Mega Banks Hired "Grass Roots" People to Write Letters Against Financial Reform

Feb 12, 2011

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EDITOR’S NOTE: Why would they pay a farmer to sign a letter telling regulators and legislators and newspapers that they are against financial reform? It is really very simple: letter writing works, and when they are published, ordinary people reading them believe a “neighbor” more than they do a politician. That’s how Bulls–t gets to shine. 🙂 Beware of mailbox stuffers and door hangers from grass roots organizations that appeal to your general ideological beliefs — they are pushing an agenda you would probably be against — who do you think comes up with the money for the printing and distribution of those things?

Don’t let anyone substitute a leaflet for your own thinking. Go for the facts and come to your own conclusions — but get the facts from RELIABLE sources.

Who Was Astroturfing Forged Letters Against FinReg?

Today, February 12, 2011, 44 minutes ago | Barry Ritholtz

Q: Why do Burger King Franchisees care about derivatives reform?
A: huh ?

NPR discusses what a Bloomberg reporter found:

Last summer, one still unnamed company hired a PR firm to launch a “grassroots letter writing campaign” on derivatives reform. The PR firm hired a contractor, who hired a subcontractor in Arkansas. And instead of finding real people who care about derivatives — financial contracts tied to some other asset — the subcontractor went ahead and forged letters from grassrootsy sounding people.

The scam is a firm (likely a bank) hires a PR firm, who then hires a sub-contractor, who hires a sub sub-contractor. They send letters to congress, signing them to individual business people as well as Judges and Sheriffs — despite the fact that impersonating law enforcement personnel is a a felony.

This is absolutely unnecessary and serves only to fabricate a false plausible deniability for the original bank. But its a giant scam, and the bank and its employees are still liable for their actions. Anyone fooled by this purposeful chain of contractors simply does not have a clue.

I keep saying this over and over: Its time to prosecute these criminals and put them into general prison population.

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NPR broadcast:

Sources:
Forged Comment Letters Sent to U.S. Regulators Writing Derivative Rules
Silla Brush and Clea Benson
Bloomberg, Nov 30, 2010

http://www.bloomberg.com/news/2010-11-30/forged-comment-letters-sent-to-u-s-regulators-writing-derivatives-rules.html

Forged Letters, And Other Stories From The Trenches Of Financial Regulation
CHANA JOFFE-WALT
NPR, February 12, 2011

http://www.npr.org/blogs/money/2011/02/10/133660842/forged-letters-and-other-stories-from-the-trenches-of-financial-regulation

Posted in bubble, Corruption, Eviction, securities fraud |