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Banksters Pretend that Prosecuting Wall Street Crime Will Blow Up the Economy

•, Washingtons Blog
 The Department of Justice is “considering” initiating criminal charges against 2 banks.

In response, the normal cast of characters is saying – as they have for years – that prosecuting banks will cause a meltdown of the economy.

The U.S. attorney for the Southern District of New York recently mocked the silly claims of gloom and doom:

Companies, especially financial institutions, will do almost anything to avoid a tough enforcement action and therefore have a natural and powerful incentive to make prosecutors believe that death or dire consequences await,” he said. “I have heard assertions made with great force and passion that if we take any criminal action, the skies will darken; the oceans will rise; nuclear winter will be upon us; and the world as we know it will end.”

As we’ve repeatedly noted, this is wholly untrue.

Indeed, prosecuting the individual Wall Street executives who knowingly committed criminal fraud won’t harm the economy.  After all, the main driver of economic growth is a strong rule of law. And numerous Nobel prize winning economists have said that prosecuting Wall Street white collar is necessary for a prosperous economy.

1 Comments in Response to

Comment by Olde Reb
Entered on:


I believe the scenario of great economic chaos in the United States, and the world, may be correct. The analysis to discredit such a conclusion misses the crucial point.

It is not an individual banker, or an individual bank, that would be the object of a criminal prosecution for fraud. It is entire Federal Reserve system and the unknown owners of the Board of Governors that have committed fraud for over 50 years.

The Fed uses the FRBNY to embezzle $4 billion daily by their exclusive handling of records of disbursements of money from auctions of Treasury securities. Ref. Those accounts have never been audited or reported to Congress. Ref. .

The owners of the BOG are the same Wall Street financiers that have imposed financial chaos using debt in Europe and in the third world using the IMF and WB. Ref. They also handle the $17 trillion debt of the United States through the Primary Dealers. Internal memos have identified collection of the U.S. debt is the “end goal.”

Only two possible scenarios appear viable:

1. The status quo continues. The Wall Street financiers are able to collect on the U.S. national debt in the same manner as debts of Greece, Cyprus, Haiti, etc., are being collected by troika, ECB, IMF, WB, etc. Austerity and martial law will be imposed on the U.S.    Confiscation of assets of citizens, including but not limited to banking accounts, pensions, savings, CD's, life insurance, stocks, etc., seizing of assets under a pretext of IRS or SS obligations for make-believe debts, the selling of national assets to financiers at fire-sale prices, arbitrary seizures and control of real estate under pretended offenses, will be standard practice.

2. The National Debt is evidenced as an act of fraud and theft by an audit of the Treasury security auction accounts maintained by the FRBNY. The implied contract with the owners of the BOG---based upon paying a debt that can never be culminated---is declared null and void from its inception as are all fraudulent contracts. The extension of legal tender status to debts of the (unknown) owners of the FRBOG is therefore nullified and the debts of the Fed belong only to the perpetrators of the fraud. (those green things in your billfold are Federal Reserve Notes with legal tender status). Only Congress can do this.

Either scenario will cause great economic readjustment.