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Forum Post: NewYorkTimes: S.E.C. Is Avoiding Tough Sanctions for Large Banks /// Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds?

Posted 6 years ago on Feb. 5, 2012, 8:22 a.m. EST by MonetizingDiscontent (1257)
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NewYorkTimes: S.E.C. Is Avoiding Tough Sanctions for Large Banks


-February 3, 2012 -

Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds?


( ( ( f l a s b a c k ) ) )

SEC Destroys 9,000 Fraud Files Involving Wells Fargo, Bank of America, Citigroup, Goldman Sachs, Credit Suisse, Deutsche Bank, Morgan Stanley, Lehman


-Wednesday, August 17-

( ( ( f l a s b a c k ) ) )

Rolling Stone: Is the SEC Covering Up Wall Street Crimes? by Matt Taibbi


-August 17, 2011-



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[-] 1 points by Nevada1 (5843) 6 years ago

Will the new Financial Crimes Unit with Eric Schneiderman make a difference?

[-] 2 points by Middleaged (5140) 6 years ago

Well, if you follow William K. Black, then it is clear that the creation of a financial crimes unit is not needed. there are plenty of tools, old processes, and existing laws to deal with financial crimes.


adequate financial crime units all along, the CFTC, FDIC, Fed, SEC, FBI & DoJ, etc.

William Black is a Professor of Law at UMKC. He is a former regulator in the banking industry and was key witness in defending individual taxpayers (FDIC Insurers) and individual rights against accounting fraud that characterized the Savings and Loan Banking Scandal of the1980s.

1) Perverse Incentives 2) Dishonest deals Displace Honest Economic Activity 3) Characteristics of Criminal banking Activity 4) Lack of Prosecutions 5) Hope for Prosecutions

Click on any link. The first link is shorter.

Brief 17 minutes run down on current environment: http://www.youtube.com/watch?v=u9Qe0HlKKfw

Teaching session 56 minutes: http://www.youtube.com/watch?feature=endscreen&NR=1&v=6YT84CokUsA

Controversy about firing US AG: http://www.youtube.com/watch?v=I12oDVr2RZQ&feature=related

[-] 1 points by Nevada1 (5843) 6 years ago

Hi Middleaged, Thank you for reply with links. Best Regards, Nevada

[-] 1 points by Middleaged (5140) 6 years ago

Nice. I'll have to check a couple of those links I missed. I notice 15 Laws below to regulate corruption, but some how the culprits seem to still nail us all.

My suggestion is about the problem of Money to fund SEC Lawsuits. I think the SEC must have the full backing of the US Treasury or the Federal Reserve Central Bank (FED). Since we know the FED is a private bank and not likely to support lawsuits against their buddies that they are literally in bed with - The SEC Must Be Fully Backed by the US Treasury for all investigations, personnel wages, legal fees, and court costs (Open Budget to fight corruption of deep pocketed big too big to fail banks!!). The SEC will have to have oversight by GAO and the executive office.

William K. Black is the Go To Guy in all of this, but like Matt Taibbi equally.







In 1988 Executive Order 12631 established the President's Working Group on Financial Markets. The Working Group is chaired by the Secretary of the Treasury and includes the Chairman of the SEC, the Chairman of the Federal Reserve and the Chairman of the Commodity Futures Trading Commission. The goal of the Working Group is to enhance the integrity, efficiency, orderliness and competitiveness of the financial markets while maintaining investor confidence.[17]

The SEC consists of five presidentially-appointed Commissioners.

Mary L. Schapiro, Chairman since 2009,

Elisse B. Walter, Commissioner since 2008,

Luis A. Aguilar, Commissioner since 2008,

Troy A. Paredes, Commissioner since 2008,

Daniel M. Gallagher, Commissioner since 2011,

Office of the SEC Inspector General The Office of the SEC Inspector General conducts internal audits and investigations of SEC programs and operations. Through these audits and investigations, the Inspector General seeks to identify and mitigate operational risks, enhance government integrity, and improve the efficiency and effectiveness of SEC programs.

The Securities Act of 1933 was originally administered by the Federal Trade Commission (FTC). The Securities Exchange Act of 1934 transferred this responsibility from FTC to the SEC. The main mission of the FTC is to promote consumer protection and to eradicate anticompetitive business practices. The FTC regulates general business practices, while the SEC focuses on the securities markets.

1934 – Securities Exchange Act of 1934, governing the secondary trading of securities
1938 – Establishment of the Temporary National Economic Committee 52 Stat. 705
1964 – Securities Act Amendments PL 88-467
1968 – Williams Act (Securities Disclosure Act) PL 90-439
1975 – Securities and Exchange Act PL 94-29
1980 – Depository Institutions and Deregulation Money Control Act PL 96-221
1982 – Garn–St. Germain Depository Institutions Act PL 97-320
1984 – Insider Trading Sanctions Act PL 98-376
1988 – Insider Trading and Securities Fraud Enforcement Act PL 100-704
1989 – Financial Institutions Reform, Recovery, and Enforcement PL 101-73
1999 – Gramm-Leach-Bliley Act PL 106-102
2000 – Commodity Futures Modernization Act of 2000
2002 – Sarbanes–Oxley Act
2007 – Regulation NMS
2010 – Dodd–Frank Wall Street Reform and Consumer Protection Act


[-] 1 points by MonetizingDiscontent (1257) 6 years ago

Hey, very nice work, Middleaged. I'll be reading and googling for a while, it appears. Thanks so much for this boon of information =)

[-] 1 points by Middleaged (5140) 6 years ago

Thanks for the appreciation. I actually end up just scanning some of the links since my eyes are old or I get distracted. But I will hopefully get around to studying these things deeper.

[-] 0 points by foreeverLeft (-264) 6 years ago

Because if they go after the banks they will have to go after their masters in government. Not gonna happen.

[-] -2 points by GirlFriday (17435) 6 years ago

Does anyone know if Grassley received a letter in return?