Elliot Spitzer has a long history of going after Wall Street and the Enron scam back to 2002 he was crime fighting Wall Street irregularities and fraud.
Back in September 2008 the FBI was investigating Wall Street investment firms for their part in the financial collapse of 2008 and the deregulated gambling which caused the 700 billion dollar bailout. The SEC, FTC were asleep at the wheel which through the lack of regulations were negligent and had no laws to back them up. Spitzer however went after AIG when no one else did any type of investigating including the Securities and Exchange Commission.
The executives of Fanny Mae and Freddie Mac were also culpable in the financial meltdown however no details on how they were investigated for fraud.
Today we learn that Wall Street had influenced the credit rating agencies for favorable analysis of their investment instruments and risky derivatives for bribes which is also considered fraud.
Goldman Sachs, AIG and other firms stacked the deck to give themselves high credit ratings as they perpetrated their fraud and sold the derivatives as solidly backed investments. However these derivatives had in reality no collateral including the insurance policies underwriting the scams. One email found in the records from Merrill Lynch executive to Moody’s which is the ratings firm asked for special consideration for a good rating
Our article of AIG’s fuzzy accounting methods drew his attention and he prosecuted the firm.
Elliot Spitzer on Being a Governor’s Caught in a Bind
Elliot pointed out the bubble, the lack of regulations and the structural problems of finance in the USA and claimed there was too much leverage and too much debt. The current system imploded as a result of the historic gambling habit of Wall Street which has happened over and over again.
How quickly the Wall Street gang produced profits so soon after receiving a major bailout from US Taxpayers who want Financial Reform before the economy blows up again in 2010.
tags: Elliot Spitzer today, politicols news, politics and wall street, Elliot Spitzer for Governor, Wall Street scams, politics news 2010.