Barofsky: Hold Banksters Accountable
August 4, 2012 • 10:21AM

Banksters: Prosecution or Coverup?—the shooting has started: One day after veteran Senate investigator Jack Blum warned in Politico of a coming Obama Administration coverup of HSBC's criminal complicity in running massive drug money laundering, former U.S Attorney and TARP Inspecter General Neil Barofsky warned in a Bloomberg TV interview that the same Department of Justice was preparing a 'global settlement' on the multi-billion LIBOR rate fixing conspiracy, such that the banks involved could avoid prosecution as well as case-for-case investigations, fines, and arrests. Barofsky stated,

"I for one personally hope they don't do a global settlement. I prefer they go institution by institution down the line. That is the best way if this a criminal investigation which is what we're hearing, in order to scare others, other institutions, to get them in early to cooperate and flip, and hopefully as you go institution by institution go higher and higher up the line and really have have individual accountability. The bottom line is that if we're going to continue to have these types of scandals, this type of manipulation of the system, until executives at the top start being held accountable and pay the price, and that includes handcuffs,“

and, a global settlement leaves all of that in place. The interview was clearly crafted as part of the transatlantic mobilization going on to target the Obama Justice Department's protection of the London and Wall Street crimes is broken.

The Questioner then fed Barofsky questions of why the U.S. Government would seek a global settlement, permitting Barofsky to identify the government's active complicity in the LIBOR criminal fraud. Barofsky:

"The government's involvement and apparent acquiescence at times is going to be a major issue in litigation, we've already seen that to some degree in the Bank of England. ....We know that Secretary Geithner, when he was President of the New York Fed had this information inhouse, did not alert the Department of Justice about ongoing manipulation....“

Question to Barofsky: "Banks can turn around and say, the central banks of the world knew what was going on, the Federal Reserve knew what was going on, the Treasury knew what was going on. Do the Central Bankers have any liability?“

Barofsky countered that the issue is not what defense the banks' lawyers can make, the issue is, whether the Department of Justice goes along with it. The questioner then added, some would say, So what if the Treasury knew that LIBOR was the result of a fixing process, the economic situation was so perilous that the Federal Government needed to do what it did. Barofsky's response was virtually a statement of indictment of the government: "That is the government enablement, and engagement, in fraud“!