Is the SEC Covering Up Wall Street Crimes

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Is the SEC Covering Up Wall Street Crimes?

A whistle-blower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.


By Matt Taibbi

August 17, 2011 8:00 AM ET

SEC whistleblower shredder paper

Pete Gardner/Getty

Imagine a world in which a man who is repeatedly investigated for a string of serious crimes, but never prosecuted, has his slate wiped clean every time the cops fail to make a case. No more Lifetime channel specials where the murderer is unveiled after police stumble upon past intrigues in some old file – "Hey, chief, didja know this guy had two wives die falling down the stairs?" No more burglary sprees cracked when some sharp cop sees the same name pop up in one too many witness statements. This is a different world, one far friendlier to lawbreakers, where even the suspicion of wrongdoing gets wiped from the record.

That, it now appears, is exactly how the Securities and Exchange Commission has been treating the Wall Street criminals who cratered the global economy a few years back. For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – "18,000 ... including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency's records – "including case files relating to preliminary investigations" – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term "Orwellian," devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation. Amazingly, the wholesale destruction of the cases – known as MUIs, or "Matters Under Inquiry" – was not something done on the sly, in secret. The enforcement division of the SEC even spelled out the procedure in writing, on the commission's internal website. "After you have closed a MUI that has not become an investigation," the site advised staffers, "you should dispose of any documents obtained in connection with the MUI."

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

The widespread destruction of records was brought to the attention of Congress in July, when an SEC attorney named Darcy Flynn decided to blow the whistle. According to Flynn, who was responsible for helping to manage the commission's records, the SEC has been destroying records of preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynn reports, senior staff at the SEC scrambled to hide the commission's improprieties.

As a federally protected whistle-blower, Flynn is not permitted to speak to the press. But in evidence he presented to the SEC's inspector general and three congressional committees earlier this summer, the 13-year veteran of the agency paints a startling picture of a federal police force that has effectively been conquered by the financial criminals it is charged with investigating. In at least one case, according to Flynn, investigators at the SEC found their desire to bring a case against an influential bank thwarted by senior officials in the enforcement division – whose director turned around and accepted a lucrative job from the very same bank they had been prevented from investigating. In another case, the agency farmed out its inquiry to a private law firm – one hired by the company under investigation. The outside firm, unsurprisingly, concluded that no further investigation of its client was necessary. To complete the bureaucratic laundering process, Flynn says, the SEC dropped the case and destroyed the files.

Much has been made in recent months of the government's glaring failure to police Wall Street; to date, federal and state prosecutors have yet to put a single senior Wall Street executive behind bars for any of the many well-documented crimes related to the financial crisis. Indeed, Flynn's accusations dovetail with a recent series of damaging critiques of the SEC made by reporters, watchdog groups and members of Congress, all of which seem to indicate that top federal regulators spend more time lunching, schmoozing and job-interviewing with Wall Street crooks than they do catching them. As one former SEC staffer describes it, the agency is now filled with so many Wall Street hotshots from oft-investigated banks that it has been "infected with the Goldman mindset from within."

The destruction of records by the SEC, as outlined by Flynn, is something far more than an administrative accident or bureaucratic fuck-up. It's a symptom of the agency's terminal brain damage. Somewhere along the line, those at the SEC responsible for policing America's banks fell and hit their head on a big pile of Wall Street's money – a blow from which the agency has never recovered. "From what I've seen, it looks as if the SEC might have sanctioned some level of case-related document destruction," says Sen. Chuck Grassley, the ranking Republican on the Senate Judiciary Committee, whose staff has interviewed Flynn. "It doesn't make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what time frame and to what extent its actions were consistent with the law."

How did officials at the SEC wind up with a faithful veteran employee – a conservative, mid-level attorney described as a highly reluctant whistle-blower – spilling the agency's most sordid secrets to Congress? In a way, they asked for it.

On May 18th of this year, SEC enforcement director Robert Khuzami sent out a mass e-mail to the agency's staff with the subject line "Lawyers Behaving Badly." In it, Khuzami asked his subordinates to report any experiences they might have had where "the behavior of counsel representing clients in... investigations has been questionable."

Khuzami was asking staffers to recount any stories of outside counsel behaving unethically. But Flynn apparently thought his boss was looking for examples of lawyers "behaving badly" anywhere, including within the SEC. And he had a story to share he'd kept a lid on for years. "Mr. Khuzami may have gotten something more than he expected," Flynn's lawyer, a former SEC whistle-blower named Gary Aguirre, later explained to Congress.

Flynn responded to Khuzami with a letter laying out one such example of misbehaving lawyers within the SEC. It involved a case from very early in Flynn's career, back in 2000, when he was working with a group of investigators who thought they had a "slam-dunk" case against Deutsche Bank, the German financial giant. A few years earlier, Rolf Breuer, the bank's CEO, had given an interview to Der Spiegel in which he denied that Deutsche was involved in übernahmegespräche – takeover talks – to acquire a rival American firm, Bankers Trust. But the statement was apparently untrue – and it sent the stock of Bankers Trust tumbling, potentially lowering the price for the merger. Flynn and his fellow SEC investigators, suspecting that investors of Bankers Trust had been defrauded, opened a MUI on the case.

A Matter Under Inquiry is just a preliminary sort of look-see – a way for the SEC to check out the multitude of tips it gets about suspicious trades, shady stock scams and false disclosures, and to determine which of the accusations merit a formal investigation. At the MUI stage, an SEC investigator can conduct interviews or ask a bank to send in information voluntarily. Bumping a MUI up to a formal investigation is critical, because it enables investigators to pull out the full law-enforcement ass-kicking measures – subpoenas, depositions, everything short of hot pokers and waterboarding.  In the Deutsche case, Flynn and other SEC investigators got past the MUI stage and used their powers to collect sworn testimony and documents indicating that plenty of übernahmegespräche indeed had been going on when Breuer spoke to Der Spiegel. Based on the evidence, they sent an "Action Memorandum" to senior SEC staff, formally recommending that the agency press forward and file suit against Deutsche. 

Breuer responded to the threat as big banks like Deutsche often do: He hired a former SEC enforcement director to lobby the agency to back off. The ex-insider, Gary Lynch, launched a creative and inspired defense, producing a linguistic expert who argued that übernahmegespräche only means "advanced stage of discussions." Nevertheless, the request to proceed with the case was approved by several levels of the SEC's staff. All that was needed to move forward was a thumbs-up from the director of enforcement at the time, Richard Walker.

But then a curious thing happened. On July 10th, 2001, Flynn and the other investigators were informed that Walker was mysteriously recusing himself from the Deutsche case. Two weeks later, on July 23rd, the enforcement division sent a letter to Deutsche that read, "Inquiry in the above-captioned matter has been terminated." The bank was in the clear; the SEC was dropping its fraud investigation. In contradiction to the agency's usual practice, it provided no explanation for its decision to close the case.

On October 1st of that year, the mystery was solved: Dick Walker was named general counsel of Deutsche. Less than 10 weeks after the SEC shut down its investigation of the bank, the agency's director of enforcement was handed a cushy, high-priced job at Deutsche.

Deutsche's influence in the case didn't stop there. A few years later, in 2004, Walker hired none other than Robert Khuzami, a young federal prosecutor, to join him at Deutsche. The two would remain at the bank until February 2009, when Khuzami joined the SEC as Flynn's new boss in the enforcement division. When Flynn sent his letter to Khuzami complaining about misbehavior by Walker, he was calling out Khuzami's own mentor.

The circular nature of the case illustrates the revolving-door dynamic that has become pervasive at the SEC. A recent study by the Project on Government Oversight found that over the past five years, former SEC personnel filed 789 notices disclosing their intent to represent outside companies before the agency – sometimes within days of their having left the SEC. More than half of the disclosures came from the agency's enforcement division, who went to bat for the financial industry four times more often than ex-staffers from other wings of the SEC.

Even a cursory glance at a list of the agency's most recent enforcement directors makes it clear that the SEC's top policemen almost always wind up jumping straight to jobs representing the banks they were supposed to regulate. Lynch, who represented Deutsche in the Flynn case, served as the agency's enforcement chief from 1985 to 1989, before moving to the firm of Davis Polk, which boasts many top Wall Street clients. He was succeeded by William McLucas, who left the SEC in 1998 to work for WilmerHale, a Wall Street defense firm so notorious for snatching up top agency veterans that it is sometimes referred to as "SEC West." McLucas was followed by Dick Walker, who defected to Deutsche in 2001, and he was in turn followed by Stephen Cutler, who now serves as general counsel for JP Morgan Chase. Next came Linda Chatman Thomsen, who stepped down to join Davis Polk, only to be succeeded in 2009 by Khuzami, Walker's former protégé at Deutsche Bank.

This merry-go-round of current and former enforcement directors has repeatedly led to accusations of improprieties. In 2008, in a case cited by the SEC inspector general, Thomsen went out of her way to pass along valuable information to Cutler, the former enforcement director who had gone to work for JP Morgan. According to the inspector general, Thomsen signaled Cutler that the SEC was unlikely to take action that would hamper JP Morgan's move to buy up Bear Stearns. In another case, the inspector general found, an assistant director of enforcement was instrumental in slowing down an investigation into the $7 billion Ponzi scheme allegedly run by Texas con artist R. Allen Stanford – and then left the SEC to work for Stanford, despite explicitly being denied permission to do so by the agency's ethics office. "Every lawyer in Texas and beyond is going to get rich on this case, OK?" the official later explained. "I hated being on the sidelines."

Small wonder, then, that SEC staffers often have trouble getting their bosses to approve full-blown investigations against even the most blatant financial criminals. For a fledgling MUI to become a formal investigation, it has to make the treacherous leap from the lower rungs of career-level staffers like Flynn all the way up to the revolving-door level at the top, where senior management is composed largely of high-priced appointees from the private sector who have strong social and professional ties to the very banks they are charged with regulating. And if senior management didn't approve an investigation, the documents often wound up being destroyed – as Flynn would later discover.

After the Deutsche fiasco over Bankers Trust, Flynn continued to work at the SEC for four more years. He briefly left the agency to dabble in real estate, then returned in 2008 to serve as an attorney in the enforcement division. In January 2010, he accepted new responsibilities that included helping to manage the disposition of records for the division – and it was then he first became aware of the agency's possibly unlawful destruction of MUI records.

Flynn discovered a directive on the enforcement division's internal website ordering staff to destroy "any records obtained in connection" with closed MUIs. The directive appeared to violate federal law, which gives responsibility for maintaining and destroying all records to the National Archives and Records Administration. Over a decade earlier, in fact, the SEC had struck a deal with NARA stipulating that investigative records were to be maintained for 25 years – and that if any files were to be destroyed after that, the shredding was to be done by NARA, not the SEC.

But Flynn soon learned that the records for thousands of preliminary investigations no longer existed. In his letter to Congress, Flynn estimates that the practice of destroying MUIs had begun as early as 1993, and has resulted in at least 9,000 case files being destroyed. For all the thousands of tips that had come in to the SEC, and the thousands of interviews that had been conducted by the agency's staff, all that remained were a few perfunctory lines for each case. The mountains of evidence gathered were no longer in existence.

To read through the list of dead and buried cases that Flynn submitted to Congress is like looking through an infrared camera at a haunted house of the financial crisis, with the ghosts of missed prosecutions flashing back and forth across the screen. A snippet of the list:





Goldman Sachs


6/99 - 4/00

Market Manipulation

Deutsche Bank


11/01 - 7/02

Insider Trading

Deutsche Bank


2/02 - 8/02

Market Manipulation

Lehman Brothers


3/02 - 7/02

Financial Fraud

Goldman Sachs


11/09 - 12/09

Insider Trading


One MUI – case MNY-08145 – involved allegations of insider trading at AIG on September 15th, 2008, right in the middle of the insurance giant's collapse. In that case, an AIG employee named Jacqueline Millan reported irregularities in the trading of AIG stock to her superiors, only to find herself fired. Incredibly, instead of looking into the matter itself, the SEC agreed to accept "an internal investigation by outside counsel or AIG." The last note in the file indicates that "the staff plans to speak with the outside attorneys on Monday, August 24th [2009], when they will share their findings with us." The fact that the SEC trusted AIG's lawyers to investigate the matter shows the basic bassackwardness of the agency's approach to these crash-era investigations. The SEC formally closed the case on October 1st, 2009.

The episode with AIG highlights yet another obstacle that MUIs experience on the road to becoming formal investigations. During the past decade, the SEC routinely began allowing financial firms to investigate themselves. Imagine the LAPD politely asking a gang of Crips and their lawyers to issue a report on whether or not a drive-by shooting by the Crips should be brought before a grand jury – that's basically how the SEC now handles many preliminary investigations against Wall Street targets.

The evolution toward this self-policing model began in 2001, when a shipping and food-service conglomerate called Seaboard aggressively investigated an isolated case of accounting fraud at one of its subsidiaries. Seaboard fired the guilty parties and made sweeping changes to its internal practices – and the SEC was so impressed that it instituted a new policy of giving "credit" to companies that police themselves. In practice, that means the agency simply steps aside and allows companies to slap themselves on the wrists. In the case against Seaboard, for instance, the SEC rewarded the firm by issuing no fines against it.

According to Lynn Turner, a former chief accountant at the SEC, the Seaboard case also prompted the SEC to begin permitting companies to hire their own counsel to conduct their own inquiries. At first, he says, the process worked fairly well. But then President Bush appointed the notoriously industry-friendly Christopher Cox to head up the SEC, and the "outside investigations" turned into whitewash jobs. "The investigations nowadays are probably not worth the money you spend on them," Turner says.

Harry Markopolos, a certified fraud examiner best known for sounding a famously unheeded warning about Bernie Madoff way back in 2000, says the SEC's practice of asking suspects to investigate themselves is absurd. In a serious investigation, he says, "the last person you want to trust is the person being accused or their lawyer." The practice helped Madoff escape for years. "The SEC took Bernie's word for everything," Markopolos says.

At the SEC, having realized that the agency was destroying documents, Flynn became concerned that he was overseeing an illegal policy. So in the summer of last year, he reached out to NARA, asking them for guidance on the issue.

That request sparked a worried response from Paul Wester, NARA's director of modern records. On July 29th, 2010, Wester sent a letter to Barry Walters, who oversees document requests for the SEC. "We recently learned from Darcy Flynn... that for the past 17 years the SEC has been destroying closed Matters Under Inquiry files," Wester wrote. "If you confirm that federal records have been destroyed improperly, please ensure that no further such disposals take place and provide us with a written report within 30 days."

Wester copied the letter to Adam Storch, a former Goldman Sachs executive who less than a year earlier had been appointed as managing executive of the SEC's enforcement division. Storch's appointment was not without controversy. "I'm not sure what's scarier," Daniel Indiviglio of The Atlantic observed, "that this guy worked at an investment bank that many believe has questionable ethics and too cozy a Washington connection, or that he's just 29." In any case, Storch reacted to the NARA letter the way the SEC often does – by circling the wagons and straining to find a way to blow off the problem without admitting anything.

Last August, as the clock wound down on NARA's 30-day deadline, Storch and two top SEC lawyers held a meeting with Flynn to discuss how to respond. Flynn's notes from the meeting, which he passed along to Congress, show the SEC staff wondering aloud if admitting the truth to NARA might be a bad idea, given the fact that there might be criminal liability.

"We could say that we do not believe there has been disposal inconsistent with the schedule," Flynn quotes Ken Hall, an assistant chief counsel for the SEC, as saying.

"There are implications to admit what was destroyed," Storch chimed in. It would be "not wise for me to take on the exposure voluntarily. If this leads to something, what rings in my ear is that Barry [Walters, the SEC documents officer] said: This is serious, could lead to criminal liability."

When the subject of how many files were destroyed came up, Storch answered: "18,000 MUIs destroyed, including Madoff."

Four days later, the SEC responded to NARA with a hilariously convoluted nondenial denial. "The Division is not aware of any specific instances of the destruction of records from any other MUI," the letter states. "But we cannot say with certainty that no such documents have been destroyed over the past 17 years." The letter goes on to add that "the Division has taken steps... to ensure that no MUI records are destroyed while we review this issue."

Translation: Hey, maybe records were destroyed, maybe they weren't. But if we did destroy records, we promise not to do it again – for now.

The SEC's unwillingness to admit the extent of the wrong doing left Flynn in a precarious position. The agency has a remarkably bad record when it comes to dealing with whistle-blowers. Back in 2005, when Flynn's attorney, Gary Aguirre, tried to pursue an insider-trading case against Pequot Capital that involved John Mack, the future CEO of Morgan Stanley, he was fired by phone while on vacation. Two Senate committees later determined that Aguirre, who has since opened a private practice representing whistle-blowers, was dismissed improperly as part of a "process of reprisal" by the SEC. Two whistle-blowers in the Stanford case, Julie Preuitt and Joel Sauer, also experienced retaliation – including reprimands and demotions – after raising concerns about superficial investigations. "There's no mechanism to raise these issues at the SEC," says another former whistle-blower. Contacting the agency's inspector general, he adds, is considered "the nuclear option" – a move "well-known to be a career-killer."

In Flynn's case, both he and Aguirre tried to keep the matter in-house, appealing to SEC chairman Mary Schapiro with a promise not to go outside the agency if she would grant Flynn protection against reprisal. When no such offer was forthcoming, Flynn went to the agency's inspector general before sending a detailed letter about the wrongdoing to three congressional committees.

One of the offices Flynn contacted was that of Sen. Grassley, who was in the midst of his own battle with the SEC. Frustrated with the agency's failure to punish major players on Wall Street, the Iowa Republican had begun an investigation into how the SEC follows up on outside complaints. Specifically, he wrote a letter to FINRA, another regulatory agency, to ask how many complaints it had referred to the SEC about SAC Capital, the hedge fund run by reptilian billionaire short-seller Stevie Cohen.

SAC has long been accused of a variety of improprieties, from insider trading to harassment. But no charge in recent Wall Street history is crazier than an episode involving a SAC executive named Ping Jiang, who was accused in 2006 of enacting a torturous hazing program. According to a civil lawsuit that was later dropped, Jiang allegedly forced a new trader named Andrew Tong to take female hormones, come to work wearing a dress and lipstick, have "foreign objects" inserted in his rectum, and allow Jiang to urinate in his mouth. (I'm not making this up.)

Grassley learned that over the past decade, FINRA had referred 19 complaints about suspicious trades at SAC to federal regulators. Curious to see how many of those referrals had been looked into, Grassley wrote the SEC on May 24th, asking for evidence that the agency had properly investigated the cases.

Two weeks later, on June 9th, Khuzami sent Grassley a surprisingly brusque answer: "We generally do not comment on the status of investigations or related referrals, and, in turn, are not providing information concerning the specific FINRA referrals you identified." Translation: We're not giving you the records, so blow us.

Grassley later found out from FINRA that it had actually referred 65 cases about SAC to the SEC, making the lack of serious investigations even more inexplicable. Angered by Khuzami's response, he sent the SEC another letter on June 15th demanding an explanation, but no answer has been forthcoming.

In the interim, Grassley's office was contacted by Flynn, who explained that among the missing MUIs he had uncovered were at least three involving SAC – one in 2006, one in 2007 and one in 2010, involving charges of insider trading and currency manipulation. All three cases were closed by the SEC, and the records apparently destroyed.

On August 17th, Grassley sent a letter to the SEC about the Flynn allegations, demanding to know if it was indeed true that the SEC had destroyed records. He also asked if the agency's failure to produce evidence of investigations into SAC Capital were related to the missing MUIs.

The SEC's inspector general is investigating the destroyed MUIs and plans to issue a report. NARA is also seeking answers. "We've asked the SEC to look into the matter and we're awaiting their response," says Laurence Brewer, a records officer for NARA. For its part, the SEC is trying to explain away the illegality of its actions through a semantic trick. John Nester, the agency's spokesman, acknowledges that "documents related to MUIs" have been destroyed. "I don't have any reason to believe that it hasn't always been the policy," he says. But Nester suggests that such documents do not "meet the federal definition of a record," and therefore don't have to be preserved under federal law.

But even if SEC officials manage to dodge criminal charges, it won't change what happened: The nation's top financial police destroyed more than a decade's worth of intelligence they had gathered on some of Wall Street's most egregious offenders. "The SEC not keeping the MUIs – you can see why this would be bad," says Markopolos, the fraud examiner famous for breaking the Madoff case. "The reason you would want to keep them is to build a pattern. That way, if you get five MUIs over a period of 20 years on something similar involving the same company, you should be able to connect five dots and say, 'You know, I've had five MUIs – they're probably doing something. Let's go tear the place apart.'" Destroy the MUIs, and Wall Street banks can commit the exact same crime over and over, without anyone ever knowing.

Regulation isn't a panacea. The SEC could have placed federal agents on every corner of lower Manhattan throughout the past decade, and it might not have put a dent in the massive wave of corruption and fraud that left the economy in flames three years ago. And even if SEC staffers from top to bottom had been fully committed to rooting out financial corruption, the agency would still have been seriously hampered by a lack of resources that often forces it to abandon promising cases due to a shortage of manpower. "It's always a triage," is how one SEC veteran puts it. "And it's worse now."

But we're equally in the dark about another hypothetical. Forget about what might have been if the SEC had followed up in earnest on all of those lost MUIs. What if even a handful of them had turned into real cases? How many investors might have been saved from crushing losses if Lehman Brothers had been forced to reveal its shady accounting way back in 2002? Might the need for taxpayer bailouts have been lessened had fraud cases against Citigroup and Bank of America been pursued in 2005 and 2007? And would the U.S. government have doubled down on its bailout of AIG if it had known that some of the firm's executives were suspected of insider trading in September 2008?

It goes without saying that no ordinary law-enforcement agency would willingly destroy its own evidence. In fact, when it comes to  garden-variety crooks, more and more police agencies are catching criminals with the aid of large and well-maintained databases. "Street-level law enforcement is increasingly data-driven," says Bill Laufer, a criminology professor at the University of Pennsylvania. "For a host of reasons, though, we are starved for good data on both white-collar and corporate crime. So the idea that we would take the little data we do have and shred it, without a legal requirement to do so, calls for a very creative explanation."

We'll never know what the impact of those destroyed cases might have been; we'll never know if those cases were closed for good reasons or bad. We'll never know exactly who got away with what, because federal regulators have weighted down a huge sack of Wall Street's dirty laundry and dumped it in a lake, never to be seen again.

Editor’s Note: The online version of this article has been amended from the print version to reflect that the SEC’s case against Deutsche Bank proceeded beyond a Matter of Inquiry to a full-blown investigation.

Matt Taibbi Rolling Stone


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Rolling Stone Magazine

The Lunatics Who Made a Religion Out of Greed and Wrecked the Economy

by: Matt Taibbi

So Goldman Sachs, the world's greatest and smuggest investment bank, has been sued for fraud by the American Securities and Exchange Commission. Legally, the case hangs on a technicality.

Morally, however, the Goldman Sachs case may turn into a final referendum on the greed-is-good ethos that conquered America sometime in the 80s – and in the years since has aped other horrifying American trends such as boybands and reality shows in spreading across the western world like a venereal disease.

When Britain and other countries were engulfed in the flood of defaults and derivative losses that emerged from the collapse of the American housing bubble two years ago, few people understood that the crash had its roots in the lunatic greed-centered objectivist religion, fostered back in the 50s and 60s by ponderous emigre novelist Ayn Rand.

» article continues...

Max Keiser: 'Goldman Sachs Are Scum'

They are literally stealing a hundred million dollars a day. Goldman Sachs is stealing every day on the floor of the exchange. They should be in the Hague, they should be taken on financial terrorism charges. They should all be thrown in jail”

The real price of Goldman's giganto-profits

"Equity underwriting boomed during the period as dozens of banks raised money to strengthen capital and repay Troubled Asset Relief Program funds. The business reported record revenue of $736 million."
-- Wall Street Journal.

Eliot Spitzer On Goldman Sachs

"The anti-Goldman sentiment keeps on growing: next up is Bloomberg’s interview with former Attorney General Eliot Spitzer in which he chimes in with his views of Taibbi’s Goldman Sachs article and Goldman’s money making prowess ('because it is a conspiracy does not mean it is wrong'). In a impressively coherent presentation, the former Governor also talks about bankrupt states and the lack of regulation (his family life disclosure may be fast forwarded). Must watch."
-- Eliot Spitzer On Matt Taibbi and Goldman Sachs | zero hedge.

The Great American Bubble Machine

The Great American Bubble Machine: Rolling Stone.

Draw your own conclusions about the distance between Goldman Sachs and the US government

'The prosecution wanted to the judge to deny bail, a la Bernie Madoff and Allen Stanford, because the stolen code "could be use to manipulate the market in unfair ways." The judge, to his credit chose to disagree. This was an alleged crime against GOLDMAN, not, presumably a crime against society. Therefore it was a "garden variety" economic crime, meaning that the normal niceties of "free on bail" were available.'
-- Is the U.S. Government An Arm of Goldman Sachs? - Graham and Dodd Investor -- Seeking Alpha.

On The 'Everyone Was Doing It' Excuse

"The [Rolling Stone] article makes a very compelling case against Goldman Sachs, but I think the problems it identifies are pervasive in financial firms and corporate America in general," says Nell Minow, who is the co-founder of the Corporate Library, a research firm that tracks corporate-governance issues. "We need to launch substantive financial reform rather than weighing the faults of one firm versus another." Minow's point is this: spend too much time on Goldman and you miss the fact of how broadly the financial system and the regulations that are supposed to keep profiteers in check failed us. And she's right.
-- Goldman Sachs vs. Rolling Stone: A Wall Street Smackdown - TIME.

The financial institutions that WaPo dare not name

"Concern over such deal-making reached a fever pitch last summer, when oil prices were sky high and people were feeling pain at the gas pump. CFTC data showed last year that a significant amount of trading in oil was concentrated in the hands of just a few speculators. These worries have waned since then, as gas prices have moderated from last year's highs, though a recent run-up in fuel prices may prompt new questions."
-- CFTC Floats Rules Aimed at Speculation -

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Murdoch’s Say Top Executives Didn’t Know of Phone Hacking ask former

South Vietnamese National Viet Dinh a former employee of the

U.S. Department of Justice Office of Legal Policy, Viet Dinh sits on the

Board of Directors of Rupert Murdoch’s NewsCorp.owned by Len Millman and Larry Mizel==Stew Webb Federal Whistleblower


Breaking News July 26, 2011

Federal Whistleblower U.S. Customs Inspector John Carman

Ex Secret Service Agent Alleges Corruption in Customs

Illegally Imprisoned for Whistle blowing on U.S. Customs Bush Narcotics Trafficking


Breaking News 1130 Pm Saturday July 23, 2011

Guess who is on FOX News Sunday July 24, 2011

Michele Backman and the Israeli Prime Minister

Israel First over USA says Michele Backmann

that is Treason and Sedition


Breaking News Saturday July 23, 2011

Rupert Murdochs 911 Espionage Spy exposed ex Justice Dept Viet Dinh

Murdoch’s Say Top Executives Didn’t Know of Phone Hacking ask former

South Vietnamese National Viet Dinh a former employee of the

U.S. Department of Justice Office of Legal Policy, Viet Dinh sits on the

Board of Directors of Rupert Murdoch’s NewsCorp.==Stew Webb Federal Whistleblower


Breaking News Saturday July 23, 2011

Michele Bachmann Official Notice 911 Espionage Treason Sedition Economic Plunder

Against The United States of America which are all Death Penalty Violations

Murdoch’s Say Top Executives Didn’t Know of Phone Hacking ask former

South Vietnamese National Viet Dinh a former employee of the

U.S. Department of Justice Office of Legal Policy, Viet Dinh sits on the

Board of Directors of Rupert Murdoch’s NewsCorp.==Stew Webb Federal Whistleblower

Michele Bachmann I DON'T GET IT MISTER WEBB Part 2


Breaking News Saturday July 23, 2011

Breaking News Michele Bachmann I DON'T GET IT MISTER WEBB 911 Murdoch Espionage Exposed


Breaking News Saturday July 23, 2011

Recall your U.S. Congress and U.S. Senate


Breaking News July 22, 2011

America Daddy Bush’s Piggy Bank

Net Worth 79 Trillion and growing

Espionage, Treason, Sedition, Economic Plunder

Jail the Criminals Get the Money Back and Solve the Debt Crisis

Wanted for Treason and Sedition Part 1

Wanted for Treason and Sedition part 2


Rupert Murdoch, Larry Mizel MDC NYSE, Len Millman 911 Espionage Financing


Breaking News July 19, 2011

Rupert Murdoch, Larry Mizel, Len Millman 911 Espionage Financing

Israeli Terrorist Money Trail

Breaking News Rupert Murdoch lied before the British Parliament yesterday


Breaking News Tea Party Alert Anti Catholic religious fascist Michele Bachmann

in cohorts behind hacking of Tom Heneghan’s Site.


Breaking News Wall Street how Larry Mizel NYSE:MDC Does a Deal


Breaking News NYSE:MDC under Investigation


Breaking News CONTRA COKE TRAIN and Richmond Homes MDC NYSE


Breaking News Larry Mizel NYSE:MDC NYSE:AIC ASE:CAX National Security Threat Funded Murdoch Espionage

MDC NYSE, AIC NYSE CAX American Stock Exchange

Larry Mizel NYSE:MDC NYSE:AIC ASE:CAX National Security Threat Funded Murdoch Espionage


Breaking News Larry Mizel MDC NYSE National Security Threat Funded Murdoch Espionage

MDC NYSE, AIC NYSE CAX American Stock Exchange


Breaking News Congresswoman Michele Bachmann National Security Threat


Breaking News Larry Mizel's Stooge John McCains Wife Hiding War Profits


Michele Bachmann is a direct supporter of the UN-Constitutional Patriot Act and, listen to this, folks,

the fascist  wants to make it permanent.

Bachmann has direct ties to FBI Division 5, the Department of Homeland Security and its Nazi

stooges Barbara Frey and former DHS operative and Bush-Clinton Crime Family stooge Frances Fragos Townsend.

Townsend regularly appears on CNN with Wolf Blitzer.

The aforementioned individuals have used the UN-Constitutional Patriot Act in direct attacks against

the American People such as illegal stonering and wiretapping of cell phones, as well as illegal use

of privately outsourced Blackwater helicopters that engage in intimidation, harassment and illegal

espionage vs the American People,

including having FBI Division 5 and NSA stooges riffling through the garbage cans of American Patriots

who know too much about the TREASON being committed against their country.--Tom Heneghan

GOP using Echelon software to spy on Americans; NSA bribing media


Breaking News Inside the Bush Crime Family Part1 of 2 family_part1.htm


Breaking News Inside the Bush Crime Family Part2 of 2


Breaking News Bush Organized Crime Syndicate Silverado Savings Larry Mizel, Neil_Bush


Breaking News Larry Mizel, MDC NYSE Rush_for Gold how Silverado Operated


Breaking News Bush Millman Silverado Savings Bank Accounts NYSE:MDC Silverado Saving Illegal Accounts


Breaking News FOX News Murdochs Hackers National Security Threat Major Spy Scandal Suppressed


Breaking News TeaParty Violates First Amendment Right of Whistleblowers

for Michele Bachman Israel FIRST before the USA


Breaking News Tea Party Patriots Attention

Emergency Update on TRAITOR Michele Bachmann

Israel FIRST before the USA





Breaking News Ex Congressman Anthony Weiner’s Wife Huma

Hillary Clinton’s Lesbian Lover


Breaking News Standard & Poor’s Downgrades MDC Holdings NYSE to Junk Status

Larry Mizel MDC NYSE Murders, Narcotics, May 6, 2010 Market Event,

Frauds are US at MDC


Breaking News Strauss-Kahn J. P. Morgan Update Religious Fascist Michele Bachmann

Breaking News United States Nears Endgame

Martial Law


Breaking News Larry Mizel's Stooge John McCains Wife Hiding War Profits


Breaking News Americans under attack by US Government Fascist Nazi Goons


Breaking News Colorado Fugitive Kerre Millman aka Kerre Smith aka Kerre Millmansmith



Bush Whacked again by Stew Webb Federal Whistleblower


Obama Killing Americans United the Governors

U.S. Government Rouge Assassins in Kansas City Targets:

Stew Webb and Bret Landrith


Breaking News Obama Gay Scandal


Bin Laden Psyop Totally Exposed

Interview with Ambassador Leo Wanta


John Carman Ex Secret Service-US Customs Whistleblower

Faced Federal Charges

Illegally Held for 4 years by Feds

For exposing Bush Narcotics Rings

Please send John a Donation

John Carman

P.O. Box 577

La Mesa, Ca. 91944




Cyber Terror Led to Japanese Nuclear Meltdown


HAARP Conspiracy Theory Jesse Ventura Is it a

communications research project or a doomsday weapon that can change the weather

shoot satellites out of orbit- and trigger mind control across the globe? Jesse Ventura


Bush Clinton Crime Family History Lesson


How Corrupt is Missouri and Kansas Courts?

Karl Rove and US District Court Judge Fernando J. Gaitan Jr.

Illegally Targeted and Prosecuted 600 Democrats Nation Wide


Denver Airport Secret Underground Facility by Stew Webb

Governor Jessie Ventura here is the Missing Video Evidence Apocalypse 2012


Obama Bush Health Care Frauds Continue 2 Dead US Attorneys


Denver Airport Secret Underground


Bush Millman Clinton Organized Crime Syndciate Flow Chart


Bush Millman-Mizel Clinton Organized Crime Syndicate


Kerre Millman aka Kerre Smith NWO Witch Doctor


Wanted for Treason and Sedition Part 1


911 WTC Bush Guilty


Bush Narco Money Laundry Funds Obama and McCain


Wanted for Treason and Sedition part 2


Site Map






Two Dead U S Attorneys John Ashcroft Gets Paid Off


Senate ignored 5 Texas asst. U.S. attorney deaths and firings at Gonzales hearing


Texas assistant U.S. attorney deaths raise foul play questions


Dead, fired attorneys’ Medicare fraud probe linked to White House


Obama Bush Health Care Frauds Continue 2 Dead US Attorneys


How Corrupt is Missouri and Kansas Courts?

Karl Rove and US District Court Judge Fernando J. Gaitan Jr.

Illegally Targeted and Prosecuted 600 Democrats Nation Wide


U.S. and international agents to monitor e-vote satellite activity during election


Weldon’s Paris trips tied to cover-up of 9/11 French intelligence intercepts


DC Hilton, Ritz Carlton used for congressional child sex says federal agent



Feds: GOP Lobbyist Abramoff ran Capitol Hill call-boy sex service at DC hotel


Shocking News Rupert Murdoch Fox News




Former GOP House leader testified against Bush


Whistleblower says Rep. Jefferson also took bribes from Texas cable magnate


Feds: 3 dead as U.S., French agents seized British evidence in covered up Capitol Hill gunfight

Police, media silence sought as Bush officials turned Rayburn parking garage into temporary auto-body shop


American French alliance shuts down power to prevent NE train derailment




NSA death squads to neutralize U.S. citizen activists


Fitzgerald Franklin grand jury implicates Libby, Marc Rich, but also Gonzalez and Goss


NSA routing internet data thru Amsterdam to monitor U.S. websites and e-mail




Indicted GOP lobbyist Abramoff operated sex, spy ring at Watergate, Ritz-Carlton, Sheraton hotels


House Judiciary chairman met with terrorist banker tied to GOP lobbyist Abramoff



The Shadows – Secret Lives in Our Midst




Enron, investment espionage and the White House


Fitzgerald probe: Sen. Clinton withdrew stolen funds from Grenada bank


Bush, GOP, DEMS to use illegal aliens to push ID card


FBI memo, photo link Bush Sr to JFK Dallas murder scene


GOP using Echelon software to spy on Americans; NSA bribing media


Top-secret notes confirm congressional, 9-11 Commission & Pentagon cover up of Iraq war plans on day of Sept. 11 attacks


Dubai Grand Central Station purchase raises terrorism questions



Evidence indicates Bush wire-tapped alternative media


9-11 widow questions why MSNBC host silenced her


Goss refuses to give Fitzgerald CIA leak damage assessment




Secret Service, U.S. intel say Bush uses cocaine, Prozac, alcohol


2nd Memo to Cheney after 9-11: “The ‘family’ wants their boxes”


Cheney knew FBI, CIA met with Bin Laden lieutenant after 9-11


D.C. Appellate Court throws out Bush suit against DOJ to block Fitzgerald indictments


Bush—Cheney CIA/Plame case indictments released this morning


U.S. intelligence reports Miers as ‘deep-cover’ foreign operative


CIA, French intelligence kill 4, capture 5 Israelis in NY subway attack


Division 4 team names Clintons, Bush 41, 43 in JFK Jr. assassination,%20Bush%2041,%2043%20in%20JFK%20Jr.htm


Cash payoffs, bonds and murder linked to White House 911 finance,%20bonds%20and%20murder%20linked%20to%20White%20House%20911%20finance.htm


Tony Blair's MI-6 Agents Caught Trying To Blow Up Chicago Subway:


The Battle of Yorktown


Special Section on Government Stooges aka Bush Nazi Goones and their overt-covert slanderous acts silence the messenger below

These are the Government Stooge who you will find when you put Stew Webb in the search engines

August 5, 2011 Word has it that the FBI CIA Bush Crime Family Stooge Ted Gunderson bit the dust. Thank GOD I wish him well in Hell.

Stew Webb


Bush Nazi Goons on the Internet FBI #5




Ken Adachie Ted Gunderson FBI Stooge and FBI #5 Christina Kanas Stew Webb Restraining order inforced


FBI Cointel Pro Ted Gunderson Patriot Plant


FBI-CIA Ted Gunderson Illegaly Sold Terrorist Osama Bin Laden Stinger Missiles for Daddy Bush




American People wake up we are the Government we just need to take control and out the Criminals.


Here is all Americans Legal Authority to arrest remove this Bush-Mizel-Lindner-Clinton-Obama Filth.


Time for True American’s and Ex-Patriotic Military to shut down and bring to Justice this Bush Clinton Obama

Domestic Domestic Enemies Terrorist Organized Crime Syndicate and their Stooges.


“If the people were to ever find out what we have done, we would be chased down the streets and lynched.”

--George H. W. Bush aka "Poppy Bush" June 1992 Sarah McClendon White House News Interview.


In CONGRESS, July 4, 1776. The unanimous Declaration of the thirteen united States of America: 

But when a long train of abuses and usurpations, pursuing invariably the same Object envinces

a design to reduce them under absolute Despotism, it is their right, it is their duty,

to throw off such Government, and to provide new Guards  for their future security.


The Constitution of The United States of America