The DOJ and the SEC Spurn their Ace in the Hole: Richard Bowen

http://neweconomicperspectives.org/2015/03/the-doj-and-the-sec-spurn-their-ace-in-the-hole-richard-bowen.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+neweconomicperspectives%2FyMfv+%28New+Economic+Perspectives%29

The single most distressing fact about the Obama administration’s refusal to restore an effective criminal referral process at the banking regulatory agencies is that doing so would be the first thing any competent law enforcement professional would do. 

Under Bush (II) and Obama, however, DOJ has refused to prosecute any senior bank officer who helped lead the three most destructive financial fraud epidemics in history.  Most Americans assume that only the elite bankers that led the three fraud epidemics have received this de facto immunity from criminal prosecution, but that immunity has extended to senior bankers at even bankrupt and notoriously fraudulent mortgage banks and junior officers at the large banks. 

 The Obama administration cannot claim that it is vigorously pursuing the frauds when it refuses to do the simplest, fundamental things that we know how to do and know are essential to successful prosecutions.  The Obama administration does not need to reinvent the wheel.  We know exactly how to create a superb criminal referral system at the banking regulatory agencies.  Any administration that wished to enforce the law against elite bank frauds would have made this there first action.

When a president refuses to take actions that are substantively desirable and politically brilliant he is either terminally inept or in the pocket of the elites that the whistleblowers are unmasking as venal frauds.