Forum Post: Most covered up story of Wall Streets success at reaching Nirvana
Posted 13 years ago on Oct. 20, 2011, 1:49 p.m. EST by 8yrnavyvetvietnamera
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The following is a quote from the House Congressional Record, DECEMBER 6, 1995, page H 14041 (see attached). Pay particular attention to the last paragraph of the quotation (and also, 13 years before the meltdown, the specific mention of Mr. Ponzi). The legislation (H.R. 1058/S240, Private Securities Litigation Reform Act). This legislation also answers why so few perpetrators have been prosecuted via the SEC.
“Mr. Speaker, this bill is a scandalous piece of legislation. It was conceived in the most scandalous and outrageous abuse of the legislative and conference process that I have ever seen in this institution. It sanctifies the most outrageous kind of fraud and misbehavior imaginable. It is a bill that would be beloved by Mike Milken, Ivan Boesky, and Charles Keating. And, by the great scoundrels of the past like Sam Insul and the greatest of all, Mr. Ponzi. It will permit the skinning of widows and orphans. It will permit raids on pension funds, on the funds at colleges, universities, and churches, and on the moneys held and managed by local governments and States for their pensions and other citizens. It undoes over 60 years of law that has enabled investors to take action to protect themselves against the worst kinds of misbehavior. How does it do this, Dingell you may ask. Well, I am going to tell you. The safe-harbor provision provides civil immunity in private enforcement actions for any ‘‘untrue—forward-looking—statement of material fact’’— written or oral—so long as that predictive statement is ‘‘accompanied by meaningful cautionary statements.’’ Furthermore, the provision expressly eliminates the duty of corporate insiders to update their predictions if subsequent events make them false. In a word, this conference report therefore immunizes deliberate fraud. And, in a very sad day indeed, on November 15, 1995, the SEC—reportedly under threats to have its budget cut— wrote a letter to the Senate saying not that SEC endorsed the provision, but only indicating withdrawal of opposition this provision, representing the first time in that agency’s history, that I am aware of, that it has supported a national policy that immunizes deliberate fraud from civil liability.”
These were the words of Representative Dingell (D-MI). Ironically, the auto industry of Congressman Dingell’s home state was one of the first victims of the collapse he prophesied.
continuation of thread
Following this entry, and entered into the Congressional Record are many articles and letters from the public and financial sectors in opposition to this legislation, all of which expanded on the horrors to come if this legislation were enacted (as is was). The source of the opposition is a very interesting study in itself. Not from what media would label liberal Democrats smarting from their defeat in the elections, rather from many bastions of the Republican and Wall Street establishment, essentially pleading “demon” President Clinton to veto their own Republican legislation (he did veto the House version but super majority prevailed). Between pages H14041 and H14047 are the following magazine articles and letters, in their entirety (Even the titles are prophetic):
Liars Bill of Rights, Miami Herald, Nov. 14, 1995 Insecurities, Houston Chronicle, Nov. 17, 1995 Opening the Door to Fraud, San Francisco Chronicle, Nov. 27, 1995 Overdrawn Securities Reform, New York Times, Nov. 30, 1995 Securities Litigation Reform: A Matter of Principle, By Craig T. Ferris, Bond Buyer, Dec. 4, 1995 Congress Aims at Lawyers and Ends Up Shooting Small Investors In The Back, By Frank Lalli, Managing Editor, MONEY Magazine, Sept. 1995 Let’s Stop Congress from Helping Crooks Cheat Investors Like You, MONEY Magazine, Oct. 1995 Your 1000 Letters of Protest May Stop This Congress from Jeopardizing Investors, MONEY Magazine, Nov. 1995 Now Only Clinton Can Stop Congress From Hurting Small Investors Like You, MONEY Magazine, Dec. 1995
In addition there are letters of opposition to Congress and the President from organizations including:
Fraternal Order of Police, National Legislative Program, Gilbert G. Gallegos, National President AF of L / CIO, Peggy Taylor, Director, Department of Legislation National Council of Individual Investors, Gerri Detweiler, Policy Director The Association of the Bar of the City of New York, a letter to President Clinton requesting changes to the “Safe Harbor for Forward looking Statements” provision which “could immunize arfully packaged and intentional misstatements and omissions of known facts.” (along with many other legal issues).
Does this sound like No one was saying “Hey, hold on. Let’s not do this.” ? Does this sound like the collapse was a giant fog shrouded “mystery”, or the result of a few rogues messing with the system as characterized by journalists?
This is why Republicans are against neutralizing, regulating, and overseeing the very financial “instruments” (“financial “products”) which they, with fever pitch rammed through the legislature. Sadly, they were helped by Democrats who, when they saw futility of resistance to the new Congressional super majority, and having their own political lives threatened, jumped on the wagon for an overwhelming Republican victory for Wall Street. The legislation enabled unfettered criminal activities. At the same time, it shielded and immunized the executives from prosecution. This signature legislation paved the gold bricked road to legalized fraud and the inevitable financial collapse. The 1995 legislation legalized fraud of all manners and sorts. And, the immunity from lawsuits set executives free to invent the fraudulent financial instruments that did more damage to America, when the consequences of the total number of families and businesses whose finances, homes and dreams are considered, than the events of 911. In a recent Republican presidential debate, Mr Gingrich, dragging a stringer full of huge red herrings attacked Sen. Dodd (who did have a part) as the culprit and suggested jailing him, which belies and covers up Mr. Gingrich’s own super culpability (his signature legislation, he as Speaker/Ramrod).
For full articles entered into the record during the floor debates of this legislation, see: Congressional Record – House, December 6, 1995, pp H 14041 – H14047. Also research the co-sponsors and the final passage by (in the face of super majority override anyway) large majority.
Republicans also want to clone this legislation to protect Executives of the Health Care industry as the did the Financial Industry. The are hyping it as protections for doctors, however it will be for the Executives who now claim to “own” doctors and they merely call it “Tort Reform”…..again
You do realize that the "Congressional Record" can be edited after the fact right?
Sadly...yes. But the description is what is currently there and the accurately describes 13 years in advance outcomes manifested in the collapse including the facts that rarely has executives been prosecuted which is a "concern" of OWS. It is why they can arrogantly "continue" what they started without fear of prosecution, the when investigated "take the fifth". Thank you for the comment.
ontinuation of thread story
Congress, 1995. ROOT legislation HR 1058 and S 240 enabled, and initiated the financial bubbles and meltdown. There were legislators such as Rep. Dingell, who prophesied that it would happen, and fought tenaciously to stop the legislation, but they were prevented from stopping it by a veto proof new majority legislature. Newt Gingrich was the recently empowered Speaker of the House. This was his, and his party’s signature legislation in the Contract “on” America. These are the “facts” that neither Mitch McConnell nor John Boehner will pass on to their constituents as they obstruct or surgically remove any financial reform legislation that would deconstruct the legalization of crime that was legislated in 1995. Mr. Gingrich is back and once again, without mention of his Financial Tort Reform bill that enabled and empowered the Wall Street fraud, is fighting against attempts to undo his “piece de resistance”.
Note: While floor debates were camouflaged as dealing with frivolous lawsuits pertaining to “technology products” this legislation was surreptitiously about the financial instruments that expanded and mutated to financial “products” the criminals in the financial system wanted to invent to scam an unsuspecting public (Derivatives, Swaps, DOTs, CDOs, and Residential Mortgage Backed Securities described in a recent hearing as selling off the cats and dogs by pushing them onto traders) . Isn’t it interesting that, in light of Mr. Madoff’s Ponzi schemes, Congressman Dingell linked the legislation to it’s inevitable outcome 13 years in advance.