The inmates are running the asylum and locking up the guards.
When the media first began to spin the raid on the president’s lawyer, they claimed that it had been approved by a Trump appointee. Of course it hadn’t. It came from Rosenstein on one end. And Trump’s appointee had recused himself. That left his deputy, an Obama holdover.
Robert Khuzami. And there are reports that he allegedly made the decision.
Khuzami was in charge of SEC enforcement under Obama. He did speak at the RNC convention in ’04 in support of the Patriot Act and donated to McCain in ’08. But as we’ve seen with Mueller, that kind of thing is old news. The much more significant factor is his SEC gig.
And he has quite the stunning history.
Robert Khuzami made the big bucks as Deutsche Bank’s general counsel for the Americas during the subprime securitization orgy, which Deutsche’s American arm helped unleash with toxic instruments that would crush the economy and millions of homeowners and workers.
Then in 2008 a promising young candidate was elected to bring hope and change to the land amidst a financial crisis that threatened a second Great Depression…
Khuzami became the Obama SEC’s chief of enforcement.
If you really wanted truth and justice and all that from your SEC, you probably wouldn’t go for someone who “worked with lawyers (at Deutsche Bank) who advised on the CDOs issued by the German bank and how details about them should be disclosed to investors,” as The Wall Street Journal noted three years ago.
Hope and change. And it just got worse from there.
On September 27, 2011, the SEC Inspector General released a report revealing that this anonymous attorney at the SEC had sent a letter to the Inspector General, blowing the whistle on the former SEC Director of Enforcement, Robert Khuzami. The whistleblower was complaining about Khuzami’s handling of charges that Citigroup executives had intentionally misled public investors about its exposure to subprime mortgages, understating the amount by $37 billion in the fall of 2007. According to the Inspector General’s report, the whistleblower alleged that:
“…just before the staff’s recommendation was presented to the Commission, Enforcement Director Robert Khuzami had a ‘secret conversation’ with his ‘good friend’ and former colleague, a prominent defense counsel representing Citigroup, during which Khuzami agreed to drop the contested fraud charges against the second individual. The complaint further alleged that the Enforcement staff were ‘forced to drop the fraud charges that were part of the settlement with the other individual,’ and that both individuals were also represented by Khuzami’s friends and former colleagues, creating the appearance that Khuzami’s decision was ‘made as a special favor to them and perhaps to protect a Wall Street firm for political reasons.’ ”
See the full story here.
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