Report: Bank Foreclosure Sanctions Curbed by Politics

As of today, none of the top Wall Street bankers who perpetuated the foreclosure abuses leading to a widespread housing crisis and economic collapse in this country have been criminally charged. handshake.jpg

According to a new report from the Government Accountability Institute, a conservative Tallahassee think tank, it has to do with political donations that were made directly to President Barack Obama’s campaign.

Miami foreclosure lawyers heard the tough rhetoric from both Obama and Attorney General Eric Holder in the wake of the 2008 financial collapse, which both had blamed on the reckless actions of bankers. Holder specifically alleged that these executives had sought to deplete retirement accounts of the middle class.

Yet, none of these executives have been held accountable for the abuses that still today are forcing Floridians and others across the country into foreclosure.

To understand why, you have to look at the history of those who hold the top positions in Obama’s government. The senior leadership at the U.S. Department of Justice – the attorney general, associated attorneys general, assistant attorneys general, deputy attorneys general, deputy associate attorneys general – all came from top-notch, white-collar criminal defense firms. In those roles, these individuals represented these same banks and executives they are now in charge of investigating.

For example, Holder and Assistant Attorney General Lanny Breuer both came from the elite Covington & Burling, which listed such clients as J.P. Morgan Chase, CitiBank, Bank of America, Morgan Stanely, ING, Wells Fargo, Goldman Sachs, Deutsche Bank, Wilmington Trust and UBS.

The GAI contends that Obama’s choice to hire Holder for the job – over, say, a prosecutor – sent a message to the financial community that there was no need to worry about accountability, in spite of the fact that he gave them a tongue-lashing.

Another top official, Deputy Attorney General James Cole, reportedly had previously worked for another high-end law firm and had personally done some $20 million of work for AIG in the four years between 2004 and 2008.

What’s more, there was no independent counsel appointed to investigate the MF Global scandal, even though there were dozens of members of Congress who were demanding it. In fact, former New Jersey Governor Jon Corzine, who is also a bundler for the Obama campaign, was reportedly at the center of that debacle. Under Corzine’s management, MF Global had to file for bankruptcy, reportedly due to the alleged theft of more than $1.5 billion in customer funds taken in order to keep other losses quiet.

What’s more, those same officials in the Department of Justice are also working for Obama’s campaign – something we haven’t seen before in previous elections. Holder, for example, was a bundler for $50,000 in contributions to Obama’s campaign in 2008. Another top officials raised about $65 million for the president in California. Others in the administration have bundled roughly $500,000 total.

Additionally, a number of these officials – including Obama himself – actually have a financial interest in NOT prosecuting the executives. That’s because the financial interests of these top officials are still tied to the same firms that are making money off these large banks.

So what does all of this mean for you?

Aside from the fact that you as a private citizen are held to a tougher criminal standard than these bankers who have shattered lives and heisted dreams, it means this is the kind of thing you are up against when you go to fight a foreclosure in Miami. You can’t do it alone.

If you’re battling foreclosure in Miami or the surrounding areas contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Additional Resources:
Report: Cronyism, political donations likely behind Obama, Holder failure to charge any bankers after 2008 financial meltdown, By Matthew Boyle, The Daily Caller

More Blog Entries:
TARP Watchdog Says Washington Served Special Interests, July 28, 2012, Miami Foreclosure Lawyer Blog