Progenitorivox, or, The More I Know About Health In America....


...the funnier this video gets? Or is it actually, 'The Less I Know About...'?










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William Black to Evil Bankers and Their Useless Regulators: Wapishta


I just discovered Prof. William Black!

from firedoglake (by way of corporanon)




FDL Contributor Bill Black scorched everyone with his testimony on the failure of Lehman Brothers before the House Financial Services Committee today. His prepared remarks can be found here (PDF).

CHAIRMAN KANJORSKI: And now we’ll hear from Mr. William K. Black, Associate Professor of Economics and Law, the University of Missouri, Kansas City School of Law. Mr. Black.

BILL BLACK: Members of the Committee, thank you.

You asked earlier for a stern regulator, you have one now in front of you. And we need to be blunt. You haven’t heard much bluntness in hours of testimony.

We stopped a nonprime crisis before it became a crisis in 1991 by supervisory actions.

We did it so effectively that people forgot that it even existed, even though it caused several hundred million dollars of losses — but none to the taxpayer. We did it by preemptive litigation, and by supervision. We broke a raging epidemic of accounting control fraud without new legislation in the period of 1984 through 1986.

Legislation would’ve been helpful, we sought legislation, but we didn’t get it. And we were able to stop that because we didn’t simply consider business as usual.

Lehman’s failure is a story in large part of fraud. And it is fraud that begins at the absolute latest in 2001, and that is with their subprime and liars’ loan operations.

Lehman was the leading purveyor of liars’ loans in the world. For most of this decade, studies of liars’ loans show incidence of fraud of 90%. Lehmans sold this to the world, with reps and warranties that there were no such frauds. If you want to know why we have a global crisis, in large part it is before you. But it hasn’t been discussed today, amazingly.

Financial institution leaders are not engaged in risk when they engage in liars’ loans — liars’ loans will cause a failure. They lose money. The only way to make money is to deceive others by selling bad paper, and that will eventually lead to liability and failure as well.

When people cheat you cannot as a regulator continue business as usual. They go into a different category and you must act completely differently as a regulator. What we’ve gotten instead are sad excuses.

The SEC: we’re told they’re only 24 people in their comprehensive program. Who decided how many people there would be in their comprehensive program? Who decided the staffing? The SEC did. To say that we only had 24 people is not to create an excuse — it’s to give an admission of criminal negligence. Except it’s not criminal, because you’re a federal employee.

In the context of the FDIC, Secretary Geithner testified today that this pushed the financial system to the brink of collapse But Chairman Bernanke testified we sent two people to be on site at Lehman. We sentfifty credit people to the largest savings and loan in America. It had 30 billion in assets. We had a whole lot less staff than the Fed does.

We forced out the CEO. We replaced the CEO. We did that not through regulation but because of our leverage as creditors. Now I ask you, who had more leverage as creditors in 2008? The Fed, as compared to the Federal Home Loan Bank of San Francisco, 19 years earlier? Incomprehensible greater leverage in the Fed, and it simply was not used.

Let’s start with the repos. We have known since the Enron in 2001 that this is a common scam, in which every major bank that was approached by Enron agreed to help them deceive creditors and investors by doing these kind of transactions.

And so what happened? There was a proposal in 2004 to stop it. And the regulatory heads — there was an interagency effort — killed it. They came out with something pathetic in 2006, and stalled its implication until 2007, but it ’s meaningless.

We have known for decades that these are frauds. We have known for a decade how to stop them. All of the major regulatory agencies were complicit in that statement, in destroying it. We have a self-fulfilling policy of regulatory failure
because of the leadership in this era.

We have the Fed, the Federal Reserve Bank of New York, finding that this is three card monty. Well what would you do, as a regulator, if you knew that one of the largest enterprises in the world, when the nation is on the brink of economic collapse, is engaged in fraud, three card monty? Would you continue business as usual?

That’s what was done. Oh they met a lot — they say “we only had a nuclear stick.” Sounds like a pretty good stick to use, if you’re on the brink of collapse of the system. But that’s not what the Fed has to do. The Fed is a central bank. Central banks for centuries have gotten rid of the heads of financial institutions. The Bank of England does it with a luncheon. The board of directors are invited. They don’t say “no.” They are sat down.

The head of the Bank of England says “we have lost confidence in the head of your enterprise. We believe Mr. Jones would be an effective replacement. And by 4 o’clock that day, Mr. Jones is running the place. And he has a mandate to clean up all the problems.

Instead, every day that Lehman remained under its leadership, the exposure of the American people to loss grew by hundreds of millions of dollars on average. Auroroa was pumping out up to 30 billion dollars a month in liars’ loans. Losses on those are running roughly 50% to 85 cents on the dollar. It is critical not to do business as usual, to change.

We’ve also heard from Secretary Geithner and Chairman Bernanke — we couldn’t deal with these lenders because we had no authority over them. The Fed had unique authority since 1994 under HOEPA to regulate all mortgage lenders. It finally used it in 2008.

They could’ve stopped Aurora. They could’ve stopped the subprime unit of Lehman that was really a liar’s loan place as well as time went by.

(Kanjorski bangs the gavel)

Thank you very much.



Oh, yeah... RIGHT ON!

Here's a quote from the end of the following interview (pt. 4, to be exact):

This is the fundamental thing... doing the right thing is really good politics, so support candidates who actually do the right thing. ... My phrase always is, what would it it take... if the corruption... isn't enough to make you fundamentally reconsider, & say 'we are headed along a disastrous path,' what would it take? because [speaking of America's financial crisis] the next one is even worse...

WAPISHTA!





















I wonder if the artist is familiar with Professor Black?

Anyway -- be seeing you ------- no wait. one more thing:


Wapishta is onomatopoetic for the sound accompanying a faster-than-the-eye-can-follow black-belt smackdown. The word, also spelled 'wapisht' or 'wapish,' had its origins, in my life, in my attempts to make this sound (if only I could stop either getting wapishtad by my loved ones or laughing so hard tears were treaming down my aching cheeks) after watching the "Attack of the Killer Kung Fu Wolf Bitch" episode of the Boondocks, which I highly recommend....

...in fact, here it is:


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Support the Goldstone Report! (UN Petition)


The primary author of the recently released UN Report on Gaza, the internationally respected jurist Richard Goldstone, has been attacked by establishment voices within the Jewish community. When those within a community try to “excommunicate” and dishonor a truth-teller, it is our obligation and responsibility to speak out vehemently on their behalf and on behalf of the truth they bring.


By all accounts, Judge Goldstone, who has a deep connection to Israel, approached his task with no pre-conceptions about what he and his team would find as they investigated the circumstances and aftermath of the Israeli attack on Gaza. Goldstone is a former South African constitutional law court judge who also served as a prosecutor of the Yugoslav and Rwandan war crimes tribunals. His credentials for this task are impeccable.


For following where the truth led him and releasing a report detailing human rights abuses and violations of international law by Israel, as well as Hamas, Judge Goldstone should be applauded for his honesty and integrity. Instead, he and the report have been viciously and relentlessly attacked by many within the Jewish community.


When it comes to Israel, hard-core censorship and intimidation by those claiming to speak in the name of the Jewish people have been the order of the day. Our saying, "Three Jews–four opinions," reflects the traditional Jewish encouragement to argue and debate. But the reality, sadly, is that diverse opinions are welcome–except when it comes to Israel.


We must hold the Israeli government and the Jewish establishment accountable for attempting to vilify a truth-teller and for suppressing the truth about Israeli government crimes against the Palestinian people. We call upon each and every one of us to speak out at every opportunity–at our community centers and synagogues, in our homes, in the street, wherever we go.


We must demand that the truth be heard and that those claiming to speak in our name stop manipulating truths that have been well-documented for years, long before the Goldstone report. We are also appalled by the Obama Administration’s reaction to the report. We call for a fair and impartial investigation of the report’s allegations by non-military institutions in Israel. Failing that, we call for an investigation by the International Criminal Court (ICC).


Let us begin the New Year in the pursuit of justice.


Sincerely,


The Undersigned


View Current Signatures Sign the Petition


And that's not all:


Support for the Goldstone Report comes from a group of Rabbi’s.


"Dear Judge Goldstone,


As rabbis from diverse traditions and locations, we want to extend our warmest mazel tov to you as an elder in our community upon the bar mitzvah of your grandson. Bar and Bat Mitzvah is a call to conscience, a call to be responsible for the welfare of others, a call to fulfill the covenant of peace and justice articulated in our tradition.


As rabbis, we note the religious implications of the report you authored. We are reminded of Shimon Ben Gamliel’s quote, "The world stands on three things: justice, truth, and peace as it says ‘Execute the judgment of truth, and justice and peace will be established in your gates’ (Zekharya 8:16)." We affirm the truth of the report that bears your name.


We are deeply saddened by the controversy that has grown up around the issuing of the report. We affirm your findings and believe you set up an impeccable standard that provides strong evidence that Israel engaged in war crimes during the assault on Gaza that reveal a pattern of continuous and systematic assault against Palestinian people and land that has very little to do with Israel’s claim of security. Your report made clear the intentional targeting of civilian infrastructures such as hospitals, schools, agricultural properties, water and sewage treatment centers and civilians themselves with deadly weapons that are illegal when used in civilian

centers."



View Current Signatures Sign the Petition



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