The Case Against Bernanke and Greenspan

The Case Against Bernanke and Greenspan

Courtesy of MIKE WHITNEY at CounterPunch

Is there enough evidence to indict Ben Bernanke and Alan Greenspan on charges that they aided and abetted the banks and other financial institutions in the sale of fraudulent loans to investors?

That depends on whether there is sufficient proof to show whether the two men KNEW that the nation’s lenders were engaged in large-scale predatory lending and chose to do nothing. As we’ll see, both Greenspan and Bernanke were warned repeatedly about the mortgage/derivatives scam by credible professionals and industry regulators, but failed to act.

Here’s a definition of “aided and abetted” from the ‘Lectric Law Library:

“The guilt of a person in a criminal case may be proved without evidence that he personally did every act involved in the commission of the crime charged. …if the acts or conduct of an agent, employee or other associate of the person are willfully directed or authorized by the person, or if the person aids and abets another person by willfully joining together with that person in the commission of a crime, then the law holds the person responsible for the conduct of that other person just as though the person had engaged in such conduct himself.”

Bernanke denies culpability in the meltdown–but at the same time– eagerly points out that the Federal Reserve is the chief regulator responsible for overseeing the “large complex financial firms that pose a threat to the stability of the financial system.” So, which is it? Does he accept responsibility or not? Here is a statement Bernanke made earlier in the week during an appearance before the Senate Banking Committee which may help to clarify the point.

“I think that stripping the Federal Reserve of supervisory authorities in the light of the recent crisis would be a grave mistake… we’ve learned from the crisis large complex financial firms that pose a threat to the stability of the financial system need strong consolidated supervision…. You need an institution that has a breadth of skills. It’s hard for me to understand why in the face of a crisis that was so complex and covered so many markets and institutions, you would want to take out of the regulatory system the one institution that has the full breadth and range of those skills to address those issues.”

Bernanke admits that the Fed is the ‘primary regulator’ that is responsible for “strong consolidated supervision” over “large complex financial…

Read the original story at Phil’s Stock World