To: President Donald Trump, The United States House of Representatives, and The United States Senate
Procecute Wall Street criminally, NOW
Tell The Obama Administration, The DOJ, and The SEC must do the morally right and progressively accountable thing for the PEOPLE hurt by Wall Street. What they did requires more than civil suit, it deserves "CRIMINAL" procecution.
Why is this important?
Eric Holder ET AL, have spent years research the Wall Street meltdown, looked at the perpetrators on Wall Street, and locally at the mess on main-street when it comes to effects on the economy, lost jobs, decimation of education, needed government services, fair taxes, opportunities, SS, Medicare, infrastructure, healthcare, environment.
It is unacceptable that DOJ could only, after 5+years, only sue Standard and Poor's in a $5 B "civil" lawsuit. There's Moody's, Dun&Bradstreet, and Fimalac SA's Fitch Ratings.
We demand criminal action and ASAP on Goldman Sachs, AIG, Chase, CITI, Bank of America, etc. AG Eric Holder alleges the conduct egregious, and at the heart of the crisis. That's not good enough; we want to see the American people put into the positions they were lawfully in before the fraud, just like any court restitution agreement would enforce. The mortgage backed securities were bundled and sold to investors as AAA rated when they actually were junk status. They inflated ratings and understated risks, driven by a desire to gain more business from the investment banks, claiming ratings were objective. They practiced immoral, bad judgment, illegal acts knowing this based on their established business models, at several levels of management following strategic objectives to compete and maintain big market share. Individuals in all key roles must be held accountable for participating and knowing, imprisoned, fined and the entities must be held criminally liable. You see these investment banks can't sell financial instruments rated less than the top AAA, so risky mortgage packages had to be split up, rebundled to look good to US and global investors. S&P issued $2.8 trillion, the others issued trillions more. They would get $750,000 revenue per deal, and the investment banks are their customers. Top executives and managers could see both sides of the transactions, and knew the threat of losing deals. If S&P didn't make a deal, Moody's would, because they forced the numbers to support the credit level, this is called "being effective". They claim they were trying to adjust decision models to be broader/more accurate, it never happened. The historical data is never perfectly aligned with the uncertainty of the future, but they loosened assumptions, created loopholes to get approvals, and therefore profits and bonuses. Then came internal pressure to downgrade big time, as defaults started blowing up.
The lawsuit was brought under the Financial Institutions Reform, Recovery, and Enforcement Act, a civil fraud statute from the S&L scandals, but 2007-2008 was the motherload of US and global cheating, lying, and stealing. History: A derivative, for hedging has an underlying #interest rate, exchange rate, or FAIR VALUE price changes# for notional amounts #the commodity, asset, foreign currency, Financial Investment Instrument on a public trading exchange#. The price of the derivative varies inversely to that, to avoid risk, a relationship by which losses are counterbalanced by gains in the other market. NO INITIAL INVESTMENTS WERE REQUIRED #IT WAS A PONZI TYPE SCHEME#, where futures contracts, options, relied on agreement to make or receive delivery/net settlement. 1. A fair value hedge pertained to fixed cash flows from changes in Fair Values of assets, liabilities, or firm commitments; 2. A cash flow hedge is like an interest rate swap to mitigate risk of variable cash flows from "forecasted" transactions #contract for the swap, but no contract on the Financial mortgage Instrument #no execution##. These are complex and the FASB would put out preliminary standards for input, but ultimately enacted what big business pressured them to produce for their benefits.
As for SEC and DOJ, we could have supported Section 18 of the 1934 Act imposing liabilities for making or causing false or misleading statements #or omissions# of material facts that would have influenced decision makers, or supply proof that price of securities, debts were negatively affected #Fraud-on-the-Market Theory#, subbing for proof of reliance #1#. Take hard look at Section 10B-5: 1.Proof of reliance, 2. purchase/sale of securities #securitized,bundled, and diluted#, 3.intent to deceive, manipulate, defraud #willful-reckless disregard for truth#, 4. Government need not prove reliance, individuals would, 5. actual loss.
If you listened to and read honest, well researched housing and financial instrument data from approximately 1995 to 2007, from market trackers like the Commerce Department, and responsible, well seasoned and ethical Professors of Economics, etc, the inflation curve veered upward strongly compared to normal CPI and other indicators of price levels. So even The FED Chair Alan Greenspan supported his robber baron friends, then after the fact apologized for no action. We had liar loans where lenders actually altered loan documents to get the applicants approved; business and home appraisers stood to gain on moving overpriced property from seller to buyer, and this was pervasive. The DOJ and SEC must bring large criminal action against all players who actively perpetrated, or appeased this abhorrent injustice on law abiding, hard working Americans, still deeply hurting for these offenses!
It is unacceptable that DOJ could only, after 5+years, only sue Standard and Poor's in a $5 B "civil" lawsuit. There's Moody's, Dun&Bradstreet, and Fimalac SA's Fitch Ratings.
We demand criminal action and ASAP on Goldman Sachs, AIG, Chase, CITI, Bank of America, etc. AG Eric Holder alleges the conduct egregious, and at the heart of the crisis. That's not good enough; we want to see the American people put into the positions they were lawfully in before the fraud, just like any court restitution agreement would enforce. The mortgage backed securities were bundled and sold to investors as AAA rated when they actually were junk status. They inflated ratings and understated risks, driven by a desire to gain more business from the investment banks, claiming ratings were objective. They practiced immoral, bad judgment, illegal acts knowing this based on their established business models, at several levels of management following strategic objectives to compete and maintain big market share. Individuals in all key roles must be held accountable for participating and knowing, imprisoned, fined and the entities must be held criminally liable. You see these investment banks can't sell financial instruments rated less than the top AAA, so risky mortgage packages had to be split up, rebundled to look good to US and global investors. S&P issued $2.8 trillion, the others issued trillions more. They would get $750,000 revenue per deal, and the investment banks are their customers. Top executives and managers could see both sides of the transactions, and knew the threat of losing deals. If S&P didn't make a deal, Moody's would, because they forced the numbers to support the credit level, this is called "being effective". They claim they were trying to adjust decision models to be broader/more accurate, it never happened. The historical data is never perfectly aligned with the uncertainty of the future, but they loosened assumptions, created loopholes to get approvals, and therefore profits and bonuses. Then came internal pressure to downgrade big time, as defaults started blowing up.
The lawsuit was brought under the Financial Institutions Reform, Recovery, and Enforcement Act, a civil fraud statute from the S&L scandals, but 2007-2008 was the motherload of US and global cheating, lying, and stealing. History: A derivative, for hedging has an underlying #interest rate, exchange rate, or FAIR VALUE price changes# for notional amounts #the commodity, asset, foreign currency, Financial Investment Instrument on a public trading exchange#. The price of the derivative varies inversely to that, to avoid risk, a relationship by which losses are counterbalanced by gains in the other market. NO INITIAL INVESTMENTS WERE REQUIRED #IT WAS A PONZI TYPE SCHEME#, where futures contracts, options, relied on agreement to make or receive delivery/net settlement. 1. A fair value hedge pertained to fixed cash flows from changes in Fair Values of assets, liabilities, or firm commitments; 2. A cash flow hedge is like an interest rate swap to mitigate risk of variable cash flows from "forecasted" transactions #contract for the swap, but no contract on the Financial mortgage Instrument #no execution##. These are complex and the FASB would put out preliminary standards for input, but ultimately enacted what big business pressured them to produce for their benefits.
As for SEC and DOJ, we could have supported Section 18 of the 1934 Act imposing liabilities for making or causing false or misleading statements #or omissions# of material facts that would have influenced decision makers, or supply proof that price of securities, debts were negatively affected #Fraud-on-the-Market Theory#, subbing for proof of reliance #1#. Take hard look at Section 10B-5: 1.Proof of reliance, 2. purchase/sale of securities #securitized,bundled, and diluted#, 3.intent to deceive, manipulate, defraud #willful-reckless disregard for truth#, 4. Government need not prove reliance, individuals would, 5. actual loss.
If you listened to and read honest, well researched housing and financial instrument data from approximately 1995 to 2007, from market trackers like the Commerce Department, and responsible, well seasoned and ethical Professors of Economics, etc, the inflation curve veered upward strongly compared to normal CPI and other indicators of price levels. So even The FED Chair Alan Greenspan supported his robber baron friends, then after the fact apologized for no action. We had liar loans where lenders actually altered loan documents to get the applicants approved; business and home appraisers stood to gain on moving overpriced property from seller to buyer, and this was pervasive. The DOJ and SEC must bring large criminal action against all players who actively perpetrated, or appeased this abhorrent injustice on law abiding, hard working Americans, still deeply hurting for these offenses!