The Progressive


A project of Common Dreams

For Immediate Release
Contact: Sam Husseini, (202) 347-0020; or David Zupan, (541) 484-9167

Will Wall Street Be Held Accountable for Fraud and "Greatest Redistribution of Wealth Upward?"


The Financial Crisis Inquiry Commission released its long-awaited report on Friday.


The New York Times just posted a piece by Black titled "When 'Liar's Loans' Flourish."
Black also recently wrote the piece "How can the Architects of the Crisis Investigate it?"
- which states: "The Financial Crisis Inquiry Commission issued its
report [Friday] on the causes of the crisis. The Commissioners were
chosen along partisan lines and the Republicans, one-upping [their]
dual responses to President Obama's State of the Union address, have
issued three rebuttals. The rebuttals follow a failed preemptive effort
by the Republicans to censor the report - they insisted on banning the
use of the terms 'shadow banking system' (the virtually unregulated
financial sector that conducts most financial transactions), 'Wall
Street,' and 'deregulation.'"

Black is an associate professor of economics and law at the
University of Missouri, Kansas City and the author of "The Best Way to
Rob a Bank is to Own One." He was the deputy staff director of the
national commission that investigated the cause of the savings and loan
debacle and he was a witness before the Financial Crisis Inquiry
Commission and an expert witness for the federal government in its
enforcement action against the former senior leaders of Fannie Mae.

Wary, professor of economics at the University of Missouri, Kansas
City, said today: We are in the midst of the worst scandal in human
history, created by layer after layer of fraud in every link of the home
finance food chain, from fraudulent mortgage lending through
fraudulent securitization of mortgages and to the fraudulent home
foreclosures. This could not have happened without the acquiescence and
support of real estate agents, property appraisers, mortgage brokers,
lenders, investment banks, credit ratings agencies, trustees,
accountants, credit default swap sellers and mortgage insurers,
mortgage servicers, MERS [Mortgage Electronic Registration Systems] and
even judges who let the fraudulent banks steal homes. We cannot forget
that the whole mess was aided and abetted by policy makers at the Fed
and Treasury as well as academic economists who essentially functioned
as cheerleaders for fraud as they pushed to remove regulation and
opposed any intervention to stop dangerous practices. We are now
witness to the greatest redistribution of wealth toward the top since
the enclosure movement (the seizure of common land into private
hands)." Wary's books include "Understanding Modern Money."

A nationwide consortium, the Institute for Public Accuracy (IPA) represents an unprecedented effort to bring other voices to the mass-media table often dominated by a few major think tanks. IPA works to broaden public discourse in mainstream media, while building communication with alternative media outlets and grassroots activists.