Prosecuting Wall Street

Breuer: Well, I-- we-- look, I-- I can't speak about that, because I actually don't know about that particular case. But if the senior vice president of any company believes they know about fraud, I want them to contact us.

Breuer says the department has brought major financial prosecutions involving hedge funds, insider trading, Ponzi schemes and a huge bank fraud case in Florida but he acknowledged there have been no prosecutions against major players in the financial crisis.

Breuer: In our criminal justice system, we have to prove beyond a reasonable doubt that you intended to commit a fraud. But when you can't or when we think we can't, there's still many, many important resolutions and options we have.

And that's why there have been civil lawsuits and regulatory action.

Kroft: Do you lack confidence in bringing cases under Sarbanes Oxley?

Breuer: Steve, no-- no one is-- really has accused this Department of Justice or this division or me of lacking confidence. If you look at the prosecutors all over the country, they are bringing record cases, with respect to all kinds of criminal laws. Sarbanes Oxley is a tool, but it's only one tool. We're confident. We follow the facts and the law wherever they take us. And we're bringing every case that we believe can be made.

Lanny Breuer says this Justice Department has been as aggressive as any in history. But a recent report on federal prosecutions from a research center at Syracuse University, says the number of cases brought against financial instutions for fraud is at a 20-year low. When we come back, we talk to a whistleblower who was inside Citigroup during the financial meltdown.

If you had looked at the financial statements of the major banks on Wall Street in the weeks leading up to the financial crisis of 2008, you wouldn't have guessed that most of them were about to crumble and require a trillion dollar bailout from the taxpayers. It begs the question did the CEO's of these banks and their chief financial officers withhold critical information from their investors. If they did they can be subject to criminal prosecution under the Sarbanes Oxley Act for knowingly certifying false financial reports and statements about the effectiveness of their internal controls. The Justice Department has not brought a single case against Wall Street executives for violating Sarbanes Oxley, in spite of some compelling evidence. Tonight we take a look at Citigroup beginning with a former vice president, Richard Bowen.

Richard Bowen: There are things that obviously went on in this crisis, and decisions that were made, that people need to be accountable for.

Kroft: Why do you think nothing's been done?

Bowen: I don't know.

Until 2008, Richard Bowen was a senior vice president and chief underwriter in the consumer lending division of Citigroup. He was responsible for evaluating the quality of thousands of mortgages that Citigroup was buying from Countrywide and other mortgage lenders, many of which were bundled into mortgage-backed securities and sold to investors around the world. Bowen's job was to make sure that these mortgages met Citigroup's own standards - no missing paperwork, no signs of fraud, no unqualified borrowers. But in 2006, he discovered that 60 percent of the mortgages he evaluated were defective.

Kroft: Were you surprised at the 60 percent figure?

Bowen: Yes. I was absolutely blown away. This-- this cannot be happening. But it was.

Kroft: And you thought that it was important that the people above you in management knew this?

Bowen: Yes. I did.

Kroft: You told people.

Bowen: I did everything I could, from the way-- in the way of e-mail, weekly reports, meetings, presentations, individual conversations, yes.

• « Previous Page
• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• Next Page »

[goodetech]

Now is the time to join forces with those you would not normally consider.
This is all starting to leak out to the main stream media... finally. We just need to KEEP THE HEAT on them. We will soon be posting new petition and email campaign info as well as protest ideas. We just need more people following this group and we can use resources from the Tea Party, Occupy and other groups. THEY win as long as they can keep us arguing with each other.
WE need to come together with people we wouldn't normally work with to bring these criminals DOWN! Spread the word, others have carried the load of exposing this activity. Now we the people NEED to come out and make it a major issue in the news and in this political cycle.
Every day we receive more and more disclosure of Financial Corruption by our Banking Institutions and Politicians from the G8 Nations. The U.S., U.K. and E.U. have been gaming the financial system in their favor to create Trillions of dollars on computer screens and stealing tons of Gold from other nations since at least 1911. The Federal Reserve Bank and other evil clones (IMF, BIS etc...) have plundered the world for quite long enough. The recently revealed evidence needs to be covered in depth by the Main Stream Media (Who is owned by the criminal Cabals).

We plan to start a huge letter writing, Fax sending and protesting campaign to the MSM and local representatives to get them to get them to bring these "Self proclaimed Elite's" to justice. When the scope of the manipulation, wars and murder of so many innocents is revealed arrest and imprisonment will be the least of the "Elite's" concerns. They have make billions of people slaves to debt. We toil, suffer and die in debt to them and unknowingly worship and grovel at their feet. They suppress technology that will conflict with their business model. Many technologies that could increase the quality of life and save lives of the people YOU love who have died of disease.

Join now, with us to bring the heat to the Media and our "Representatives" to set us free from the financial tyranny that we have been subjects to for generations. Become a member of this movement, there is room for everyone. Once we realize that the Left Wing and Right Wing are what gives flight to the same BEAST. The ideology of Liberal and Conservative thinking is important to our individual morality and beliefs. But the Elite use these differences to cause us to forget what we have in common. They use our differences to keep us at odds with each other and diverted from their corruption. Why deceive us "ignorant and useless eaters"? Because we outnumber them 99 to 1 and they are afraid of OUR power.

So, now put aside your political or religious differences and band together to expose this corruption and usher our world into a new era. We do not need a "New World Order" ran by self proclaimed rulers. They have no "divine right" to rule. They only have the power we give them. Let's take that power back and create an "Era of Prosperity for ALL"! It is possible!

Say NO to any more WAR that is used to divert our attention from corruption when it starts to leak. We can join together and form a world of peace, I refuse to believe we cannot live together with our differences without butchering one another. What do we have in common? We love our families, our friends and we love peace. So, click the LIKE button and spread this web site to everyone you know. Join other movements that you normally would not associate with. The enemy of our enemy is our friend. This is NOT a place for political debate or bickering. It is a place to come together and break these chains.
Sign this Online Petition as a start to put Bankers in Jail (We need others):
http://www.avaaz.org/en/bankers_behind_bars_f/
JOIN US, this is YOUR cause too:
www.facebook.com/BankAndPoliticianFinancialCorruption

[A__Smith]

I am interested in any information regarding fraud/bad practices employed by Countrywide. If you would like to talk, please email me at [e-mail]

[DebbieCorona]

These people should be in jail but with so much $$ and power in Wall Street that owns the US Government it is never going to happen. What I find interesting is that the GOP will not allow anyone to be on the Consumer Advocate Agency. So while I think both DEM and GOP in Congress are guilty I find it interesting the GOP is doing everything they can to give power back to the people.

[skikill32]

Everyone who has one of these mortgages needs to become educated. All should know how to find out who "owns" their note. If everyone tried to findyournote all the proper parties might come to the table to discuss modifications, principal reductions and writing new mortgages without fraud.

[dcschorr]

Thanks to all who signed the petition!

[cg37102006]

I worked at Countrywide for a year back in the mid 00's. While I didnt know of or participate in any mortgage fraud, I can say, for a fact, that we were putting people in home loans that they should not have been in. This was company policy. Mozilo's settlement payment of 22 mill or whatever he paid was less than 20% of all the money he made at Countrywide, so it is hard to say justice was done. But then again, ultimately, people signed on the dotted line and took the keys to house they agreed to pay for, so blame has to be spread around some beyond just the corporation.

[ctdeihl]

I feel that Foreclosers should come to a STOP when this was out about the Fraudulent Misconduct going on through Bank Systems and Wall Street.To allow Foreclosers to go on,is like telling people Crime does Pay,but only if you pay certain people amount to go on with the activitys.I thought We had a Justice system for All.It's not looking that way anymore.

[FdnDoc]

I don't belive the guy from the Justice Department when he says that they are acting independently from the White House. I just read in the newspaper a story about California State Atty. General Kamala Harris getting "enormous pressure" from the Obama administration to cut a deal with banks for a sum of cash, rather than any further investigation into "robo-signing" of documents. If they are pressuring people outside their jurisdiction why wouldn't they inside their own.

[techsearch64]

THANK YOU CBS and Mr. KROFT for having GUTS start to lay it out like no one else has done on prime time till now...it's TIME!!! So Mr. Lanny Breuer, head of the criminal division at the Department of Justice, you find it offensive that all of this was done, then before you take another day of salary we pay you, DO SOMETHING ABOUT IT, MAN!!! YOU have the tools, the law, you have at least 2 top level executives 1 who has never been tapped for testimony....who said NO this is wrong and they have the FACTS and EVIDENCE for you and this still isn't enough?? You don't fool us. Good grief. Thanks to the ENRON tragedy with the losers tragically being the employees who lost their savings, the stage was set for more of same. Please CBS keep on this story and know we "out here" in reality land support you 100% of the way.

[ammo17]

let me tell you straight out,after watching this guy the assistant atty.general of the USA who seemed to be confused by the questions the reporter was asking him,there is no chance in hell that there will any prosecuttion of the banks and mortgage companies as long as obama is getting tons of money by the same people who should be prosecuted.also eric holder has to be the WORST atty.general in our country`s history.