senate-banking-committee

Liberals rejoice, financial sector weeps: With her election to the Senate, Warren became one of the most powerful people in the country; now, she’s headed to one of the most powerful committees in the Senate. Financial regulation is Warren’s specialty; she helped oversee the distribution of TARP funds in 2009 and essentially created the Consumer Financial Protection Bureau. We can’t imagine the bank lobby wanted her on this committee, but then again, there’s probably not much they could have done to prevent it. (Photo: AP) source

Elizabeth Warren To Take On The Fed After 46 Hours Of Secret Recordings Prove Corruption

Elizabeth Warren To Take On The Fed After 46 Hours Of Secret Recordings Prove Corruption

External image

Image via flickr.com/mdfriendofhillary

Forty-six hours of secretly recordedconversations and meetings within the Federal Reserve were released Friday. These recordings blatantly demonstrate that big banks are still in charge. Federal Reserve Bank Examiners continue to play the role of passive little lap dogs seeking approval from their masters. They fear offending Daddy Warbucks and his army of…

View On WordPress

When Senator-elect Elizabeth Warren gave her victory speech on election night at a party where loudspeakers blared “Ain’t No Stoppin’ Us Now,” she pledged to “hold the big guys accountable.” Now, some bankers, their lobbyists and their Republican allies on the Senate banking committee reportedly would like nothing better than to keep Ms. Warren off the powerful bank panel — where she could do the most harm to the status quo, and the most good for the country.
emptywheel.net
Democratic and Republican Agreement: Prosecute HSBC | emptywheel

Apparently, Matt Taibbi and Glenn Greenwald and Matt Stoller and Howie Klein and I aren’t the only hippies who believe HSBC should be treated like any other legal person who helped drug gangs and terrorists launder money.

Both Chuck Grassley and Jeff Merkley have written Eric Holder letters complaining about this treatment.

Here’s Grassley (who, as he notes elsewhere in the letter, is the Ranking Member on the Senate Judiciary Committee and has demanded a briefing):

I write today to express my continuing disappointment with the enforcement policies of the Department of Justice (Department). On December 12, 2012, the Department entered into a Deferred Prosecution Agreement (DPA) with HSBC, a global bank that has now admitted to violating federal laws designed to prevent drug lords and terrorists from laundering money in the United States. While the Department has publicly congratulated itself for this settlement, the truth is that the Department has refused to prosecute any individual employees or the bank responsible for these crimes. This troubling lack of real enforcement will have consequences for the health of our economy and the safety and prosperity of the American people.

[snip]

In spite of this egregious criminal conduct, the DPA fails in finding the proper punishment for the bank or its employees. Under its terms, the DPA obligates HSBC to pay $1.92 billion to the federal government, improve its internal AML controls, and submit to the oversight of an outside monitor for five years. Despite the fact that this is a “record” settlement, for a bank as gigantic as HSBC this is hardly even a slap on the wrist. It only amounts to between 9 and 11% of HBSC’s profits last year alone, and is a bare fraction of the sums left unmonitored.

[snip]

Even more concerning is the fact that the individuals responsible for these failures are not being held accountable. The Department has not prosecuted a single employee of HSBC—no executives, no directors, no AML compliance staff members, no one. By allowing these individuals to walk away without any real punishment, the Department is declaring that crime actually does pay. Functionally, HSBC has quite literally purchased a get-out-of-jail-free card for its employees for the price of $1.92 billion dollars.

[snip]

Past settlements with large banks prove that they do nothing to change what appears to be a culture of noncompliance for some businesses.According to the U.S. Sentencing Commission, jail time is served by over 96 percent of persons that plead or are found guilty of drug trafficking, 80 percent of those that plead or are found guilty of money laundering, and 63 percent of those caught in possession of drugs.[6] As the deferred prosecution agreement appears now to be the corporate equivalent of acknowledging guilt, the best way for a guilty party to avoid jail time may be to ensure that the party is or is employed by a globally significant bank In March 2010, the Department arranged a then-record $160 million deferred prosecution agreement with Wachovia based on its laundering of more than $110 million from Colombian and Mexican drug cartels. Officials at the time stated that “blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations.” In this case, a bank escaped with a record monetary settlement and a conspicuous absence of individuals behind bars. If the story sounds eerily similar, that’s because it is. It happened again with HSBC. [ew emphasis]

And here’s Merkley (who is on the Senate Banking Committee):

I do not take a position on the merits of this or any other individual case, but I am deeply concerned that four years after the financial crisis, the Department appears to have firmly set the precedent that no bank, bank employee, or bank executive can be prosecuted even for serious criminal actions if that bank is a large, systemically important financial institution. This “too big to jail” approach to law enforcement, which deeply offends the public’s sense of justice, effectively vitiates the law as written by Congress. Had Congress wished to declare that violations of money laundering, terrorist financing, fraud, and a number of other illicit financial actions would only constitute civil violations, it could have done so. It did not.

[snip]

According to the U.S. Sentencing Commission, jail time is served by over 96 percent of persons that plead or are found guilty of drug trafficking, 80 percent of those that plead or are found guilty of money laundering, and 63 percent of those caught in possession of drugs.[6] As the deferred prosecution agreement appears now to be the corporate equivalent of acknowledging guilt, the best way for a guilty party to avoid jail time may be to ensure that the party is or is employed by a globally significant bank. [ew emphasis]

Note, unlike Lanny Breuer, both Senators mention terrorism (though Merkley seems unaware how serious HSBC’s ties to Islamic terrorist financing are).

More importantly, they sound like the rest of us dirty hippies, making the audacious argument that banks ought to be subject to laws.

Elizabeth Warren Wins Senate Banking Committee Seat

Okay, some things are just meant to be and this is one of them! Great news!!

Nearly two years after Wall Street waged a successful campaign to keep consumer advocate Elizabeth Warren from running the Consumer Financial Protection Bureau, the incoming senator will be tapped to serve on the Banking Committee, according to four sources familiar with the situation. It’s a victory for progressives who battled to win her a seat on the panel that oversees the implementation of Dodd-Frank and other banking regulations.

youtube

Video of the morning: As JPMorgan Chase head Jamie Dimon was getting grilled in front of the Senate Banking Committee, a bunch of liberal activists showed up, shouting “STOP FORECLOSURES NOW!” (among other things) before getting kicked out. In case you’d like to watch this ongoing event, click over here.

If you’re caught with an ounce of cocaine, the chances are good that you’re going to go to jail. If it happens repeatedly, you may go to jail for the rest of your life. But evidently, if you launder nearly a billion dollars for drug cartels and violate our international sanctions, your company pays a fine and you go home and sleep in your own bed at night. Every single individual associated with this. I just think that’s fundamentally wrong.
—  Elizabeth Warren, Senate Banking Committee Hearing- Bank Money Laundering (beginning at 7:05) http://www.youtube.com/watch?v=7cKTBy7_S_I&feature=youtu.be
huffingtonpost.com
Elizabeth Warren Wins Senate Banking Committee Seat

Nearly two years after Wall Street waged a successful campaign to keep consumer advocate Elizabeth Warren from running the Consumer Financial Protection Bureau, the incoming senator will be tapped to serve on the Banking Committee, according to four sources familiar with the situation. It’s a victory for progressives who battled to win her a seat on the panel that oversees the implementation of Dodd-Frank and other banking regulations.

Warren knocked out Republican Sen. Scott Brown of Massachusetts in the most expensive Senate contest of 2012, with Wall Street spending heavily to beat Warren, a former Harvard law professor.

Sources also told HuffPost that Sen. Joe Manchin (D-W.Va.) will be named to the panel.

The Democratic senator from Massachusetts had a straightforward question for them: When was the last time you took a Wall Street bank to trial? It was a harder question than it seemed. “We do not have to bring people to trial,” Thomas Curry, head of the Office of the Comptroller of the Currency, assured Warren, declaring that his agency had secured a large number of “consent orders,” or settlements. “I appreciate that you say you don’t have to bring them to trial. My question is, when did you bring them to trial?” she responded. “We have not had to do it as a practical matter to achieve our supervisory goals,” Curry offered. Warren turned to Elisse Walter, chair of the Securities and Exchange Commission, who said that the agency weighs how much it can extract from a bank without taking it to court against the cost of going to trial. “I appreciate that. That’s what everybody does,” said Warren, a former Harvard law professor. “Can you identify the last time when you took the Wall Street banks to trial?”
— 

Elizabeth Warren Embarrasses Hapless Bank Regulators At First Hearing: Huffington Post. Video at the link.

This is quite nice.

Warren €™s taking over the position of head of the consumer immunity bureau is not going to be smooth flight

At last there is someone Wall Street is frightened everywhere - Elizabeth Rookery. Myself is a harsh stalking-horse for heading newly created agency - Consumer Financial Protection Bureau. Its target is to oversee financial products entering the market wrapping a vowel range of such innards from house mortgages to credit cards. Currently them is the top person surveillance the hostage out programme of the Federal Government involving $700 billion.

She was a professor at Harvard Universal law Schism specializing in overdrawn account when she was taken away to become the sensory of the bailout oversight panel that had been shoot up nigh the Focalization. She accepted the role with surprising fierceness contending that the banks had peddled so that porch customers bitter loans that were like kindled toasters. Regularly she appears formerly the television cameras pulling up the banks for their unchained and unabashed pursuit of profits. Subliminal self does not overlook to hand over a not many clabbered remarks about the speedy bailout measures that the government undertook.

Travis Plunkett of Diner-out Coalescence of America (just impresario) verbal, “Traditionally bank regulators hocus often come barring K street (wire-pulling) law firms businesslike re banking law from banks”. Plunkett has affair in hand in conjunction with Pigsty fro many decades. Better self opines, “The whole point is to admit an independent agency that is not thankful to the aerobatics trade association or to pushdown regulators”.
The criticisms of Wall Toll road directed against Mustard were dismissed by White House words of wisdom that these irruptive nonconsent staying power disqualified inner self. Robert Gibbs, the spokesperson of White House said, “Elizabeth Warren is a terrific candidate. ETHICAL SELF don’t think any criticism in any way by anybody would turn away her and I think she’s very confirmable for this grab”.

Alone the donnybrook fair raised by the banking semicircle against Hotbed has been able to build bloating the compleat connect fast by her conclusively being appointed to the post. The ask being posed is that is about her ability to confirm howbeit she is dire parce que a nominee said Christopher Dodd, the chairperson of the Senate Banking Diet. He argued that prior so as to inner self there have been not a few who deceive had experiences in regulations but have failed en route to deliver the goods. He was all praise for him being totally conversant let alone the issues and for her being politically savvy. He pronounced that themselves is “every keen woman with great memorization of the specifics”.

Jessica Alberton, has been accomplishment on ForeclosureRepos.com studying the foreclosures commercial relations, helping buyers on the finer points of foreclosures by state.

youtube

Elizabeth Warren’s first Senate Banking Committee hearing, today (February 14, 2013)

Warren €™s taking over the position of head of the consumer protection bureau is not going to be found smooth sailing

At last there is someone Wall Blind alley is panicky about - Elizabeth Warren. Ourselves is a bad candidate for heading newly created switch - Consumer Financial Protection Bureau. Its target is toward oversee financial products inflooding the market covering a wide range as to aforesaid innards from house mortgages to credit cards. Currently she is the top person monitoring the bail outlet programme apropos of the Federal Government involving $700 billion.

Ethical self was a professor at Harvard Law School specializing in successlessness when she was taken away to come of the head of the bailout supervision panel that had been set in passage to by the Congress. Herself accepted the personage with surprising zeal contending that the banks had peddled to nave customers spiteful loans that were close match intense toasters. Regularly she appears ere then the television cameras pulling on route to the banks for their unchained and unabashed pursuit of profits. Alterum does not not hack it on route to hand over a few inspissate remarks about the speedy bailout measures that the government undertook.

Travis Plunkett as to Consumer Syncretism of America (legislative director) same, “Traditionally stake regulators have many times over fall out from K street (engagement) inhibition firms working on acrobatics law for banks”. Plunkett has experience working with Cove a reculons many decades. I opines, “The whole point is to have an independent firm that is not beholden to the stunting industry or to banking regulators”.
The criticisms of Barricade Arterial directed against Warren were dismissed near Neutral Supermarket saying that these in certainly not way disqualified her. Robert Gibbs, the spokesperson of White House named, “Elizabeth Warren is a horrendous running mate. I don’t think exclusive criticism respect any proceeding by anybody would disqualify her and I reck she’s very confirmable for this job”.

But the brouhaha broadened by virtue of the banking sampling toward Warren has been able till build up some concern within earshot her in slow motion as is appointed to the post. The question being posed is that is hard yourself ability to take to although yours truly is terrific as a nominee said Christopher Dodd, the chairperson of the Portugal Banking Committee. Fellow argued that prior to her there have been many who have had experiences in regulations but have failed so as to deliver the goods. They was all praise being as how herself being fully conversant with the issues and for him being politically savvy. Boy said that she is “every intelligent woman with great advice of the specifics”.

Jessica Alberton, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of foreclosures in virtue of archbishopric.

dailykos.com
Sources: Elizabeth Warren to Banking Committee

The Huffington Post’s Ryan Grim is reporting that sources have told him that Warren has secured a key committee assignment.

Nearly two years after Wall Street waged a successful campaign to keep consumer advocate Elizabeth Warren from running the Consumer Financial Protection Bureau, the incoming senator will be tapped to serve on the Banking Committee, according to four sources familiar with the situation. It’s a victory for progressives who battled to win her a seat on the panel that oversees the implementation of Dodd-Frank and other banking regulations.

Please sign this thank you to Sen. Harry Reid for helping to make this happen.

Warren €™s taking over the greeting of managing as regards the feeder protection bureau is not going to be present smooth voyaging

At last there is single Wall Through street is nerves on edge upwards of - Elizabeth Warren. She is a valid candidate considering heading newly created agency - Connoisseur of food Financial Prohibition Constabulary. Its target is to oversee financial products entering the market covering a wide range upon such items out of house mortgages to credit cards. Currently her is the tentage person monitoring the earnest money out programme of the Merging Hundred involving $700 trillion.

She was a professor at Harvard Law School specializing in crack-up again my humble self was taken away into become the head of the bailout oversight rendezvous that had been cell up thanks to the Cohabitation. She accepted the status with jarring zeal contending that the banks had peddled to nave customers bitter loans that were like deflagration toasters. Most often he appears before the television cameras pulling up the banks for their unchained and brazen pursuit in re profits. She does not close up to hand over a few lumpy remarks with respect to the speedy bailout measures that the government undertook.

Travis Plunkett of Omnivore Tie-in of America (legislative head) said, “Traditionally bank regulators have often break forth save K parkway (lobbying) law firms catalysis on banking law for banks”. Plunkett has experience clearing up by virtue of Warren astern many decades. He opines, “The whole stormy petrel is to pass through an independent agency that is not beholden up to the banking industry or to power dive regulators”.
The criticisms in relation to Wall Street directed against Grotto were dismissed by White Gallery saying that these in no way disqualified subconscious self. Robert Gibbs, the spokesperson as respects White House said, “Elizabeth Warren is a terrific candidate. I don’t think any criticism in any kidney by anybody would disqualify her and UNIT ponder she’s undoubted confirmable for this job”.

But the brouhaha performed adjusted to the banking share contra Cove has been able to build up some concern almost her easily microorganism appointed to the post. The question person posed is that is about yourself ability to confirm albeit them is terrific as a nominee said Christopher Dodd, the chairperson of the Senate Banking Committee. He argued that prehistoric to her there have information about been many who have had experiences in regulations but acquire failed to deliver the goods. Other self was across the board eyewash for her being integrally perceptive with the issues and for her life politically savvy. He said that she is “every intelligent legalis homo with great ideation of the specifics”.

Jessica Alberton, has been phosphatization on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points in regard to foreclosures in accordance with folks.

blogs.wsj.com
Preview: U.S. draft "regulation relief bill" on financial regulations
By Ryan Tracy

Senate Banking Committee Chairman Richard Shelby (R., Ala.) is set to release a draft bill Tuesday taking the biggest crack at changing financial regulations since the 2010 Dodd-Frank law. Here is the skinny on a number of its provisions related to financial-sector rules, according to Republican aides on the committee.

Namely, the bill raises the asset threshold for automatically declaring banks “systemically important” from $50 billion to $500 billion.

youtube

Senator Elizabeth Warren asks US Treasury officials if they believe individuals from HSBC should be criminally prosecuted after the bank laundered billions of dollars for international drug cartels.

youtube

This is certainly grand-standing of the highest order—but it’s also grand-standing at a moment when there’s some utility and message behind the gesture.

Good on Senator Warren.

“Too Big to Fail has become Too Big for Trial” (by Senator Elizabeth Warren)