Dylan Ratigan | Eliot Spitzer: “In retrospect, I wish we had put more people in handcuffs.”

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FULL TRANSCRIPT:

ELIOT SPITZER: There was an amazing piece of journalism that came out yesterday which analyzed the magnitude of the loans that have been made by the feds to the banks. The six big banks in particular got over $400 billion of secret loans, most of which we had not heard about. Now, at the time these banks were getting these loans, they were claiming to be in great financial shape. So why were the loans made? Is there a tension between the public statements being made by the CEO’s of the banks–

DYLAN: Let’s stop there. It’s very clear there’s an anecdote, Bank of America, we can reference all these things, where those bank CEO’s are saying explicitly, ‘this is a sound financial institution,’ at the exact moment that they are drawing against the U.S. taxpayer at its central bank, into the hundreds of billions of dollars, now we are learning, going into the trillions. What is the answer to that question? Which is, can I go out and say that and do this?

ELIOT SPITZER: The answer is no. And if you or I did that, if you or I went to a bank –

DYLAN: Or went to our shareholders.

ELIOT SPITZER: Or made any public statement, knowing it to be false, we’d be in handcuffs. So the question I have is, look, we don’t know a lot of these facts. Let’s predicate — there are 100 uncertainties, but where is the inquiry right now about all the statements being made by the CEO’s, CFO’s none of which revealed these enormous loans.

DYLAN: Let me ask you a question to play devil’s advocate. Is there integrity in my saying, as the CEO of Bank of America that my financial institution is healthy, knowing that I’ve got, let’s say $80 billion out to the Federal Reserve, because it is healthy, because I have $80 billion from this Federal Reserve?

ELIOT SPITZER: It depends where and when and how those loans were made. If, at the moment you went to the Fed and said, we know we’ve got a mortgage overhang, because our mortgage exposure is $2 trillion, and therefore we’re insolvent and we’re illiquid, “help!” And at that very moment, you’re saying, we’re a stable, sound institution, yes, you’re misrepresenting in a way that’s fundamentally actionable and should be the subject of civil and perhaps criminal investigations.

SUSAN DEL PERCIO: But when you talk about, for example, civil action, or even if you’re looking to prosecute, as Attorney General, you went after a lot of these folks. And you settled a lot of cases. And some of them settled because they didn’t even want to have the PR that you were investigating. But now maybe in retrospect or if you were giving an Attorney General advice now, would you look and say, maybe we should show that there are serious consequences. Because the fines were really just a matter or a cost of doing business. Would you look at it differently now?

ELIOT SPITZER: Yes, well, we brought more cases and that’s why I lost a few friends along the way on Wall Street, which was unfortunate, but the reality and so be it. The decision by Judge Rakov yesterday to throw out and reject the SEC settlement, because he said not enough facts were presented to the court, and this notion that banks will be permitted to say “neither admit nor deny,” as though somehow, yeah, we’ll pay the fine, but really we did nothing wrong, that should come to an end.

SUSAN: But it’s a settlement?

ELIOT SPITZER: No, he rejected the settlement. Judge Rakov said, we’re beyond the point where recidivist institutions that time and time again, and when I started doing this back in ’98, we brought some big cases and said, “okay, you’ve got a problem, are you going to learn?” And they said yes. In retrospect, they haven’t. No question about it. In retrospect, I wish we had put more people in handcuffs. I don’t mind saying it, because the banks didn’t learn the lesson. Judge Rakov, arguably the most important person in the capital markets right now, because he has set a new bar. He has done something critically important, to say, I won’t let you just internalize as a cost of doing business through fines and other small reparations massive structural fraud. And I think what he is doing redefines the way the SEC will have to operate, justifies a lot of the aggressive stuff we did. I’m all for it. My hat goes off to Judge Rakov. He’s a critically important guy.

DYLAN: Were you to be Attorney General today, what would your view be of either prosecuting or investigating Jon Corzine or MF Global relative to the blending of firm assets and customer assets?

ELIOT SPITZER: Let me be careful here for the following reasons. John has been a friend. I’ve always liked him. I want that to be out there, full disclosure, which is a critically important thing in every domain. I still have a hard time believing that John ever would have sanctioned using customer segregated money, the money that is in customer accounts to cover margin calls for MF Global. If that happened, people should go to jail. It is simply not acceptable. Now, there may be paperwork that permitted them to dip into those funds, if it was properly collateralized. This moment of crisis, it’s hard to see how that happened. I think John is an honorable guy, he’s an aggressive trader. I don’t see how you can be leveraged 44 to 1 and be betting on sovereign debt in Europe. Leverage is great on the way up, not so good on the way down. I don’t get it as a business model, but I think we have to wait and see how the facts come out.

JIMMY WILLIAMS: So, all right. so we give these banks the money, right? and then we tell them, in TARP. — now, there’s all this other new stuff.

DYLAN RATIGAN: TARP was the tip. TARP is what we tossed them as the tip. It’s what you tip them at the garage — that was a $700 billion — the was just the side money so you can go to a party.

JIMMY WILLIAMS: So we gave them more. The whole point was, all right, you’ve got to go and go loan this money out.

ELIOT SPITZER: Right.

JIMMY WILLIAMS: I would be — I would be interested in knowing how much money was loaned out.

DYLAN RATIGAN: We do know. The lending was off the cliff, down.

JIMMY WILLIAMS: So why aren’t we forcing them to do refinancing of mortgages?

ELIOT SPITZER: you’re asking — i know, behind that innocent question, right. You’re asking the question that goes to the heart of my grievance with Tim Geithner from the very first moment. It was that night we needed to solve the institutions and the solvency of our nights, it was that we got nothing back. He never once said, we will save you if you agree to reform the system, solve the mortgage crisis, lend to small and medium-sized businesses that will create jobs. There was never any of the conditionality that we do. The IMF has done it for 30 years with every other country in the world. Tim knows that. He was there. I don’t get this.

KAREN FINNEY: So just quickly, speaking about the IMF, and it makes me think of Europe, and we know that, I guess my question would be, can you talk a little bit about what you see happening on the horizon with Europe? And what is the exposure of the American banks and should we expect that all over again, we’re going to have a crisis should they go into crisis?

ELIOT SPITZER: You’re asking me? I have no idea. I’ll be the first one to tell you, I don’t have the foggiest idea what is going to happen in Europe. I see the stock market here gyrating up and down, 400 points either direction, because somebody makes an offhand comment and things are good, things are bad.

DYLAN RATIGAN: Can I ask you a specific question to that end? I have not been able to find a single human being in the world who can tell us what the risk is in Europe, for the simple reason that the risk marketplace, which is the credit default swap market, exists in secret, and it is mathematically impossible for you or anybody else to define what the risk is!

ELIOT SPITZER: Dylan, there was a great article by Gretchen Morgenson about two or three Sundays ago in The New York Times where she dug into the credit default swap market,and how the market is looking at these various sovereign debt issues, and what she found is that the committee that determines whether there’s been a technical default that would trigger the obligation to pay has determined that the 50% write-down isn’t a default.

DYLAN RATIGAN: Oh, I know.

ELIOT SPITZER: They said, oops, we don’t want to pay.

DYLAN RATIGAN: The point is the actual system by which we are managing our global risk, because it’s done in secret –

ELIOT SPITZER: Correct.

DYLAN RATIGAN: It is impossible for the biggest and most powerful banker in the world to be able to know what the risk is, correct?

ELIOT SPIZER: Yes, but here’s another measure. Put credit default swaps aside for a moment. If you look at the actual interest rate that’s now being paid by the Italian government, it is poking through 7%. That’s not sustainable for a government. When you begin to see Italian Spanish debt hitting that level, crisis is afoot.

~

4closureFraud.org

Comments
19 Responses to “Dylan Ratigan | Eliot Spitzer: “In retrospect, I wish we had put more people in handcuffs.””
  1. lvent says:

    If Obama could do just one patriotic gesture during his current term in office…COULD HE PLEASE THROW BARNEY FRANK IN GUANTANAMO AND LET THE INMATES WATER BOARD HIM FOR LIKE..EVER…..??? PRETTY PLEASE… COULD OBAMA DO SOMETHING TO GET THAT — USELESS TRAITOR DEMON OUT OF THE UNITED STATED OF AMERICA……ASAP….?

    • lvent says:

      Got kind of a funny story for yous guys..I went to see an attorney a while ago who was a freemason…he told me that if Barney Franks plane goes down..we will know this was a Hitler Plan……NOW, TALK ABOUT THINGS THAT MAKE YOU GO HMMM….???? .NOW, WE WHO KNOW THE TRUTH… KNOW THAT BARNEY FRANK IS WORKING FOR THEM.. AND IF HIS PLANE GOES DOWN..THAT WILL MEAN SO IS THEIRS…! LOTS OF RIDDLES AND RHYMES..! MWAHAHA…!!

      • lvent says:

        …and BTW..still is a freemason..I really meant to say I went to see an attorney who is a freemason…and once a hoodwinker, always a hoodwinker..that includes all of the politicians…including, Newtromneypaulsantorumbama….ALL HOODWINKERS..ALL OF THE TIME…INCLUDING, THE MEDIA, CONGRESS AND THE SENATE AND ALL OF THE LEGISLATORS….AND BIDEN AND INCLUDES, AHEM… RAHM EMANUEL…..!!!

      • lvent says:

        THEY ARE ALL, IN REALITY, JUST A GIANT LYING BAG FULL OF VERY EVIL, TOXIC, FRUITS AND NUTS…!!

  2. lvent says:

    We should never forget that GOD CREATED ALL MEN EQUAL..AND GOD SAID, THOUGH SHALL NOT STEAL,….. THOUGH SHALL NOT COVET THY NEIGHBORS GOODS…THOUGH SHALL NOT COMMIT ADULTERY…WELL THESE CROOKS BROKE ALL OF GODS LAWS AND EVEN THEIR OWN…! THIS ENTIRE PLAN WAS ALL BORN OF EVIL AND IS INCREDIBLY EVIL…..BUT GODS TRUE BELIEVERS KNOW THAT GOD HAS A BIGGER AND A BETTER PLAN TO END ALL OF THEIR EVIL..BUT, WE HAVE TO HAVE FAITH…!! GOD SAID…SEEK YE THE TRUTH AND THE TRUTH WILL MAKE YOU FREE….!

  3. lvent says:

    Bloomberg news reporting Michael Jordan is putting his Ilinois manse on the market for $29 million…Come on MJ…dont be a sell out…! You dont need that $$$$$$…you could do the right thing, and you could turn that manse into a homeless shelter…for all of the people who were forced in poverty by the NWO GLOBALISTS..AKA…the Illuminati..! After all, if not for ALL OF US…YOUR FELLOW MAN, WHERE WOULD YOU BE RIGHT NOW….? WE THE PEOPLE ARE WHO REALLY PAID YOUR SALARY AND PAY FOR ALL OF YOUR ENDORSEMENTS….NOT THE NWO GLOBALISTS…AKA THE ILLUMINATI…..THEY JUST ROB ALL OF US TO PAY YOU AND MAKE YOU AND THEMSELVES RICH…..!!

    • lvent says:

      WE THE PEOPLE ARE REALLY WHO PAID FOR AND FUNDED THE HO– USE THAT JORDAN BUILT…AKA THE UNITED CENTER…AND ….IF NOT FOR WE THE PEOPLE……NONE OF THEM OR NONE OF IT WOULD EXIST…!!

      • lvent says:

        …AND THAT ALSO INCLUDES…ALL OF HOLLYWOOD..AND YOU OPRAH…AND ALL OF THE MUSICIANS AND ALL OF THE HIGH PAID ATHLETES AND WALL STREET AND THE LIBRARIANS AND THE LIBRARIES AND THE STATE AND LOCAL GOVERNMENT WORKERS AND THE PENSION FUND HOLDERS AND THE INVESTORS AND THE MULTINATIONAL CORPS AND THE POLITICIANS AND THE MILITARY AND THE MEDIA…AND THE BANKSTERS, AND THE FEDERAL RESERVE SHEISTERS..AND THE LAWYERS AND THE COPS AND THE FIREMEN AND THE FEDERAL RESERVE AND THE JUDGES AND THE TEACHERS AND THE SECRET SOCIETIES AND THE COLLEGE PROFESSORS AND THE COLLEGES AND THE HOSPITALS AND THE DOCTORS…AND….THE ENTIRE FUCKED UP AND CORRUPTED AND — USELESS.. U.S. GOVERNMENT…ETC…..NONE OF IT AND NONE OF YOU … WOULD EXIST WITHOUT WE THE PEOPLE AND THAT INCLUDES PRESIDENT OBAMA, BUSH, CLINTON AND ALL OF THE REST OF THE TRAITOR PRESIDENTS WHO ARE WORKING FOR THE NWO GLOBALISTS…AKA…THE ILLIMUNATI….WE THE PEOPLE ARE THE ONLY ONES WHO FUCKING PAID FOR AND FUND EVERYTHING…SO HAVE FUN WITHOUT US..WHEN WE THE PEOPLE FINALLY ALL DO WAKE UP…AND WE ARE, AND WE WILL…. AND WE THE PEOPLE ARE COMING ….AND WILL INCLUDE THE DAY WHEN, WE THE PEOPLE WILL STOP PARTICIPATING IN ALL OF THIS MASSIVE PONZI SCHEME WITH WE THE PEOPLES MONEY…AND ALL OF THE NWO GLOBALISTS MANUFACTURED B.S. AND CHARADES….!! THEY SHOULD ALL KNOW…NO ONE IS SAFE FROM THESE CRIMINALS …INCLUDING THEM WHEN WE THE PEOPLE STOP PARTICIPATING…AND IT WILL HAPPEN…GUARANTEED…YOU CAN ALL TAKE THAT TO THE FEDERAL RESERVE BANK…..WITH ALL OF YOUR ILL GOTTEN GAINS THAT YOU HAVE ALL STOLEN FROM WE THE PEOPLE…..!! YOU CAN ALL THEN…PISS OFF..AND BURN IN HELL..WHERE YOU ALL BELONG..BECA– USE YOU ARE ALL REALLY JUST WELL PAID ACTORS WHO ARE PAID FOR AND FUNDED BY WE THE PEOPLE…IN ORDER TO LIE , DECEIVE, COMMIT FRAUD AND ROB US INTO POVERTY..AND INDENTURED SERVITUDE AND STEAL OUR FREEDOM AND INDEPENDENCE…AND PROSPERITY…SCREW ALL OF YOU AND SCREW ALL OF THAT…YOUR DAY WILL COME…SOON…BECA– USE GOD HAS A PLAN…FOR ALL OF YOU DIRTY CRIMINAL BASTARDS FOR TRYING TO DESTROY ALL OF GODS PLANS FOR MANKIND…

  4. Ali says:

    I wondered the same thing Nick, I went to my states Public Funds Act 30 ILCS 225, There was a phone number and I called it, left a message and haven’y recieved a return call yet. But from what I can ascertain from the statute is that they are dumping funds that are called “unclaimed funds” into different accounts. Maybe you could look up your States “public Funds Deposit Act”. Hope this helps.

    • lvent says:

      Ali..you will NEVER out the truth..and they made sure of that and heres why…..when the fraudulent MBS’s went PUBLIC…THE PROOF IS ALL IN YOUR PUBLIC RECORDS…THAT IS WHEN THEY DUMPED THE FRAUD INTO THEIR GLOBAL POOL OF TOXIC DEBT….THAT IS PRECISELY WHEN THEY KNEW THE BUBBLE WAS GOING TO BE BURSTED BY THEM…IN MY CASE MY FRAUDULENT, FAULTY MBS WENT PUBLIC IN 2007….
      THEH PROOF OF ALL OF THIS MASSIVE UNSUSTAINABLE DEBT FRAUD IS….
      ALL HIDDEN IN THEIR UNREGULATED SHADOW ELECTRONIC BANK…ALL $1.2 QUADRILLION DOLLARS OF THEIR UNCONSTITUTIONAL, ILLEGAL, FRAUDULENTLY INDUCED AND UNSUSTAINABLE COLLAERAL DEBT FRAUD….!!!

      • lvent says:

        EVERYONE SHOULD LOOK IN THEIR PUBLIC RECORDS FOR WHEN YOUR FRAUDULENT MBS WENT PUBLIC…THAT IS HOW YOU KNOW..THEY DUMPED IT AND YOUR WILL NEVER FIND IT..THEY DID ALL OF THIS IN ORDER TO HIDE ALL OF THEIR MASSIVE UNSUSTAINABLE DEBT FRAUD THAT THESE CRIMINALS COMMITTED IN OUR NAMES WITH OUR NOTES AND OTHER MASSIVE CRIMINAL SECRETS, LIES, DECEPTIONS AND FRAUD…. IT IS ALL HIDDEN IN THEIR UNREGULATED, SHADOW ELECTRONIC BANK….!!

  5. lvent says:

    Yet they are still fraudclosing with impunity and stealing homes they have no legal right to take…!!!…CNBC’s Diana Olick reported this morning that 45% OF LOAN MODS ARE NOW IN FRAUDCLOSURE…..That proves my point about not signing or agreeing to anything…these criminal financial institutions are in so much debt…they destroyed our economy….and it would not be wise for most to refi or get a loan mod…WHY force people into a loan mod who are unemployed or underployed or may lose their livelihood because of a terrible economy that was intentionally created by these very criminal institutions? If you re-establish a new debt and you fail…..you will have little or no legal recourse to save your home…THEY ARE PAPERING OVER THE ORIGINATION FRAUD……These criminal financial institutions created an unsustainable amount of debt out of thin air….$600 trillion dollars in collateral mortgage fraud debt that they owe…WITH NO COLLATERAL TO BACK THAT UP….Shut them down and give the people back their stolen homes…STOP THE FRAUDCLOSURES…Eliot Spitzer for President!!!

    • lvent says:

      I believe that some of the best advice that an attorney gave me a while back was, don’t sign or agree to anything….THEIR DEBT is unsustainable and it can NEVER be paid back…Don’t get set up to fail again so they can take your house back with no legal recourse for the homeowner…this is a Hitler Plan and they want to take every house back and wipe out the middle class so you may never own another home..They want us to own nothing of value. They want debt slavery…a nation of serfs..Please watch the you tube video entitled: The Vatican, Financial Collapse and Depopulation:

      • lvent says:

        you tube search that title…what they want to do is wipe out the middle class…and usher in communism…then totalitarianism….

    • lvent says:

      Max Keiser calls them suicide bankers…they blow up economies and disapear…don’t sign or agree to anything people..this manufactured crisis was a set up by the ruling elite to steal everything from us under the guise of too much debt and they lie and tell you that you signed a mortgage….that mortgage was fraudulently induced..they never lent you any money…when they sold that loan onto Wall Street….they lost their right to legally foreclose! Don’t bargain with the devil!

    • Wayne says:

      I vent e-mail me ……. webnova@aol.com ….. I need some advise

  6. indio007 says:

    The worse part is they are paying these fines with taxpayer money , so in reality they lose nothing.

  7. Nick says:

    Question, If the banks sold off their mortgages to the REMIC Trusts, why do they then get bailed out for the losses to the investors in those Trusts? The Banks are only the servicers of the loans they sold, correct? Are we bailing out something that does not exist, that is mere propaganda? Who are we really bailing out, and where did their losses come from? I just cant see where the banks lost money on loans they sold and received huge inflated value for. Where is our money going? Why? Why arent the king pins going to jail? I mean really, WHY?

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