Crime Pays
The Economics of the Global “Bankster” Crime Wave

The system for prosecuting transnational white-collar financial crimes has broken down almost completely. The good news is that this problem does not require elegant or especially complex solutions.

Published on: October 25, 2017
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  • D4x

    James S. Henry’s diversion to “transnational white-collar financial crimes” is a deliberate feint from the reality of
    President Trump and AG Sessions deconstruction of Obama/Holder/Lynch’s deliberate abuse of Federal lawsuit financial ‘settlements’ in funding partisan activist non-profits, third parties that were NOT directly harmed by the conduct.
    I’ll take my chances with Trump’s team from Goldman Sachs, NOT Henry, or TAI’s malign ‘re-launch’ that refuses to see REALITY.
    [Full text of https://www.justice.gov/opa/pr/attorney-general-jeff-sessions-ends-third-party-settlement-practice Wednesday, June 7, 2017 “Attorney General Jeff Sessions Ends Third Party Settlement Practice” posted as a corollary-reply to this comment.]
    https://uploads.disquscdn.com/images/5557546092fa3ac13b1b8501207644f457ec6925671b9508d655a46e6ff7e00c.png

    October 2016: “…It is imperative that these matters beinvestigated and addressed immediately by Congress. When the inordinate power
    and resources of the federal government can be brought to bear on the political process to tip the scales in favor of one party over another, it is a death knell for constitutional and free elections – even our system of government and its associated freedoms.
    The DOJ and the progressive movement is well on its way to the accumulation of power in “the same hands,” and this, in Madison’s
    words, “…may justly be pronounced the very definition of tyranny.”

    That was the Conclusion on pages 114-115. Here is Excerpt from “Executive Summary, pp5-6, from 115 page Government Accountability
    Institute http://www.g-a-i.org Oct. 2016 “FOLLOW THE MONEY: HOW THE DEPARTMENT OF JUSTICE FUNDS PROGRESSIVE ACTIVISTS” http://g-a-i.org/wp-content/uploads/2016/10/Follow-the-Money-How-the-Department-of-Justice-Funds-Progressive-Activists1.pdf

    After reviewing the consent decrees by the Obama administration’s DOJ, GAI’s findings include the following: …

    • During Eric Holder’s tenure as Attorney General, more than $37 billion has been paid by U.S. banks under the threat of federal lawsuits.[1]

    • The Obama Justice department often incentivized these financial institutions to fund politically oriented nonprofits in lieu of paying
    restitution to specifically aggrieved individuals by disproportionately crediting payments to nonprofits against total settlement amounts at a rate as high as ten to one. This benefited the banks and the nonprofits to the detriment to those needing direct assistance.[2]

    • These funds directed by the DOJ effectively replaced funding to activist nonprofits previously denied by Congress.[3]

    • Many of the cases stand on the tenuous merit of “disparate impact theory,” where in the DOJ’s eyes banks become liable for charges of racism based upon the perceived injustice of lending disparity in certain lower income areas, regardless of the reasons for the disparity.[4]

    • NeighborWorks, a major conduit for distribution of these funds, gave over $53 million to one particular organization, Neighborhood
    Assistance Corporation of America (NACA),[5] whose founder and leader is a self-described “bank terrorist.”[6]

    [1]The post-2008 settlement funds from the 40 Consent Orders studied, totaled $37,284,315,250.00. Note, all but $720 million came from three settlements: Bank of America, Citigroup, and JP Morgan Chase.

    [2] Board of Governors of the Federal Reserve System, Independent Foreclosure Review (Washington DC, July 2014): 21,
    http://www.federalreserve.gov/publications/other-reports/files/independent-foreclosure-review-2014.pdf

    [3] Ron Johnson, “The Justice Department’s Housing Settlements: Millions of Consumer Relief Funds Disbursed with No Guarantees of
    Helping Homeowners,” Majority Staff Report on the Committee on Homeland Security and Governmental Affairs, S. Rep., 114th Cong., 2d sess. (Washington DC, May 18, 2016): 27, http://www.hsgac.senate.gov/download/thejustice-
    departments-housing-settlements-millions-of-consumer-relief-funds-disbursed-with-no-guarantees-of-helpinghomeowners

    [4] “Disparate Impact,” National Fair Housing Alliance, accessed October 04, 2016, http://www.nationalfairhousing.org/PublicPolicy/DisparateImpact/tabid/4264/Default.aspx.
    Disparate Impact is a legal theory advanced by the Department of Justice under the Fair Housing Act which states
    that a policy may be considered discriminatory if it has a disproportionate‘adverse impact’ against any group based on race, national origin, color,religion, sex, familial status, or disability when there is no legitimate, non-discriminatory business need for the policy.

    [5] NeighborWorks, Internal Revenue Service, Form 990, 2007-2013. The total payments to NACA amounted to $53,583,342.00.

    [6] Bruce Marks, interview by Kate Bolduan, American Morning, CNN, July 28, 2008, http://www.cnn.com/TRANSCRIPTS/0807/28/ltm.01.html…

    http://g-a-i.org/wp-content/uploads/2016/10/Follow-the-Money-How-the-Department-of-Justice-Funds-Progressive-Activists1.pdf

    [Ironic how GAI’s President Peter Schweizer was a hero to the NYT, WaPo, CNN etc., when he unmasked the Bush Dynasty, not so much when it came to “Clinton Cash”, which I have ignored.
    I posted this because it was well documented, and consistent with everything I have read, and personally experienced, since 2007. I’ll take my chances with Trump’s team from Goldman Sachs]

    • D4x

      Full text:

      https://www.justice.gov/opa/pr/attorney-general-jeff-sessions-ends-third-party-settlement-practice
      Wednesday, June 7, 2017 “Attorney General Jeff Sessions Ends Third Party
      Settlement Practice

      Attorney General Sessions today issued the attached memo to
      all Department of Justice components and 94 United States Attorney’s Offices
      prohibiting them from entering into any agreement on behalf of the United
      States in settlement of federal claims or charges that directs or provides for
      a settlement payment to non-governmental, third parties that were not directly
      harmed by the conduct.

      “When the federal government settles a case against a corporate
      wrongdoer, any settlement funds should go first to the victims and then to the
      American people— not to bankroll third-party special interest groups or the
      political friends of whoever is in power,” said Attorney General Jeff Sessions. “Unfortunately, in recent years the
      Department of Justice has sometimes required or encouraged defendants to make
      these payments to third parties as a condition of settlement. With this directive, we are ending this
      practice and ensuring that settlement funds are only used to compensate
      victims, redress harm, and punish and deter unlawful conduct.”

      Under the last Administration, the Department repeatedly
      required settling parties to pay settlement funds to third party community
      organizations that were not directly involved in the litigation or harmed by
      the defendant’s conduct. Pursuant to
      the Attorney General’s memorandum, this practice will immediately stop.”

      https://www.justice.gov/opa/pr/attorney-general-jeff-sessions-ends-third-party-settlement-practice

  • FriendlyGoat

    Give ’em all tax cuts. That’ll show the folks back home that justice is on the march. (Might work. The folks back home are dumb as rocks.)

    • Psalms13626

      Everyone is stupid except Comrade FriendlyGoat. Get it? Got it? Good.

    • Anthony

      (this is where I found your latest comment) Something that needs reading and won’t make you happy: nymag.com/daily/intelligencer/2017/10/this-is-what-the-trump-abyss-looks-like.html

      • FriendlyGoat

        There are a few people in the country who actually have the power to stall the abyss. Anthony Kennedy is one. Flake, Corker, and Collins are three others.

        Maybe we should talk about that more. Trump is Trump, but not everyone is beholden to him or has to be.

        • Anthony

          Well taken! I’ve always thought to much oxygen has been directed Trump’s way. But Americans are going to have to make hard choices come 2018. As an aside, an aphorism I got on Charlie Rose you may find apropos: Trump (Trumpism) is a brain eating disease – much attention focused but nothing learned.

          • FriendlyGoat

            The 2018 elections are important, but not as important as yelling at the so-called “patriots” already there—–since there will never be any such thing as re-creating the tax code after it is destroyed. There will also be no such thing as undoing SCOTUS decisions in the current term, such as, for instance, gerrymandering.

          • Anthony

            Agreed regarding importance and timeliness of your point; but both (organizing for elections and current patriots inducement) can be done simultaneously.

  • ვეფხისტყაოსანი

    I thought these two bits were fascinating:

    1. “After besmirching Hillary Clinton’s run for the presidency with its gild-edged speaking fees …” (by the way, Jimmy, that should be ‘gilt’)
    2. “Trump’s innumerable dodgy Russia mob connections” (and you meant ‘Russian’ — are you a native English speaker, Jimmy?)

    So poor Hillary just couldn’t understand money, the poor thing. But at least _she_ wouldn’t have dodgy Russian mob connections.

    Oh, wait …

  • Nonyo Business

    See also:
    The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Hardcover – July 11, 2017
    by Jesse Eisinger (Author).
    https://www.amazon.com/Chickenshit-Club-Department-Prosecute-Executives/dp/1501121367/

    Chain of Title: How Three Ordinary Americans Uncovered Wall Street’s Great Foreclosure Fraud Hardcover – May 17, 2016
    by David Dayen (Author)
    https://www.amazon.com/Chain-Title-Americans-Uncovered-Foreclosure/dp/1620971585/

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