Battle Lines Drawn Against Geithner and Holder
August 11, 2012 • 9:33AM

The circle has been narrowing around Holder and Geithner after release of the NY Fed emails in July, which showed that the latter was informed of the LIBOR fraud already by 2007, and connived to continue the fraud, rather than bring in the criminal prosecutors.

Yesterday morning, Holder's Department of Justice announced that it would launch no criminal prosecution of Goldman Sachs or any of its officers, despite the voluminous testimony of criminal fraud unearthed by the Levin Committee in its public hearings on Goldman. The response has been outrage. Huffington Post columnist RJ Eskow yesterday listed the crimes to which Goldman admitted in public testimony, and on top of that reproduces a chart from Syracuse University which shows that the Obama Administration, which came into office in early 2009 in the midst of the great crash, has launched fewer criminal prosecutions of financial institutions (per year) than any administration at least back to 1991.

New York's financial services regulator Benjamin Lawsky has ordered Standard Chartered to show cause Aug. 15 before an administrative court, why its New York banking license should not be revoked for money-laundering, for removing the names of Iranian clients from transaction-records. Partisans of Holder and Geithner have denounced Lawsky as a "rogue regulator," because he has not deferred to Geithner and Holder, who have effectively refused to prosecute anyone in Wall Street, no matter how serious the crime.

The Rogue Regulator

But the real "rogue regulator" is Geithner, because he insists that every agency which under law is supposed to be an "independent regulator," whether state or federal, instead submit to his illegal overlordship in the interests of Wall Street criminals.

Thus, Bloomberg reported today that Standard Chartered's CEO Peter Sands said Aug. 8 that the normal practice in resolving such allegations is a "coordinated approach by different agencies," and Bank of England Governor Mervyn King criticized the New York agency for failing to coordinate with its counterparts.

Standard Chartered has focused its defense on the amount it laundered, saying it involved less than 1 percent of the 60,000 Iranian wire transfers asserted by Lawsky. But Lawsky's papers include emailed orders to Standard Chartered employees from management, to remove the clients' names.

Former Securities and Exchange Commission chairman Arthur Levitt said, "I don't care whether it's half of 1 percent that weren't right. There are going to be more that weren't right. The e-mails are really outrageous. I think Lawsky has uncovered something that probably has much deeper depth."

And former TARP Inspector General Neil Barofsky, who exposed Geither in his new book "Bailout," said, "This is not Lawsky getting ahead of other regulators. This is Lawsky doing his job."