The number one reason that the SEC got rid of some documents was to cover up fraud--no surprise to us where financial fraud coverups are endemic in the system.
The article lists all the culpable parties including Bush, Negroponte, Geithner, Bernanke, Paulson, Summers, Rubin, Gramm, etc. Fraud caused The Great Recession and those who committed the fraud are free and wealthy.
The Real Reason the SEC Has Been Shredding Documents For DecadesRead the whole article here
By Washington's Blog
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I pointed out in January that fraud is Wall Street's business model, which is being supported by the government:
Nobel prize-winning economist George Akerlof demonstrated that if big companies aren't held responsible for their actions, the government ends up bailing them out. So failure to prosecute directly leads to a bailout.
Moreover, as I noted last month:The government has not only turned the other cheek, but aided and abetted the fraud.
Fraud benefits the wealthy more than the poor, because the big banks and big companies have the inside knowledge and the resources to leverage fraud into profits. Joseph Stiglitz noted in September that giants like Goldman are using their size to manipulate the market. The giants (especially Goldman Sachs) have also used high-frequency program trading (representing up to 70% of all stock trades) and high proportions of other trades as well). This not only distorts the markets, but which also lets the program trading giants take a sneak peak at what the real traders are buying and selling, and then trade on the insider information. See this, this, this, this and this.
Similarly, JP Morgan Chase, Bank of America, Goldman Sachs, Citigroup, and Morgan Stanley together hold 80% of the country's derivatives risk, and 96% of the exposure to credit derivatives. They use their dominance to manipulate the market.Fraud disproportionally benefits the big players (and helps them to become big in the first place), increasing inequality and warping the market.
[And] Professor Black says that fraud is a large part of the mechanism through which bubbles are blown.
And this environment is ongoing today. See this, for example.
Even when the government has prosecuted financial crime (because public outrage became too big to ignore), the government has settled for pennies on the dollar [as a way to quietly bail out the big banks].
Corruption At the Top Leads to Lawlessness By The People