The United States of Criminality, SEC in bed with Banks

Remember that scene in Wall Street when Charlie “Tiger Blood” Sheen finally busts Michael Douglas’ Gordon Gekko? Yeah that would never happen in real life apparently. I’ll direct you to the link at the bottom of the page, but here are some amuse bouche to whet the appetite:

Rolling Stone’s Matt Taibbi reports on a whistle blower Darcy Flynn, who has been brought before Congress claiming that for 20 years the Securities and Exchange Commission (SEC) has been a recruiting ground for the banks. All that was required was the simple favour of obliterating the Commission’s investigative records.

According to Flynn, the SEC has been actively destroying their investigative records for years.

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.

And this has been ongoing since 1993. Attempts to investigate major banks were blocked by senior officials who later took jobs with those same banks.

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.”

Even if these are still unproven allegations WHY is this not front page news across the US?

The rest is available via Rolling Stone Magazine and BoingBoing


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