Obama Fiddling As Wall Street Burns?

One of the greatest financial scams in history has taken place in the first years of the 21st century. Everything came to a head in the fall of 2008 with the meltdown and bailout of the financial services industry. Barack Obama was elected president in part because his slogan

“change you can believe in” was welcomed by a nation tired of business as usual.
Sadly what we have gotten out of the Obama administration has been more of the same.  His economic team was staffed with the very people who oversaw the financial disaster that occurred. The Justice department headed by a former corporate lawyer Eric Holder has shown more aggression towards medical marijuana than the crook and scamsters on Wall Street. And the President himself fought for financial reform about as hard as he fought for single payer or higher taxes for the rich.Which is to say not much.
We have presented a number of posts on this subject. They can be fond under our American Racket category. Today we present a couple of stories first is from Shahien Nasiripour on Huffington Post about the removal of New York Attorney General Eric Schneiderman from a task force investigating foreclosure abuses. The second is from Rolling Stone writer Matt Taibbi shady practices in the Securities & Exchange Commission. We also have an interview from Amy Goodman on Democracy Now! w/ Mr Taibbi

New York Attorney General Kicked Off Government Group Leading
Foreclosure Probe

“Schneiderman, a Democrat who’s in his first term as New York’s top law enforcer, has been among a group of state legal officers who has also questioned the desire for a speedy resolution. He’s leading his own investigation into mortgage improprieties, subpoenaing documents from the nation’s largest financial institutions and reviewing court records for possible illegal home repossessions.

The Obama administration officials — in particular, Treasury Secretary Timothy Geithner and HUD Secretary Shaun Donovan — have publicly stated on numerous occasions that they want a quick resolution to the 50-state mortgage probe.

Sources said attorneys general like Schneiderman, along with the top legal officers from Massachusetts, Delaware and Nevada, among others, were complicating that goal by questioning the plan to scuttle the state and federal investigations in exchange for a settlement.

These attorneys general have said they’re reluctant to sign on to an agreement that effectively kills their ongoing investigations or prevents new ones from being launched. Beau Biden, Delaware’s top law enforcer, remains on the states’ executive committee.”
To read this entire post click here.

Is the SEC Covering Up Wall Street Crime?

“Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

The widespread destruction of records was brought to the attention of Congress in July, when an SEC attorney named Darcy Flynn decided to blow the whistle. According to Flynn, who was responsible for helping to manage the commission’s records, the SEC has been destroying records of preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynn reports, senior staff at the SEC scrambled to hide the commission’s improprieties.”
To read this entire post click here.

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