Is This Why They Won’t Prosecute? Top Justice Officials Represented Big Banks, Freddie, Fannie and Mers

Eric Holder and Head of DOJ’s Criminal Division Were Partners for a Firm Which Used to Represent the Big Banks, Fannie, Freddie and MERS

Obama’s Department of Justice isn’t prosecuting any big fish.

Indeed, the Obama administration is prosecuting fewer financial crimes than Ronald Reagan, George W. Bush, George H.W. Bush or Bill Clinton.

This is true even though the big banks – such as Bank of America, Citigroup, JP Morgan and Wells Fargo – committed some fraud, but their entire business model is fraudulent. See this, this, this, this and this.

The same is true of Fannie, Freddie. And even more so with Mers, where its entire purpose – from day one – was fraudulent. Here, here, here, here and here.

So why haven’t the fraudsters running these chop shops been prosecuted by Attorney General Eric Holder, and the head of the DOJ’s criminal division Lanny Breuer?

Reuters helps explain why today:

U.S. Attorney General Eric Holder and Lanny Breuer, head of the Justice Department’s criminal division [watch this to get a sense of Breuer], were partners for years at a Washington law firm that represented a Who’s Who of big banks and other companies at the center of alleged foreclosure fraud, a Reuters inquiry shows.

The firm, Covington & Burling, is one of Washington’s biggest white shoe law firms. Law professors and other federal ethics experts said that federal conflict of interest rules required Holder and Breuer to recuse themselves from any Justice Department decisions relating to law firm clients they personally had done work for.

Both the Justice Department and Covington declined to say if either official had personally worked on matters for the big mortgage industry clients. Justice Department spokeswoman Tracy Schmaler said Holder and Breuer had complied fully with conflict of interest regulations, but she declined to say if they had recused themselves from any matters related to the former clients.

Reuters reported in December that under Holder and Breuer, the Justice Department hasn’t brought any criminal cases against big banks or other companies involved in mortgage servicing, even though copious evidence has surfaced of apparent criminal violations in foreclosure cases.

The evidence, including records from federal and state courts and local clerks’ offices around the country, shows widespread forgery, perjury, obstruction of justice, and illegal foreclosures on the homes of thousands of active-duty military personnel.


While Holder and Breuer were partners at Covington, the firm’s clients included the four largest U.S. banks – Bank of America, Citigroup, JP Morgan Chase and Wells Fargo & Co – as well as at least one other bank that is among the 10 largest mortgage servicers.


Covington represented Freddie Mac …. [and] MERS Corp …. Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JP Morgan Chase and several other large banks.Link


Covington in 2004 also wrote a crucial opinion letter commissioned by MERS, providing legal justification for its electronic registry. MERS spokeswoman Karmela Lejarde declined to comment on Covington legal work done for MERS.

This isn’t as bad as Department of Justice lawyer John Yoo’s letter justifying torture by the Bush Administration, but it’s arguably somewhat analogous, as it is a legal opinion trying to justify blatant illegality.

No wonder top financial crime expert Bill Black says that we have to fire Eric “Place” Holder  and all other government officials who are blocking prosecution of the criminals who caused the economic crisis.

Indeed, it makes one wonder whether the Department of Justice still dispenses justice … or has turned into a “protection racket” for the rich and powerful.

Of course, most of the rest of boys in D.C. are not much better.

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  • Barbara
  • lili

    Folks of Arizona: If you want your government to prosecute Holder for the Fast and Furious madness, take a second look at your banks. Has Holder been anywhere near them?

    If so, bringing down this administration may be easier than you think.

    Always follow the money people.

  • windcatcher

    Conspiratory Fraud? Amazing that the N.W.O criminals have declared war against the American people and overthrown our democracy, national sovereignty and bankrupted the USA with unjustified wars and mortgage fraud in just 10 years!

    Of course the criminals, as planned, have their government operatives in place to guarantee that they will not be prosecuted as they stall for time to orchestrate the next crisis.

    No crimes committed? How about treason? The multinational criminals have declared war against the American people and we will have to fight a revolution to regain our democracy and to bring the criminals to justice; we will fight that revolution, like it or not.

    The only cure for this cancer on our society is to charge the criminals with treason against the United States and to publicly execute them for their treason.

    You cowards can run off to some other country rather than stand and fight for your rights as an American; you are fools to think you can bribe yourselves along in a foreign country for any extended length of time. You certainly are not Americans are you?

  • AngryJim

    It just never ends with the crooks in DC. Both parties are full of absolute traitors, we need a clean sweep and rigorous prosecution and a big show trail for the lot of them. Yes, Obozo and his crew of racist/marxist douche bags are a little worse than others, but Moron Bush wasn’t a heck of a lot better–fair is fair. It was because of W that we got Obozo and crew, he is the moron who signed all the illegal/unconstitutional crap which gave this monster his totalitarian powers. It’s like an idiot(W) handing the keys to a car to a crazed drunk(bozo), hell bent on playing kamikaze with the nation and her people.

    • mike

      Amazing isn’t it? Why do they do it? Because they can. You know what’s even more amazing? Folks keep hiring these idiots….over, and over and over and….. Why do they do it? That’s a da mn ed good question!

  • juandos

    You know this was a very good posting until you laid out this line of shit: “This isn’t as bad as Department of Justice lawyer John Yoo’s letter justifying torture by the Bush Administration, but it’s arguably somewhat analogous, as it is a legal opinion trying to justify blatant illegality“…

    What was this supposed torture you whine about? What did the Bush administration supposedly do to fall afoul of War Crimes Act of 1996?

    You squeamish pussy! There was or shouldn’t have been any reason justify treating the blood soaked followers of the pedophile prophet like crap since their collective claim to fame is hide behind women and children then kill them…

  • kurth

    …..careful….they might be coming for hispanics next !

  • Worden Report

    Considering factors like systemic risk effectively puts some banks above the rule of law. Even if a bankruptcy harms employees and stockholders, the prospect of such harm should not obstruct enforcement of the law. See

  • In the 1889 book “Great Red Dragon: Foreign Money Power In The United States”, the author stated right up front that the goal of the Money Power was “to own the earth in fee-simple.” It’s obvious that these are the steps being taken to finally achieve that goal. See