TISA: Obama’s Latest Betrayal of America and Americans in Favor of the Big Banks (William K. Black)

[Octafish]

113. ''Control Fraud.''

The banksters's "weapon of choice" is accounting. William K. Black explains:

The Two Documents Everyone Should Read to Better Understand the Crisis

by William K. Black
Assoc. Professor, Univ. of Missouri, Kansas City;
Sr. regulator during S&L debacle
February 25, 2009 10:31 AM

As a white-collar criminologist and former financial regulator much of my research studies what causes financial markets to become profoundly dysfunctional. The FBI has been warning of an "epidemic" of mortgage fraud since September 2004. It also reports that lenders initiated 80% of these frauds.1 When the person that controls a seemingly legitimate business or government agency uses it as a "weapon" to defraud we categorize it as a "control fraud" ("The Organization as 'Weapon' in White Collar Crime." Wheeler & Rothman 1982; The Best Way to Rob a Bank is to Own One. Black 2005). Financial control frauds' "weapon of choice" is accounting. Control frauds cause greater financial losses than all other forms of property crime -- combined. Control fraud epidemics can arise when financial deregulation and desupervision and perverse compensation systems create a "criminogenic environment" (Big Money Crime. Calavita, Pontell & Tillman 1997.)

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. To understand the crisis we have to focus on how the mortgage fraud epidemic produced widespread accounting fraud.

CONTINUED...

http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html

Accounting leaves a paper trail. So. When are the crooks going to jail? Holder? Holder?

It's not a rhetorical question.