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(Marketwatch)   The head of the Federal Reserve Bank of New York said that some of America's largest financial institutions appear to lack respect for the law, regulation and the public trust. Also, water appears to be wet   (marketwatch.com ) divider line
    More: Obvious, Federal Reserve, financial institutions, William Cohan, proprietary trading, Volcker Rule, commercial banks, New York Fed, Treasury Secretary Jacob Lew  
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603 clicks; posted to Business » on 09 Nov 2013 at 8:44 AM (2 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



19 Comments     (+0 »)
 
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2013-11-09 04:40:34 AM  
In other news, this guy's going to be out of a job soon. He's about to find out the hard way not to criticize his masters.
 
2013-11-09 07:42:07 AM  
This sort of thing can't be why RAND PAUL wants to "audit" the Federal Reserve, can it?  Nah, no way.
 
2013-11-09 09:05:58 AM  
When Rich Fairbanks has enough to bribe Senators, who the fark are you to question the legality of his actions?
 
ecl
2013-11-09 09:36:50 AM  
images.wikia.com
 
2013-11-09 09:50:07 AM  
As always, former bank regulator, William K Black, is required reading:

The Obama administration's continuation of the Bush administration's refusal to prosecute the elite banksters (or even the vastly lower status CEOs of the fraudulent mortgage bank) that drove the crisis has made it clear that the rule of law no longer applies to wide ranges of life and that crony capitalism will continue to reign.

...snip...

The appraisers began warning the FBI in 2000 - before the Enron-era accounting control fraud crisis blew up. The appraisers' petition was the perfect information the FBI needed - it demonstrated that the leaders of the lenders and their agents were running control frauds. Only the lender and its agents can cause widespread appraisal fraud. No honest lender would ever inflate an appraisal, but an accounting control fraud would find such a strategy optimal. My prior articles have explained that several years before the FBI wrote its 2010 report on mortgage fraud the appraisers had also provided data demonstrating the endemic nature of appraisal fraud and an investigation by New York Attorney General Cuomo had confirmed the accuracy of the appraisers' warning about the fraudulent lenders blacklisting honest appraisers.

...snip...

MARI had warned the entire mortgage industry (and the FBI) that the incidence of fraud in liar's loans was 90 percent. By 2006, roughly 40% of all loans originated that year were liar's loans and the number of liar's loans grew by over 500% from 2003-2006. After MARI's warning to the industry in early 2006 about liar's loans the industry massively increased the number of liar's loans it made. The only way for lenders to sell endemically fraudulent liar's loans was through fraud, so the FBI knew that liar's loans had to propagate fraud throughout the secondary market and mortgage derivatives. Despite all this, the FBI report on mortgage fraud ignores appraisal and mortgage origination fraud directed by the lenders' controlling officers.


There is zero doubt that massive felony level fraud is what drove the financial crisis.
Meanwhile, the bankers pay their pet politicians to refuse to prosecute this fraud until the statute of limitations runs out.
 
2013-11-09 10:00:25 AM  
Real American Values.
 
2013-11-09 10:13:13 AM  
 
2013-11-09 10:50:46 AM  
It may have something to do with the fact that they are above the law.
 
2013-11-09 11:02:51 AM  
You can't handle the truth...
 
2013-11-09 11:09:15 AM  
When the basic point of a corporation is to absolve people of responsibility, they will act irresponsibly.
 
2013-11-09 12:07:31 PM  
images4.wikia.nocookie.net
 
2013-11-09 12:19:04 PM  

jake_lex: This sort of thing can't be why RAND PAUL wants to "audit" the Federal Reserve, can it?  Nah, no way.




What does "audit the Fed" really mean? Is he looking for the gold from Fort Knox or what
 
2013-11-09 12:32:59 PM  
 
2013-11-09 12:42:16 PM  
Of course, you don't have any respect for the people that are going to come hat in hand begging for a job the day after they leave their federal job.  Now if we made those jobs lifetime guaranteed good employment  and hired some people who didn't believe the government was satan and the jerb creators are modern day saints. . .
 
2013-11-09 01:03:32 PM  

BullBearMS: HempHead: What does "audit the Fed" really mean?

We've only done it once.

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. "As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world," said Sanders. "This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else."




So we did audited it in 2008, nothing changed....
 
2013-11-09 01:15:54 PM  

HempHead: So we did audited it in 2008, nothing changed....


So we should never expose the enormous conflicts of interest that arose in the last audit ever again?
 
2013-11-09 01:18:27 PM  
The head of the Federal Reserve Bank of New York said that some of America's largest financial institutions appear to lack respect for the law, regulation and the public trust.

No doubt by following the government's example.
 
2013-11-09 04:31:34 PM  
A few years ago, I would have read this and thought, 'Oh geez, those greedy bankers!  They will just disregard the law and do whatever they want.'

But now I work in the financial sector, for a company that buys and sells things all day in the hopes of making a profit.  They keep adding regulations, but it's a giant f*** up that makes the recent ObamaCare website a shining example of government effectiveness.

They'll say things like, 'As of Nov 1st, 2013 - all regulated entities in the blah, blah, blah must be ABC compliant or face fines of up to XYZ!'

What you don't hear is that they haven't ironed out what ABC compliance means.  Yeah, seriously.  I've even seen it where *after* the deadline, they are still changing it.  It's impossible to be compliant, but given that they don't know what the rules are they can't or don't bother to enforce them.  There tend to be a lot of knowledgeable IT/Software people on Fark....look at how ridiculous most government regulation/laws are on technology.....it is just as bad in the financial sector.

We've pulled developers and legal resources off of their projects and moved them to some regulation that was due to start on day X for six months, and every month we get a new, totally unrelated draft of what the law will be, then right before X, since they still haven't figured it out, they push the date back six months...and continue to change it.  It's gotten so bad in the last few years that we really can't take them seriously.  It'll be cheaper to take the fine when they hammer out what they want, than to waste the resources to screw around with it.

On top of that, in 99% of the cases, the regulations have zero impact on how we do business....which just speaks to how absurd the regulations are.  It really seems like the people making them don't understand what the traders and legal people do (I'm a computer guy, so I won't pretend that I understand them).  For example, recently, several big names in Europe introduced financial transaction taxes that either didn't apply to my company for some legal reason or means that our automated routing systems sends the same order to a different exchange.  The traders all kind of joke about it, at our last annual meeting someone asked one of the partners whether we should be concerned about these new regulations and he literally chuckled and said, 'No, from what we've seen....we have nothing to worry about.'
 
2013-11-09 09:24:51 PM  
And furthermore:

i18.photobucket.com
 
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