Re: Lawsuit Against Banks That Helped Enron: Bush Says He's Not in Favor of 3rd Party Lawsuits Somervell County Salon-Glen Rose, Rainbow, Nemo, Glass....Texas


 

Re: Lawsuit Against Banks That Helped Enron: Bush Says He's Not in Favor of 3rd Party Lawsuits
 


12 June 2007 at 11:01:21 PM
salon

Wrote earlier today about Bush saying, in effect, Screw You, to all the shareholders who were fleeced by the actions of the BANKS that helped Enron scam the public. Well, that was from yesterday, TODAY Bush again says SCREW YOU, as he rushes to protect the banks. (Forget all the people who were scammed out of their retirement savings not only because of Enron, but the entities that KNEW what Enron was doing and helped them do it).

The Bush administration said on Tuesday that it is not in favor of third-party class action lawsuits, dealing a blow to the plaintiffs who sought to sue banks that helped put together transactions for Enron before the company imploded in late 2001.

The president believes that excessive litigation costs hurt the American economy, cost American jobs, and discourage participation in the country's capital markets, said one White House official who asked not to be named.

"We don't want to expand the scope of class actions to include third parties," said the official, drawing the ire of the largest U.S. labor federation.

"The punchline here is that the president of the United States thinks that it's OK for investment bankers to participate in outrageous frauds on the public and walk away clean," said AFL-CIO associate general counsel Damon Silvers.

Under this type of thinking, accomplices to crimes would never be charged, because it might overwhelm the jail system and cost a lot of money to process. Better to ONLY prosecute the people who directly commit crimes, not those who help, eh, Bush?

Just more of the Bush administration's actions which have become synonymous with lawlessness.

Update: WaPost on Bush's appalling actions.

But the SEC wasn't the only government agency that Clement heard from. The Treasury Department got into the act as well. Treasury Secretary Henry Paulson sent Clement a letter recommending that the official policy of the government should be to butt out. "Treasury believes that uncertainty related to the primary liability for third parties could adversely affect domestic and international competitiveness of U.S. financial markets by posing unknown risks for entities that do a broad range of business with public companies," Treasury spokeswoman Jennifer Zuccarelli said.

In other words, Treasury argued, since capital is mobile, shareholder protections in the United States cannot be any stricter than those in Albania and the Cayman Islands, lest we lose our business edge. (Which argues -- not that Treasury has any inclination to move in this direction -- for strict, uniform global investor protections precisely because capital is global. But that's another column.) The specter of capital flowing out of the United States has been an obsession of Paulson's since he arrived at Treasury. He's argued that the obligations that the Sarbanes-Oxley Act imposed on CEOs -- having to vouch for the accuracy of their companies' financial statements, that sort of thing -- would cause capital to seek friendlier climes. The fact that U.S. financial markets are swimming in capital has not deterred him.

Paulson is nothing if not empathetic. The former Goldman Sachs chief executive still registers the pain of CEOs struggling with Sarbanes-Oxley. For that matter, Goldman Sachs is one of the defendants from which Enron's defrauded shareholders are seeking damages.

Just in case Paulson didn't pack enough oomph, still one more prominent figure came forward to give Clement his two cents: President Bush. According to Al Hubbard, the president's national economic adviser, "the president believes that it's important to make certain that we reduce the unnecessary lawsuits, because that's a very big burden to the economy which adversely impacts investors." This message, Hubbard said, was conveyed to Clement by deputy White House counsel Bill Kelley. The president's alternative suggestion was that the SEC itself was the proper body to bring lawsuits protecting investors -- not that the SEC has bestirred itself to do so on Enron shareholders' behalf in the 5 1/2 years since Enron went belly up.

In the cause of not adversely impacting investors, the president decided to keep the government from helping investors recover the savings and pensions and retirement nest eggs that they lost in the biggest swindle of modern times. The president's powers may be in irreversible lame-duck decline, but it's good to see his chutzpah is undiminished.

Back, now, to Justice, where the message from the president probably caught Clement's eye. He filed no brief, and when the Supreme Court takes up one (and possibly more) of the cases dealing with bank liability this fall, the federal government will not be there arguing for swindled investors. An appalling appellate court ruling that came down in March -- saying that Merrill Lynch wasn't the least bit liable for Enron's public misrepresentation of a shady deal it had transacted with Merrill Lynch -- may be allowed to stand. Donald Rumsfeld's immortal words have now become official federal policy, at least in regards to investors: Stuff happens.

But only to the schnooks. From the viewpoint of the powerful, the system worked perfectly. The SEC did its job, Treasury weighed in, the president dropped a hint, Justice stayed out, Wall Street prevailed. Is America a great country or what?


Permalink Tags:          
     Views: 857 
Latest Blog Post by salon -Should Govt Be able to exercise pardons for horrible people (Matt Bevins-KY)
More Posts You Might Enjoy
Republican Lies and Hypocrisy- in COURT to KILL ACA Including Pre-Existing Conditions
On the lawsuit Luminant against Titus County Appraisal District (Sep 2016)
Federal Lawsuit filed by Turks Against Somervell County Hospital District and Ray Reynolds
Har-De-Har-Har- Rick Perry Roundup O Day- October 13 2011

 You! Leave a Comment! You Know you Want To!
You must be a registered member to comment on the blog.
Your first post is held pending approval to make sure you're not a spammer bot

 Not registered? Or you can login!

LOGON - Name:Password:

New poster comments are moderated, meaning they won't show up until approved... or not.  Be patient-we have lives outside this blog, so it might take awhile You want to be rude? totally stupid? inappropriate? Racist? Bigoted? Flame war baiter? Your post may be deleted. Spammers or people posting pretend interest comments but really wanting to hawk their latest book or sell stuff or govt propaganda flacks won't see their posts published. Comments do not necessarily reflect the viewpoint of the site owner(salon).
If you have a problem with logging in or registering, please speak up right away. Love your comments. Oh, except spammers
More on commenting



     

Click Here for Main Page



Guest
Today Is  
Saturday, December 14, 2019






Latest Posts

Should Govt Be able to exercise pardons for horrible people (Matt Bevins-KY)
salon 12/13/2019 Views 27

How Specific Does TOMA Notice Need to be (City of Austin v Lake Austin Collective, Inc)
salon 12/13/2019 Views 31

House Judiciary Committee Votes to Send Articles of Impeachment to the Full House for a Vote
salon 12/13/2019 Views 90

Video re: Danny Chambers Drag Racing Around the Square In Youth (Glen Rose)
salon 12/11/2019 Views 79

Video-Somervell County Commissioners Court Dec 9 2019 Regular Meeting- FULL
salon 12/10/2019 Views 73

Video-Somervell County Commissioners Court Dec 9 2019 Special Session
salon 12/10/2019 Views 64


More Blog Headlines
 



Comments

salon > Quick update on this, via Pacer-Click on pic to see larger (Turk Case Update- Telephone Conference Hearing Set for March 8 2019 )

salon > Lance Been awhile. Send me an email at salon@glenrose.net with the names of who you're talking about, above. Also, the newspaper editor is no longer local, ie officed here, but the paper is run.... (What Happened to Jerry Jacene? )

LanceHall > I'd love to see the Hotel Guest books and see if Jacene's name shows up long before he officially *found* the tracks.  I'd like to know if the Visitor's Bureau has emails wit.... (What Happened to Jerry Jacene? )

LanceHall > I see the land or that part of it is now in the hands of Glen Rose's own Corky Underwood. Is Jacene still involved?   I had already informed the Visitor Bureau manager (who's.... (What Happened to Jerry Jacene? )








Home | Blog Home | About | News | Piazza | Calendar | Audio/Video/Open Rec | Search
Write!  |profile | quotes |
top Daily | top Weekly |top Month | top Year | Top All! | archives | subscribe RSS