Obama Pushes Hard to Protect Big Banks from Fraud Prosecutions
As we’ve noted for years, the entire strategy of Washington towards the economy is to cover up the fraud which caused the financial crisis … even though prosecuting fraud and re-establishing the rule of law is the only way to get out of this depression.
One major front in Washington’s cover-up effort has been to settle fraud cases with the big banks for pennies on the dollar. This is a backdoor bailout for the banks, encourages them to commit more fraud, and fails to plug the basic holes in the economy which are preventing a recovery.
Why are we bringing this up now?
Because Obama is making a giant push to pressure the states attorneys general to settle all of their mortgage-related fraud claims against the banks for pennies on the dollar.
Yves Smith – who has an ear to the ground on this – warns that a settlement which hurts consumers and the economy will happen very quickly if people don’t raise a ruckus.
