The Real Reason the SEC has been shredding documents

Discussion in 'Media' started by hvactec, Aug 21, 2011.

  1. hvactec
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    hvactec VIP Member

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    The Real Reason the SEC Has Been Shredding Documents For Decades

    SEC Attorney Reveals that Agency Has Shredded Documents for Decades to Cover Up Wall Street Fraud

    What should we make of the new revelations by Securities and Exchange Commission attorney Darcy Flynn (background here, here and here) that the SEC has been shredding documents for decades?

    As many commentators have noted, the SEC did this to cover up fraud on Wall Street.
    The Entire Government Strategy Is To Cover Up Fraud

    William K. Black - professor of economics and law, and the senior regulator during the S & L crisis - says that that the government's entire strategy now - as during the S&L crisis - is to cover up how bad things are:

    The entire strategy is to keep people from getting the facts.

    Top Government Officials Created the Conditions In Which Fraud Would Flourish
    I noted last year:

    It is not only a matter of covering up fraud that has already happened. The government also created an environment which greatly encouraged fraud.

    Here are just a few of many potential examples:

    The government-sponsored rating agencies committed massive fraud (and see this)

    The Treasury department allowed banks to "cook their books"

    Business Week wrote on May 23, 2006:

    "President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations."

    Regulators knew of and allowed the use of debt-hiding accounting tricks by the big banks

    Tim Geithner was complicit in Lehman's accounting fraud, (and see this), and pushed to pay AIG's CDS counterparties at full value, and then to keep the deal secret. And as Robert Reich notes, Geithner was "very much in the center of the action" regarding the secret bail out of Bear Stearns without Congressional approval. William Black points out: "Mr. Geithner, as President of the Federal Reserve Bank of New York since October 2003, was one of those senior regulators who failed to take any effective regulatory action to prevent the crisis, but instead covered up its depth"

    The former chief accountant for the SEC says that Bernanke and Paulson broke the law and should be prosecuted

    Freddie and Fannie helped to create the epidemic of mortgage fraud

    The government knew about mortgage fraud a long time ago. For example, the FBI warned of an "epidemic" of mortgage fraud in 2004. However, the FBI, DOJ and other government agencies then stood down and did nothing. See this and this. For example, the Federal Reserve turned its cheek and allowed massive fraud, and the SEC has repeatedly ignored accounting fraud. Indeed, Alan Greenspan took the position that fraud could never happen

    Bernanke might have broken the law by letting unemployment rise in order to keep inflation low

    Paulson and Bernanke falsely stated that the big banks receiving Tarp money were healthy, when they were not

    Arguably, both the Bush and Obama administrations broke the law by refusing to close insolvent banks

    Congress may have covered up illegal tax breaks for the big banks

    Of course, deregulation by Larry Summers, Robert Rubin, Phil Gramm and many other high-level politicians and regulators also helped to grease the skids for fraud

    Economist James K. Galbraith wrote in the introduction to his father, John Kenneth Galbraith's, definitive study of the Great Depression, The Great Crash, 1929:

    READ MORE The Real Reason the SEC Has Been Shredding Documents For Decades → Washington's Blog
     
  2. editec
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    editec Mr. Forgot-it-All

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    Anybody who is remotely paying attentiuon knows why the SEC is shredding the EVIDENCE.
     
  3. dilloduck
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    dilloduck Diamond Member

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    If there were only something we could do about it.
     
  4. Truthmatters
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    Truthmatters BANNED

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    I hope someone somewhere has documented some of the crap.

    maybe someday we will know the depth of the mess.
     
  5. Moonglow
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    Moonglow Diamond Member

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    don't invest in Wall Street
     

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