12 April 2013

Elizabeth Warren: How the Regulators Are Protecting the Banks From Disclosure of Fraud

"Fraudus est celare fraudem." 
The concealment of fraud is a fraud.

Take a careful listen to Senator Elizabeth Warren pulling out the truth from Daniel P. Stipano, Deputy Chief Counsel, Comptroller of the Currency, and Richard Ashton, Deputy General Counsel, Federal Reserve.
"You have made a decision to protect the banks but not to help the families who were illegally foreclosed on. Families get pennies on the dollar for being the victims of illegal activities. And you know of cases where the banks broke the laws, but you are not going to tell the homeowners.

People want to know that their regulators are watching out for the American public, not the banks."

Senator Elizabeth Warren
Other people are doing a much better job of covering this than I am, notably Yves Smith at Naked Capitalism, and I regularly include their links on my site.

It is a shame and a scandal that is representative of what is wrong with the current structure of the economy and the markets, the regulatory capture that favors insiders and special financial interests over basic law and justice for the public.

And I think it is a failure of the liberal agenda that calls blindly for stimulus, but at best pays lip service to significant reform.  As for those who call for austerity without reform, they are at best useful for the one percent, and of harm to most everyone else. 

The genuine reformers are found on both the right and the left, and might best be called progressives.  Unfortunately they are a group without a party or a portfolio these days, except for a few shining lights like Warren and Sanders.  From what I hear the situation in the UK and Canada is equally as bleak.  Oligarchies abound elsewhere.  As for Europe, it is just a mess of conflicting interests that one might strain to call a governing body of the most powerful special interests and their outside supporters.