Mortgage and Financial Fraud Investigations: Professional Left Propaganda vs. The Obama Administration's Record

credo - stop fearmongeringTalk about coming off the hinges. Suddenly this morning, I get an email from Credo Action (the political arm of a self-pronounced "progressive" phone company whose goal is not to fight the Right but to help the Right take down President Obama). What's in the email? A freakout about how the task force the President announced in his State of the Union address to investigate mortgage securitization fraud is not big enough. Of course, many of CREDO's cohorts on the ideological-warfare Left, most notably Firedoglake, ran with it. Sound familiar? This has been the modus operandi of the anti-progress Professional Left - stay off of doing anything constructive, and constantly whine and complain about "not big enough," "not good enough" and "not Lefty enough."

So what's today's specific meltdown about? It's about how the 55 promised members of the mortgage securitization task force is "not enough," and how not all of them have been "deployed yet."
Election year promises aren't nearly enough. President Obama needs to prove his commitment to the financial crimes task force is real and provide the task force with the resources it needs to investigate Wall Street criminals.[...]

After the much smaller savings and loan scandal of the '80s approximately 1,000 FBI agents and dozens of federal prosecutors were assigned to prosecute related cases. And 100 FBI agents were tasked with investigating the Enron scandal, which involved just one company and caused none of the economy-wide damage we've seen since the collapse of the housing bubble.
Apparently, CREDO thinks that nobody else in the federal or state governments, outside the mortgage fraud unit specifically referred to here, is allowed to investigate financial industry crimes. Apparently, none of us got the memo except CREDO that President Obama has ordered all other federal agencies and agents to stop investigating the financial sector. Maybe CREDO will produce the memo soon. I'm waiting.

In the mean time, CREDO shows its own disgust of facts.
We want, and our country needs, indictments. The collapse of the housing bubble led directly to the economic crisis we're in. But not one of the Wall Street crooks who drove our economy off a cliff has gone to jail. And without aggressive investigations and prosecution for misconduct, none of them will.
Really? Nobody's been charged and there's been no rigorous prosecutions of Wall Street, huh? I must be imagining this FBI report then:
The founder of a $7 billion hedge fund is convicted of insider trading....[...]

Corporate fraud: One of the Bureau’s highest criminal priorities, our corporate fraud cases resulted in 242 indictments/informations and 241 convictions of corporate criminals during fiscal year (FY) 2011. While most of our cases involve accounting schemes designed to conceal the true condition of a corporation or business, we’ve seen an increase in the number of insider trading cases.

Securities/commodities fraud: In FY 2011, our cases resulted in 520 indictments/informations and 394 convictions. As a result of an often volatile market, we’ve seen a rise in this type of fraud as investors look for alternative investment opportunities. There have been increases in new schemes—like securities market manipulation via cyber intrusion—as well as the tried-and-true—like Ponzi scams. [...]

Mortgage fraud: During 2011, mortgage origination loans were at their lowest levels since 2001, partially due to tighter underwriting standards, while foreclosures and delinquencies have skyrocketed over the past few years. So, distressed homeowner fraud has replaced loan origination fraud as the number one mortgage fraud threat in many FBI offices. Other schemes include illegal property flipping, equity skimming, loan modification schemes, and builder bailout/condo conversion. During FY 2011, we had 2,691 pending mortgage fraud cases.

Financial institution fraud: Investigations in this area focused on insider fraud (embezzlement and misapplication), check fraud, counterfeit negotiable instruments, check kiting, and fraud contributing to the failure of financial institutions. The FBI has been especially busy with that last one—in FY 2010, 157 banks failed, the highest number since 181 financial institutions closed in 1992 at the height of the savings and loan crisis.
I must also be imagining this outlined by the FBI in the detailed version of the same report:
Through FY 2011, FBI investigations resulted in 1,223 informations and indictments and 1,082 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in FY 2011 for mortgage fraud: $1.38 billion in restitutions; $116.3 million in fines; seizures valued at $15.7 million; and $7.33 million in forfeitures.
Oh and you know how the Obama administration is totally not putting enough manpower going after financial and mortgage fraudsters? Yeah... here's what we got in addition to these 55 specially focused people on the new task force.
With elevated levels of mortgage fraud, the FBI has continued to dedicate significant resources to the threat. The FBI has increased the number of agents who investigate mortgage fraud cases from 120 special agents in FY 2007 to 325 special agents in FY 2011. FBI pending mortgage fraud cases have increased from 1,199 in FY 2007 to 2,691 in FY 2011, with a peak of 3,129 in FY 2010.
Why, the Obama administration has done NOTHING on mortgage fraud, I tells ya! Not enough perpwalks!!!!

Oh, by the way, since we started with this specific task force that only started two months ago, have they done anything useful in this time? Oh look, they have already subpoena'ed 11 banks on mortgage fraud. New York's Attorney General Eric Schneiderman - a co-chair of this task force and one of the best mortgage fraud fighters in the country - has promised to the dig into every aspect.

And you know that landmark mortgage settlement that state attorneys general along with the DOJ reached with the biggest banks valued at a potential $40 billion, under which banks have already started writing down principal loan amounts? Apparently, y'all imagined it too.

We have discussed previously one of the key reasons that even more prosecutions haven't happened on Wall Street. Much of what the financial industry did to cause the collapse of 2008 was, in fact, legal. Those happened because of legalized stealing - legalized by, incidentally, many of the Professional Left's greatest heroes. The President cannot go back in time and change the laws, but he did what he could do - pass the most sweeping financial industry reforms since the 1930s.

So give me a freaking break. CREDO, and the people willingly parroting CREDO's talking points, are not interested in holding anyone accountable. It's a rouse. It's a rouse to bash President Obama in any way they can. It's a rouse to bash President Obama - even when the facts tell a different story on the record of this administration - because CREDO knows which side its bread is buttered on. They cannot sustain their cash-attractive "activist" model without manufactured outrage at President Obama from the pretend-Leftists. They do not seem to be able to take on anything other than beating up on Barack Obama, if a list of their recent campaigns, as posted on their front page, is any indication. Here's a screenshot of their entire front page campaigns as of 1:18 pm Pacific today.
The vast majority of their campaigns are focused on ginning up fear and hatred of the President, based on ideologically driven talking points rather than grounded facts (many of the issues have been addressed here at TPV).

If their campaigns are any indication, CREDO is not a progressive organization, they are a regressive, anti-Obama, counter-factual propaganda operation. They are as apt at propaganda as Fox News, or anyone on the Right. They may (or may not - I really have no clue) be ideologically different from Fox, but their tactics, disregard for facts and downright disrespect for the President are unmistakably and stunningly similar. They, along with their buddies at many Professional Left outlets, aim to be propganda machine for ideological warfare the same as Fox, if from a different ideology, and they must be rejected.

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