Repealing The Rule Of Law For White-Collar Criminals
A report from Salon by Paul Rosenberg. “With Donald Trump representing a frightening unknown future, more akin to foreign authoritarian leaders like Vladimir Putin, Recep Tayyip Ergodan of Turkey and Abdel Fattah el-Sis of Egypt than anything in American history, Barack Obama looks better all the time — a fact reflected in his approval ratings. But there’s a good argument to be made that a more forceful, more boldly progressive Obama could prevented this outcome. Not a radically different person, just one more comfortable with the sort of direct confrontation that was central to the teachings of Saul Alinsky, whom he was tarred with anyway.”
“One trope that’s emerged after Trump’s election, is that leftist attitudes are somehow responsible. A recent Politico article is typical of pieces with this argument that liberal smugness was to blame for Trump. This argument overlooks two things: first, the worldwide rise of authoritarianism over the past two decades, intensified both by the fight against al-Qaida and then ISIS and then by the worldwide Great Recession; and second, the failure to indict high-level officials of former president George W. Bush’s administration for actual crimes.”
“Not every Republican is a criminal, of course. But with crimes unpunished and democratic norms eroding, those students are expressing a moral censure that the nation’s institutions and political leadership ought to have provided on their own. This was primarily President Obama’s responsibility — one he ducked in the name of ‘looking forward, not backward,’ a progressive, no-nonsense way of framing letting war criminals go scot-free — and financial criminals as well, the ones who crashed the whole world economy. There were reasons offered for those decisions at the time, but by now the failure of that approach should be obvious.”
“Just from January 2007 to December 2011, there were more than 4 million completed foreclosures and more than 8.2 million foreclosure starts, of which only a small fraction received effective help from Obama’s Home Affordability Modification Program, which provided government payments to mortgage servicers and investors in exchange for lowering a mortgage’s interest rate and occasionally reducing the principal. This was a clearly ill-conceived plan that relied on the same people who had caused the problem in the first place.”
“The flip side to Obama’s foreclosure failure was his unwillingness or inability to hold any insiders criminally responsible for the greatest financial crime spree in American history. In March 2009 economist and former regulator William K. Black provided a road map for understanding the crimes involved.”
“‘The FBI has been warning of an ‘epidemic’ of mortgage fraud since September 2004,’ Black wrote. ‘It also reports that lenders initiated 80 [percent] of these frauds,’ which qualifies it as ‘control fraud,’ he explained. ‘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.’ Obviously, it did not. But Obama, unaccountably, refused to hold anyone criminally responsible.”
“In 2013, the Frontline documentary, ‘The Untouchables,’ looked back at what had happened. ‘Even during the bubble years, the Department of Justice had arrested and prosecuted many small mortgage brokers, loan appraisers and even home buyers,’ but no bankers had gone to jail. Only the little fish got caught.”
“‘We have known for decades that repealing the rule of law for elite white-collar criminals and relying on corporate fines always produces abject failure and massive corporate fraud,’ Black wrote in 2015. But that was precisely what Obama chose to do.”