Whistle Blowing Past the Graveyard

[don]

From the February 2, 2012 Wall Street Journal story on Lan Pham's firing:

"I was repeatedly pressured by the CBO Assistant Director, Deborah Lucas, in charge of the Financial Analysis Division to not write nor discuss issues in the banking sector and mortgage markets that might suggest weakness in these sectors and their consequences on the economy and households."

The CBO's 2010 termination letter to Ms. Pham cites her lack of qualifications, "poorly organized" research, and resistance to taking orders from her superiors as the reasons for her firing.

Lan Pham's March interview with ZeroHedge.

It is a little known fact, but probably no surprise to most, that in addition to not prosecuting any key participants in the financial fraud and crisis, the Obama Administration has instead been particularly tough on whistleblowers who expose government corruption.

http://jessescrossroadscafe.blogspot...views-cbo.html

[lektrode]

Re: Whistle Blowing Past the Graveyard

It is a little known fact, but probably no surprise to most, that in addition to not prosecuting any key participants in the financial fraud and crisis, the Obama Administration has instead been particularly tough on whistleblowers who expose government corruption.

http://jessescrossroadscafe.blogspot...views-cbo.html

60 Minutes Exposes Specific Instances of Actionable High-Level Fraud at Citibank and Countrywide - It is being Actively Ignored


http://www.capitalismwithoutfailure....financial.html

These are not-to-be-missed videos, produced by CBS. Two high-level executive whistle-blowers are interviewed. Both encountered systemic fraud, reported it, and were relieved of their duties. Both are willing to act as witnesses. Our government is refusing to pursue actionable crimes perpetrated by people who brought this country to its knees. This redefines lack of accountability.

Senior Fraud Investigator for the Financial Crisis Inquiry Commission, Tom Borgers, Found and Reported on Pervasive Fraud. It is being ignored.

On the results of Borgers' investigation: Borgers found pervasive fraud, committed across the board - by mortgage originators, underwriters, the banks, etc...

On why over 800 bank officials went to jail following the S&L crisis, yet not one has gone to jail following our more recent crisis: Investigators had considerably more "support" following the S&L crisis.

In the excellent 60 Minutes episode below, whistle-blower Eileen Foster, former Countrywide Executive VP in charge of Fraud Investigations, states that she was astounded by the systemic fraud she discovered. Fraud defined entire regions of the company. She was fired shortly before a scheduled meeting with federal regulators - and after she refused to spin her story. Countrywide subsequently offered to compensate Ms. Foster, in return for silence. She refused.

It goes on to discuss Angelo Mozilow's slap-on-the-wrist $22m fine. From 2001 to 2006 his compensation from Countrywide was $47o million.

In the segment below, Richard Bowen, former Senior Vice President and Chief Underwriter in the Consumer Lending division of Citigroup speaks to 60 Minutes. Mr. Bowen was responsible for evaluating the quality of thousands of mortgages that Citigroup was buying from Countrywide and others. In 2006, he discovered that 60% of the mortgages he evaluated were defective. His warnings, beginning in June of 2006, went to the highest levels of the Consumer Lending group. Incidence of defective mortgages proceeded to increase to in-excess of 80% through 2007. In November of 2007, Bowen sent an urgent warning letter to to the Chief Financial Officer, the Chief Risk Officer, the Chief Auditor - and to Robert Rubin, the Chairman of Citigroup's Executive Committee, and a former US Treasury Secretary. He told them that internal controls had broken down, and that the company was facing extreme risk. Chuck Prince, CEO, subsequently signed a Sarbanes Oxley certification, effectively contradicting the information in Bowen's warnings. Bowen was subsequently relieved of most of his duties and was instructed not to return to the office.

Bowen exposes flat-out fraud.


http://www.capitalismwithoutfailure....cracy-now.html

Thursday, October 20, 2011

Bill Black: Fire Geithner, Fire Holder, Ask Bernanke to Resign, and Prosecute CEO's and CFO's

it just goes on and on and ON and
what do We The People get ????:

http://www.cbsnews.com/8301-18560_16...ll-transcript/

"...from 40000feet nothing looks ILLEGAL...." ????

and his/their apologists in the lamestream media JUST IGNORE ALL THIS????

and could you just imagine, what would be happnin if it was a bunch of GD republican oil co execs who had done all this????

THE HEADLINES WOULD BE 6inchs TALL IN EVERY NEWSPAPER,
ON EVERY NEWS BROADCAST EVERY GD DAY SINCE!

just HILARIOUS, isnt it?

WTF, over....

[Milton Kuo]

Re: Whistle Blowing Past the Graveyard

http://www.cbsnews.com/8301-18560_16...ll-transcript/

"...from 40000feet nothing looks ILLEGAL...." ????

and his/their apologists in the lamestream media JUST IGNORE ALL THIS????

and could you just imagine, what would be happnin if it was a bunch of GD republican oil co execs who had done all this????

THE HEADLINES WOULD BE 6inchs TALL IN EVERY NEWSPAPER,
ON EVERY NEWS BROADCAST EVERY GD DAY SINCE!

just HILARIOUS, isnt it?

WTF, over....

The frauds committed to inflate the housing bubble were so rampant that even I here in Houston, Texas, where high property taxes and very few restrictions on housing construction do a good job of tamping down housing price gains, recognized that there was a bubble. This was back in late 2003 or early 2004. It was obvious to me even though I do not work in real estate, follow real estate, or work in the FIRE economy.

The housing bubble, from boom to bust, occurred entirely within George W. Bush's presidency. If the media really has it out only for Republicans, why is it that no mainstream media channel tried to hoist Bush on the housing bubble petard during the run-up to the cataclysmic crash in 2008? I cannot recall reading more than one or two articles total in the mainstream press from 2001 - 2008 warning people of a housing bubble.

lektrode, you keep beating up on the Democrats and the media for a perceived left-leaning bias. As I and others have stated elsewhere, both the Republicans and the Democrats are guilty, likely equally, of putting the U.S. in a terrible position, both economically and politically, and now both parties are guilty of making the situation even more dire through compromised policy action. Washington D.C., by and large, is owned by the FIRE economy and it doesn't matter whether the politician wears an elephant suit or a donkey suit; no matter who is writing the laws or calling the shots among the current roster of politicians, only one thing is certain: those in the productive economy will be sacrificed to benefit those in the FIRE economy.

As for the media, various articles written by EJ here over the years have shown that they have abdicated their role as the fourth estate and are nothing but an arm of the department of propaganda. They will print the stories that pay them the most money.

You would find a much more receptive audience for some of your fine insights if you stopped framing this as an issue of right-versus-left and more properly framed it as an issue of honest-versus-dishonest. What we have right now is a system where the crooks are in charge. God help us all.

[lektrode]

Re: Whistle Blowing Past the Graveyard

mr K - howzit - thanks for the comeback, a pleasure as always (sorry so long in getting back, i get yelled at if i blog too long on the weekends ;)

The frauds committed to inflate the housing bubble were so rampant that even I here in Houston, Texas, where high property taxes and very few restrictions on housing construction do a good job of tamping down housing price gains, recognized that there was a bubble. This was back in late 2003 or early 2004. It was obvious to me even though I do not work in real estate, follow real estate, or work in the FIRE economy.

roger that - with all due respect mr K and apologies to the 'GD republican oil co execs' - i had meant to somehow notate my sarcasm/facetiousness on that particular phrase - as IMHO the banksters have made the oil industry look like The Good Guys, at least lately - and if the banksters are compared to the envirofacists, they make the oilco's look positively angelic (with further apologies to the angel lobby)

The housing bubble, from boom to bust, occurred entirely within George W. Bush's presidency. If the media really has it out only for Republicans, why is it that no mainstream media channel tried to hoist Bush on the housing bubble petard during the run-up to the cataclysmic crash in 2008? I cannot recall reading more than one or two articles total in the mainstream press from 2001 - 2008 warning people of a housing bubble.

altho i'm with you on this and cant say for sure why the lamestream media didnt have much to say, (mostly since eye wasnt paying all that close attention on the topic in them daze) it wasnt for lack of effort on the part of the prev admin:

reposted and commented on at: http://nicedeb.wordpress.com/2008/09...in-2008-alone/

The White House Warned Congress About Fannie Mae Freddie Mac 17 Times In 2008, Alone

September, 21, 2008 — nicedeb The White House attempts to set the record straight:
(I’m copying this post from the White House webpage in it’s entirety because I want people to read the whole thing).

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.

2001 (while The US was already suffering from the dot-bomb blowout, along with 9/11, both of which ole geedubya inherited)

April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”

2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (“Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03).
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03).

2004
February: The President’s FY05 Budget againhighlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to “not take [the financial market's] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04).
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04).

2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05).

2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07).
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.” (President George W. Bush, Discusses Housing, The White House, 12/6/07).

2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08).
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08).
April: President Bush urges Congress to pass the much needed legislation and “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.” (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08).
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

• “Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.” (President George W. Bush, Radio Address, 5/3/08).
• “[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.” (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08).
• “Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans.” (President George W. Bush, Radio Address, 5/31/08).

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying “we need to pass legislation to reform Fannie Mae and Freddie Mac.” (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08).
July: Congress heeds the President’s call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

Can Bill O’Reilly get off of Bush’s case now, please, and put the blame squarely where it belongs, on the Dems in congress, (with the help of a few RINOs) who blocked every effort from the Bush administration, at reform?

Maybe Mark Levin can help with that.


MORE from The Astute Bloggers:

A CENTRAL FIGURE IN OUR CURRENT FINANCIAL FIASCO IS OBAMA’S FINANCE CHAIRPERSON – AND THE LEFT-WING KNOWS THIS.

and tho i'm certainly NOT trying to apologize for ole geedubya here (and most of the rest of the repubs), my read of everything so far (here on the 'tulip and elsewhere) suggests that the primary problem is THE POLITICAL BS inside the beltway (vs the "not illegal from 40000feet" BS that goes on in lower manhattan) - and yeah, ok - so i'm a bit biased to the right and will state for the record that it was my experience in growing up in New England and having the benefit of seeing firsthand how vastly different things function north and south of the MA/NH border - that and its not like theres any shortage of observations and opinions that concur with my own:

Is Bush to blame for the housing bubble? October 13, 2009

How The Community Reinvestment Act Led To The Housing Bubble's Lax Lending


and here's a beauty of a SMOKING GUN, if there ever was one:

Housing Bubble, Financial Crisis – What Happened, Who is Responsible

“I think that the responsibility that the Democrats had may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September 25, 2008
“Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong.” – Congressman Artur Davis (D-AL), September 30, 2008

lots more interesting observations/insight on the rest of this one doc:
http://tjhancock.wordpress.com/housi...ve-assessment/

...you keep beating up on the Democrats and the media for a perceived left-leaning bias. As I and others have stated elsewhere, both the Republicans and the Democrats are guilty, likely equally, of putting the U.S. in a terrible position, both economically and politically, and now both parties are guilty of making the situation even more dire through compromised policy action. Washington D.C., by and large, is owned by the FIRE economy and it doesn't matter whether the politician wears an elephant suit or a donkey suit; no matter who is writing the laws or calling the shots among the current roster of politicians, only one thing is certain: those in the productive economy will be sacrificed to benefit those in the FIRE economy.

you'll get NO argument from me on any of this, mr K.
and in my own defense, i'll offer that my viewpoints are merely a product of my environment (both present and past) and having seen personally how different political MO's can have such vastly diff outcomes (merely comparing MA & NH does it for me and i could go on - and on and on and ON - with even more tween my present loc and former 'homeland' but would rather not, for obvious reasons - and THEN there's california ;)

but when it gets right down to it, i DONT consider myself 'partisan' - more, as i've mentioned, of a 'small-r' type that happens to come from a place where SMALL GOVERNMENT ACTUALLY WORKS, and has worked just fine for over 300years now, and still with NO SALES TAX and NO INCOME TAX and a citizen legislature that gets'r done in a single 30day session, for a 100bux/year pay

As for the media, various articles written by EJ here over the years have shown that they have abdicated their role as the fourth estate and are nothing but an arm of the department of propaganda. They will print the stories that pay them the most money.

You would find a much more receptive audience for some of your fine insights if you stopped framing this as an issue of right-versus-left and more properly framed it as an issue of honest-versus-dishonest. What we have right now is a system where the crooks are in charge. God help us all.

again, am in complete agreement with you here as well and thanks for the compliment (i hope) - and will apologize for getting a bit too carried away with my rants, as i mean no disrespect or insult to anyone here on the 'tulip - i'm just a joe sixpack kinda-guy who's trying to make some sense out of the clusterf__k known as Our Government and The Clowns That Run It (and the more i learn from the rest of you and elsewhere, the more 'carried away' i tend to get - again, sorry for generating so much heat and so little light ;)