Credit Rating Agency Lawsuits-The Jokes Continue

Once again, the Obama/Holder "Justice" Department makes headlines, and pats itself on the back for bringing mortgage fraudsters "to justice." This week's announcement of a lawsuit against Standard & Poor's for knowingly defrauding investors by willfully publishing false and fraudulent positive ratings for inferior mortgage backed investments is calculated to give the impression that justice is being served, and bad guys brought to heel.

Nothing could be farther from the truth. Additional lawsuits are now contemplated against the other perps of the alleged frauds, Moody's and Fitch, and you and I are supposed to celebrate. A brief history of the greatest mass fraud in history is in order. Readers here know the story. There is no cause for celebration.

It is now just under six years from the March, 2007 public disclosure of the massive frauds that were perpetrated at every level of the mortgage industry, including the ratings agencies. The timing of the latest rounds of "lawsuits" just happens to be outside the usual range of criminal Statutes of Limitation. Coincidence? No, I don't think so. These much ballyhooed lawsuits are a mere continuation of the Obama/Holder policy to not bring criminal actions against Wall Street at any serious level. The elements of the frauds alleged against the ratings agencies are precisely the same as the elements of crimes. Only the burden of proof in a criminal case is different. Obama/Holder have made, and continue to make, a conscious effort to avoid criminal prosecution and to exact civil penalties from the perpetrators of criminal acts.

There will be a settlement of these civil lawsuits. The costs will be borne by consumers. Nobody will go to jail. And, most importantly, there will be no deterrence established.

Instead, there will be new rules and regulations, an increase in bureaucrats hired to monitor behavior, and  new chapters written on how to avoid the new rules and defeat the government bureaucracy.

The public is expected to swallow this act, this charade, and celebrate justice. In fact, the public has been cynically duped again, and the Big Lie gains ever increasing prominence.


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