In 2008, the USA experienced a massive financial crisis brought on largely by fraud in the financial sector. The reaction was for the government to step in to protect, reward, and promote the worst actors leading up to the crisis. Trillions of taxpayer dollars were used to prop up failed industry and corrupt individuals.
After the economy was stabilized, policy makers blocked investigations into the crimes that had led to the crisis.
There are many problems raised by these facts. Number one, a healthy capitalist democracy does not reward criminals. A basic tenet of American society is that we are all equal before the law. Allowing elite criminals to commit fraud with impunity undermines our democracy in a fundamental way. It also destabilizes our economy, and sets us up for ever-greater financial crises. Elites in America have been taught that they can commit fraud with impunity.
Bill Black was a regulator during the Reagan Administration. Following the S&L crisis, Bill Black and his team put over 1,000 elite criminals in prison. According to Bill Black, our crisis was 70 times the magnitude of the S&L crisis, and there was a commensurate amount of fraud leading to it. We have seen no meaningful investigations or prosecutions.
The Federal Reserve is attempting to paper over the fraud. But investors at home, and around the world, saw the truth when our financial markets collapsed; we are maintaining warped incentive systems that encourage fraud. And we are doing nothing to address those systemic issues.
The largest source of campaign financing is the financial sector. Our legislators are conflicted. They are not taking steps necessary to correct these deficiencies to protect citizens.
Conflicted legislators are an obstacle to campaign finance reform. But there is another way to clean up the financial sector; pressure our president to appoint a serious regulator so that we can get an S&L-style cleanup under way. If we can get Bill Black into a position to investigate and prosecute the fraud leading up to the crisis, we will be creating a more secure economic future for this country - and for the world.
You may want to watch a few Bill Black videos on this site. Then click on "Contact Candidates" and tell Barack Obama and Mitt Romney that you want to vote for a candidate who will commit to appointing Bill Black. If we push hard enough, Bill Black will be appointed, and we will be on our way to a more stable and sound economic future.