This documents the investigation into Repo 105 and the fraudulent transfers between New York and London, and when the accounting firm of Ernst & Young knew of them. The SEC and the Federal Reserve were there at the company, with access to the records, when all this happened.
And of course, there have been no indictments. And the reason may be that the SEC and the Fed, in their desire to maintain confidence in the system, knew about it and failed to disclose it. Or they could claim incompetence and a failure to do their jobs in protecting the public from financial fraud.
This is the credibility trap. When you are complicit in a fraud, in any number of ways, you cannot take effective, credible action against it, and deter other frauds from occurring. And you cannot afford to even discuss the issues credibly, because your are too compromised in your own actions, or inaction.
