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William K. Black

October 19, 2023

William Kurt Black (born September 6, 1951) is an American lawyer, academic, author, and a former bank regulator.[1] Black's expertise is in white-collar crime, public finance, regulation, and other topics in law and economics. He developed the concept of "control fraud", in which a business or national executive uses the entity he or she controls as a "weapon" to commit fraud.[2]

William K. Black
Personal details
Born
William Kurt Black

(1951-09-06) September 6, 1951 (age 72)
Dearborn, Michigan, U.S.
Alma materUniversity of Michigan, Ann Arbor
University of California, Irvine

Background Edit

Black earned a J.D. from the University of Michigan Law School and a Ph.D. from the University of California, Irvine. Black is currently an Associate Professor of Economics and Law at the University of Missouri-Kansas City in the Department of Economics and the School of Law. He was the executive director of the Institute for Fraud Prevention from 2005 to 2007 and previously taught at the LBJ School of Public Affairs at the University of Texas, and at Santa Clara University.[3]

Black was litigation director for the Federal Home Loan Bank Board (FHLBB) from 1984 to 1986, deputy director of the Federal Savings and Loan Insurance Corporation (FSLIC) in 1987, and Senior VP and the General Counsel of the Federal Home Loan Bank of San Francisco from 1987 to 1989, which regulated some of the largest thrift banks in the U.S.[4][5]

Savings and loan scandal Edit

Black was a central figure in exposing Congressional corruption during the Savings and Loan Crisis. He took the notes during the Keating Five meeting that were later published in the press, and brought the event to national attention and a congressional investigation.

According to Bill Moyers,

The former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri, Kansas City. During the savings and loan crisis, it was Black who accused then-house speaker Jim Wright and five US Senators, including John Glenn and John McCain, of doing favors for the S&L's in exchange for contributions and other perks. The senators got off with a slap on the wrist, but so enraged was one of those bankers, Charles Keating — after whom the senate's so-called "Keating Five" were named — he sent a memo that read, in part, 'get Black — kill him dead.' Metaphorically, of course. Of course.[6]

Financial crisis of 2007–2008 Edit

Bill Moyers Journal appearances Edit

On April 3, 2009 Black appeared on Bill Moyers Journal on PBS and provided critical commentary on the U.S. banking crisis. Black asserted that the banking crisis in the US that started in late 2008 is essentially a big Ponzi scheme; that the "liar loans" and other financial tricks were essentially illegal frauds; and that the triple-A ratings given to these loans was part of a criminal cover-up. He said that the "Prompt Corrective Action Law" passed after the Savings and loan crisis mandated that ailing banks should be put into receivership. Black also stated that trying to hide how bad the situation is will simply prolong the problem, as happened in Japan and resulted in Japan's lost decade. Black stated that Timothy Geithner was engaged in a cover-up, and that the administration did not want people to understand what went wrong or how bad the banking situation was.[6] On April 23, 2010, Black was again interviewed by Moyers to update the public's understanding of the financial crisis.[7]

Testimony before Congress on the bankruptcy of Lehman Brothers Edit

On April 20, 2010, Black testified before the House Financial Services Committee in a hearing titled "Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner."[8] He testified about the role that Alt-A mortgages, what he called "liars' loans," on residential real estate played in the downfall of Lehman Brothers. His testimony was that "Lehman's failure is a story in large part of fraud. And it is fraud that begins at the absolute latest in 2001, and that is with their subprime and liars' loan operations."[9][8]: 73  As explained in his prepared statement, his reference was to Aurora Loan Services, Inc., which was a subsidiary of Lehman: "Lehman's principal source of (fictional) income and real losses was making (and selling) what the trade accurately called 'liar's loans' through its subsidiary, Aurora. (The bland euphemism for liar's loans was 'Alt-A.') Liar's loans are 'criminogenic' (they create epidemics of mortgage fraud) because they create strong incentives to provide false information on loan applications."[10][8]: 122–148 

On the same page in his prepared testimony Black referenced an article from the Denver Post dated September 16, 2008, the day after Lehman filed for bankruptcy. The article reported on the uncertain fate of Aurora Loan Services, which was based nearby, and quoted Lehman's chief financial officer as saying the previous week that, "The majority of our write-downs were in Alt-A driven by an increase in.. . delinquencies and loss expectations." The article also said that Lehman was "among the first of its peers to originate home loans and securitize them for sale across the globe, and it fueled the growth of the Alt-A loan."[11][8]: 126 

Testimony before Irish Banking Inquiry Edit

Black was invited to testify before the Irish parliament's banking inquiry in February 2015. In his testimony, he described the broad September 2008 Irish bank guarantee, as "the most destructive own goal in history".[12]

Works Edit

  • "The U.S. Banking Industry in Transition in Real World Banking", eds. Dan Fireside & Amy Gluckman (Dollars & Sense 2008)
  • "When Fragile Become Friable: Endemic Control Fraud as a Cause of Economic Stagnation and Collapse", White Collar Crimes: a Debate, K. Naga Srivalli, ed., Hyderabad, India, The Icfai University Press (2007: 162–178)
  • "Corruption Kills", International Handbook of White-Collar Crime, Henry Pontell & G. Geis eds. (Springer 2007)
  • "Control fraud v. the protocols", Crime, Law & Social Change, 45(3) (April 2006: 241–258)
  • Black, William K. (2013). The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S&L Industry (Updated ed.). University of Texas Press. ISBN 978-0-292-75418-8. Retrieved 11 May 2021.
  • Black, William K. (December 2005). "'Control frauds' as financial super-predators: How 'pathogens' make financial markets inefficient". Journal of Socio-Economics. 34 (6): 734–755. doi:10.1016/j.socec.2005.07.026. Archived from the original on 10 September 2012. Retrieved 11 May 2021.{{cite journal}}: CS1 maint: bot: original URL status unknown (link)
  • "Control Fraud as an Explanation for White-Collar Crime Waves: The Case of the Savings & Loan Debacle", Crime, Law and Social Change 43(1) (February 2005: 1-29)
  • "The Dango Tango: Why Corruption Blocks Real Reform in Japan", Business Ethics Quarterly 14(4) (October 2004: 602–623)
  • "The Imperium Strikes Back: The Need to Teach Socioeconomics to Law Students", San Diego Law Review, No. 1 (Winter 2004: 231–256)
  • "Beware of Geeks Bearing Gifts: Enron Uses Its High Tech Information System to Defraud", CISIC 2003 Conference Symposium (McGraw-Hill 2003)
  • "Re-examining the Law & Economics Theory of Corporate Governance", Challenge 46(2) (March/April 2003: 22–40)
  • "A Tale of Two Crises", Kravis Leadership Institute Leadership Review, fall 2002
  • "Why do the Non-Heathens Rage?", Journal of Criminal Justice and Popular Culture, 8(3) (2001: 225–276)
  • "The Savings and Loan Debacle of the 1980's: White-Collar Crime or Risky Business?" (with K. Calavita & H. Pontell) Law and Policy 17(1) (January 1995: 23–55)
  • '"Ending Our Forebearers' Forbearances: FIRREA and Supervisory Goodwill", Stanford Law & Policy Review 102 (Spring 1990)
  • Black, William K. (March 2009). "Those Who Forget the Regulatory Successes of the Past are Condemned to Failure". Economic & Political Weekly. XLIV (13): 80–86. SSRN 1536531.
  • Black, William K. (May 25, 2011). "The Two Documents Everyone Should Read to Better Understand the Crisis". HuffPost. Retrieved 11 May 2021.
  • Black, William K. (May 25, 2011). "How the Servant Became a Predator: Finance's Five Fatal Flaws". HuffPost. Retrieved 11 May 2021.

References Edit

  1. ^ (PDF). Archived from the original (PDF) on 2009-04-19. Retrieved 2009-04-05.
  2. ^ Smith, Lars Christian. . Conservation Finance. Archived from the original on 23 April 2009. Retrieved 11 May 2021.
  3. ^ (PDF). School of Law. UMKC. Archived from the original (PDF) on 16 October 2011. Retrieved 11 May 2021.
  4. ^ . UMKC School of Law. 2017. Archived from the original on March 2, 2011. Retrieved May 13, 2017.
  5. ^ also see Norma M. Riccucci (1995). Unsung Heroes: Federal Execucrats Making a Difference; Georgetown University Press.[not specific enough to verify]
  6. ^ a b "Transcript, April 3, 2009: William K. Black". Bill Moyers Journal. PBS. Retrieved 11 May 2021.
  7. ^ "Transcript, April 23, 2010: William K. Black". Bill Moyers Journal. PBS. Retrieved 11 May 2021.
  8. ^ a b c d "Serial No. 111-124 (House Hearing) - Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner". GovInfo.gov. U.S. Government Printing Office. 20 April 2010. Retrieved 29 June 2023.
  9. ^ Hamsher, Jane (April 20, 2010). "Transcript & Video: Bill Black Testimony on Lehman Bankruptcy". FireDogLake. Retrieved April 25, 2010.
  10. ^ "Prepared Testimony of William K. Black" (PDF). Committee Hearing: Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner. United States House of Representatives. April 20, 2010. p. 5. Retrieved September 8, 2014.
  11. ^ Griffin, Greg (September 16, 2008). "Local Lehman arm led in Alt-A loans". Denver Post. Retrieved April 25, 2010.
  12. ^ O'Connell, Hugh (February 5, 2015). "The bank guarantee 'was the most destructive own goal in history that sunk an entire nation'". TheJournal.ie. Retrieved August 17, 2016.

External links Edit

  • Appearances on C-SPAN
  • William K. Black Criticizes the Bailout Plan—Might Destroy the Obama Presidency on YouTube, The Young Turks (talk show), April 6, 2009
  • 2013 TED talk at TEDxUMKC: How to rob a bank (from the inside, that is)
  • Roberts, Russ (February 6, 2012). "William Black on Financial Fraud". EconTalk. Library of Economics and Liberty.
  • "Americans can do anything,..." Black in Huffpost
  • "Adam Smith Was Right About Corporate CEO's Incentives Absent Effective Regulation" ... William Black

October 19, 2023
william, black, william, kurt, black, born, september, 1951, american, lawyer, academic, author, former, bank, regulator, black, expertise, white, collar, crime, public, finance, regulation, other, topics, economics, developed, concept, control, fraud, which, . William Kurt Black born September 6 1951 is an American lawyer academic author and a former bank regulator 1 Black s expertise is in white collar crime public finance regulation and other topics in law and economics He developed the concept of control fraud in which a business or national executive uses the entity he or she controls as a weapon to commit fraud 2 William K BlackPersonal detailsBornWilliam Kurt Black 1951 09 06 September 6 1951 age 72 Dearborn Michigan U S Alma materUniversity of Michigan Ann ArborUniversity of California Irvine Contents 1 Background 2 Savings and loan scandal 3 Financial crisis of 2007 2008 3 1 Bill Moyers Journal appearances 3 2 Testimony before Congress on the bankruptcy of Lehman Brothers 3 3 Testimony before Irish Banking Inquiry 4 Works 5 References 6 External linksBackground EditBlack earned a J D from the University of Michigan Law School and a Ph D from the University of California Irvine Black is currently an Associate Professor of Economics and Law at the University of Missouri Kansas City in the Department of Economics and the School of Law He was the executive director of the Institute for Fraud Prevention from 2005 to 2007 and previously taught at the LBJ School of Public Affairs at the University of Texas and at Santa Clara University 3 Black was litigation director for the Federal Home Loan Bank Board FHLBB from 1984 to 1986 deputy director of the Federal Savings and Loan Insurance Corporation FSLIC in 1987 and Senior VP and the General Counsel of the Federal Home Loan Bank of San Francisco from 1987 to 1989 which regulated some of the largest thrift banks in the U S 4 5 Savings and loan scandal EditBlack was a central figure in exposing Congressional corruption during the Savings and Loan Crisis He took the notes during the Keating Five meeting that were later published in the press and brought the event to national attention and a congressional investigation According to Bill Moyers The former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri Kansas City During the savings and loan crisis it was Black who accused then house speaker Jim Wright and five US Senators including John Glenn and John McCain of doing favors for the S amp L s in exchange for contributions and other perks The senators got off with a slap on the wrist but so enraged was one of those bankers Charles Keating after whom the senate s so called Keating Five were named he sent a memo that read in part get Black kill him dead Metaphorically of course Of course 6 Financial crisis of 2007 2008 EditBill Moyers Journal appearances Edit On April 3 2009 Black appeared on Bill Moyers Journal on PBS and provided critical commentary on the U S banking crisis Black asserted that the banking crisis in the US that started in late 2008 is essentially a big Ponzi scheme that the liar loans and other financial tricks were essentially illegal frauds and that the triple A ratings given to these loans was part of a criminal cover up He said that the Prompt Corrective Action Law passed after the Savings and loan crisis mandated that ailing banks should be put into receivership Black also stated that trying to hide how bad the situation is will simply prolong the problem as happened in Japan and resulted in Japan s lost decade Black stated that Timothy Geithner was engaged in a cover up and that the administration did not want people to understand what went wrong or how bad the banking situation was 6 On April 23 2010 Black was again interviewed by Moyers to update the public s understanding of the financial crisis 7 Testimony before Congress on the bankruptcy of Lehman Brothers Edit On April 20 2010 Black testified before the House Financial Services Committee in a hearing titled Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner 8 He testified about the role that Alt A mortgages what he called liars loans on residential real estate played in the downfall of Lehman Brothers His testimony was that Lehman s failure is a story in large part of fraud And it is fraud that begins at the absolute latest in 2001 and that is with their subprime and liars loan operations 9 8 73 As explained in his prepared statement his reference was to Aurora Loan Services Inc which was a subsidiary of Lehman Lehman s principal source of fictional income and real losses was making and selling what the trade accurately called liar s loans through its subsidiary Aurora The bland euphemism for liar s loans was Alt A Liar s loans are criminogenic they create epidemics of mortgage fraud because they create strong incentives to provide false information on loan applications 10 8 122 148 On the same page in his prepared testimony Black referenced an article from the Denver Post dated September 16 2008 the day after Lehman filed for bankruptcy The article reported on the uncertain fate of Aurora Loan Services which was based nearby and quoted Lehman s chief financial officer as saying the previous week that The majority of our write downs were in Alt A driven by an increase in delinquencies and loss expectations The article also said that Lehman was among the first of its peers to originate home loans and securitize them for sale across the globe and it fueled the growth of the Alt A loan 11 8 126 Testimony before Irish Banking Inquiry Edit Black was invited to testify before the Irish parliament s banking inquiry in February 2015 In his testimony he described the broad September 2008 Irish bank guarantee as the most destructive own goal in history 12 Works Edit The U S Banking Industry in Transition in Real World Banking eds Dan Fireside amp Amy Gluckman Dollars amp Sense 2008 When Fragile Become Friable Endemic Control Fraud as a Cause of Economic Stagnation and Collapse White Collar Crimes a Debate K Naga Srivalli ed Hyderabad India The Icfai University Press 2007 162 178 Corruption Kills International Handbook of White Collar Crime Henry Pontell amp G Geis eds Springer 2007 Control fraud v the protocols Crime Law amp Social Change 45 3 April 2006 241 258 Black William K 2013 The Best Way to Rob a Bank is to Own One How Corporate Executives and Politicians Looted the S amp L Industry Updated ed University of Texas Press ISBN 978 0 292 75418 8 Retrieved 11 May 2021 Black William K December 2005 Control frauds as financial super predators How pathogens make financial markets inefficient Journal of Socio Economics 34 6 734 755 doi 10 1016 j socec 2005 07 026 Archived from the original on 10 September 2012 Retrieved 11 May 2021 a href Template Cite journal html title Template Cite journal cite journal a CS1 maint bot original URL status unknown link Control Fraud as an Explanation for White Collar Crime Waves The Case of the Savings amp Loan Debacle Crime Law and Social Change 43 1 February 2005 1 29 The Dango Tango Why Corruption Blocks Real Reform in Japan Business Ethics Quarterly 14 4 October 2004 602 623 The Imperium Strikes Back The Need to Teach Socioeconomics to Law Students San Diego Law Review No 1 Winter 2004 231 256 Beware of Geeks Bearing Gifts Enron Uses Its High Tech Information System to Defraud CISIC 2003 Conference Symposium McGraw Hill 2003 Re examining the Law amp Economics Theory of Corporate Governance Challenge 46 2 March April 2003 22 40 A Tale of Two Crises Kravis Leadership Institute Leadership Review fall 2002 Why do the Non Heathens Rage Journal of Criminal Justice and Popular Culture 8 3 2001 225 276 The Savings and Loan Debacle of the 1980 s White Collar Crime or Risky Business with K Calavita amp H Pontell Law and Policy 17 1 January 1995 23 55 Ending Our Forebearers Forbearances FIRREA and Supervisory Goodwill Stanford Law amp Policy Review 102 Spring 1990 Black William K March 2009 Those Who Forget the Regulatory Successes of the Past are Condemned to Failure Economic amp Political Weekly XLIV 13 80 86 SSRN 1536531 Black William K May 25 2011 The Two Documents Everyone Should Read to Better Understand the Crisis HuffPost Retrieved 11 May 2021 Black William K May 25 2011 How the Servant Became a Predator Finance s Five Fatal Flaws HuffPost Retrieved 11 May 2021 References Edit University of Missouri Kansas City PDF Archived from the original PDF on 2009 04 19 Retrieved 2009 04 05 Smith Lars Christian Control Fraud Conservation Finance Archived from the original on 23 April 2009 Retrieved 11 May 2021 WILLIAM K BLACK PDF School of Law UMKC Archived from the original PDF on 16 October 2011 Retrieved 11 May 2021 William K Black Faculty Directory UMKC School of Law 2017 Archived from the original on March 2 2011 Retrieved May 13 2017 also see Norma M Riccucci 1995 Unsung Heroes Federal Execucrats Making a Difference Georgetown University Press not specific enough to verify a b Transcript April 3 2009 William K Black Bill Moyers Journal PBS Retrieved 11 May 2021 Transcript April 23 2010 William K Black Bill Moyers Journal PBS Retrieved 11 May 2021 a b c d Serial No 111 124 House Hearing Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner GovInfo gov U S Government Printing Office 20 April 2010 Retrieved 29 June 2023 Hamsher Jane April 20 2010 Transcript amp Video Bill Black Testimony on Lehman Bankruptcy FireDogLake Retrieved April 25 2010 Prepared Testimony of William K Black PDF Committee Hearing Public Policy Issues Raised by the Report of the Lehman Bankruptcy Examiner United States House of Representatives April 20 2010 p 5 Retrieved September 8 2014 Griffin Greg September 16 2008 Local Lehman arm led in Alt A loans Denver Post Retrieved April 25 2010 O Connell Hugh February 5 2015 The bank guarantee was the most destructive own goal in history that sunk an entire nation TheJournal ie Retrieved August 17 2016 External links EditAppearances on C SPAN William K Black Criticizes the Bailout Plan Might Destroy the Obama Presidency on YouTube The Young Turks talk show April 6 2009 Dollars and Sense several articles 2013 TED talk at TEDxUMKC How to rob a bank from the inside that is Roberts Russ February 6 2012 William Black on Financial Fraud EconTalk Library of Economics and Liberty Americans can do anything Black in Huffpost Adam Smith Was Right About Corporate CEO s Incentives Absent Effective Regulation William Black Retrieved from https en wikipedia org w index php title William K Black amp oldid 1175604433, wikipedia, wiki, book, books, library,

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