Senator Elizabeth Warren (D-MA) : Why Haven't The Wall Street Banks Been Prosecuted?

From CSpan: February 14, 2013. Senate Banking Committee Hearing. The Senate Banking Committee hears an update from regulators on the implementation of the Dodd-Frank Act.

Committee Chairman Tim Johnson (D-SD) conducts a hearing titled "Wall Street Reform: Oversight of Financial Stability and Consumer and Investor Protections." The hearing focuses on the financial stability and protections for consumers and investors.

As Reuters reports, "Financial regulatory agencies have been writing a heap of new rules called for by the Dodd-Frank law, which Congress passed in response to the 2007-2009 U.S. financial crisis."

Today's hearing provides seven officials the opportunity to detail the challenges they have encountered while working with Wall Street to implement the law.

Among the witnesses testifying at Thursday's hearing are: Mary Miller, undersecretary of the Treasury for domestic finance; Federal Reserve Gov. Dan Tarullo; FDIC Chair Martin Gruenberg; SEC Chair Elisse Walter; CFTC Chair Gary Gensler; and Richard Cordray, director of the Consumer Financial Bureau.

Senate Banking Committee Member, Sen. Elizabeth Warren Questions Panelists.

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  News & Politics

[hankster0052]

Finaly a fucking adult watching the kids in the sand box

[FlowerClown]

Thank You, no need to be sorry for going over when your the only one standing up for ther

American people.

[lithp]

She has definitely followed it up. She sent letters to the heads of three federal agencies (Eric Holder, Ben Bernanke, and Mary Jo White) asking if they have done a cost-benefit analysis since they didn't prosecute the big banks to show that since they didn't prosecute them...to see if what they did instead was in fact in the best interest of the US. She also asked to see the results of the analyses. They all told her they didn't do an analysis, she's on to the next step now. YOU'RE the talker

[justmaking ayoutubacct]

She talks a big game, but doesn't do anything. why don't you give the illegally foreclosed homes back to the families ? ohh yeah you cant and wont. Just keep claiming to fight for the people and at the same time undermine our rights, thanks Ms.Warren.

[typeviic1]

SOMEONE IN GOVERNMENT STANDING UP FOR "WE THE PEOPLE".

[rebelZowsla]

how many individuals have student loan debt? i know it tops a trillion in actual debt

[MrDoubtfulguest]

The SEC had and has plenty of resources but it seems they were busy watching porno instead of Madoff, but my point was about the made in Washington plan--not made on Wall Street--to get anyone with a pulse into a home. It was a do-gooder scheme long in the making, and it failed and failed BIG. Wall Street was involved of course, but they did not initiate these schemes, nor did they create the moral hazard that occurs when easy money is pumped into the economy.

[Marie Marr]

You can't just blame the Government here. Truth is, both the Government and the private sector banks are to blame. You can add The Fed, and the whole system of banking regulators. And where the government erred is in not providing proper oversight of our financial system. Bernie Madoff got away with his Ponzi Scheme for 30 years not because of too much oversight and regulation, but because of not enough (or because of poor enforcement of the regulations that were in place during that time).

[MrDoubtfulguest]

3) The whole scheme started in Washington with the best of intentions; I don't think Clinton and Bush were out to destroy the country. And the Wall Street guys tried to spread the risk, something they did all too effectively. The moral hazard was created by government though, first with the idea that one could get something (ownership) for nothing, and 2) The government will bail you out of any stupid plays. P.S. I saw it all coming, and sold my home in 2005 for 3&1/2X what I bought it for.

[MrDoubtfulguest]

2) Sensible bankers that tried to avoid risky sub-prime loans were chastised (or worse) when their mortgage divisions weren't competitive. Smart guys at Lehman and other firms that pointed out the risks were shown the door. But institutions like Fannie Mae, Freddie Mac, HUD, people like Barney Frank, and yes, the Fed, pushed a something for nothing scheme and we all got fucked. (There are no briefcases to fill when the rapidly evaporating value was a mirage in the first place.)

[MrDoubtfulguest]

On a similar post I pointed out the significant role of the Fed (which is government; the "private" regional banks are a fiction.) in this mess; so forgive my oversight here. Before Greenspan slashed rates, Clinton deployed HUD mandates passed in the early 90s to the cause of home ownership, "Won't cost taxpayers a dime", he claimed. Bush picked up this theme with his "ownership society" speech, but to his credit, he tried to rein in Fannie Mae. Barney Frank stopped him cold, unfortunately.

[anonmortal]

Wrong. It was a factor but a small one.

Alan Greenspan created the bubble - no one disputes this anymore. Wall Street found a way to put subprime debt into the oven and have AAA-rated securities come out.

They happily loaned to anyone with a pulse because they then off-loaded the crap mortgages to pension funds - to the rest of us.

Wall Street piled the dynamite, lit the fuse, then picked up the briefcase full of cash and left the building to blow up.