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William Black Calls Them As He Sees Them - must read

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April 12, 2009 – Comments (6)

Financial Armagaddon linked to a great piece in Barron's that is an interview with William Black, who was a deputy director at the Federal Savings and Loan Insurance.

A few quotes....

We have failed bankers giving advice to failed regulators on how to deal with failed assets. How can it result in anything but failure?

He (Geithner) is flouting the law, in naked violation, in order to pursue the kind of favoritism that the law was designed to prevent. He has introduced the concept of capital insurance, essentially turning the U.S. taxpayer into the sucker who is going to pay for everything.

With most of America's biggest banks insolvent, you have, in essence, a multitrillion dollar cover-up by publicly traded entities, which amounts to felony securities fraud on a massive scale.

 We are using taxpayer money via AIG to secretly bail out European banks like Société Générale, Deutsche Bank, and UBS -- and even our own Goldman Sachs. To me, the single most obscene act of this scandal has been providing billions in taxpayer money via AIG to secretly bail out UBS in Switzerland, while we were simultaneously prosecuting the bank for tax fraud.

Control fraud is when a seemingly legitimate corporation uses its power as a weapon to defraud or take something of value through deceit.

 

Go read it, it is powerful...

6 Comments – Post Your Own

#1) On April 12, 2009 at 8:54 PM, SharpSEO (71.08) wrote:

Don't miss his interview with Bill Moyers either. This guy would make an awesome Treasury Secretary (so he'll obviously never get the job...)

http://www.pbs.org/moyers/journal/04032009/watch.html

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#2) On April 13, 2009 at 12:03 AM, usmilitiadude (31.47) wrote:

Jail the fraudulent bankers!!! Pass it on.....tell everyone you talk to tomarrow. Before you know it, Kevin Bacon will hear about it. Do we want justice?

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#3) On April 13, 2009 at 11:19 AM, Billullo (< 20) wrote:

AIG had to pay those obligations via contracts Its not like we really bailed them out. The money AIG paid to those banks were obligations maturing so either way they had to come up with that money!

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#4) On April 13, 2009 at 11:59 AM, Rehydrogenated (32.20) wrote:

The banks still assume counterparty risk, thats supposed to be why they get paid a premium...at the very least these banks should be paying those premiums back to the taxpayer since ultimately it was the taxpayer who assumed and paid for the risk.

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#5) On April 13, 2009 at 12:59 PM, bostoncelitcs (37.24) wrote:

Where was the alternate budget from Senator McCain, Senator Mitch McConnell and the GOP leadership?

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#6) On April 13, 2009 at 1:26 PM, jdgee2 (< 20) wrote:

Yes. Very good article.

Reminds me or something I often hear folks say: "if the government had to follow the same business rules as private companies do, Uncle Sam would be bankrupt."

Next time I hear that one, I'll reply " Ain't no difference, no more."

Best Wishes,

Jon

 

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