Obama "Wall Street" Prosecutions

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**djones520**

I saw one of those internet memes floating around advertising how Bush and Clinton had convicted 1k+ wall street fatcats each during their terms. In comparison, despite all of Obama's rhetoric against Wall Street, his administration has files absolutely zero charges over the last 3.5 years. Normally you can't trust things like these at all, so I decided to look some numbers up.

I found this, hardly an impartial source of information, but where it draws the data from is.

http://www.theburningplatform.com/?p=41103

I did find a story of the New York Times blasting the Bush Administration for a "significant' drop in prosecutions towards the end of his term, but no articles mentioning Obama's efforts.

Huffington Post did do a story mirroring the above link though, stating that as of 2011 there has been very little action at all on the Obama admins part to bring those repsonisble for the 07-08' meltdown to justice.

http://www.huffingtonpost.com/2011/02/04/financial-crisis-prosecutions-wall-street-slow_n_818851.html

Take of it what you will, but to me it's just more hypocrisy on Obama's part. Accuse Romney of being in the wallet of Wall Street, while his Justice Department is full of former Wall Street lawyers who haven't done their jobs, then or now.

**Kilkrazy**

I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

**djones520**

Kilkrazy wrote:
I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

Fixing Libor?

**Ahtman**

Just going to steal this from wikipedia:

The Libor scandal is a series of fraudulent actions connected to the Libor (London Interbank Offered Rate) which the resulting investigation and reaction. The Libor is an average interest rate calculated through submissions of interest rates by major banks in London. The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives. It is controlled by the British Bankers' Association (BBA).

The banks are supposed to submit the actual interest rates they are paying, or would expect to pay, for borrowing from other banks. The Libor is supposed to be an overall assessment of the health of the financial system because if the banks being polled feel confident about the state of things, they report a low number and if the member banks feel a low degree of confidence in the financial system, they report a higher interest rate number.

Because Libor is used in U.S. derivatives markets, an attempt to manipulate Libor is an attempt to manipulate U.S. derivatives markets, and thus a violation of American law. Since mortgages, student loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide.

On July 27th, 2012, the Financial Times published an article by a former trader which said that Libor manipulation has been common since at least 1991. Further reports on this have since come from the BBC and Reuters.

**azazel the cat**

Kilkrazy wrote:I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

You answered your own question. The massive stretches of deregulation -to nobody's surprise- removed most of the regulations that would have otherwise been broken. As a result, there is nothing to prosecute people for.

**djones520**

Ahtman wrote:
Just going to steal this from wikipedia:

The Libor scandal is a series of fraudulent actions connected to the Libor (London Interbank Offered Rate) which the resulting investigation and reaction. The Libor is an average interest rate calculated through submissions of interest rates by major banks in London. The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives. It is controlled by the British Bankers' Association (BBA).

The banks are supposed to submit the actual interest rates they are paying, or would expect to pay, for borrowing from other banks. The Libor is supposed to be an overall assessment of the health of the financial system because if the banks being polled feel confident about the state of things, they report a low number and if the member banks feel a low degree of confidence in the financial system, they report a higher interest rate number.

Because Libor is used in U.S. derivatives markets, an attempt to manipulate Libor is an attempt to manipulate U.S. derivatives markets, and thus a violation of American law. Since mortgages, student loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide.

On July 27th, 2012, the Financial Times published an article by a former trader which said that Libor manipulation has been common since at least 1991. Further reports on this have since come from the BBC and Reuters.

Thanks.

**Howard A Treesong**

If they really went for the Libor thing, in the UK, it would be very messy and quite a few politicians and those working in government would be hit by the splatter. Since various claims that certain people in all parties turned a blind eye to manipulation or let it pass with a nod and a wink, the enthusiasm to prosecute seems to have dried up on both sides of the house.

**djones520**

azazel the cat wrote:
Kilkrazy wrote:I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

You answered your own question. The massive stretches of deregulation -to nobody's surprise- removed most of the regulations that would have otherwise been broken. As a result, there is nothing to prosecute people for.

On the topic of regulation, this has always rankeled my feathers.

http://online.wsj.com/article/SB123137220550562585.html

Written by Karl Rove, sure, but the facts are there.

**Kilkrazy**

azazel the cat wrote:
Kilkrazy wrote:I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

You answered your own question. The massive stretches of deregulation -to nobody's surprise- removed most of the regulations that would have otherwise been broken. As a result, there is nothing to prosecute people for.

What I mean is that there isn't a specific offence of fixing Libor, but there is a general offence of fraud, meaning giving false information to get goods and services (especially financial) dishonestly, and I fail to see how fixing Libor is not a fraud.

But as said, the gak would splatter so widely that they probably do not dare to prosecute anyone.

**Frazzled**

Kilkrazy wrote:
I think a lot of people would like to see bankers prosecuted on both sides of the Atlantic.

It is beyond me how fixing Libor is not financial fraud, even if there isn't a specific offence of fixing Libor.

And lots of other things, too.

I agree. All bankers besides me and a select few others should be prosecuted. Shortly thereafter, wait for news that JPM moves its headquarters to Austin and adopts a new motto:
"JPM Chase. Open an account and get a free wiener dog."