Video Title: Occupy LA Teach In William K Black
YouTube Video URL: http://youtu.be/N_AuvLTJNh0
Description: Full speech, high quality
William Black: Okay. So I’m coming with a message of hope actually. In the Savings and Loan crisis which was 1/70th the size of this crisis, we, our agency made over 10,000 criminal referrals and that resulted in the conviction on felony grounds of over 1,000 elites in what were designated as major cases.
And to pick up on what’s just been said, this is not some sidelight to economics. This is why we have recurrent intensifying crises, is this epidemics of fraud lead from the C-sweet, from the CEO’s and the CFO’s.
The savings and loan crisis, the inevitable national commission said that, Fraud was invariably present at the typical large failure. In the Enron era, always frauds from the very top of the organization. And in this crisis, the frauds came from the top of the organization again.
But what’s different in this crisis? In this crisis, the same agency that I worked with, that made over 10,000 criminal referrals in a tinier crisis made zero criminal referrals. They got rid of the entire function. And so there are zero convictions of anybody in the elite ranks of Wall Street.
And if they can defraud us with the impunity then they will cause crisis after crisis and they will produce maximum inequality. The group that has the audacity to refer to itself as the “productive class” is the largest destroyer of lives, of jobs, and of wealth of any group ever produced in this world.
They wiped out 6 million existing jobs and 5-6 million jobs that would have been created. As you’ve heard, they’ve left 26 million Americans wanting full-time work with no ability to find that work. If you look at just losses in a household sector, it is 11 trillion dollars. A trillion is a thousand billion. And then they have the nerve to say they are the “productive class”. And not this journalist but what we get as faux journalism today, repeats this endlessly as if it were a fact that they create jobs. They destroy jobs. They are mass destroyers of jobs.
I told you I would bring you a message of hope. I’m… I will disagree a little bit with the facts pattern about the… the Reagan administration and re-regulation on savings and loans because that’s where I was.
I will tell you this; Every body opposed a re-regulation in the industry. The big deregulation bill, the equivalent of the repeal of Glass-Steagall and such, occurred in 1982, became effective in 1983. By November 1983, we were already re-regulating the Savings and Loan industry.
And we were called re-regulators because that was the greatest swear word the Reagan administration believed existed—-to call people re-regulators. But this was not partisan. A majority of the members of the House at the time it was controlled by Democrats co-sponsored a resolution saying do not go forward with re-regulation.
Five US Senators who became known as the Keating 5 because the most infamous fraud of that era got them together—and who, by the way, did they u… did that Charles Keating that fraud use to recruit the Keating 5? Brought him as a lobbyist to walk the streets of the Senate, the halls of the Senate? A guy named Alan Greenspan.
Who also put in writing that Lincoln Savings posed no foreseeable risk of loss. It was only the most expensive failure—a 3000 position error. And after he got everything wrong in the most important issues he had ever dealt with, after that fact we named him Chairman of the Federal Reserve because we promote incompetence if it helps the 1%.
The Reagan administration was so outraged that we were closing insolvent Savings and Loans with great political support that the Office of Management and Budget threatened to file a criminal referral against the head of our agency on the grounds that he was closing too many insolvent banks. We have that problem recently?