Aaron Task interviews William Black in the video below. H/tip Karl Denninger at The Market Ticker
More than two years after the financial crisis, Farkas is arguably the only major player in the mortgage industry to face criminal charges. William Black, professor of economics and law at the University of Missouri-Kansas City School of Law, calls the lack of prosecutions a disgrace, and he blames policymakers.
It’s a matter of "unofficial" policy, he claims. "The de facto policy right now is elite frauds go free if they’re in banking because the whole sector is too fragile. That is significantly insane. It will produce the next crisis." Essentially he’s saying officials think it’s more important for the banking sector to make money than it is for them to follow the law.
