Schweizer writes: "On Thursday the Department of Justice announced it will not prosecute Goldman Sachs or any of its employees in a financial-fraud probe."

Lloyd Blankfein, Chairman and CEO of the Goldman Sachs Group, at the Economic Club of Washington luncheon, 07/18/12. (photo: Mark Wilson/Getty Images)

How Goldman Got Off

By Peter Schweizer, The Daily Beast

14 August 12

The Justice Department's decision not to prosecute Goldman Sachs in a financial-fraud probe is another sign of the cronyism that has kept Attorney General Eric Holder from taking action against other big Wall Street firms, says Peter Schweizer.

n Thursday the Department of Justice announced it will not prosecute Goldman Sachs or any of its employees in a financial-fraud probe.

The news is likely to raise the ire of the political left and right, both of which have highlighted one of the most inconvenient facts of Attorney General Eric Holder's Justice Department: despite the Obama administration's promises to clean up Wall Street in the wake of America's worst financial crisis, there has not been a single criminal charge filed by the federal government against any top executive of the elite financial institutions.

Why is that? In a word: cronyism.

Take Goldman Sachs, for example. Thursday's announcement that there will be no prosecutions should hardly come as a surprise. In 2008, Goldman Sachs employees were among Barack Obama's top campaign contributors, giving a combined $1,013,091. Eric Holder's former law firm, Covington & Burling, also counts Goldman Sachs as one of its clients. Furthermore, in April 2011, when the Senate Permanent Subcommittee on Investigations issued a scathing report detailing Goldman's suspicious Abacus deal, several Goldman executives and their families began flooding Obama campaign coffers with donations, some giving the maximum $35,800.

That's not to say Holder's Justice Department hasn't gone after any financial fraudsters. But the individuals the DOJ's "Financial Fraud Enforcement Task Force" has placed in its prosecutorial crosshairs seem shockingly small compared with the Wall Street titans the Obama administration promised to bring to justice.

Consider the following small-time operators as listed on the Financial Fraud Enforcement Task Force website:

"Three Connecticut Women Charged with Overseeing 'Gifting Tables' Pyramid Scheme." Three women in their 50s and 60s were indicted for conspiracy, tax, and wire-fraud charges. "These arrests should send a strong message to all who threaten the financial health of our communities," one federal agent declared.
In March, 2012, the DOJ sent a property appraiser in Washington, D.C., to the slammer for 65 months for fraudulently inflated prices in a scheme to "flip" properties. The scheme was a small-time $1 million operation, a sharp contrast with the billions on Wall Street.
The DOJ's "get tough" on financial crime strategy included sending two health-care software company executives to the clink for 13 and 15 years.
A Florida resident was charged and sentenced to 14 months in federal prison for falsifying documents, thereby resulting in the obstruction of an SEC investigation.
Five people in California were charged with bid-rigging foreclosure auctions. The individuals have been charged with violating the Sherman Act and could face up to 10 years in jail.
Federal officials went after 10 people in Las Vegas because they tried to "fraudulently gain control of condominium homeowners' associations in the Las Vegas area so that the HAOs would direct business to a certain law firm and construction company."
The owner of a Miami company got 46 months in prison for creating fake loan applications.
Four people in Tacoma, Wash., were indicted for conspiracy that caused a small bank to fail. Their crime: making false statements on loan applications and to HUD.

To be sure, financial fraud of any kind is wrong and should be prosecuted. But locking up "pygmies" is hardly the kind of financial-fraud crackdown Americans expected in the wake of the largest financial crisis in U.S. history. Increasingly, there appear to be two sets of rules: one for the average citizen, and another for the connected cronies who rule the inside game.

That could be changing, as critiques of Eric Holder's lack of financial prosecutions have now come from the political left and right; indeed, battling cronyism may represent one of the rare points of common ground in today's fractious political environment. As progressive Richard Eskow of the Huffington Post recently wrote: "More and more Washington insiders are asking a question that was considered off-limits in the nation's capital just a few months ago: Who, exactly, is Attorney General Eric Holder representing? As scandal after scandal erupts on Wall Street, involving everything from global lending manipulation to cocaine and prostitution, more and more people are worrying about Holder's seeming inaction-or worse-in the face of mounting evidence."

Will bipartisan outrage boost the decibels in D.C. loud enough for Holder to hear and heed? We'll see. He's got at least three months to get moving.

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+56 # lark3650 2011-07-16 10:12

The stealing of America is an old story. Back in the 1930's, Alfred W. Lawson, founder of the Direct Credits Society, wrote and published a series of papers called "The Benefactor." One of these papers was titled "Stealing America" written in 1938. He explained in this paper how the alien financiers have taken control of our money system. Another paper was titled, "Greed, the Destroyer of Man" and was written in 1933. Like others who have tried to do something good or present new ideas that would give justice to everybody, this man was discredited and touted as a kook.

+30 # redjelly39 2011-07-16 14:44

Our forefathers fight to separate us from English rule was in large part to gt us out from under the control of the Bank of England - in 1913 when Woodrow Wilson signed the Federal Reserve Act (which is a group of private banks) - he put us right back under their control.

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." Woodrow Wilson

Thomas Jefferson has this to say about the central bank. A private central bank issuing the public currency is a greater menace to the liberties of the people than a standing army... We must not let our rulers load us with perpetual debt.

"Give me control of a nation's money and I care not who makes the laws." Mayer Amschel Rothschild/Bank er

+6 # WereintheMarxist 2011-07-19 00:54

Forget Nostradomas or Cayce. One doesn't have to be a Marxist [I personally disagree with most of its tenets], to realize that what Rep. Kucinich- in very clear terms- is describing is textbook MARXIST PROPHECY in regards to what Marx called 'capitalism'. Let's not make it [cartel industries & du-opoly politics; the 'inevitable' result of a "private central bank" monopoly on currency] more complicated & obscurantist than it really is.
The plan has probably been in the works for at least 100 yrs. ("Federal" Reserve centeniary in 2014). We (3rd Estaters) should have some plan for what comes next (after the current "capitalism=mon opolism" 'endgame'), that is if we don't want to get stuck with 'the program's' default margin of still more Marxism (more of the same)... which, as many have noted, is not exactly why our founding fathers toiled & risked their lives. They did so, for the most part, in order to set up a democratic Republic where freedom & logical, orderly enterprise would flourish; and freedom not just from the imperialists of Great Britain, but also from the the less direct, 'corporate' forms of imperialism. Its rather obvious now that they built a better design for the 1st part of this than for the 2nd.
I applaud Kucinich for having the courage & responsibility to admit that "50% of discret. spending goes for the Pentagon." Guess where the other half goes?

+5 # Capn Canard 2011-07-19 08:21

Nice post! Way back in the 1980s I learned that the DoD related spending was at 50% of the budget and here we are 20 years later it is still up that high? I should be surprised but I am not, since Bush I and Clinton seemed to make baby steps toward de-funding DoD spending ... then we were attacked by the GOP/WEALTHY's wet dream of a never ending War on Terrorism. So Thanks for your post, but too bad the Tea Baggers can't add 2 + 2 to get 4. I suspect they may come up with -4.

+4 # WereintheMarxist 2011-07-19 11:11

Thanks CC. High military spending is of course necessary for the Imperialism most all of us (increasingly) deplore these days.
I think the other half of it is- answ. my own question above- usurious Interest Payments on servicing the national debt, which (in known history at least) have only been the product of a PRIVATE central bank [i.e. a phony "National" Bank or perhaps even the absence any 'sovereign' fn. institution altogether], controlling the overall quantity of money & credit in circulation, with they in turn mostly controlled (or at least coordinated) by an international cartel (of opaque int'l bank interlocking boards & directors; and yes, too, all the CFRs, RIIAs, Bilderbergers, Trilatt Commissions, & university-cred entialed think-tanks that all the money in the world can 'buy'). 'Buy' is perhaps too strong a word in most cases; 'seducing', 'acquiescing', or perhaps simply 'persuading' most ambitious types with a burning desire to please their parents and/or 'experience the top' by going with the #1 team or winning program (horse-race or 'ad baculum' fallacy) is surely more typical. Most grownups- at least according to Lao Tzu, Rogers, Maslow, and other 'humanists'- are supposed to outgrow this phase, but with so many billions of people on the planet there's never a shortage of exceptions to choose from. Bill Still & Ellen Brown are way ahead of the parade.

+5 # WereintheMarxist 2011-07-19 11:14

...And According to the C.B.O., military + interest payments combined (both about the same) are forecast to surpass all Congressional Discretionary spending by 2020. Why even have a congress then?
http://www.cbo.gov/ftpdocs/108xx/doc10871/Chapter3.shtml

+81 # WhatNext? 2011-07-16 10:34

This is, simply, the truth. The puzzle is: how to get a critical mass of the US population to see it, and how to empower them to put a stop to it?

+3 # Capn Canard 2011-07-20 10:20

I've thought about it and as yet I see no easy answers, it is akin to leading a horse to water but you can't make them drink. Those who see it are brave and smart, and those who can't are in deep denial and very fearful. I believe it would take leadership with the REAL authority and DIRECT media access to change their minds.

+19 # CeresLMT 2011-07-16 10:43

A-MEN!

+57 # tomo 2011-07-16 11:09

What Dennis Kucinich says is the truth staring us in the face. Because what he says is true, I am afraid Dennis can never be elected President. Our filtering system will not allow a candidate for President who thinks this way. The American people don't really, by and large, want to hear Dennis either. If he is right--and he is--it means we have all been foolish for a long time now, and that we are fools today. Nobody want to hear this about themselves. "Where has our money gone?" we ask. Well, it's right out there for all to see in our budget for the military and in our continuing enrichment of absolutely the richest class of Americans our history has seen. But to see this involves seeing that the rest of us are manipulated and duped. It's un-American to think that way. So: much better to ignore Kucinich, and let our society shatter into millions of pieces!

+35 # futhark 2011-07-16 12:35

The "choke point" of power is the corporate-contr olled mainstream media's propensity to "spin" candidates and issues, to promote them, denigrate them, or ignore them. For the most part, ignoring seems to be the tactic they employ the most frequently and to their greatest advantage.

Having been fed a steady diet of fear of communism and Islam for decades now and spent trillions of dollars and thousands of American lives to "secure" ourselves from these "threats", the American people are ill-prepared for the truth: that the real threats to their security are internal, that their liberty, health, and prosperity have all been jeopardized by their acceptance of the fear-mongering corporate-contr olled media. Any voices raised with viewpoints that vary from the orthodox views of the media are silenced by lack of attention.

+6 # abdullahiedward 2011-07-17 15:54

Now maybe you'll have a better understanding of exactly what's going on in Libya.

+29 # cjequine 2011-07-16 13:16

It is really sad that Dennis speaks the truth and nothing can be done about it, unless a revolution in the streets occurs.

+20 # rtrues54 2011-07-16 15:28

Quoting cjequine:

It is really sad that Dennis speaks the truth and nothing can be done about it, unless a revolution in the streets occurs.

REVOLUTION IN THE STREETS!!!!! NOWWW!!!!!

+13 # Andrea 2011-07-17 14:10

The response to Kucinich is to trash him or find fault with his physical stature. That's how shallow and low political discourse has gotten in this country.

+31 # Terry Orin 2011-07-16 11:22

The Justice Dept. hasn't done a thing to discourage these criminal activities...

+10 # redjelly39 2011-07-16 14:46

"Human salvation lies in the hands of creatively maladjusted" Martin Luther King Jr. in 1963.

+6 # forparity 2011-07-17 21:10

The Justice Department? You mean Eric Holder's Justice Department. The ones selling weapons to the cartel in Mexico?

The Eric Holder who successfully defended Chiquita Banana against the charges that they funded right wing paramilitary military groups which killed thousands of civilians(OK - a slap on the wrist $25 million settlement with the Columbia government) - that justice department?

Our justice department is more interested in going after Arizona immigration enforcement bills that a full 70% of the citizens of the US strongly support.

Eric Holder is beholden to nobody but himself.

+20 # andrewprokopis 2011-07-16 11:22

this says it all. simple. to the point. the truth. and i am hoping that the truth will prevail...at some point!

the rest of the political theater, alongside the theatrics and histrionics of the debt debate, is that of the drama queens trying to gain the attention of the right wing political stage. we have been reduced to cheap theatrics and a script that is getting tired and over-acted..ove r and over and over again.

+3 # davidschandler 2011-07-16 11:26

If you don't get the picture, check out www.lcurve.org

+25 # adickinson 2011-07-16 11:40

I hope you are all contributing what you can, 25-20 dollars, occasionally to Dennis and his work. His voice is important, even if he will never be president. Every single voice in dissent is better than absolute silence in the face of this.

+9 # MidwestTom 2011-07-16 11:46

I am happy to know that Dennis Kucinich agrees with Ron Paul that the FED is at the core of much of our problems. Neither of them will get their respective parties nomination. Maybe they should team up. It is the greed of Wall Street that is killing us all. A simple plan that would be supported by all but the top 2% is to raise retirement age to 68, increase taxes on incomes of over $1.0 million to 40%; and make one pay Social Security on every dollar earned. The halve the Departments of Education and Energy, eliminate sugar subsidies, cut the Military 5%, and stop our involvement in the Libya war immediately, and get out of Afghanistan as fast as possible. Socially we should revisit the Dream Act, after effectively closing our Southern border, and we should limit the number of children we pay for to two per single mother. The above would save 3 to 4 Trillion over the next FIVE years.

+18 # Merschrod 2011-07-16 12:48

Midwest, I agree on a couple of your points, but the increased retirement age seems off base onb a couple of counts: 1) in this economy that stiffles chances for the youth to work; 2)some folks are worn out by then; 3)experience is useful so any forced retirement should be out of the equation.
Cutting the Mil Bud. only 5% is baseless - it is insignificant. Why the anit education and Energy - we need focus there to advance our competitiveness in the world market.
Latest studies show that the southernborder is seeing a net reverse migration - that is not a good sign -somthing must be wrong with the economy!

+21 # PGreen 2011-07-16 13:31

That proposal is pretty conservative considering that top tax rates in the 1950's the heyday of the middle class were 94% Even under Reagan they were 50%. Also, we spend more on our military than all other nation in the world combined, including China, so a 25% cut in all military systems expenditure is quite reasonable. And instead of raising the retirement age to 68, why not simply apply the social security tax to all income, rather than restricting it to the first $150,000 or so? Why should it be a regressive tax?

+8 # raymond obrien 2011-07-16 22:06

you all leave out a huge sourse of money for the public and that is medicare for all. Also a tax on WS transactions. Those two thing alone a many billions if not a trillion every few years.

+10 # raymond obrien 2011-07-16 22:07

regarding single payer health insur. and a transaction tax I think Dennis K supports them and his article is very much on target.

+2 # Andy Brown 2011-07-19 00:30

Ron Paul/Dennis Kucinich 2012

+15 # Rev Christie Ley 2011-07-16 12:36

The author gets an A plus for accuracy.

+25 # spiritcallsus 2011-07-16 12:56

Thank GOD for at least one honest politician !!!

+20 # Cailleach 2011-07-16 13:29

It wouldn't hurt to have a test for anyone running for public office. It should include IQ, history, understanding of governments here and abroad, literacy (which would, in itself eliminate many running today), and ability to reason.

+20 # ebyellig 2011-07-16 13:40

I am so stunned that I can read a real politician's viewpoint that is right on the button on all of those issues. How can we make this man and his words more visible?
We are in for a battle and one organization that is putting together the movement for the progressives is MoveOn with the American Dream Movement, also named Rebuild the Dream Movement. Look it up, join it, and work your buns off for the next 15 months! The Tea Party did it and so can we!

+13 # shortonfaith 2011-07-16 14:31

If you get enough people you can make someone like this President. If you rally enough people, for a long enough period of time, you can create change. Let us join in this rally with Dennis & others & start crying out for Justice. Justice for all the people, first & foremost. You can either get on the bus, hang on the sides, or run behind. Lets help Dennis........d o something to help

+3 # dadcat 2011-07-16 15:28

I urge all to subscribe to Alternet.org for additional news on this subject.

+7 # Amefika Geuka 2011-07-16 16:28

Why not start a "Draft Dennis Kucinich for President" campaign and stop our "wailing and knashing of teeth?"

+8 # Observer 47 2011-07-17 16:09

???? Dennis has run for President twice, and both times he has been totally marginalized by the media. He has no money, and challenges the criminals running this country. Therefore, he will NEVER be elected!

+17 # humanmancalvin 2011-07-16 17:06

I for one am going to start to pay more attention to Rep. Kucinich. I thought, was led to believe by our media, that he was a fringe kook/candidate.

If I were to write an essay as he has above, i do not believe I would alter one single word.

Time for me to open my eyes & broaden my views.

+12 # mcartri 2011-07-16 17:09

"The only purpose of government is to protect the rich from the poor", said Adam Smith. Both major parties are to be commended for doing their duty to their owners: The Corporate/Uber- Rich Oligarchy.

+14 # giraffee2012 2011-07-16 18:36

We must vote in 2012 - register and get a mail-in ballot NOW (GOP has published they won't allow registering on election day etc) Make sure you don't use the machines (you have right to request paper ballot.

The U.S. Supremes decided to give big corporations "person" hood as requested by the Koch brothers in 2010 -- A corporation cannot be sued but now has privilege to "buy" elections.

Impeachment of a Supreme Justice begins in the House - therefore we need a MAJORITY of non TP/GOP --

Thomas has taken $$ and presents and these are published. Scalia has been to some of the Koch brother hosted "meetings" -- before the 2010 decision. These 2 must be impeached. The 5 conservatives have ruled FOR big corporations consistently.

Thank you Dennis for standing up for "we" --- Bernie Sanders and a few others are also "good guys" --
VOTE 2012 and get all old/young you know registered NOW (sooner than later)

+12 # Texan 4 Peace 2011-07-16 20:37

@humanmancalvin , I supported DK's presidential campaign in 2004 and it was shameful the way the media marginalized his candidacy (even the "liberal" media), even as he was saying things that most Americans supported! Interestingly, he got the most votes at polling stations where we were there with signs -- lots of people would say to us, "Oh, is he still running? I thought he talked a lot of sense but then I didn't see him in the news anymore so I thought he dropped out!" If he runs again, I'll work twice as hard to get his message out.

+9 # dean 2011-07-17 11:12

Hey, we're in the Matrix. That simple. Thanks to Mr. K for being one of the very few to call it as it is.

+5 # rm 2011-07-17 16:20

Kucinich for president!!!! I voted for him the last time he ran. I don't know why he would not appeal to everyone. His simple honesty and refusal to be bought off by corporations, banks, and foreign governments is the best thing any candidate could present.

+12 # redjelly39 2011-07-17 18:43

Presidents & other elected officials do not make decisions - they follow orders. I met Dennis a few years ago and agree with him & his ideals BUT, he will never even get close to a presidency because the ones issuing the orders will never let him in the game. Its sad for America or what used to be America since the Constitution is just "A goddamn piece of paper" according to Dumbya and the Bill of Rights are temporary as they can be squashed with another staged 911 attack.
Speaking of 911 - this act was done before by Hitler to stir up a frenzy so he could attack Poland. (search Gleiwitz Incident). And if anyone thinks 911 wasn't staged, please explain to me about what happened to Building #7.....
The bottom line is not to win the war - its to be in 1 or 2 or 3... It makes a lot of $$ for General Dynamics, Halliburton, Citigroup, Carlyle Group, etc.. but it sends us into a spiraling vortex of debt.
All of this is moot anyway as we have proven we are the inferior species of this planet. We cant stop poisoning ourselves with our own food, we cant get along with other species of plant & animal life or even each other. We create disastrous things we cant control (Nuclear Reactors) and we destroy the land, air & water we depend on for survival. Its all about the stockholders bottom line - right ?

+8 # Diane Johnson 2011-07-17 20:40

Imagine a new progressive party team up Sanders with Kucinich add some feingold and franken that would mean change.

-4 # forparity 2011-07-17 21:25

oh yea - and they could garner 1 1/2% of the national vote.

+10 # Activista 2011-07-18 19:47

Kucinic is right - we do not have a choice but elect the truth he proposes.
Forget stupid game of Republicans and Democrats.
We do NOT have a choice - we can NOT continue militarism - that is death to ALL.

+1 # ProgressiveEvangelical 2011-07-18 21:12

We need a 4 year coalition of libertarians and progressives to redistribute wealth from empire building and maintenance to a peaceful green economy. http://progressivesforronpaul.blogspot.com/

0 # Capn Canard 2011-07-20 10:28

I believe that MONEY is the problem. If we really want to erase these problems then we need to eliminate MONEY and wealth. I doubt very much that anyone with even a little money will want to do that...

0 # miu 2011-07-20 13:42

If you really believe that, check out zeitgeist.org It may actually be possible to eliminate money or even necessary for our survival.

+4 # minmouse 2011-07-19 08:20

I like the idea of Sanders and Kucinich for president but how do we do it? We need a strong organization to start it and we need to fund it.

+6 # Bill Clements 2011-07-19 16:11

How rare is Kucinich in the world of American politics? Someone who speaks the unvarnished truth about what's really going on why politicians play politics with whether or not to raise the debt ceiling.

Who talks, really, about a government that has lost it's way and the legitimacy of the two party system? We desperately need to create an alternative to this fetid quadmire. I honestly don't see how we can reform the present system.

+1 # Tee 2011-07-19 22:32

Here is a passionate account of Israeli complicity in 911http://www.y outube.com/watc h?v=kVKGRB3cygg .

+2 # Dave45 2011-07-20 01:53

+4 # walt 2011-07-20 06:02

Dennis Kucinich is one of a few in Congress who tells the truth. The nation is being raped by the military/indust rial complex and other powers as the people continue to watch their money and benefits being taken away. Obama was a hope, but he is more a war monger than Bush and we see no change at all.
Perhaps the time has come for serious action with people demanding change. In the 1960's it was only when people took to the streets that we saw sudden changes in civil rights and war policies. Have the people become so blindly docile that they will continue to allow the country to be sapped of every dollar and continue to lose American lives in needless wars?
Hopefully, that is no so.
A large rally is in the planning for October 6 and worth considering. Info can be found at http://october2011.org/frontpage

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