ROT OF WALL STREET = SO DEEP IT MUST BE REBUILT FROM GROUND UP WITH NEW STANDARDS

“How Deep is the Rot on Wall Street?” by Bill Black interviewed by Sharmini Peries of The Real News Network Nov 14, 2014

Click for Video and Text of Interview of William Black by Sharmini Peries on The Real News Network

Define “control frauds” = CEO or head of state uses the entity it controls as a “weapon” = Causes GREATER financial losses than all other property crimes combined.

Bill Black Reports = “Zero Prosecutions Aren’t Few Enough–Wall Street Wants SEC Sanctions Reduced to DMV Points” says Joseph Fichera, head of a Wall Street advisory firm, ranked with Top 10% of Wall Street CEOs.

Joseph Fichera = USA is treating Wall Street too harshly = ZERO Convictions of any senior officers who led the fraud epidemics that caused the crisis.

Joseph Fichera = Not sufficiently weak = SEC should not have POWER to remove an investment bank’s license to sell securities

Joseph Fichera = Sees $TRILLIONS in a spat of FRAUD as a MINOR CRIME like a seat best violtion getting a FEW POINTS toward losing your BANKSTER LICENSE.

Joseph Fichera = Massive fraud = Follows a schedule of points like DMV = Appraisal fraud for thousands of victims = 4 Points

Joseph Fichera = If over 6 Years you get say 16 points, then and only then could your license be removed.

Joseph Fichera = Idea that fraud is a minor FRAUD even though it MIGHT ROB $BILLIONS from Americans = NO moral element to defrauding others but only if you’re in finance.

Joseph Fichera = After enough NUMBER OF BATCHES of felonies can you lose your BANKSTER LICENSE

Joseph Fichera = Explicitly says the SEC should have NO POWER to remove your license for committing one series of felonies of 10,000 to 1 million people defrauded.

Joseph Fichera = Only if your caught again and again over 6 years will you lose your SEC License to COMMIT FRAUD = After 6 years you can commit your new frauds with impunity until you build up 16 points.

Joseph Fichera = BELIEVES in this too-big-to-jail and too-big-to-sanction BS for SEC

Joseph Fichera = He says Justice = Bad Regulation that causes CRIMINALS TO FAIL = Leave the FRAUDSTERS in power NEVER prosecuted.

Joseph Fichera = Is absolutely dead-on serious that FRAUD IS TO BE EXPECTED AND ACCEPTED = NO ZERO TOLERANCE

Joseph Fichera = Morally Blind = SYMPTOM OF THE DEEP ROT ON WALL STREET.

FACT: The best way to keep WALL STREET from falling is to insist on Justice + Accountability = Bad ethics drives good ethics out of the marketplace

Joseph Fichera = LOVES THE Immensely Wealthy and Politically Powerful FRAUD DELIVERS TO BANKSTERS AND OTHER FINANCIAL CRIMINALS.

Joseph Fichera = Admits the repeal of Glass-Steagall separating commercial investment banking = Was a DISASTER BY CLINTON AND GOP = The rule for hundreds of years

GLASS-STEAGALL PREVENTED = BANKSTERS FROM LEVERAGING CONSUMMER DEPOSITS TO MULTIPLY THE POWER OF THEIR GAMBLING BETS. = ENDED AT SAME TIME DERVATIVES WERE LEGALIZED AND EXPANDED TO MULTIPLY BETS BY 100s of TIMES = MAJOR CAUSE OF CRASH.

OLD RELIABLE INVESTMENT BANKING SYSTEM = Investment banks were owned as partnerships with a general partner responsible for all the debts of the company, whether he caused them and not. As a partner in these investment banks you had an overwhelming incentive to police your fellow partners and making sure that they didn’t take advantage of people = Enormous incentive to have partners with the highest level of integrity = Because screw ups could lose your entire wealth. = NOW GONE AS MIDDLE CLASS AMERICANS ARE LIABLE FOR THEIR SCREW YUP FRAUDS!

SEC & DOJ = Has not held people accountable = NO BIG BANK CEOS OR HIGH RANKING FRAUDSTERS ARE IN PRISON AFTER 6 YEARS OF KNOWN FRAUDS = COMPLETE FAILURES TO ENFORCE LAWS.

FACT: Self-regulation under this NEW UNACCOUNTABLE LEVERAGED DERIVATIVES SYSTEM = WORTHLESS = DEMERIT POINTS ALSO WORTHLESS AND LEGITIMIZES FRAUD.

BLACK’S Solution = GLASS-STEAGALL SEPARATION OF COMMERCIAL BANKS FROM INVESTMENT BANKS

BLACK’S Solution = Reinstate real partnerships with a GENERAL PARTNER with incentives to HIRE ETHICAL PEOPLE OR DIE from your losses due to FRAUD. = Create the right incentive structures in the first place

BLACK’S Solution = Good financial regulation to enforce the principles of justice = Hold the most powerful people on Wall Street responsible for their crimes

BLACK’S Solution = Fix modern executive and professional compensation = Incentive to extreme FRAUD CRIMES = REWARDS FRAUD MASSIVELY.

BLACK’S Solution = End the international race to the bottom of financial regulation = WON SO FAR BY UK = Big banksters try to put nations in competition with each other for who is willing to offer the weakest regulation.