Wall Street's Scams, Lies and Frauds
Criminologist William K. Black, a former bank regulator and expert on crimes committed by the men at the top -- so-called control frauds referencing the practices of CEOS in control at big corporations -- studied these reports, pointing out that by 2008 there were only 62,000 "criminal referrals" in this industry with only agencies reporting crimes "mandated" by law to do so.
Only one-third of these illegal practices were even reported and, then, hardly any in unregulated sectors which, in turn, dispensed 80 percent of them. These were the mortgages Wall Street bought, securitized, sliced and diced, borrowed against and resold under false pretenses. Did they know? You bet they did.
Black estimates there have been a half-million fraudulent mortgage cases annually that should have been prosecuted, but the FBI only has the capacity to handle 500 per annum because most of its white-collar-crime fighters were reassigned to the war on terror.
Only one-third of these illegal practices were even reported and, then, hardly any in unregulated sectors which, in turn, dispensed 80 percent of them. These were the mortgages Wall Street bought, securitized, sliced and diced, borrowed against and resold under false pretenses. Did they know? You bet they did.
Black estimates there have been a half-million fraudulent mortgage cases annually that should have been prosecuted, but the FBI only has the capacity to handle 500 per annum because most of its white-collar-crime fighters were reassigned to the war on terror.
posted by temporal at 5/27/2009
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