13-03-19 Barofsky: JPM accounting appears entirely consistent with fraud

 

Neil Barofsky as TARP Inspector General

Barofsky must be a genius to figure out first, that "the US is pretty fucked", [1] and now, that the US banking regulation system "appears entirely consistent with fraud" - all after leaving office as TARP Inspector General...

I communicated with the office of TARP Inspector General Neil Barofsky, and forwarded to him detailed information regarding racketeering in Bank of America's highest management, including but not limited to Bryan Moynihan. As a reminder, a key condition for any bank to get TARP moneys was declarations of "no fraud" by senior management.

TARP Inspector General Niel Barofsky refused to take any action.

And on the matter of accounting itself, financial analysts called Bank of America's accounting  "delusional" since 2009, after the takeover of Countrywide.  By then, there was no way to account for the plethora of toxic assets, from real estate through mortgages and derivatives, to legal liabilities.

So SEC permitted BofA to file quarterly reports, based on the new accounting method of "taxonomy", (a solid field in the biological sciences) where BofA could generally categorize assets as shitty, shittier, or shittiest... an accounting system that appears entirely consistent with fraud...

Barofsky's role in this enormous heist through his conduct as TARP Inspector General - a watchdog that failed to bark - is not going to be changed by his recent awakening.

JZ

LINKS:

[1] 12-08-07 Neil Barofsky: U.S. 'Pretty Fucked'_Huffington Post

http://www.huffingtonpost.com/2012/08/07/neil-barofsky-were-fucked_n_1753163.html

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Neil Barofsky: $JPM’s Accounting Process Appears Entirely Consistent With Fraud

By CRONKITE – Sat Mar 16, 2013 10:56am – No Comments

“Neil Barofsky, the former watchdog for the government’s financial crisis bailout program, tweeted Friday that JPMorgan Chase appears guilty of “fraud,” or something very much like it:

Neil Barofsky

If I may answer Levin’s question. What he describes is an accounting process that is entirely consistent with fraud.

March 15, 2013 4:06 pm via web Reply Retweet Favorite

Barofsky was referring to Sen. Carl Levin’s (D-Mich.) questioning of top JPMorgan executives during a Friday Senate hearing in regards to the bank’s 2012 loss of more than $6.2 billion dollars, often referred to as the “London Whale” scandal. The hearing, as well as a Senate report released late Thursday, are the culmination of a nine-month investigation into the loss….”

Full article and video