Is the SEC About to Drop the Hammer on Banksters?

It might finally be subpoena and testimony time for the credit rating agencies and banks whose activities led directly to the financial crisis. According to a report in the Wall Street Journal, U.S. regulators are preparing to file civil fraud charges for some involved with the crisis, and are seeking settlements with the major Wall Street banks whose shenanigans nearly destroyed the world economy. The Wall Street Journal reported Friday that the U.S. Securities and Exchange Commission is nearing the end of its probe into some of the sales and marketing activities of firms who dealt with mortgage macro-transactions. Firms under investigation include JP Morgan JPM, Citigroup C, Morgan Stanley MS, Bank of America's BAC Merrill unit and UBS AG UBS. Last year, Goldman Sachs GS settled its own civil fraud charges with the SEC for approximately $550 million. Goldman had been investigated for its role in marketing a subprime mortgage product. The $550 million fine pales in comparison to the $4 billion that Goldman made off the housing crash, when the company simultaneously sold mortgage-backed products while shorting the housing market. The ensuing crash netted Goldman $3.5 billion after subtracting the tiny fine. In what world is that justice? It would be like robbing a bank of $1 million, and then, instead of spending a day in jail, only having to pay back $125,000 to the bank while keeping the other $875,000. Congrats, Goldman! You just netted 87% on what should have been a felony. Will other banks and credit rating agencies receive the same slap on the wrist as Goldman? Or will Goldman get a free pass (again) because it serves as the staffing agent for the U.S. Treasury department and Presidential administrations? It looks like perhaps everyone involved in the disaster will get a pass. JP Morgan is allegedly going to settle, along with the rest of the banksters who leveraged the economy right off a cliff. The Journal thinks that JP Morgan and most of the other banks facing fraud allegations are going to pay about half (or less) than the $550 million paid by Goldman. It's a wonder the Tea Party folks haven't sharpened their pitchforks and guillotines and turned their attention toward the criminals who started this mess — and who appear poised to walk away with a slap on the wrist and a fine.