"What Fraud?"Submitted by kevink on Tue, 08/21/2012 - 22:58
I was listening to an interview w/ William Black on Chris Martensen's podcast and was incredulous at what I heard from 42:20 - 45:34 (at the URL below) and decided to transcribe it for the DP...
By 2004, the FBI warns 2 things. One, that there is an epidemic of mortgage fraud. "Epidemic" was their word. And two, warns that it will produce a financial crisis - "crisis" being their word - if it is not checked.
And now here's a key thing. The FBI person in charge of the effort against mortgage fraud was interviewed by the Financial Crisis Inquiry Commission, the inevitable national commission to investigate the causes of this crisis. And he reported that the federal banking regulatory agencies never got in touch with him once, either before or after he made this warning about an epidemic of fraud.
Now can you imagine that? You're the federal banking regulators. The FBI publicly - and this gets reported publicly and this gets reported all over the place - trade press/general press - says an epidemic of mortgage fraud is going to cause a financial crisis. And nobody in the financial regulatory center says boo and follows up on it in the least!
And here's a footnote, also about the Financial Crisis Inquiry Commission. So Eric Holder, the Attorney General of the United States of America under Obama and, therefore, the head of the FBI as well (in other words, the bureau is part of the justice department) - is called to testify in front of the Financial Crisis Inquiry Commission.
Now what is the most famous thing the justice department/FBI did?
Issue this warning back in 2004!
And Holder is the head of a huge department filled with incredibly bright people, who prep him for a testimony like this so the agency looks good and so Holder looks good. Right? That's your job. Prep the guy so he looks good and doesn't get embarrassed.
And what does the first question have to be out of the Financial Crisis Inquiry Commission? It's gotta be "hey, what did you do in response to your own warning?"
So that is in fact the first question asked Holder. And Holder at that point - and Holder is accompanied by his staff and by Lanny Breuer, the head of the criminal division. And his answer is "what warning? I've never heard of this". Which means nobody up there is passing a note saying "I'll take this Eric". There was no answer. None of them had ever heard of the warning.
That's how big a priority elite financial frauds had in the incoming Obama administration.