The Financial Crime of The Century: William K. Black On Massive Mortgage Fraud –Videos
Hundreds Swept Up in Mortgage Fraud Arrest
Hundreds Swept Up in Mortgage Fraud Arrest
FBI Mortgage Fraud Crackdown
William K. Black Criticizes the Bailout Plan — Might Destroy the Obama Presidency
“Stress tests Total Sham” William K. Black on Fox Business
Moyers 1 of 3: Sharing the Blame for the Economic Crisis?
Moyers 2 of 3: Sharing the Blame for the Economic Crisis?
Moyers 3 of 3: Sharing the Blame for the Economic Crisis?
William Black on Alex Jones Tv 1/5:Former Federal Regulator Tells All !!
William Black on Alex Jones Tv 2/5:Former Federal Regulator Tells All !!
William Black on Alex Jones Tv 3/5:Former Federal Regulator Tells All !!
William Black on Alex Jones Tv 4/5:Former Federal Regulator Tells All !!
William Black on Alex Jones Tv 5/5:Former Federal Regulator Tells All !!
FDIC may borrow money from Treasury.
Wells Fargo Chairman “Dick” Kovacevich Explains “What the Hell Happened” – Part 1
The Federal Government should put all failed and insolvent banks and financial institutions into FDIC receivership.
The Federal Bureau of Investigation (FBI) should be tasked to investigate massive mortgage fraud and the Department of Justice prosecute those committing crimes.
All bailouts should cease and banks wanting to return TARP money should be allowed to do so.
Instead President Obama’s administration and Treasury Secretary refuse to take decisive action in shutting down these insolvent banks now.
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Second American Revolution–Tea Party Celebrations–Washington Fair–July 4, 2009–An Open Invitation To The American People
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Geithner Delivers Opening Statements – Bloomberg
Background Articles and Videos
Receivership Management Program
“…When an insured institution fails, the FDIC is ordinarily appointed as receiver. In that capacity, it assumes responsibility for efficiently recovering the maximum amount possible from the disposition of the receivership’s assets and the pursuit of the receivership’s claims. Funds collected from the sale of assets and the disposition of valid claims are distributed to the receivership’s creditors in accordance with the priorities set by law.
The FDIC seeks to terminate receiverships in an orderly and expeditious manner. Once the FDIC has completed the disposition of the receivership’s assets and has resolved all obligations, claims, and other legal impediments, the receivership is terminated, and a final distribution is made to its creditors. Receivership creditors may include secured creditors, unsecured creditors (including general trade creditors), subordinate debt holders, shareholders of the institution, uninsured depositors, and the DIF (as subrogee). The FDIC is often the largest creditor of the receivership.
William K. Black
“William Kurt Black is an American lawyer, academic, author, and a former bank regulator.[1]His expertise is on white-collar crime, public finance, regulation, and other topics in law and economics. He developed the concept of “control fraud”, in which a business or national executive uses the entity he or she controls as a “weapon” to commit fraud.
He is currently an Associate Professor of Economics and Law at the University of Missouri-Kansas City School of Law. He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He previously taught at the LBJ School of Public Affairs at the University of Texas, and at Santa Clara University. He was litigation director for the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and the General Counsel of the Federal Home Loan Bank of San Francisco.[2]
Transcript of April 3, 2009 Bill Moyers Journal
The Two Documents Everyone Should Read to Better Understand the Crisis
By William K. Black
“…As a white-collar criminologist and former financial regulator much of my research studies what causes financial markets to become profoundly dysfunctional. The FBI has been warning of an “epidemic” of mortgage fraud since September 2004. It also reports that lenders initiated 80% of these frauds.1 When the person that controls a seemingly legitimate business or government agency uses it as a “weapon” to defraud we categorize it as a “control fraud” (“The Organization as ‘Weapon’ in White Collar Crime.” Wheeler & Rothman 1982; The Best Way to Rob a Bank is to Own One. Black 2005). Financial control frauds’ “weapon of choice” is accounting. Control frauds cause greater financial losses than all other forms of property crime — combined. Control fraud epidemics can arise when financial deregulation and desupervision and perverse compensation systems create a “criminogenic environment” (Big Money Crime. Calavita, Pontell & Tillman 1997.)
The FBI correctly identified the epidemic of mortgage control fraud at such an early point that the financial crisis could have been averted had the Bush administration acted with even minimal competence. To understand the crisis we have to focus on how the mortgage fraud epidemic produced widespread accounting fraud. …”
“…The widespread claim that nonprime loan originators that sold their loans caused the crisis because they “had no skin in the game” ignores the fundamental causes. The ultra sophisticated buyers knew the originators had no skin in the game. Neoclassical economics and finance predicts that because they know that the nonprime originators have perverse incentives to sell them toxic loans they will take particular care in their due diligence to detect and block any such sales. They assuredly would never buy assets that the trade openly labeled as fraudulent, after receiving FBI warnings of a fraud epidemic, without the taking exceptional due diligence precautions. The rating agencies’ concerns for their reputations would make them even more cautious. Real markets, however, became perverse — “due diligence” and “private market discipline” became oxymoronic. These two documents are enough to begin to understand:
- the FBI accurately described mortgage fraud as “epidemic”
- nonprime lenders are overwhelmingly responsible for the epidemic
- the fraud was so endemic that it would have been easy to spot if anyone looked
- the lenders, the banks that created nonprime derivatives, the rating agencies, and the buyers all operated on a “don’t ask; don’t tell” policy
- willful blindness was essential to originate, sell, pool and resell the loans
- willful blindness was the pretext for not posting loss reserves
- both forms of blindness made high (fictional) profits certain when the bubble was expanding rapidly and massive (real) losses certain when it collapsed
- the worse the nonprime loan quality the higher the fees and interest rates, and the faster the growth in nonprime lending and pooling the greater the immediate fictional profits and (eventual) real losses
- the greater the destruction of wealth, the greater the (fictional) profits, bonuses, and stock appreciation
- many of the big banks are deeply insolvent due to severe credit losses
- those big banks and Treasury don’t know how insolvent they are because they didn’t even have the loan files
- a “stress test” can’t remedy the banks’ problem — they do not have the loan files …”
http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html
The Death of Democratic Capitalism?
Will a state-directed economy really produce strong growth?
By Larry Kudlow
“…The issue at hand is the possible conversion of the TARP money now held by banks in the form of non-voting preferred stock into common stock with full voting rights. White House and Treasury officials have spoken of this possibility in recent days, and it plainly raises the issue of government ownership and backdoor nationalization of the banks — or at least the major banks.
The AIG Outrage
The government shouldn’t run anything, because it cannot run anything.
By Larry Kudlow
“…In a column last week I suggested that not one more dime of government money is necessary for the banks. Instead, the marriage of the cash-flow valuation of bank assets and the upward-sloping Treasury yield curve will do the trick. Net interest margins are rising as banks purchase money for near-zero interest and loan it out at profitable rates. And the new mark-to-market reform will allow banks to hold their toxic assets for several more years and work them out — just as they did back in the 1990s.
We don’t need more TARP. We don’t need to take over more big banks. And we don’t need to have the government run things it simply isn’t capable of running.”
PETER SCHIFF The Crisis Just Begun
Rogers Says Geithner Caused Crisis Must Let Banks Fail Feb 11 2009
George Soros The System has Broken Down Part 1 of 2
http://www.youtube.com/watch?v=0CejcQxCoXQ&feature=channel_page
Will Credit Defaul Swaps Worsen Our Financial Problems? Pt1
Will Credit Defaul Swaps Worsen Our Financial Problems? Pt2
The Real Estate and Credit Meltdown: How Did We Get Here and Where Do We Go?
Recap – Geithner Testimony – Bloomberg
Pronk Palisades 
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