelligence, like DeAnneMarc and you who think they have all the answers! Ha, are you guys wrong as usual. Yes I do have the attitude of a military person who has tasted rhe combative side of humanity. If all Americans had the same attitude as you and the flower power kids we would be speaking German, Japanese (WWII) or Russian (Cold-vWar). Your type lacks the conviction that at times it is necessary that we have to go to war when it is necessary. I explained Vietnam to you, but why don't you simply Google the info about the Cold War and why we are a Democracy today and I use the word democracy loosely when it comes to the present situation we are in today. It is always easy for you flower waiving no combat at any cost liberals to put down what other heroes have done to keep this country safe. And just as a side comment, the reason why countries like the defunct Soviet Union as well as the other militarized countries that hate us from attacking us is simple fear of our military capabilities and the fact we will use them if provoked. My personal feeling is that men who have never served in the Military have no understanding of the U.S. Military and all men should have a mandatory obligation to serve at least two years in the military, as does Hartmann and he stated it last Thursday I Believe. K.W. If this comment is hard to follow it is because I came down with the flu on Sunday.
#14
The problem seems to be that the country is too big to care. That is what the banksters are betting on. Do we have the focus of attention to follow up on wrongdoing? Who is the policer, and what happens when their back is turned? How much power were they actually given to enforce law? It is a little like David and Goliath.
#15
Anybody know the names of the two states that are not broke and have their own banks?
That's the kind of America I believe in.
Or maybe that's what America Should strive to be so it will survive if its not to late.
Wait a minute,isn't that what we did a couple of hundred years ago.
America will fight back or fall,commen sense.
#16
Thank you KEN WARE for taking the time to answer my questions - even though you're not feeling well - with your insightful tales regarding Viet Nam, Korea and WWII. I truely was interested to hear your perspective...and as I suspected it was right inline with the time, and completely absent of McCarthyism and the lies the U.S. government conjured up in order to gain support of the American people. You may recall a little man by the name Daniel Ellsberg and the stir he caused the U.S. government with a few documents...later known as The Pentagon Papers? Poor Nixion. Oh the humanity!!!
As I have mentioned in past posts, I have family who served in all three of the formentioned wars - as well as family and friends that are serving in the military today; most of them are now Consciencious Objectors...aka Unglorified War Heroes.
I much prefer to gain knowledge and understanding about past and present wars and military sanctions from those who - like yourself - have experienced it first hand; along with - as you suggest - "googling it". History is our one saving grace; it is one of the reasons that Thomas Jefferson was our countries smartest and greatest leader. Jefferson researched and studied the rise and fall of all the greatist Empires, Kingdoms, and Dynasties before his time, and, well to sum it up; heeded the warnings that history taught him.
It seems fair to point out that these days the U.S. government doesn't need to be provoked by another soverning nation or 3rd world country in order to invade and occupy it...No??? Though I'm not so sure there ever has been a time when we ever have been provoked.
You may be right in saying that many Americans did not know of Viet Nam before the the U.S. got involved in that war...But our Government certainly did. Hmmm???curious...indeed!
As far as all your babble and low brow name calling goes; it just shows how ignorant you are as to who I am; though you are correct...I much prefer flowers over bombs and bullets, as do all of those I know who have experienced the hell and nonsense of war. And you'll never be able to pin me to any one political party and here is why...Left or Right and all their denominations have good ideas, but NONE are absolute in resolving our issues; especially when attempted through the act of war.
Draft Beer...Not me!
Arms Are For Hugging.
War Is Not The Answer.
Flower Power.
One final note; I am not naive...I suffer no fools or bullies...I will defend my life, liberty, and pursuit of happiness, however, so far the only threat I see is that of this government.
#17
It is time for those who are “the-connected-people,” to stop acting like elitists and step up and do what’s right. We only have one planet and country and this Paranoid & Grumpy Vietnam Vet & ex-medic is quite tired of it. What I feel about fairness is on You Tube here.
http://www.youtube.com/watch?v=dNO96bf5TdI
Onward!
#18
Well you certainly don't come off parinoid and grumpy; in fact you seem quite pleasent and rational.
When I was a youngster and I would get to complaining about things that were unfair my dad would say; "Life isn't fair, get over it", well this certainly did not seem fair! Later on as an adult I suffered several tragic events that change my perspective of man and the "systems" we create. I went through years of hostle rage and anger before I came to the realization that the only thing I have control over is self. From that moment on I decided to srtive towards not being a victim, and being the change that I want to see in the world.
True life is still full of unfairness, and often it seems like mans quest is to eat his own...eventually devouring himself, but I try to lead by example and to empathise; understanding, as you point out, we are all in this together.
Yes the tragadies and experiences you speak of upset me too, I had to helplessly watch my own daughter (Krissy) die at the age of 8 from cancer and the lack of insurance and money that would have aloted her the treatments that would have saved her life...I felt caste aside by my own country and worthless as both a man and a father. It took years for me to gain back my motivation, enthusiasm, selfworth...my mojo if you will, but eventually with support from family and friends I did and I swore that I would never sell myself short of life and my wellbeing over events that are out of my control.
Fighting the good fight without bombs and bullets for humanity...for Krissy.
Enjoy this day.
namasté
#19
So KEN what is wrong with speaking German, Japanese, or Russian? I have a brother who speakes, reads, and writes Thai, and German. He has lived in Germany and Thailand for the past 31 years. I also have a sister that lives in Turkey and a lifelong friend that moved to Denmark after he declaired himself a Consciencious Objector and left the Army back in 2005. I keep in close communication with all of them, and find it interesting - but sad - how the world outside of the U.S.views us...Unanimously we are considered tyrant capitalist bullies. We have military bases in just about every country in the world, and if another Soverning Nation doesn't want to comply with "our brand" of capitalism then we set up a coup and destablize them. Yet if any country tries to do the same to another Soverning Nation, or us...Look out. But of course to you thats good. Your motto is "By any means necessary"..."The ends justify the means". You thrive on others fearing the U.S....It's manly! And nothing makes you sleep better than knowing bombs are being dropped on villages where there may be a few "suspected" terrorist, or there is an opposition; as for all those innocent bystandards, many of which are children, some the same age as you grand daughter...That's just collateral damage.
Here is something for your brain to suck on, it's a passage from a paper a friend of mine wrote after 9/11.
"I was greatly impressed to see that an act perpetraited by the enemy was ipso facto vicious and deceitful, where as the same act perpetraited by the United States was just and praiseworthy."
What is your sincere take on that Mr. KEN WARE?
#20
Ken Ware Wrote ~ "Your assumption that I did not have an answer and therefore would not reply is typical of the people who see themselves as some type of superior intelligence, like DeAnneMarc and you who think they have all the answers! Ha, are you guys wrong as usual. "
Ken, if you don't want me to put words into your mouth kindly refrain from putting them into mine. I was going to avoid participating in this debate; but, since you've already declared my opinion "wrong as usual" I feel compelled to voice it. (Please let me say something before saying I'm wrong!) HA!
In my most sincere and humble opinion both you and MMmmNachos are correct--that is from your particular perspectives. You both left out one critical fact. The war in Vietnam was STUPID! Allow me to explain.
You do not shove a political ideology down a nations throat by force. This is what cost us the war. Kennedy was wise and correct in how he approached the problem of Communists incursions of South East Asia. He understood that your concerns Ken were valid. Russia and China had a great stake in Vietnam and needed to control the port cities and industrial base. That is why he sent equipment and advisers there. He wanted to even the playing field in a diplomatic way. He was famous for publicly saying the future of Vietnam belonged to the Vietnamese people. It was they who had to win or lose the war.
Kennedy understood that use of our military would seem provocative and threatening to all the people of Vietnam. He realized that alienating the people there would create a quagmire that would turn the majority of the Vietnamese against Democracy and would be a self-defeating action. Unfortunately, our idiot Capitalist and Military Industrial Complex thought other wise. They wanted to inflict Capitalism on the nation and enslave it's people and didn't care who they had to kill to do it. Kennedy was the first of thousands of casualties. Johnson and Nixon were imbeciles themselves. I remember Johnson during a televised interview talking about how comfortably his trousers fit his crotch. What a moron!
Nixon was a well educated fool. I believe he swallowed hook and line the domino theory and earnestly believed his own rhetoric. I on the other hand was infuriated by it. He had no common sense or sense of diplomacy whatsoever. He was the perfect mouth piece for the Capitalist and military interest. I remember listening to one of his State of the Union speeches when I was 7 years old. I wanted to throw my Legos at the TV set in rage. My parents thought it was cute and laughed at me. That only pissed me off even more. I've never been so ;pissed off in my life.
MMmmNachos, it is important to realize what the country was like back then. High paying, good jobs were plentiful. Rent was low. We manufactured everything you could imagine and produced goods superior to any other country. Most households had only one wage earner and did fine. People could afford to live and live well. It was easy to convince the populous that Communism was evil and that anyone would rather live in a Democracy like we do. Intellects like John Kennedy or myself aren't common; and, back then they weren't very popular. (They're not that popular today either.)
MMmmNachos, you should go easy on Ken. He was a patriotic and brave young man who believed he was doing the right thing for his country and the Vietnamese. That is all there is to that. There is nothing wrong with doing what your heart says is right. After all, that is what we are all doing right now. We are all good people. We are all human. No one is perfect. If you want to vent, vent on the irresponsible leaders and their crooked, bumbling benefactors of death who lied and cheated this country into a war that tainted the ideology of Democracy all over the world. They are evil and they are STUPID! Don't blame the victims. Don't blame the people. Whatever you do, don't alienate those people on your own side. There's been enough of that nonsense in our recent history already. Its only a recipe for failure. Divide and conquer. Don't help the enemy.
That's my two cents!
PS Hope you feel better Ken
#21
Organize and charter our own state banks. Create a new "green" financial sector that trades all instruments that contribute to the new green economy. Enact a financial transfer fee. Strengthen our local community banks. Begin all of our municipalities, government agencies, and pensions to divest from the big banks.
#22
That's the big problem, the "banksters" are employee's of the "thing", the corporate entity that is equal to humans but not. You can't put the "thing" into jail, that is the whole key to this manic world. Pierce the "Corporate" vail and making the "people" behind the "thing" responsible? They've made it like it's like putting the "gun" in jail for murder, "it" did it. Makes no sense/cents does it, but that is why the "heads" of corporations have reaped and raped all economies without the slightest worry of consequences like people do. What's a trillion to them, continue or start another war to keep the faucet open, the money flowing, no problem. Get a bail out, sure, start the printing presses, etc. Shut or "fine" the banks, the banksters open a different branch, start anew, they are free to roam at will and do repeat performances. Or as they said in the article, just write it off as business as usual, the cost of doing business or cost of being caught, a small price to pay.
"Go to Jail, No Bail", we got to get our country back, the corporate loopholes in everything from stealing money to not having to pay tax on it, they've got every palm greased to such a degree that THEY ARE THE JAILERS, we are their prisoners.
#23
Nachos - The reason I mentioned the different languages, is that those were the languages of the countries who tried to defeat our nation in time of war and if they had won, those were the languages we would be speaking as a defeated country. As far as speaking Russian, I was referring to the language we would be speaking if they had actually won the Cold War. I guess I will have to explain what I mean in every comment.
#24
Get People, NOT PUPPETS running this country. Lets face it, the two Political Parties are bought and paid for through the Corporate Puppeteers. Corporate Pavlov throws a couple coins and both Party's go ape shit doing what ever it takes to appease for the Puppeteers to throw down some coins again. You can't run the country like a prison when you have the inmates running it.
Until you get the money out of politics money will dictate what policies are best for the corporate coffers, not the people. OF, BY and FOR the corporations. Come on now, 1% owning more than 153 Million others combined, that is one hell of a ratio to make up, the have's vs the have nots, and money buying elections to keep the steam roller running at top speed.
#25
When the vote on background checks in the senate committee, was 20 democrats for it and 18 repugs against it, I find it hard to believe that both parties are equally owned by the corporate puppeteers. It is the repugs that will not confirm a head for the ATF or the consumer protection agency.
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I think "bankster" rhymes with "gangster."