If I walk into the local bank, demanding the teller hand over X dollars, I would immediately get tackled and hauled off to jail. If I used a gun in the process, I would probably be shot dead. So someone please tell me why these people get a slap on the wrist, a wink and a nod, and continue to commit grand theft. I guess if you can steal billions, vs. chump change like your average bank robber, it's ok. Jesse James, Baby Face Nelson and Al Capone were just born too soon.
38
Bribes become acceptable when they have enough 0s.
12
We all know exactly where the NYSE floor is. Nothing is stopping private citizens from waiting outside and putting the fear of god into every trader and banker who goes in and out every weekday. There are plenty of ways to intimidate without rising to the level of crime.
6
The banks should at least be denied any business with the federal government. Most US Government credit cards used by agencies for purchases are JP Morgan Chase cards.
10
The bankers look like and come from similar backgrounds as the people charged with making the financial markets do what they are supposed to do. Many of those charged with oversight aspire to join the ranks of the criminal financial sector because they know they'll be able to enrich themselves in the same way.
Start putting these puffy, white collar gangster mediocrities doing nothing for society in jail for stealing billions after billions with those who robbed a convenience for $20 there won't be any more problems. Because then it WILL stop. Cold. Short of doing that, keep watching the nation swirl the drain as the corporate rent-seeking sucks every last ounce of life from the economic dynamic.
From "Confidence Men," by Ron Suskind as he quoted Obama to the banksters: "My administration is the only thing between you and the pitchforks." Except he also said this: "I'm not out there to go after you. I'm protecting you."
That'll do it. I think we see how much respect they had for that.
Heckuva job, Bronco. You protected the wrong people.
Start putting these puffy, white collar gangster mediocrities doing nothing for society in jail for stealing billions after billions with those who robbed a convenience for $20 there won't be any more problems. Because then it WILL stop. Cold. Short of doing that, keep watching the nation swirl the drain as the corporate rent-seeking sucks every last ounce of life from the economic dynamic.
From "Confidence Men," by Ron Suskind as he quoted Obama to the banksters: "My administration is the only thing between you and the pitchforks." Except he also said this: "I'm not out there to go after you. I'm protecting you."
That'll do it. I think we see how much respect they had for that.
Heckuva job, Bronco. You protected the wrong people.
18
Yes, indeed. But the outrage will go nowhere. We are serfs, and though the Emperor has no clothes, he still rules. We can identify individuals who colluded here, and they still don't get charged. What about the high speed trading that uses technology for the same unproductive skimming. Mortals will not be able to do this. All we can do is keep our heads down, avert our eyes as the politicians turn tricks for Wall Street cash, because, hey....they own us.
13
I can't help but wonder. If all the white bankers who manipulated the market
for their benefit and took our economy to the brink of destruction were black bankers, black men and woman of color.
Would they have gotten off so easily?
Would they still be living in their fancy houses?
Would they still be free?
for their benefit and took our economy to the brink of destruction were black bankers, black men and woman of color.
Would they have gotten off so easily?
Would they still be living in their fancy houses?
Would they still be free?
5
85 billion in profit from forex, 9 billion fine. Thats basically having the feds get a 10% cut.
17
This article was 100% right on. These bankers and their corrupt institutions aren't only too big to fail, they are now apparently too big to prosecute and be held responsible. Heads need to roll. I'm sick of the rich getting a pass on behavior that would get the rest of us free room and board in a federal prison. You think this will happen again? Bank on it.
21
That's amazing, isn't it. Sounds like the point of "Les Miserables" or the rage at killing a black man for running away from the police (in justifiable fear) for being stopped for a broken tail light or IRS Management getting no punishment for trying to force Remy Welling to illegally backdate stock options on public companies (tax evasion, embezzlement) and pretend it was all her idea (she, of course, refused -to do it and was fired for it).
Cruel and unusual punishment for basically - nothing or even heroic acts but virtually no punishment for heinous crimes.
Cruel and unusual punishment for basically - nothing or even heroic acts but virtually no punishment for heinous crimes.
6
Just the cost of doing business. Just imagine manslaughter, a $25,000 fine or your first robbery $5,000 fine. The financial system hurts people and society just as personal attacks and violations against other people do. Too big to be penalized. All the fines do means that the public pays more to the institutions to pay for the fines and keep profits up.
9
One question remains - does anyone, literally anyone think this is going to change? We don't have elections, we have auctions with each and every candidate bought and paid for. How does anyone think our elected officials will do anything other than vote in their own self interests? To get elected to federal office, it takes huge amounts of money. Despite what Justice Roberts thinks, this money comes with strings attached. A smart politician is one who stays bought. Too much independence and suddenly there are primary challengers.
It really is the new Gilded Age and this time, the oligarchy is not going to let it get away from them.
It really is the new Gilded Age and this time, the oligarchy is not going to let it get away from them.
10
A corporation is guilty of a felony, but no individual was charged? Isn't there a requirement of intent for a crime to be committed? Isn't intent a human characteristic? I guess corporations really are persons.
As long as we only find institutions guilty of malfeasance and don't send individuals to jail for breaking the law, this is pointless.
As long as we only find institutions guilty of malfeasance and don't send individuals to jail for breaking the law, this is pointless.
7
I'm no economist, but I see that the current federal discount rate -- the interest rate charged to banks to borrow money from the fed -- is a mere 0.75%. Now, can someone please explain to me how, if I'm a banker, I won't just borrow whatever it takes to cover these fines? While I'm at it, why won't I just borrow some more and buy enough U.S. Treasuries so that the interest paid back to me by the government covers all my borrowing, plus makes a tidy profit, to boot?
9
Seems like this editorial has struck a sore point - a lot of people seem to agree. A student of history will certainly see similarities between our present situation and the build up to the French Revolution over a hundred years ago. One of these days a "patriot" will say "I'm not going to take this anymore" and he goes to what he thinks is the "cesspool" - the US Congress - and fires off at few rounds. He escapes to his "fortress home" and is quickly surrounded by 50 FBI and police. The shooter puts out a call to fellow patriots and the FBI and police are surrounded by 1000 armed patriots. The governor calls in the National Guard to surround the patriots. Then, one Guardsman says, "wait a minute - my parents were wiped out financially in 2008 - who am I protecting here?" The Guardsman then turns his weapon away from the fortress and toward his superiors - now what do we do?
3
CRIME PAYS Clearly the message to banks and other financial institutions that are too big to fail is that criminals who work for them are above the law. One of the few legal actions I agree with during the Reagan years was the jailing of numerous banksters and economic terrorists who ripped off both their clients and the US taxpayers. The severe sentences were a strong deterrent to others in the financial community. But now, the message that the same sorts of criminals are getting is that they can get by with a slap on the wrist with the penalties paid by their employers, whose financial institutions were, in many cases, rescued with taxpayer dollars. When homeowners given mortgage loans by banks that knew there was no chance they would repay them are evicted from their homes, in some cases wrongly, the message to the 1% couldn't be more powerful! If you're among the 1% you don't have to worry about the consequences of reckless financial dealings. The rules only apply to the suckers who are among the 99% Is this the sort of country that can survive? Financially or morally? To make the situation even more stark, African Americans are often brutalized or killed by the police, while whites are told to calm down and reassured. These are precisely the wrongs that the colonists wanted to separate themselves from when they wrote the Declaration of Independence. We must return to their values or perish.
8
As the editorial board frequently points out, corporations are not people. Certainly the responsible individuals should be punished, but criminal penalties have no impact on a legal construct like a corporation. Instead, they are borne by innocent stockholders - including many pension and other collective investment funds - and employees. Would the editorial board cheer if banks were forced to layoff employees because of the damage to their business from the penalties you call for?
4
The duration of the criminal acts in this matter, and the extended duration of repeated financial institution acts of public fraud and deception are testimony to government participation in the relatively quiet coup by the oligarchs and plutocrats of our so-called democracy. The US Department of Injustice and the financial non-regulatory agencies will never identify the chain of command and responsibility within financial institutions that commit massive fraud and then demand direct government financial support for the instability their acts create. Instead, the minor tax of hand slapping is a routine practice, and the activities that continue unabated turn our society on its pointed head. Our votes should count....and they are our only option. We should not tolerate candidates who accept funds from fraudsters and who themselves are immune from government investigation when they hide their own illegal acts. We will get only the pretense of justice from the Democrat and Republican oligarchs. These candidates offer minor social programs to address an "inequality problem," while they tolerate, if not enable, the theft of our democratic society.
I see only one candidate who acts based on the facts in front of him, and that is Bernie Sanders.
I see only one candidate who acts based on the facts in front of him, and that is Bernie Sanders.
13
Orange should be bankers's uniform from now on.
4
NO punishment, no behavior change. Why are we so afraid to punish banks. We must lose this fear and punish banks for criminality.
7
It is so hypocritical - and dangerous. An unarmed bank robber gets prison while a banker high up in the hierarchy who commits a crime that could bring financial ruin to the world never loses his liberty. Some justice system!
9
The ONLY time a palpable shiver of fear has ever been apparent in the upper stratas of the banking world was when - for a brief, tantalizing moment - someone publicly posted the names of huge bonus makers after the meltdown in 2008. They freaked over it and why that trend didn't continue remains a mystery. Fines and jail? Are you kidding? When you grossly dominate political contributions in a capitalistic society you are not going to be held accountable by politicians. Get their names AND addresses out there on the net so every last ruined shopkeeper, contruction worker, veteran and homeowner who was ever brought to their knees by the rigged system and you'll see change. Maybe even justice. Get all that rage in places like Baltimore and thousands of other beleagered communties focused where it should be focused.
5
I would recommend one slight change to the headline for your commentary: "banks as Felons" should be changed to read "Banks Are Felons". And they are much more skillful and polished while doing it than your average, run-of-the-mill bank robber.....
6
When you're the captain of a ship, you take the blame (and are blamed) if something goes wrong on the ship. Apparently, CEOs of criminal banks don't adhere to this principle, and neither does the US justice system. Blatant double standards and hypocrisy are the mainstays of American society.
6
And no mention of George Soros?
You are all hypocritical, political hacks-all of ya.
You are all hypocritical, political hacks-all of ya.
1
This is yet another strange aspect of the corporations as people: Whom do you jail?
You steal 89 million and give back 9 million. That is no deterrent for future behavior, in fact it encourages similar behavior in the future. Bob Dylan said it the best"...steal a little and they throw you in jail, steal a lot and they make you king." Funny how the west chastises Russia and China for the way they do business ,and than this is exposed. The lesson here is simple, it's all about money and greed, and the corruption that goes with it.
3
I keep seeing this issue of fines, but no jail over with banks and other institutions whether it is manipulating interest rates or dodging regulation. These institutions have privatized the government and are managing the justice system to fit their needs of making profits and staying out of jail. The government and politicians have become the handmaidens of the banks and the corporations.
6
As much as I sympathize with many of the READERS COMMENTS it is apparent that the real criminals are in Congress and in our governing agencies. Where have they been? What have they been doing? Oversight, regulation, criminal prosecution for malfeasance are the responsibilities of our elected representatives to determine, pass legislation and then conduct oversight and hearings to determine compliance and effectiveness. Why is that function not being pursued? SCOTUS and citizens united assures that mega corporations and their leadership can buy politicians who shelter them from culpability that is a personal responsibility in which criminality can be determined and legal sanctions can be imposed beyond corporate fines. That 'perps' should 'do time' is clearly the sentiment of those who have commented here. So...it is up to our Congressional leaders to make certain that 'punishment fits the crime' and that perps must 'do the time'.
13
Gives new meaning to 'laughing all the way to the bank'.
What's the payoff and for whom, for feeding and fattening a bloated, rotting corpse full of corruption and venality, would be interesting to know.
There are still some honest brokers out there, let them take the helm.
And let all others fail and all the guilty go to jail. We will survive and for the better.
What's the payoff and for whom, for feeding and fattening a bloated, rotting corpse full of corruption and venality, would be interesting to know.
There are still some honest brokers out there, let them take the helm.
And let all others fail and all the guilty go to jail. We will survive and for the better.
8
Consider the people who slave and save for a better life. The financial and investment system should be iron clad for them. The Enrons and Milkens and those responsible for the 2008 Financial collapse devastate these unnamed soldiers. A good dose or two or several of serious punishment for the perpetrators might go a long way.
11
If corporation are people, start treating them like people. Put them in jail.
7
My guess would be, so called regulators will always be a day late and a dollar short, chasing these Banks schemes.
1
Another area in which obama has been disappointing.
2
Matt Taibbi, in a series of scathing and revelatory articles for Rolling Stone, long ago laid bare the criminality behind Wall Street excesses. That nothing really has been done, as this op-ed notes, is a stain upon the president and former AG Eric Holder. Let us see if Loretta Lynch takes up the cudgel, or not. I tend to doubt it.
10
Well after all, the Politicians and Regulators do work exclusively for the wealthy who own the banks. It isn't considered good form to jail your employer.
4
I commend the Justice Department under Eric Holder for the many billions he has been able to return to the U.S. Treasury! Well Done!
3
When I read stores like this I pine for the "Rule of Men" as opposed to the "Rule of Law".
2
If banks are corporations and corporations are people, according to the supreme court, then put the whole dam bunch of them in jail.
6
If you or I plead out on a felony, where will expect to be?
I want to see some senior bankers in jail! Take away their yachts, take away their multi-million dollar bonuses, take away a few of their many homes.
Bankers who manipulate the world currency markets illegally deserve to pay a price that we can all see!
I want to see some senior bankers in jail! Take away their yachts, take away their multi-million dollar bonuses, take away a few of their many homes.
Bankers who manipulate the world currency markets illegally deserve to pay a price that we can all see!
8
Now as through this world I've traveled,
I've seen lots of funny men;
Some will rob you with a sixgun,
Others with a fountain pen.
--Woody Guthrie
I've seen lots of funny men;
Some will rob you with a sixgun,
Others with a fountain pen.
--Woody Guthrie
14
Too big to jail. I have been saying this for years. Banks have their own set of accounting rules. They seem to lack the traditional simple debit credit style of accounting. We are in for another reset, adjustment, call it what you may, but hang on. Bad boys behave badly when not punished.
1
no jail for the banksters and wall street wolves that broke our - and the world's - economy, no jail for admitted torturers.
this administration has decided there are just too many people who are too important to go to jail
we the citizens on the other hand - had better watch our step
this administration has decided there are just too many people who are too important to go to jail
we the citizens on the other hand - had better watch our step
6
Can we look forward to having this become a precedent for, say, bank *robbery*? Shall I now be able to rob a bank and have a felony conviction be a mere "embarrassment" as long as I promise not to do it again for a few years?
9
For what its worth, not much, I'll add my comments. I want to say they should go to jail, but it is noteworthy that even in the NYT article there are no names named. Who are these thieves? Can we not at least name them so when they go to the country club, fingers can be pointed?
11
Crime simply pays when you're big enough. Our government; legislative, executive and judicial branches, now serve nothing but the interests of the rich. We might want to think about getting our democracy back.
7
What is somewhat pathetic or sad is that instead of getting out and protesting and showing our disgust we all just sit behind our computers and type.
Note to everyone-they. don't. care.
Until we string some of these thieving crooks up to lamp posts or roll out the tumbrils this will continue unabated.
Note to everyone-they. don't. care.
Until we string some of these thieving crooks up to lamp posts or roll out the tumbrils this will continue unabated.
2
Love your law and order mindset. Not sure where it came from, but what difference does it make.
So will you please spend time tonight crafting tomorrow's editorial asking for he prosecution of Hillary Clinton for illegally deleting her emails, for lying about Benghazi, for allowing unsecured exchanges over a private (illegal) account.
Then I'll worry about bankers and "currency manipulation." At least they didn't leave any dead ambassadors.
So will you please spend time tonight crafting tomorrow's editorial asking for he prosecution of Hillary Clinton for illegally deleting her emails, for lying about Benghazi, for allowing unsecured exchanges over a private (illegal) account.
Then I'll worry about bankers and "currency manipulation." At least they didn't leave any dead ambassadors.
1
The President dines with the CEOs of these renegade banks. The Clintons give paid speeches and cash the checks of their friends, the bankers.
Meanwhile, the Justice Department raids farms who sell raw milk while the cops roust someone with a joint in there pocket.
This is what passes for federal oversight and justice today,
Meanwhile, the Justice Department raids farms who sell raw milk while the cops roust someone with a joint in there pocket.
This is what passes for federal oversight and justice today,
4
There's only one way to make a statement the big banks will appreciate.
Send the police into poor neighborhoods of color and make a bunch of phony arrests that result in jail time for the young male residents. With that distraction in play, big banks will be able to continue doing what they do best: robbing the citizens of the United States.
Send the police into poor neighborhoods of color and make a bunch of phony arrests that result in jail time for the young male residents. With that distraction in play, big banks will be able to continue doing what they do best: robbing the citizens of the United States.
3
No punishment? Maybe it's time for implementation of a complete transparency stipulation by these felons. They must publish a complete list of money transfers --- in real time --- instantaneously. There is no way this crime was accomplished without off-shore accounts and shadow banks. With electronic transfers this would be a simple set of algorithms. Information could be shared by regulators in all relevant locations.
Certainly, this would discourage other banks from committing crimes.
Certainly, this would discourage other banks from committing crimes.
Seems I remember Bill's political advisor (James Carville) saying, a good-number of years ago, that if he could come back in the next life, he'd want to be the "bond market" -- the most powerful creation in the world.
Same thinking on this bank case. The resulting conclusion is: "too big to punish."
And we worry about the negative possibilities of AI. But we already have our Frankenstein monster -- our financial system.
Same thinking on this bank case. The resulting conclusion is: "too big to punish."
And we worry about the negative possibilities of AI. But we already have our Frankenstein monster -- our financial system.
1
As a practicing attorney, my thoughts are these: Justice Department lawyers are afraid to battle these cases through the courts against the best defense money can buy on behalf of the corporations. US Attorneys put people in jail every day for far lesser offenses than those committed by the bank employees. There is no other reason plea agreements would let the employees walk away with no conviction and no penalty.
4
There are a lot of comments about how the banks have gotten off easy, and I agree, but it's not that simple.
To actually do something about this, first you have to do something about the system. The Justice Department would have pressed for real penalties, but they made a judgment that the decades it would take and the hundreds of millions it would cost to prosecute and the real possibility that in the end, the banks would avoid any penalty at all ... I can see why they did what they did.
This is something that started out wrong. I'm reading a book about the Justice Department back in the late 1800's. The US Attorney for Arizona Territory tried for twenty years to get a judgment against a big mine that was stealing timber from federal land. The mine just played out the clock and never had to pay a dime.
Corporations are evil. They're like disease, earthquakes, or hurricanes. They're something we need to find better ways to fight.
To actually do something about this, first you have to do something about the system. The Justice Department would have pressed for real penalties, but they made a judgment that the decades it would take and the hundreds of millions it would cost to prosecute and the real possibility that in the end, the banks would avoid any penalty at all ... I can see why they did what they did.
This is something that started out wrong. I'm reading a book about the Justice Department back in the late 1800's. The US Attorney for Arizona Territory tried for twenty years to get a judgment against a big mine that was stealing timber from federal land. The mine just played out the clock and never had to pay a dime.
Corporations are evil. They're like disease, earthquakes, or hurricanes. They're something we need to find better ways to fight.
6
In the late 1970's/early 1980's, a fellow I remembered from high school was sent to prison for selling non-tax-paid liquor: moonshine. The ATF arrested him, he was found guilty in federal court and sent to a federal prison, the type called "Club Fed".
When he had served his time, he returned to his wife and family in our small town. I saw him one day, and asked how he was doing. He responded that he was doing okay, it was just hard to be away from his wife and the kids. Then he said, "The prison wasn't bad at all. I met some of the nicest people I've ever met - bankers, lawyers, politicians."
After he returned to his home, he went to work in an actual job, making honest money. That's what prison is for - to convince the criminal to get an honest job.
Why don't we give that opportunity to be rehabilitated to all of today's bankers, lawyers, and politicians who are involved in criminal activity?
When he had served his time, he returned to his wife and family in our small town. I saw him one day, and asked how he was doing. He responded that he was doing okay, it was just hard to be away from his wife and the kids. Then he said, "The prison wasn't bad at all. I met some of the nicest people I've ever met - bankers, lawyers, politicians."
After he returned to his home, he went to work in an actual job, making honest money. That's what prison is for - to convince the criminal to get an honest job.
Why don't we give that opportunity to be rehabilitated to all of today's bankers, lawyers, and politicians who are involved in criminal activity?
4
Obama's attorney generals are like puppets on a string the new one is no different from the old one. The phony democrat president we have is of course the one that's pulling the strings.
The Editorial Board is right. This is not a crime these big banks inherited when they acquired distressed institutions with shady histories during the depths of the crisis in 2007-2008; this is illegal activity the banks - meaning their executives - committed knowingly and willingly.
Manipulating markets is illegal, and puts the world's financial systems at risk. Without trust and enforceable rules, there can be no free markets.
The Justice Department needs to seek out those who made the decisions to carry out these crimes, and prosecute them.
And if these banks are too big to be meaningfully punished, then that's just another name for "too big to fail." It may be time for a government program of mandated, controlled, real downsizing.
Manipulating markets is illegal, and puts the world's financial systems at risk. Without trust and enforceable rules, there can be no free markets.
The Justice Department needs to seek out those who made the decisions to carry out these crimes, and prosecute them.
And if these banks are too big to be meaningfully punished, then that's just another name for "too big to fail." It may be time for a government program of mandated, controlled, real downsizing.
4
I can tell you who paid the 85 billion. For the most part it was the holders of commercial mortgages who were convinced to enter a swap deriviative on their mortgage with the promise of a fixed rate and payment amount by their loan officer who did not understand the process to begin with either. Never was it spoken that if the LIBOR rate (at the time already the lowest it had ever been) went down that their payment would double or triple and they would have a prepatment penalty that was nearly 15-20% of their loan payment if they tried to sell the asset. Certainly appears to be quite the conspiracy to me. And they appear to have gotten away with it despite the lives it totally ruined.
4
Lawlessness seems to be winning. The banksters have had their hands slapped while the shareholders will pay the bill. The illegal aliens cross our border, demand amnesty and the President bends, while millions of legal aliens are spending thousands of dollars and many years waiting in line; thugs are (mostly) freely terrorizing our neighborhoods, doing and dealing drugs, robbing, raping, and getting off with either no time or minimum. Meanwhile, millions of honest, hardworking American taxpayers struggling to keep their families afloat, are left footing the bill for the lawbreakers. It's a pity to see what our nation has become, especially under the current administration.
1
Too big to indict, too big to arrest, too big for life imprisonment. Felons who have ruined the little man's life for good. They should by tried in a Criminal Court for first degree murder of the living dead. But what's new? We have the likes of Cheney and his cohorts who committed war crimes living free. So it's a matter of relativity. Banks can always have that as precedent.
3
When Mitt Romney made the infamous statement, "Corporations are people, my friend," he was deflecting a college student's question of why corporations are taxed so lightly so that most of the tax burden falls on people, i.e. natural persons. I don't know whether the student was prevented from asking a follow-up question, or was just to bewildered to ask one, but the question raised by that non-answer was, Why are these people - corporations - favored by tax laws over other people - human beings?
I wish there had been someone around to say, "Answer the question, Mr. Romney."
I wish there had been someone around to say, "Answer the question, Mr. Romney."
3
There are two classes of people in this country. The ones that work hard to keep their heads above water and the minority that dose not work hard to keep everybody else underwater.
8
In earlier times of our economic system (albeit within memory), businesses took on something called "risk." Often the "risk" led to boom, but other times to bust. Now the emphasis has shifted and the "risk" - - and the consequences of it - - have been transferred to the customers, the shareholders and the taxpayers. Is this, then, not a different "economic system" altogether? They have simply tried to take "risk" out of the equation, and don't even say "I'm sorry" when someone else (you and me) ends up footing the bill for their recklessness.
6
Did any reasonable person think that this case would turn out any different? These banks, as well as the American legal system, are rotten to the core. A small fine will not change their larcenous behavior.
3
Given these fines and the fines the big banks have paid in relation to the bad mortgages sold to fannie mae, etc i just have to laugh at the world we live in. Writing of corporations in 1817 James Madison said- "the growing wealth acquired by them never fails to be a source of abuse"
3
The fines should have been 85 billion--their total revenue for the 5 years. Hopefully, that would also being about clawback of salaries and bonuses including stocks.
8
I share the outrage of the NYT editorial board on this issue, but having thought about this regularly since the "original crime" (the 2008 subprime crisis and subsequent recession/depression) I see no way out as long as politicians are in the pockets of bankers. Like so many others in this blog it would be a dream come true if Warren or Sanders were to become President but if we're all really honest with ourselves we know that's a pipe dream. Every other serious candidate on both sides of the isle is funded by either big banks and/or billionaires with a specific agenda (which typically doesn't involve holding banks more accountable). My personal solution is to assume the banks will stay in control, never be punished in any meaningful way and just work for justice in my own community. If each of us does that then collectively we can move the dial on justice in a better direction! :-)
4
The government for all these years have given a pass to individual employees who engineered this criminal behavior. Some of this criminal behavior has gone to the top of the house. The motive of these employees is to enhance their personal gain through promotions and bonuses. People at the top always profess their innocence since their claim is that rogue employees did it. However, their guilt lies with the fact that they consciously put blinders on when certain areas of the institution start making extraordinary profits way beyond their historical levels. Until employees, up to the executive level are held criminally liable this behavior will continue.
2
It's absurd. Gov. Rod Blagojevich is serving a 15-year sentence in federal prison for trying to sell President Obama's senate seat; trying to sell it. As you ponder him and his sorry fate do bear in mind that selling "this" for "that" is what politicians do; sell this for that. New Orleans got an NFL team franchise in return for the NFL receiving non-profit tax status from the Senate Ways and Means Committee whose chairman just happened to be the senior senator from Louisiana -- and nobody was indicted, let alone went to prison; just one example of countless others.
Here, we have bonafide criminal activity infinitely more costly to its victims -- consumers, non-institutional traders and taxpayers especially -- the theft of tens of billion of dollars given the enormous size of the debt and FOREX markets. But nothing happens to its instigators and architects. Even the fines levied are picayune in comparison to the corporations' winnings from the heist.
When people hear the phrase "bank robbery" they usually picture a masked man with a gun standing at a bank teller window demanding money. The idea that a consortium of bank corporation executives would conspire, then act in concert, to rob entire nations doesn't usually come to mind. Yet this is precisely what they were doing: bank robbery on a massive scale -- and with impunity.
And nothing will change. Before too long it will be back to business-as-usual: fleecing the public again, just in some new imaginative way.
Here, we have bonafide criminal activity infinitely more costly to its victims -- consumers, non-institutional traders and taxpayers especially -- the theft of tens of billion of dollars given the enormous size of the debt and FOREX markets. But nothing happens to its instigators and architects. Even the fines levied are picayune in comparison to the corporations' winnings from the heist.
When people hear the phrase "bank robbery" they usually picture a masked man with a gun standing at a bank teller window demanding money. The idea that a consortium of bank corporation executives would conspire, then act in concert, to rob entire nations doesn't usually come to mind. Yet this is precisely what they were doing: bank robbery on a massive scale -- and with impunity.
And nothing will change. Before too long it will be back to business-as-usual: fleecing the public again, just in some new imaginative way.
45
Being at the root of major economic/ financial crises in recent years if the banks have ceased to be bankable public entities; by showing undue indulgence towards the former rather being complicit with their wrongdoing and public plunder the regulatory bodies too have lost their credibility and public trust, earning a bad name for capitalism and free market.
2
"Rigging the value of the world's currency" sounds almost romantic and daring do. In plain language what the banks were doing was cheating their customers.
This wasn't a regulatory felony this was a good old fashioned stealing felony and should have had the same consequences. It may be in the public interest that the banks stay in business but it is not in the public interest to accept that the bank officers and employees are too big to jail.
This wasn't a regulatory felony this was a good old fashioned stealing felony and should have had the same consequences. It may be in the public interest that the banks stay in business but it is not in the public interest to accept that the bank officers and employees are too big to jail.
16
There two sides of US. One side, front one, tell the world, particularly to China and Russia, to honor rule of law. The other side, sneaky one, break laws for the convenience of the elites. Breaking Geneva Convention by torturing POWs by the decisions of political elites or Felons or illegal activities by the financial elites. These elites are privileged people particularly protected by our democratic institutions created by the founding elites. And yet, these elites have been decaying our democratic institutions without shame. If we can't change our culture, we had better not to tell the world, 'Honor the rule of law'.
13
Do we have rule of law or don't we???
Does our judicial system have a backbone or not? It appears not!!!
How quickly the banks demand rule of law to enforce their contracts and foreclose on homes driving a public to the streets after loosing their jobs due to the banks killing the economy..... Yet how quickly the banks cry and hide and purchase a "deal" when their own selfish wrong doing comes to light.
If the courts do not enforce the law then they are complicit in the crime.
This is how a civilized society becomes de-stabilized.
Does our judicial system have a backbone or not? It appears not!!!
How quickly the banks demand rule of law to enforce their contracts and foreclose on homes driving a public to the streets after loosing their jobs due to the banks killing the economy..... Yet how quickly the banks cry and hide and purchase a "deal" when their own selfish wrong doing comes to light.
If the courts do not enforce the law then they are complicit in the crime.
This is how a civilized society becomes de-stabilized.
20
More proof crooks control business and the government. Where is the justice for the people who were ripped off by this? What about damage done to 'the economy' by this? The whole thing is a big festering maggot filled pile of rotten baloney. Disgusting.
13
why don't we nationalize banks? then we could be confident they are not gouging or betting against their customers or taking unnecessary risks or pimping Congress to write more favorable laws. Where is the argument?
12
Well........the flaw in your argument is simple: Nationalize banks - then the government has complete control of the banks. Instead of having to rely on bankers for campaign donations, jobs for family and friends, jobs on the board of directors, etc. indirectly, the politicians can do their looting directly.
Do you really want the foxes in charge of the henhouse?
Do you really want the foxes in charge of the henhouse?
1
How confident are you that the government wouldn't gouge or bet against their customers or ...
I'll trust a private sector crook over a public sector crook any day.
I'll trust a private sector crook over a public sector crook any day.
1
The Justice Department is reportedly weighing criminal charges against GM for the ignition debacle -- and also thinking about criminal charges against the individual people involved. Fair enough.
But why isn't any single banker being charged with criminal conspiracy in this ugly scheme? People, not banks, talk to each other. If the banks committed crimes, it wasn't by magic: human beings were knowingly involved. Why no criminal charges against these bankers?
But why isn't any single banker being charged with criminal conspiracy in this ugly scheme? People, not banks, talk to each other. If the banks committed crimes, it wasn't by magic: human beings were knowingly involved. Why no criminal charges against these bankers?
21
This is another example of just how much the banks and Wall Street control Washington. They always had pull with Republicans but there was a time when having a Democrat in the White House meant they would be properly controlled. No more. They have never had a better friend than Barak Obama, the supposed Democrat.
The nation needs a real Democrat in the oval office after this fake one leaves and right now that prospect is, unfortunately, very dim.
The nation needs a real Democrat in the oval office after this fake one leaves and right now that prospect is, unfortunately, very dim.
14
In cases like this the people responsible should be sent to prison. Fining the banks is ridiculous, since the fines are just chump change to them and are paid by the investors anyway. Since five dimwits on the Supreme Court declared corporations people they should be treated like people. Shoplifters who steal a loaf of bread go to jail, why not these thieves of billions of dollars? If I can go to jail for smoking marijuana in the privacy of my own home, these miscreants should be thrown under the jail. If the economy collapses as a result, which I doubt, our skewed economy could use a serious restart anyway. I grow more and more ashamed of this country every day.
17
Absolutely right: if corporations (banks are corporations) are people, as SCOTUS has ruled, throw the entire corporation into a special "corporate" jail. In other words, the corporation goes away, period, and also, the buck doesn't stop with some low level manager. CEOs and the entire Board must have the threat of incarceration. Nothing changes otherwise.
A youth gives a Baltimore office an askance glance and runs, and ultimately loses his life in the name of police enforcement.
Executives collude at an incomprehensibly global scale to fleece society of tens of billions of dollars, and are sternly spoken to and asked to pay the equivalent of a parking ticket.
I used to revel in dystopian novels depicting the perversion of justice, but there is no reveling in this.
Executives collude at an incomprehensibly global scale to fleece society of tens of billions of dollars, and are sternly spoken to and asked to pay the equivalent of a parking ticket.
I used to revel in dystopian novels depicting the perversion of justice, but there is no reveling in this.
13
You left out George Soros. He is king of currency manipulation. Now one seems to care except in Asia.
3
The great Roman Empire gradually disintegrated over two centuries fundamentally because it's constituents ceased to believe in it. Imbalance of wealth and a sense of unfairness of justice are two of the most common factors cited in this phenomenon. Today the city of Rome is little more than a dirty, somewhat romantic and picturesque tourism destination largely inconsequential to the world's affairs.
I'm just sayin', as kids say today.
I'm just sayin', as kids say today.
12
Over and over again; the criminal justice system is in disarray. Steal millions of dollars from many by manipulating exchange rates; it is called white collar crime and an "embarrassment" to be found out. Create sham cancer charities and reward yourself with large salaries; it called a misspending of funds. Manipulate the copper prices by hoarding it in warehouses; it is prudent resource management. Accumulate patients and treat them all with the same drug for some eye problem and bill Medicare; it is called aggressive treatment.
Pick-pocket 10 Dlrs. from a person and you are arrested and go to jail.
Pick-pocket 10 Dlrs. from a person and you are arrested and go to jail.
13
They stole billions, but as bastions of free enterprise capitalism that is okay. Free in the sense they get access to all the funds and protection necessary. But if they had stole some food stamps they may be put out on the street.
12
I don't get the outrage.
These poor crooks. With that excessive fine they only made a bit over a thousand million dollars a month for those five years and they'll probably have to be a lot more careful in the future.
Heck that would have only paid for about a million two hundred thousand workers each month at an average pay of $850/week and what family can live on that?
That is the sort of HOPE (springs eternal sucker) and (got any spare) CHANGE I voted for .....twice.
Who said there is one born every minute?
Hit the snooze button again America.
These poor crooks. With that excessive fine they only made a bit over a thousand million dollars a month for those five years and they'll probably have to be a lot more careful in the future.
Heck that would have only paid for about a million two hundred thousand workers each month at an average pay of $850/week and what family can live on that?
That is the sort of HOPE (springs eternal sucker) and (got any spare) CHANGE I voted for .....twice.
Who said there is one born every minute?
Hit the snooze button again America.
11
The emperor has no clothes. It's now obvious for the commoners to see, that there cna be no justice under the current system. End of story.
12
Where is the demand for justice??? Another cost of doing business collusion scam where the soft touch of media barely nudges the soft touch of the DOJ.
8
We can whine and complain all we want about bankers getting away with crime after crime but in the end who should we be unhappy with?
The same entity that writes our laws and is in charge of seeing them administered is at fault- the government. Yes it would be nice if bankers played by the rules without coercion but it seems they have figured out crime pays.
If you cannot see the collusion going on here I feel sorry for you. The financial industry not only donates substantially to political campaigns they have a large army of lobbyists residing at K Street. Politicians arrive at office compromised and then are bombarded by the lobbyists in expensive suits with silver tongues. I guarantee you if they arrive in D.C. innocent they are turned within the first year of their term. Do not underestimate the power the financial industry wields.
The only recourse we have as a nation to get this situation under control is to remove the money from the political process. If you care at all about the future of your country you will unite and with a with a unified voice DEMAND CAMPAIGN FINANCE REFORM.
We will never have a safe nor equitable monetary system when we move from one crash to another operating under the same paradigm. The cycle of crash, write legislation, water down legislation, remove legislation, crash- repeat is insanity. Remove money from political campaigns and we will eliminate this cycle.
Cut the head off the snake- money- is strangling our government.
The same entity that writes our laws and is in charge of seeing them administered is at fault- the government. Yes it would be nice if bankers played by the rules without coercion but it seems they have figured out crime pays.
If you cannot see the collusion going on here I feel sorry for you. The financial industry not only donates substantially to political campaigns they have a large army of lobbyists residing at K Street. Politicians arrive at office compromised and then are bombarded by the lobbyists in expensive suits with silver tongues. I guarantee you if they arrive in D.C. innocent they are turned within the first year of their term. Do not underestimate the power the financial industry wields.
The only recourse we have as a nation to get this situation under control is to remove the money from the political process. If you care at all about the future of your country you will unite and with a with a unified voice DEMAND CAMPAIGN FINANCE REFORM.
We will never have a safe nor equitable monetary system when we move from one crash to another operating under the same paradigm. The cycle of crash, write legislation, water down legislation, remove legislation, crash- repeat is insanity. Remove money from political campaigns and we will eliminate this cycle.
Cut the head off the snake- money- is strangling our government.
12
For all the commenters here who rightly call for criminal prosecution of individuals involved in institutional fraud and not just negotiated plea deals for the institutions themselves, I would suggest that they look at the number of Justice Department and SEC officials who transition from public service to lacerative second careers within the institutions that they oversee and that break the very laws that they are supposed to enforce. They are not about to burn the cart that carries their ultimate payoff, are they?
12
If the prosecutors undertake the specific steps urged in this piece, long, complex and certainly expensive inquiries would result, a seemingly endless road with no certain results. Indeed such actions conceivably could anger the institutions involved and may cause them to react in ways which would be counter-productive. Before prosecutors simply go ahead based on what is known to date, I think Congress should hold hearings. Many aspects should be looked at, not all strictly legal/regulatory, given the impactful consequences a further wave of prosecutorial effort could have (e.g., on thousands of employees, the banking sector, the economy at large, possibly). Once the committee's conclusions and recommendations are known, public authorities will have a better picture whether and how to move ahead in this area.
These sad days of relentless corporate crime might one day be recorded as the beast that devoured democracy. How could a President, supposedly schooled in the Constitution of our country, become a party to such criminal behavior? How could a Congress, elected by citizens conspire to such a degree as to become adversaries of democracy? I live in New Mexico, a transplant here from NYC 30 odd years ago and spend some time writing to my two senators, Udall and Heinrich regarding these and other matters of concern. Nice guys, I admit, but seemingly lacking any of the inner fortitude so necessary to a decent political process.
As we all know, this corporate behavior, now sanctioned by a non punitive judicial system, is only the tip of the iceberg. Complaining has produced little or no results so what can be done? It is my small opinion that the issue for those with the ability to influence, including this paper, have to somehow develop an operating agenda that can bring constructive change to our process. How that can be accomplished should be the priority of all intelligent of right minded people.
As we all know, this corporate behavior, now sanctioned by a non punitive judicial system, is only the tip of the iceberg. Complaining has produced little or no results so what can be done? It is my small opinion that the issue for those with the ability to influence, including this paper, have to somehow develop an operating agenda that can bring constructive change to our process. How that can be accomplished should be the priority of all intelligent of right minded people.
7
It's time for citizens to take a stand since President Obama's Justice Department will not. Take your money out of these criminal banks, sell any shares, rip up their credit cards, make no transactions with them and make sure you tell them why. In Rhode Island I didn't do business with the Mafia, so why should I do business with banking criminals (even though they do offer lower interest on loans). The mafia was mostly shut down because of the RICO law. They were jailed not always on specific charges, but for operating criminal enterprises. The RICO law is what sent Providence's former mayor, Buddy Cianci to jail. Lets use this law to send these bankers running criminal enterprises to jail.
12
Wealthy and important persons rarely, if ever, go to jail. Their influence is too large. AMERICA is now a full-fledged plutocracy; it is quite clear that the center of power here (and in England as well) is in the large corporations and their CEO's. The judicial system does their bidding. The court which determined that "Chase", "Citi" , and "Barclays" are guilty of a felony is nothing more than a mop up presentation to take care of information which regrettably leaked. More care will be taken henceforward to prevent such lapses. In any event, you can be certain that no evidence will be found linking any of the higher ups to the criminal acts.
8
Most of the felonies occurred during a Republican administration; this painless reprimand occurred during a Democratic administration. Payment of the fines comes from bank funds, from stockholders. No individual banking official is punished, even reprimanded or hindered in their ongoing practice.
This is evidence that both parties are owned by really Big Money and only pretend to care for the 90% during election campaigns.
This is evidence that both parties are owned by really Big Money and only pretend to care for the 90% during election campaigns.
7
Jail time is the obvious answer, along with breaking up the big ones, but since we are not in a democracy and the banks have bought and sold our politicians maybe we can try something else.
We force felons to disclose their convictions on job applications, we should do the same to corporations, since they are now people. How? Mandate that all communications between the corporation and the public-- advertising, contracts, PSAs--contain a disclaimer, written or spoken in legible print stating that they have been convicted of this specific crime.
Further, levels of ad spending and placements shall be maintained for the 7 years, this applies after each conviction.
We force felons to disclose their convictions on job applications, we should do the same to corporations, since they are now people. How? Mandate that all communications between the corporation and the public-- advertising, contracts, PSAs--contain a disclaimer, written or spoken in legible print stating that they have been convicted of this specific crime.
Further, levels of ad spending and placements shall be maintained for the 7 years, this applies after each conviction.
3
What we seem to forget is that behind corporations there are individuals. We punish the corporations by making them pay fines (ridiculously small compared to the profits the Banks must have made), but we let the individuals go free. Now I ask you, who is responsible for the behavior of those corporations if not the individuals who run and operate them? If the executives of those Banks had any sense of decency, they would resign! (In ancient Japan they would commit "hara-kiri"). Send a few of them to jail and the rest will make sure that behavior is discontinued.
3
Criminality has ALWAYS been subjective in America.....
1
Let this incident serve as confirmation of that timeless axiom: Money talks, bovine faeces perambulates.
1
People need to go to jail, period. If I stole money, I'd likely go to jail. Banks are not autonomous entities, they are run by humans who commit these crimes.
6
Wow. $5 billion to make $85 billion? Great business model. The only way to stop this sort of behavior is if the Fat Cats go to jail. And for a good, long time.
6
Lock up the corrupt politicians and prosecutors who give the bank's these sweet, profitable deals.
3
"The banks will also be placed on “corporate probation” for three years, which will be overseen by the court and require regular reporting to the authorities as well as the cessation of all criminal activity."
Absence of criminal activity is the norm. Does the corporate probation actually refer to a three-year "... cessation of all criminal activity."? Or is the sentence quoted above in need of a re-write?
Absence of criminal activity is the norm. Does the corporate probation actually refer to a three-year "... cessation of all criminal activity."? Or is the sentence quoted above in need of a re-write?
Why do bankers get away with criminal activity? Because politicians love banks. (See revolving door / politics and bankers.)
Why do politicians love banks? Like bank robber Willie Sutton said, "Because that's where the money is". (See jobs / boards of directors / politics and bankers.)
Same song, 5th or 50th verse, could get better but it's gonna get worse.
Read Matt Taibbi's 07/2011 article, "Too Big To Jail". President Bush's Justice Dept. told third largest bank (in assets) in the world, HSBC (Hongkong and Shanghai Banking Corporation), not to launder money for drug cartels and terrorists again. Later, President Obama's Justice Dept told HSBC not to do it again, again. Later still, President Obama's Justice Dept. told HSBC not to do it again, again, again: "The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks' profit – but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses."
Read more: http://www.rollingstone.com/politics/news/gangster-bankers-too-big-to-ja...
Why do politicians love banks? Like bank robber Willie Sutton said, "Because that's where the money is". (See jobs / boards of directors / politics and bankers.)
Same song, 5th or 50th verse, could get better but it's gonna get worse.
Read Matt Taibbi's 07/2011 article, "Too Big To Jail". President Bush's Justice Dept. told third largest bank (in assets) in the world, HSBC (Hongkong and Shanghai Banking Corporation), not to launder money for drug cartels and terrorists again. Later, President Obama's Justice Dept told HSBC not to do it again, again. Later still, President Obama's Justice Dept. told HSBC not to do it again, again, again: "The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks' profit – but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses."
Read more: http://www.rollingstone.com/politics/news/gangster-bankers-too-big-to-ja...
3
When one thinks how our prison are stuffed with victims of the inglorious War on Drugs, etc and other efforts to increase profits for the prison industry, then consider the number of banksters who are have seriously harmed their clients, and then paid bonuses as an incentive to develop new cleaver devices for their unwitting victims?
3
Interestingly, the Christian Science Monitor has an article summarizing a survey of some 2500 corporate managers capturing their views regarding fraud committed by individuals in their companies.
The article cites the effectiveness of the Dodd Frank whistle blower provisions that both protect and incent managers to report fraud.
The only thing that is really worrisome is that ~16% of the surveyed managers report that their companies have internal policies that prohibit reporting illegal or unethical activities to law enforcement.
Seems to me that if companies have policies that inhibit, let alone prohibit such reporting, the executives in charge probably suspect that such behavior exists in their domains.
The article cites the effectiveness of the Dodd Frank whistle blower provisions that both protect and incent managers to report fraud.
The only thing that is really worrisome is that ~16% of the surveyed managers report that their companies have internal policies that prohibit reporting illegal or unethical activities to law enforcement.
Seems to me that if companies have policies that inhibit, let alone prohibit such reporting, the executives in charge probably suspect that such behavior exists in their domains.
7
The Obama administration and DOJ have done a great disservice to the country by not actively prosecuting the hundreds of egregious criminal acts committed by senior executives at large banks and Wall Street firms in the lead-up to the financial crisis. These criminal acts have directly harmed hundreds of millions of people and we are still feeling their effect and will for years to come. This is yet another failing of the current administration and expect more of the same with Wall Street darling Hillary Clinton at the helm. Shameful. Expect Holder to end up with a sinecure at a major investment firm as have Geithner and many others from Team Obama. Hope and Change!
5
If one ever needed to see our two-level system of justice in action, they need look no further than this. Not complicated at all. The banks, and their employees, get a pass. Full stop. I don't know if its unconstitutional to prosecute some drug dealer or burgler with the full weight of the law and at the same time let doubless at least hundreds of bank employees off scott free, but it should be. Contrast this hands off treatment of felonious thieving bank officers and that of Aaron Swartz. He downloaded some academic journals from JSTOR at MIT and for that "Federal prosecutors later charged him with two counts of wire fraud and 11 violations of the Computer Fraud and Abuse Act,[13] carrying a cumulative maximum penalty of $1 million in fines, 35 years in prison, asset forfeiture, restitution, and supervised release." (Wikipedia). This is what our country has become (and note, there are worse stories than Swartz's and they are legion), more like Communist China and the Soviet Union than a western democracy.
1
Some banks that are still out here being allowed to do business, like HSBC have been caught money laundering for drug lords and terrorist, and many, including HSBC and BOA, Citi as well as Chase, have been nailed time and again for a pattern of predatory consumer practices while Wells seems to hold the record for false record keeping and fraudulent mortgage actions. These banks have been allowed to reward their directors with generous salaries, perks, options, and bonuses. Why? Clearly, because in banking as in insurance industries there is a revolving door from regulation to industry - sitting on the Fed, to sitting in the CEO's office. How about an impermeable restriction - a lifelong non-compete for those who sit on our federal and state regulatory commissions? Perhaps without the prospect of the pot at the end of the rainbows for regulators, these jobs will draw dedicated workers who are not tempted to let the big fish of the little hook? Jail time for corporate criminal behavior should be supplemented by middle management whistle blower protections more powerful than those currently in place. How about an industry-wide non-discrimination protection that allows for civil suits for executives who have been whistle blowers and therefore ostracized from the employment pool? How about forcing the Goldman Sachs of the industry to hire and protect undercover government agents there to serve in the same capacity as an 'Internal Affairs' division?
4
The Supreme Court says corporations are people,
so corporations can vote (or buy votes).
Now we see that corporations can steal,
so it follows that corporations can go to jail.
We must thank the government for clearing that up.
so corporations can vote (or buy votes).
Now we see that corporations can steal,
so it follows that corporations can go to jail.
We must thank the government for clearing that up.
3
How is it even remotely possible that the people who committed these crimes are not paying billion dollar fines and not going to jail? The answer is obvious - an even more corrupt political culture that is willing to look the other way to ensure a continuous flow of campaign contributions. The politicians do this despite the irreparable harm to our economy and millions upon millions of American taxpayers.
This is beyond reckless behavior in my view - this is malfeasance and the politicians need to be held accountable by serving time along with the banksters. This is why Republicans and Democrats, conservatives and liberals alike, do not trust politicians and in particularly lawmakers (Congress.)
This is beyond reckless behavior in my view - this is malfeasance and the politicians need to be held accountable by serving time along with the banksters. This is why Republicans and Democrats, conservatives and liberals alike, do not trust politicians and in particularly lawmakers (Congress.)
2
As usual with the Times, the editorial board does not name name at the Justice Department responsible for this absurd settlement. The editorial is no more than a slap on the wrist for a slap on the wrist. In 2009 and following, the Congress and the White House (Bush and Obama) watched as the crash disappeared one-third of many people's investment and retirement accounts. The politicians then gave away our tax monies to the same institutions that profited from the bubble they created. All these schemes on the part of the lenders were created by individual executives at those lenders. Too big to fail? No. But big enough to buy themselves a slap on the wrist. Put some of these executive thieves in jail and others will think twice before they act against the interests of investors and ordinary savers.
1
The banks and the financial services industry are presently occupying the moral space in our society that was once the domain of the Cosa Nostra. Gangsters, racketeers and con men are allowed to perpetrate crimes against the public without significant punishment.
3
I was always a big fan of the English punishment of "drawn and quartering " in public. How do you take out a person's entrails while they are alive to feel it? That is, after you cut off their "privates". Burning might be fun as well. Now, THAT might get their attention. Paying back ten cents on the dollars? Not so much.
IS THIS SOME KIND OF JOKE?
Not only do we have "Too Big to Fail" banking institutions but also "Too Big to Prosecute" banking employees/officers. If specific people are not held accountable then the SEC is signaling to the banking industry that they can behave as if its the WILD WILD WEST. THIS IS NOT ACCEPTABLE.
Not only do we have "Too Big to Fail" banking institutions but also "Too Big to Prosecute" banking employees/officers. If specific people are not held accountable then the SEC is signaling to the banking industry that they can behave as if its the WILD WILD WEST. THIS IS NOT ACCEPTABLE.
3
Take the time to actually read S.E.C. Commissioner Kara Stein's dissent from the S.E.C. decision to excuse the banks.
http://www.sec.gov/news/statement/stein-waivers-granted-dissenting-state...
Every one of these banks are serial offenders, continuously defying previous agreements to desist, essentially laughing in the public's face, spitting in the public's eye.
These banks should never have been bailed out in the financial crisis. Their shareholders and creditors should have been wiped out. Their managements and boards should have been fired and dismissed at minimum, at minimum left completely exposed to shareholder and creditor lawsuit.
The banks could have been, and should have been, taken over by the government, and then sold to the highest bidders. The economy would have been no worse off, and arguably better off. Certainly capitalism is better off when losers lose, and phony capitalists go to prison, and barred from ever again participating in our markets.
To continue to allow the same people to run our financial institutions is as criminal and suicidal as allowing the same people who led us into Iraq to ever again run our foreign policy.
If we are to have a healthy economy, we need to exclude criminals from that economy. To have a healthy government, we need to exclude the political criminals that aid and abet the financial criminals.
http://www.sec.gov/news/statement/stein-waivers-granted-dissenting-state...
Every one of these banks are serial offenders, continuously defying previous agreements to desist, essentially laughing in the public's face, spitting in the public's eye.
These banks should never have been bailed out in the financial crisis. Their shareholders and creditors should have been wiped out. Their managements and boards should have been fired and dismissed at minimum, at minimum left completely exposed to shareholder and creditor lawsuit.
The banks could have been, and should have been, taken over by the government, and then sold to the highest bidders. The economy would have been no worse off, and arguably better off. Certainly capitalism is better off when losers lose, and phony capitalists go to prison, and barred from ever again participating in our markets.
To continue to allow the same people to run our financial institutions is as criminal and suicidal as allowing the same people who led us into Iraq to ever again run our foreign policy.
If we are to have a healthy economy, we need to exclude criminals from that economy. To have a healthy government, we need to exclude the political criminals that aid and abet the financial criminals.
4
I would like to see President Barak Obama read this editorial at a televised-live news conference and then take questions from reporters (also live).
5
What is the difference between the Atlanta Teacher fraud case and the big bank mortgage fraud cases? The incentives to cheat, and methods, were identical, but only the teachers went to jail.
Jon Stewart 7 mins "Fraud City"
https://www.youtube.com/watch?v=LhXMl_DRnXY
The statute of limitations will expire this year on those frauds which blew up the global economy in 2008.
Don't let the clock run out….Tell Loretta Lynch you want her to act on the evidence provided by big bank whistleblowers who have identified the bank officers and managers directing the mortgage frauds. Sign the petition:
http://act.credoaction.com/sign/lynchconfirm
Jon Stewart 7 mins "Fraud City"
https://www.youtube.com/watch?v=LhXMl_DRnXY
The statute of limitations will expire this year on those frauds which blew up the global economy in 2008.
Don't let the clock run out….Tell Loretta Lynch you want her to act on the evidence provided by big bank whistleblowers who have identified the bank officers and managers directing the mortgage frauds. Sign the petition:
http://act.credoaction.com/sign/lynchconfirm
3
Where does all of that fine money go exactly? Since it is being garnished on behalf of the tax payer, shouldn't we know what part of the deficit or program that is being endowed and or funded beyond the usual budget tangles ? That's the story I am interested in.
Really?
There was (and is) a coordinated criminal effort conspired by the worlds leading financial institutions to profit from grossly illegal activity. This activity effects the lives of millions, causing the loss of houses (which made many homeless), jobs, and business'. This activity created a financial crisis from which we are still recovering.
Over 17 trillion dollars vanished - and you're mostly interested in how 5 billion finds its way into the book-keeping?
There was (and is) a coordinated criminal effort conspired by the worlds leading financial institutions to profit from grossly illegal activity. This activity effects the lives of millions, causing the loss of houses (which made many homeless), jobs, and business'. This activity created a financial crisis from which we are still recovering.
Over 17 trillion dollars vanished - and you're mostly interested in how 5 billion finds its way into the book-keeping?
1
Where is our Robspierre? He or she is out there some where. And when the pitchforks and guillotines return to the squares, I'll be there with popcorn. Unless of course I've been slain in the chaos of the pre-requisite plebeian uprising. Perhaps the aftermath will result in an enlightenment. One can only hope.
Still, at times I wonder, if the terrorists were taking down private jets with bank CEOs instead of airliners with working stiffs, how would that play with the populace?
Still, at times I wonder, if the terrorists were taking down private jets with bank CEOs instead of airliners with working stiffs, how would that play with the populace?
1
The ex-chief of police in Pittsburgh embezzled $32,000 of public funds for his personal use and was sent to prison, stripped of his pension, and publicly humiliated. He paid the price for his crime. These bankers steal billions and no one pays a personal price. Shameful.
4
The fines on illegal income are lower than the taxes on legal income.
6
Ah, American capitalism and justice at work. If an individual is caught stealing or robbing they go to jail. This is done to protect the public and maintain law and order. When a bank does it to the tune of billions of dollars a plea deal is struck, a minor return of the ill gotten profits is made and all is forgiven so the banks can go forth to invent some other complex transaction or arrangement to do it again. Financial engineering is so important to the good of the American public?
1
Go to the Security and Exchange Commission and White House websites and register your protests to these sorts of actions.
The SEC, and by extension the US Department of Justice and US government, do great damage to American civil society when they send the message that all citizens are *not* equal under the law.
The SEC, and by extension the US Department of Justice and US government, do great damage to American civil society when they send the message that all citizens are *not* equal under the law.
1
Perhaps it's time to employ the RICO Act.
1
They have emails of people conspiring. I dont think the government wants to charge them criminally and have them testify in a trial. That leads me to believe the government is fully complicit. Until they start putting people in jail it wont stop. These same banks are having money lent to them by the Treasury for next to nothing on one hand and on the other taking a little back for political purposes.
Ridiculous.
Ridiculous.
1
This "prosecutorial indulgence" is a disgrace -- a continuing disgrace. It mocks the idea of acxountability. For the SEC and other regulators it is tantamount to being an accessory to a crime. Sadly it is nothing new, nor anything short of criminal abnegation of responsibility by the authorities. That the SEC should have to waive any possible suspension of the banks' ability to raise capital as a condition of their admission of criminal guilt -- so that business as usual is guaranteed in advance -- makes this blanket deal little more than a sham wow. What will it take -- pitchforks and guillotines? -- for our legislators and regulators and DOJ to get the message: this is simply unacceptable behavior by banks that will be punished by butt spankings rather than landings of butts in jail and high bars for banksters to clear if they're to continue in business. As for the impact such rigor will have on the economy -- it can't be as corrosive as eztending to banks this apparently untouchable, official license to steal.
1
"Corporations are people, my friend."
Some of our corporation "people" have behaved very badly. Here I read that many have admitted to widespread fraud. I also read that another corporation, General Motors, has confessed to killing over a hundred people. I am enraged that anything less than a fine equal to the amount of money these corporate people siphoned away from the rest of us, plus prison sentences for the executives involved, is considered. And for the killer, although I am against capitol punishment for human people, I think we should consider sending this one to Texas to be executed. Because there is no provision in any of these fines and exposures that will stop the fraudsters or even the killers from doing it again.
Some of our corporation "people" have behaved very badly. Here I read that many have admitted to widespread fraud. I also read that another corporation, General Motors, has confessed to killing over a hundred people. I am enraged that anything less than a fine equal to the amount of money these corporate people siphoned away from the rest of us, plus prison sentences for the executives involved, is considered. And for the killer, although I am against capitol punishment for human people, I think we should consider sending this one to Texas to be executed. Because there is no provision in any of these fines and exposures that will stop the fraudsters or even the killers from doing it again.
1
Well, if commentators want to put the blame at those leading the banks, then the same logic dictates putting the responsibility for who is dictating these injustices of punishment to happen? Could it be those leading the country, including the guy at the top? You can blame Eric Holder, but he is not really the disease, only the pus it comes out as.
Corporations are inanimate legal entities. Corporations do not commit crimes. The people who run them commit the crimes.
These corporations are run by members of a Good Old Boys' club who sit on one another' boards and raid their companies' treasuries by awarding one another huge salaries and obscene bonuses. If we want to put an end to these practices prosecute some of these wrongdoers.
The fact is, I would suggest that shareholders of these corporations consider going after the executives who caused all of this trouble by instituting civil Shareholder Derivative lawsuits in court. You only need one share of stock to obtain standing to bring such a lawsuit. Make these criminals personally pay for these crimes and recoup some of your company's money.
These corporations are run by members of a Good Old Boys' club who sit on one another' boards and raid their companies' treasuries by awarding one another huge salaries and obscene bonuses. If we want to put an end to these practices prosecute some of these wrongdoers.
The fact is, I would suggest that shareholders of these corporations consider going after the executives who caused all of this trouble by instituting civil Shareholder Derivative lawsuits in court. You only need one share of stock to obtain standing to bring such a lawsuit. Make these criminals personally pay for these crimes and recoup some of your company's money.
2
Actually, the explanation for the banksters criminal behavior is their dysfunctional culture. Not sure about how many of them were born out of wedlock, but they certainly have committed felonies of financial impact far out of proportion to their percentage of the population.
The dysfunctional culture of bank executives (eg, anybody compensated in six figures) is most evident in their contempt for the old adage of "enlightened self interest." Most of them realize they are playing with OPM (other people's money), not their own, so they have zero risk to their gambits. Now that I think of it, their "enlightened self interest" may not be dysfunctional after all since their recklessness has no downside to their individual lives.
Congress, SCOTUS, the political parties and the retired elected officials who now make their livings as lobbyists or speech making extortionists are destroying the fabric of trust that once bound our people together.
As the financial crisis of 2008/09 demonstrated, it takes only a few to cause catastrophic damage to the many. It also takes years to correct the damage. As always, it's the middle, working and poor classes who pay the price for such dysfunctional leadership.
The dysfunctional culture of bank executives (eg, anybody compensated in six figures) is most evident in their contempt for the old adage of "enlightened self interest." Most of them realize they are playing with OPM (other people's money), not their own, so they have zero risk to their gambits. Now that I think of it, their "enlightened self interest" may not be dysfunctional after all since their recklessness has no downside to their individual lives.
Congress, SCOTUS, the political parties and the retired elected officials who now make their livings as lobbyists or speech making extortionists are destroying the fabric of trust that once bound our people together.
As the financial crisis of 2008/09 demonstrated, it takes only a few to cause catastrophic damage to the many. It also takes years to correct the damage. As always, it's the middle, working and poor classes who pay the price for such dysfunctional leadership.
1
I am grateful for this editorial although it is woefully too little and too late. Where is the real outrage? More importantly, where has it been? Every settlement has been a cover-up of the depth of the malfeasance and of the individuals who authorized it. How are we to reconcile the condemnation of this latest of many settlements with the overt and indirect support for the financial and legal protections given to these felons that readers of mainstream media news have been fed since 2008?
Kara Stein's dissent was an astonishing indictment of the corruption that has infected the S.E.C. and the Justice Department. If these felons were a gang of drug dealers operating out of lower Manhattan, and those felons had sold countless boatloads of packs of flour they were calling cocaine, conspired with other drug dealers to form cartels that rigged markets for years in order to steal billions directly from the public, and put guns to the heads of our political leaders while demanding their debts for that fake cocaine be paid, there would have been a constant and relentless cry for harsh and unforgiving prison sentences for the leaders of the cartels as well as calls for the heads of any politician, regulatory official or law enforcement official that protected them to roll.
Unless, of course, those felons had friends in the mainstream media, in the regulatory agencies and in Washington. That's where we are in the United States. Felons and their friends are running the show.
Kara Stein's dissent was an astonishing indictment of the corruption that has infected the S.E.C. and the Justice Department. If these felons were a gang of drug dealers operating out of lower Manhattan, and those felons had sold countless boatloads of packs of flour they were calling cocaine, conspired with other drug dealers to form cartels that rigged markets for years in order to steal billions directly from the public, and put guns to the heads of our political leaders while demanding their debts for that fake cocaine be paid, there would have been a constant and relentless cry for harsh and unforgiving prison sentences for the leaders of the cartels as well as calls for the heads of any politician, regulatory official or law enforcement official that protected them to roll.
Unless, of course, those felons had friends in the mainstream media, in the regulatory agencies and in Washington. That's where we are in the United States. Felons and their friends are running the show.
2
I am completely cynical about solutions to this problem of accountability. Maybe we can get Hollywood to do a sitcom call "Felon and Friends!" to explain how easy it is to steal white collar style.
Gordon Gekko what right, “Greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies and cuts through to the essence of the evolutionary spirit.”
Gordon Gekko what right, “Greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies and cuts through to the essence of the evolutionary spirit.”
1
Sell a joint go to prison. Steal billions and walk with a slap on the wrist. Does anyone wonder why the legitimacy of our justice system and government is declining?
11
So, they are getting away with felonies. The financial institutions and those who control them (management, boards, and key stockholders) own the government. What do we do? I don't see anyone willing to have a sit in on Wall St. But we can sit on our wallets collectively. Boycott these financial institutions, stop paying them what is owed or slow down payments, call customer service and speak to a supervisor to voice displeasure, write to, email, or call your government reps, and otherwise disrupt their business. The cost of that protest will be borne by the individual through nonviolent resistance. We (myself included) like to complain and lament on these pages about the sad state of our country, exceptional only in corruption--to what end? Other ideas?
2
There was a sit in on Wall Street. It was called Occupy Wall Street. Most Americans kept their wallets open and mocked or were indifferent to Occupy, and allowed the corporate controlled media to spin this activism in a way that kept most middle class people from identifying with what was going on. It wasn't a perfect movement, as none are, but America has continued to vote for and walk along in complicity as they continue to vote for Republicanism and Corporatism. They've been distracted by our never-ending jingoistic wars and pro sports/college sports, fear of gay marriage or "The Other". If no one sees the value in something dynamic and non-violent like or similar to Occupy, then we are doomed to let these jerks have their way with the majority of Americans too ignorant to vote or know what is happening. Cynical but sadly true.
1
(written 1 hour ago) Note: You are correct Occupy Wall St. did without any support.
So, they are getting away with felonies. The financial institutions and those who control them (management, boards, and key stockholders) own the government. What do we do? I don't see anyone willing to have a sit in on Wall St. But we can sit on our wallets collectively. Boycott these financial institutions, stop paying them what is owed or slow down payments, call customer service and speak to a supervisor to voice displeasure, write to, email, or call your government reps, and otherwise disrupt their business. The cost of that protest will be borne by the individual through nonviolent resistance. We (myself included) like to complain and lament on these pages about the sad state of our country, exceptional only in corruption--to what end? Other ideas?
So, they are getting away with felonies. The financial institutions and those who control them (management, boards, and key stockholders) own the government. What do we do? I don't see anyone willing to have a sit in on Wall St. But we can sit on our wallets collectively. Boycott these financial institutions, stop paying them what is owed or slow down payments, call customer service and speak to a supervisor to voice displeasure, write to, email, or call your government reps, and otherwise disrupt their business. The cost of that protest will be borne by the individual through nonviolent resistance. We (myself included) like to complain and lament on these pages about the sad state of our country, exceptional only in corruption--to what end? Other ideas?
It is time for a corporate death penalty. Dissolve these criminal enterprises and sell off the assets.
8
The only lesson learned from the savings and loan debacle in the 1980's, was that the lobbyists needed to write laws so the banksters wouldn't go to jail. Sad, but true. The taxpayers were on the hook then, as well as now. But the true criminals get to go free.
3
"An argument has been made that the S.E.C. was right not to revoke the banks’ capital-market privileges because doing so might disrupt the economy. "
Well yeah, these banking folks and Justice Department folks have seen how jailing a generation of young black men for felonies like selling crack and robbing 7-11's of a few hundred bucks has devastated black families and neighborhoods and left kids without dads, and gosh, we could just devastate the economies of Greenwich and Katonah by putting even a couple of Big Bank FELONS into a nasty old prison. We have a great tradition here of one set of laws for poor blacks and one set of laws for rich whites. It seems to work. Look at those fun TV commercials for the big banks. They're heart warming. They're cute. What's in your wallet?
3
I think it's long past the time when serious, meaningful investigation into the revolving doors and the quid pro quo-s that clearly exist between our elected and appointed "officials" and the individual leaders within the corporate (banking and other) community. Economic thuggery should reap real penalties for the "individuals" (as in "real" people) responsible for criminal behavior, ... including the government officials who give them a pass! It is not too difficult to think of officials who began their government tenure as modestly affluent citizens and left as very wealthy people. How?
2
What an outrageous judgment! I can, sort of, understand the levying of a small fine, but to couple that with the requirement of a cessation of all criminal activity; audacious is too weak a word! The fact that that provision was included in this “punishment” took it from the level of harsh to over the top. Having the nuclear option leveled against him, I now really feel for Mr. Citi Bank. I was talking with him a couple days ago regarding this, at the time seemingly far fetched, scenario and he was certainly losing more than a little bit of sleep over the the extra minutes it would take him to find a new path to circumnavigate financial regulations and sovereign laws. I hope that everyone here passing judgment from on high realizes the devastating effects the extra minutes "engineering" a new main-street, money guzzling, financial vehicle will have on my other close friend, Mr. Barclays’, family! These are real people, with real families and real problems; just like you and I. Well actually, more so than you and I, as they are makers; the job creators that make our country hum. Really, with this draconian retribution, we have only hurt ourselves; the takers.
45
The most important question - what is a bank - is it a free market institution based on supply and demand law, or an unbiased interface between public and capital market. The laws of free market institutions should not be applicable to banks and banks products should be considered unique.
The free market capitalism of US and UK had erased this difference and consequence is devastating. It is time we bring back the difference and consider banks as regulated institution of unique type and not a free market institution. Banks should not raise capital from free market and should focus investing public money on meaningful economic activity of the society.
The free market capitalism of US and UK had erased this difference and consequence is devastating. It is time we bring back the difference and consider banks as regulated institution of unique type and not a free market institution. Banks should not raise capital from free market and should focus investing public money on meaningful economic activity of the society.
1
The banks are the elephant in the room but corporate America has the same attitude. The criminal justice system should only be dealing with big fish to fry, like marijuana, that involve the Republican hypocritical sense of morality. Only the little guy should worry. Even when these events are blown up on the front page, it is really meant to fool foreign countries.
1
Today, we've sanitized the punishment for white collar crime to the point where we don't even identify the perpetrators, much less hold them personally responsible for their crime.
We've always looked back to our founding fathers for inspiration or direction. Why stop now? In Colonial times, public humiliation was an accepted form of punishment. A throwback to medieval practices, the neck and wrists of criminals were placed in stocks where the public could pelt them with rotten fruit or excrement. The message was very unambiguous: Anyone thinking of committing the same crime should think twice.
Where is a good place to locate this form of punishment today? How about Federal Hall on Wall Street? There's a statue out front of George Washington commemorating the spot where he was sworn in as President. It's also where the Bill of Rights was written. What is more, the steps are big enough to accommodate dozens of today's banksters, plus Wall Street is wide enough to accommodate all the street vendors selling rotten fruit and vegetables. Ah, what a glorious sight that would be!
We've always looked back to our founding fathers for inspiration or direction. Why stop now? In Colonial times, public humiliation was an accepted form of punishment. A throwback to medieval practices, the neck and wrists of criminals were placed in stocks where the public could pelt them with rotten fruit or excrement. The message was very unambiguous: Anyone thinking of committing the same crime should think twice.
Where is a good place to locate this form of punishment today? How about Federal Hall on Wall Street? There's a statue out front of George Washington commemorating the spot where he was sworn in as President. It's also where the Bill of Rights was written. What is more, the steps are big enough to accommodate dozens of today's banksters, plus Wall Street is wide enough to accommodate all the street vendors selling rotten fruit and vegetables. Ah, what a glorious sight that would be!
3
The Supreme Court ruled that corporations are people protected by the Constitution to exercise their freedom of expression by contributing to political campaigns. But corporations are not treated as people when they break the law. This kind of double standard has eroded the confidence of this country's human people in its institutions, much like the cover up of sexual abuse by priests eroded the moral authority of the Church.
6
"To properly determine accountability for criminal conspiracy in the currency cases, prosecutors should now investigate low-level employees in the crime — traders, say — and then use information gleaned from them to push the investigation up as far as the evidence leads."
I could not disagree more with this. Totally wrong approach and strategy.
Start at the bottom? When you want to solve a problem you are having with a large company, everyone at the bottom is there to keep problems away from the top. Go to the "Top" first and things happen. Arrest the CEO's of these banks, parage them in front of the camera's in handcuffs and orange jumpsuit. Let's see how "embarrased" they become at that point. Even if no charges ultimately stick, I venture a guess that things will change pretty rapidly and everyone below them that really knew what was going on will starting singing like a Robin in Spring.
I could not disagree more with this. Totally wrong approach and strategy.
Start at the bottom? When you want to solve a problem you are having with a large company, everyone at the bottom is there to keep problems away from the top. Go to the "Top" first and things happen. Arrest the CEO's of these banks, parage them in front of the camera's in handcuffs and orange jumpsuit. Let's see how "embarrased" they become at that point. Even if no charges ultimately stick, I venture a guess that things will change pretty rapidly and everyone below them that really knew what was going on will starting singing like a Robin in Spring.
1
Republicans are always talking about "personal responsibility" — so how may of them will step up and support criminal prosecutions for the individuals involved in these machinations? ... Hello, anyone there?...
4
The saddest part of the entire story of how the banks and their Wall Street counterparts got away with blatant fraud and criminal behavior that would put any person in federal prison for decades is the fact that the Obama Justice Department under Eric Holder made it policy to give these criminal a pass. Change you can believe in?
George Bush, Sr.'s Justice Department sent 1,000 bankers to jail during the S&L crisis of the 1980's. Clearly, the subtext here is the seismic shift of power in this country, from our government to the puppeteers who run the show.
George Bush, Sr.'s Justice Department sent 1,000 bankers to jail during the S&L crisis of the 1980's. Clearly, the subtext here is the seismic shift of power in this country, from our government to the puppeteers who run the show.
2
The innocent shareholders of the banks pay the penalty, while the individual guilty perpetrators retain their illicit benefits and go without punishment. That's called Justice?
1
In the process of attempted political blackmail, who knows what dark times may yet await the ordinary citizen? But the similarities to Andrew Jackson's dealings with the BUS are unmistakable, the result to come perhaps no less fundamental.
http://lifeamongtheordinary.blogspot.com/2013/10/the-politics-of-extorti...
http://lifeamongtheordinary.blogspot.com/2013/10/the-politics-of-extorti...
These days none of these banks/corporations would hire someone who is an ex-con especially if they where a felon. Then why should we do business with a bank/corporation that is a felon?
3
Read "To Big To Fail"... all the answers you're looking for are there. No need for further questions. No need for this article.
Of course... you would have to read a book. I know that seems tough.
Of course... you would have to read a book. I know that seems tough.
1
The Mafia existed in NYC for decades because they paid off the politicians, judges, regulators and the cops. The Banks and the MIC do the same but at a different level.
The only time Don Corleone was ever criticized in his entire illustrious career was when he didn't share the judges, cops et al - with the other Dons
Obama is no less a criminal than the Bank executives. Holder did what he was told. So will the Clintons or Bushes.
STOP complaining people - it is your fault - you put these people in place and continue to do so.
Fascism is ugly get use to it. The TPP is coming!
The only time Don Corleone was ever criticized in his entire illustrious career was when he didn't share the judges, cops et al - with the other Dons
Obama is no less a criminal than the Bank executives. Holder did what he was told. So will the Clintons or Bushes.
STOP complaining people - it is your fault - you put these people in place and continue to do so.
Fascism is ugly get use to it. The TPP is coming!
2
Obama did it. Obama came into Office promising "Change" and has worked for the Banks and the 1% ever since.
The Banks made Clinton a rich man for deregulating the Banks and they will make Obama a rich man for keeping them out of jail.
Obama could have changed things but worked for the rich instead and will be made rich by the crooks he protected.
The Banks made Clinton a rich man for deregulating the Banks and they will make Obama a rich man for keeping them out of jail.
Obama could have changed things but worked for the rich instead and will be made rich by the crooks he protected.
1
Steal a loaf of bread-go to jail. Steal thousands of peoples life savings, homes and the countries financial stability-pay a fine.
9
Instead of leading the world we are now the equivalent of a Banana Republic. Thanks GOP, Thanks Oligarchs...
6
I agree, KO.
But you should include the Democrats.
Clinton, Shumer, et al are no less complicit than the GOP.
But you should include the Democrats.
Clinton, Shumer, et al are no less complicit than the GOP.
1
I'm no economic scientist. Banking in its pure form, to me should embody saving, investment and modest returns with an ethical and moral standard. Bank on something for a rainy day pretty simplistic.
Instead our world is one that equates money with success, overwhelmingly so, that greed becomes the driving force. All else is ignored. It matters not how you achieved acquired your money as long as you've got it. What is enough?
That greed is just another crime against humanity in a world where crimes of humanity are now the norm all stimulated by an economy of greed.
The whole world paying the price big time terrorism, the exploitation of everything, our human and physical environment is on a fast rate of decline.
Who is paying the price we are. For what? More not less.
Instead our world is one that equates money with success, overwhelmingly so, that greed becomes the driving force. All else is ignored. It matters not how you achieved acquired your money as long as you've got it. What is enough?
That greed is just another crime against humanity in a world where crimes of humanity are now the norm all stimulated by an economy of greed.
The whole world paying the price big time terrorism, the exploitation of everything, our human and physical environment is on a fast rate of decline.
Who is paying the price we are. For what? More not less.
If we apply the same standards for entering into contracts with these service providers and the same due diligence we apply to potential employees then most governmental and corporate entities would be barred from working with these firms. For example, an individual with a felony conviction would have a difficult time making it through any application process. Even if such offense took place years ago and was related to drug addiction or abuse, the mark would be hard to change. Just look at the requirements for being hired on a federal construction project to get an example of the long term impacts of any type conviction.
So, either apply the same requirements for these entities or open up the employment opportunities for people with similar convictions. I am not an attorney, but I trust there are a set of attorneys that can level the playing field and end the double standards and the substantial cost to society.
So, either apply the same requirements for these entities or open up the employment opportunities for people with similar convictions. I am not an attorney, but I trust there are a set of attorneys that can level the playing field and end the double standards and the substantial cost to society.
18
The idiocy of punishing a corporation for the acts of individuals must be one of the most foolish of all American traditions. Who are the individuals responsible for the wrongdoing? Why are they not stripped of every nickel they have and banned from the industry? Does America really want to eliminate criminality from business or not? I have my doubts. And the NYT editorial board, supposedly intelligent people, urging on the totally ineffective punishment of lifeless paper entities as if it provided some solution, ridiculous!
49
One possible effective paper punishment would be to revoke the charters under which each of these banks operates.
1
It is important to understand who pays these fines.
The average American. In the end, those fines are paid by share holder and customers.
The largest single shareholder of J P Morgan Chase is not some fat cat billionare but Vanguard that holds 5.64% of the stock. If you, forced into the stock market by the zero rate interest policy of the Fed, and bough Vanguard 500, a mutual fund recommended by Warren Buffet, you have been fined. As, has your defined contribution pension plan should it hold Vanguard.
If you are a customer of a bank, you will pay these fines, in one way or an other by higher fees on credit cards, mortgages, and other services.
The person NOT paying the fines are the ones that perpetrated the fraud, new about them, or tolerated them.
It is an outrage, but to its ever lasting shame, the Obama administration has refused to go after the banks.
The average American. In the end, those fines are paid by share holder and customers.
The largest single shareholder of J P Morgan Chase is not some fat cat billionare but Vanguard that holds 5.64% of the stock. If you, forced into the stock market by the zero rate interest policy of the Fed, and bough Vanguard 500, a mutual fund recommended by Warren Buffet, you have been fined. As, has your defined contribution pension plan should it hold Vanguard.
If you are a customer of a bank, you will pay these fines, in one way or an other by higher fees on credit cards, mortgages, and other services.
The person NOT paying the fines are the ones that perpetrated the fraud, new about them, or tolerated them.
It is an outrage, but to its ever lasting shame, the Obama administration has refused to go after the banks.
6
Another army of human shields: the pensioners and mutual-fund investors.
1
If corporations are people, banks should go to jail along with the other felons.
7
The Reformation was inspired by the Catholic habit of selling Indulgences. Rich parishioners could literally pay money to have their sins wiped clean.
Isn't that what we have been doing with our banks?
Isn't that what we have been doing with our banks?
69
Most of the attention here is directed at the individual banks and their employees. But something more nefarious occurred here. The banks pled guilty to conspiracy. That means their currency manipulation scheme was a product of a fraudulent agreement among all the banks involved. Citicorp, Chase, and the others are supposed to compete with each other. Here, they got into bed together to do the dirty deed. Banks are champions, not only of deregulation, but also the free market. These outspoken capitalists betrayed the competitive model they champion. This hypocrisy goes to the very heart of what the banking system is supposed to be about. Maybe you weren't aware of this. But banks are not to be trusted.
2
It's time to put some of these guys in jail!
Those slaps on the wrist penalties have not stopped some bankers from doing whatever they want to maximize their profit.
They, in fact, have set aside money allocated for such penalties, knowing what to expect.
The expectation of jail time should make them think twice before manipulating the currency in their favor.
Those slaps on the wrist penalties have not stopped some bankers from doing whatever they want to maximize their profit.
They, in fact, have set aside money allocated for such penalties, knowing what to expect.
The expectation of jail time should make them think twice before manipulating the currency in their favor.
1
And I have read that much of the fine is tax deductible!
1
As long as America is governed by one or both of the country's largest corporations, the GOP and the Democratic Party, driven by little beyond the mega-bucks of influence that keep them alive, major financial institutions will never be held to account.
Absent major constitutional overhaul, small-time shoplifters will be severely punished and Wall Street felons will suffer nothing more than a few finger wags and the loss of some minor pocket change.
Let's get used to it.
Absent major constitutional overhaul, small-time shoplifters will be severely punished and Wall Street felons will suffer nothing more than a few finger wags and the loss of some minor pocket change.
Let's get used to it.
3
This resolution supports the truth that criminal and civil justice in the United States is corrupt. Citizens cannot expect to be able to elect leaders who care about corruption and who are not a part of the corruption. Public and private life in the United States is rife with individuals who look upon corruption of justice as a means to enrich themselves at the expense of the rest of society. We have a national system where under cover words, such as entrepreneurship and capitalism, criminal economic exploitation has become a means for many individuals to fill their wildest monetary dreams of existence with no expectation being held to account for extremely unethical and antisocial behavior. If there is no specific law against a particular type of economic behavior it must be OK to proceed even if it disrupts economic opportunity across a broad spectrum of society, right? Absurd! What chance do honest citizens have when it is OK for some people bilk a economic system with impunity and no expectation of negative consequences?
1
Contrast this relative immunity to the "zero tolerance" meted out to ordinary citizens in service of a dubious "broken windows" theory. Once again "too big to jail" reveals not only a double-standard of justice, but an economic Achilles' heel that will inevitably lead to total collapse, the self-same result that "prosecutorial indulgence" claims to seek to avert.
2
In large part we did this to ourselves, because we voted in the politics that has wrought our new age of the international robber baron banking. We bought some junk political thinking decades ago that told us for-profit corporations, if left to make profit, will always regulate their behavior. We let the Karl Roves and Co. demonize rigorous rules for fair and sustainable banking as “liberal and dangerous”, and let politicians bring the foxes in to write the legislation ruling the hen house. The foxes now buy the politicians because the new law of the land says money is free speech. It’s going to be hard to reverse the tidal wave of good ole fashioned gilded age rampant corrupt crony capitalism. You can bet our politicians will be asking for more shrinking of governance over bankers in some perverse reasoning that it's all sustainable.
2
Who was there to vote for, that would actually get the good guys in office?
The most obvious means to dissuade financial executives from continuing their criminal behavior is to establish compensation "clawback" regulations. In other words, when the SEC determines that a financial institution has profited from illegal practices, all executive base level compensation should be reduced by a meaningful % and all bonuses, including stock awards should be returned.
Some might argue that such a punishment risks harming innocents who just happen to be working as an executive in the criminal corporate enterprise. Or, they might cite the usual executive whine that senior executives cannot be aware of the acts of others in their organizations.
Nonsense. A senior executive benefits from the acts of others in their organizations and additionally has the fiduciary responsibility to ensure that company policies and practices are both legal as well as efficient. Since they benefit from the system, they should be accountable for the system.
Jail is the best solution, but in our system of non-justice for executive fraud, jail is not going to happen.
Some might argue that such a punishment risks harming innocents who just happen to be working as an executive in the criminal corporate enterprise. Or, they might cite the usual executive whine that senior executives cannot be aware of the acts of others in their organizations.
Nonsense. A senior executive benefits from the acts of others in their organizations and additionally has the fiduciary responsibility to ensure that company policies and practices are both legal as well as efficient. Since they benefit from the system, they should be accountable for the system.
Jail is the best solution, but in our system of non-justice for executive fraud, jail is not going to happen.
4
It sounds like you have a lot of interesting ideas and more importantly the practical experience in designing and implementing systems to ensure that the top executive of a major corporation has the knowledge and control over the actions of tens of thousands of employees. Having policies and procedures in place is one thing, but to have the dedicated people, systems and technology in place to ensure that rules and regulations are being consistently adhered to is another.
If you don't already do this, you should market yourself and your team of people that already know how to do this and have already done so on numerous occasions. There are thousands of corporations having to navigate the maze of regulations that can use you and the experience you bring.
If you don't already do this, you should market yourself and your team of people that already know how to do this and have already done so on numerous occasions. There are thousands of corporations having to navigate the maze of regulations that can use you and the experience you bring.
Between the wars in the Middle East launched on fraudulent evidence, and in the guise of bringing freedom and democracy to its peoples, and, the so-called financial "crisis" and its consequences for America, we can no longer claim to be the nation we once were. These were DECISIONS made by people of both parties in power, to drive their personal and private agendas to enrich themselves and their cronies.
Our honesty, morality, and decency are now questioned by much of the world though few other countries can say so directly and openly. We are heading to a new "dark age" of unknown consequences. Many of us sense this, but there is nothing we can do about it because we can "vote" - which has no meaning for the vast majority of "everyday" Americans who are used as pawns to drive the ongoing personal and private agendas of the elites.
Our honesty, morality, and decency are now questioned by much of the world though few other countries can say so directly and openly. We are heading to a new "dark age" of unknown consequences. Many of us sense this, but there is nothing we can do about it because we can "vote" - which has no meaning for the vast majority of "everyday" Americans who are used as pawns to drive the ongoing personal and private agendas of the elites.
1
If there is any further doubt about the sheer silliness of considering corporations to be "persons," this situation ought to clarify the situation: if a person were guilty of these crimes, what would happen?
3
These criminal banks are racketeer-influenced criminal organizations. The word "punishment'--which they continue to escape--really doesn't apply to a RICO-type organization; you don't "punish" a gang of robbers or thieves, you break it up.
Which is precisely what needs to be done to these misbehaving banks. "Reforming" them is impossible. They need to be dismantled, and any operative in them who contributed to the ongoing scams, frauds and thefts needs to be incarcerated.
That's when you'll see "reform". Until then--fuggedaboudit.
Which is precisely what needs to be done to these misbehaving banks. "Reforming" them is impossible. They need to be dismantled, and any operative in them who contributed to the ongoing scams, frauds and thefts needs to be incarcerated.
That's when you'll see "reform". Until then--fuggedaboudit.
6
Without knowing the technical matters in regards to these cases, I admit that it's difficult for me to asses what really transpired, i.e. what did these people specifically do and what rules, regulations and laws did they violate?
With mounds of regulations and with Dodd-Frank numbering in the thousands of pages, it would be easy to see how any number of regulations could be violated, either knowingly or unknowingly, on any given day by any one person, not to mention any number of new regulations that are added regularly.
Regulators' jobs and their incentives are to make regulations and to enforce them, but I wonder how well equipped they are to carry out their missions. Do they truly understand at a very detailed level what they are looking for, and do they have the business judgment and experience to detect wrongdoing? If they were really, really good, I imagine most of them would take a better-paying job in the private sector if they could.
Similarly and not to necessarily cast aspersions on those regulators that diligently carry out their jobs, but I would not be surprised if there were an element of "If you're not going after and catching the big fish, you're not doing your job." Another notch on the regulatory belt perhaps?
With mounds of regulations and with Dodd-Frank numbering in the thousands of pages, it would be easy to see how any number of regulations could be violated, either knowingly or unknowingly, on any given day by any one person, not to mention any number of new regulations that are added regularly.
Regulators' jobs and their incentives are to make regulations and to enforce them, but I wonder how well equipped they are to carry out their missions. Do they truly understand at a very detailed level what they are looking for, and do they have the business judgment and experience to detect wrongdoing? If they were really, really good, I imagine most of them would take a better-paying job in the private sector if they could.
Similarly and not to necessarily cast aspersions on those regulators that diligently carry out their jobs, but I would not be surprised if there were an element of "If you're not going after and catching the big fish, you're not doing your job." Another notch on the regulatory belt perhaps?
1
Maybe the regulators will get jobs with the banks - I would be so surprised if that happened!
1
It's past time. The next Board of Directors meeting should be in the prison yard of the Big House for these miscreants. Replace the Saville Row suits with those nice orange jumpsuits for a month at least. Let's have a nice perp walk down Wall Street. Finally, as convicted felons, they would (and should) be ineligible for future Federal employment--lock the revolving door and throw away the key.
2
Just one thing, Doug Mc: It is illegal in New York State for prisoners to wear orange.
And according to Wikipedia and the message board Prisontalk, at least, Federal prisoners normally wear khaki or green - orange is for prisoners in segregation. Time for a new metonymy.
The media, self-serving politicians and bureaucrats have been on a year's long witch hunt. The villagers are at the castle gate with their pitchforks and torches. Their WILL be blood.
Apparently this most recent symbolic sacrifice won't satisfy the bloodlust of the Times.
The reporting on this case has been atrocious. Readers are lead to believe that there is a currency "market" that closes at 4:00 pm in London. They are told that traders "rigged" that market. They believe there is a (as in 1) "fix" price traders can manipulate by working in collusion. They also believe the Security Exchange Commission oversees the FX markets, that the public were harmed and that $9 billion is chump change.
We also now conflate a felony charge against an individual vs one against a corporation. A felony conviction for a person would not end with a fine, the Times informs us. Why would that be different for a bank? This from an organization that assures readers that corporations are most definitely *not* people.
The facts won't be reported and readers will continue to have no understanding of how these markets actually work.
Apparently this most recent symbolic sacrifice won't satisfy the bloodlust of the Times.
The reporting on this case has been atrocious. Readers are lead to believe that there is a currency "market" that closes at 4:00 pm in London. They are told that traders "rigged" that market. They believe there is a (as in 1) "fix" price traders can manipulate by working in collusion. They also believe the Security Exchange Commission oversees the FX markets, that the public were harmed and that $9 billion is chump change.
We also now conflate a felony charge against an individual vs one against a corporation. A felony conviction for a person would not end with a fine, the Times informs us. Why would that be different for a bank? This from an organization that assures readers that corporations are most definitely *not* people.
The facts won't be reported and readers will continue to have no understanding of how these markets actually work.
How ironic. I bet the banks are paying the fines by using money they made by speculating with the money in our dwindling pension funds and IRAs. Workers are told to accept cuts in their pensions, while big bankers get record bonuses, post record profits, face no jail time, and pay relatively trivial fines--all with someone else's money. It's the old "Heads I win; tails, you lose" scheme.
1
Scalia, Roberts et al on the SCOTUS self-righteously smile as the impact of Citizens United continues to ripple across the country allowing big money to have its pernicious impact deterring those elected officials and their agents who could have some constraining power over these felons.
If there was criminality then the criminals should face the consequences. But what is advocated here is wholesale punishment of a corporation - punishment in which the 99.99% or more of the employees were innocent - for crimes which the executives were not aware, and which the ultimate victims - shareholders - are forced to pay the price. What the Times is stating is kill or seriously impair a company probably employing tens or hundreds of thousands for the activities of a few rouge employees.
Let's apply a similar pain to a government entity - say, NYC government - for instances in which its city inspectors accept bribes (a regularly occurring crime). Should mayor de Blasio then go to jail too? Picking on the banks by the Time's editors and anti-bank advocates is clearly rooted in ideology. There isn't even a minute attempt at fairness. If we excessively punished or diminished every legitimate business or government entity - and their leaders - for the violations of a minuscule few of their workers then all - and I do mean all - organizations in this country would be penalized.
Let's apply a similar pain to a government entity - say, NYC government - for instances in which its city inspectors accept bribes (a regularly occurring crime). Should mayor de Blasio then go to jail too? Picking on the banks by the Time's editors and anti-bank advocates is clearly rooted in ideology. There isn't even a minute attempt at fairness. If we excessively punished or diminished every legitimate business or government entity - and their leaders - for the violations of a minuscule few of their workers then all - and I do mean all - organizations in this country would be penalized.
8
If governments have the political will - and that's a big if - they can craft laws that will go after the culprits themselves. Insisting that the culprits MUST go scot-free lest the low-level employees suffer is to use the low-level employees as human shields.
A thought: Corporations are set up for limited liability. Disincorporation would leave government free to make the major shareholders take the losses - with enough political will, the minor shareholders can be protected. I'm neither an economist nor a legal expert, but would anyone like to run with this ball?
A thought: Corporations are set up for limited liability. Disincorporation would leave government free to make the major shareholders take the losses - with enough political will, the minor shareholders can be protected. I'm neither an economist nor a legal expert, but would anyone like to run with this ball?
1
Are you kidding? "crimes for which the executives were not aware"???
What is advocated here is that people -- individuals -- responsible for criminal activities be punished individually. You seem to suggest that everyone should get a free ride because 99.9% of bank employees were not involved.
This is about the potential criminal liability of those who manipulated the global financial industry to line their own pockets (and the pockets of their banks).
What in the world are you trying to argue, in favor of letting the banks off?!?
What is advocated here is that people -- individuals -- responsible for criminal activities be punished individually. You seem to suggest that everyone should get a free ride because 99.9% of bank employees were not involved.
This is about the potential criminal liability of those who manipulated the global financial industry to line their own pockets (and the pockets of their banks).
What in the world are you trying to argue, in favor of letting the banks off?!?
To Tom Paine,
You write, "Picking on the banks by the Time's editors and anti-bank advocates is clearly rooted in ideology." Really? Please read before ranting. All the Times is saying here is that individuals, not the corporations they work for, should be responsible for their crimes.
You write, "Picking on the banks by the Time's editors and anti-bank advocates is clearly rooted in ideology." Really? Please read before ranting. All the Times is saying here is that individuals, not the corporations they work for, should be responsible for their crimes.
1
Yet in the past with California's 3 strikes law people have been given life sentences for stealing food to feed their hungry children.
Steal billions no punishment, steal $5 life in jail.
Steal billions no punishment, steal $5 life in jail.
1
Is any of this a surprise? As income inequality has increased, so has the power of the elite to do whatever they want. If by some miracle someone dares to prosecute them for their crimes, they proclaim their lack of responsibility and blame the "system" or their minions. Prison -- ha-- that's for commoners, not masters of the universe.
Everyone knows they are lying, but since the laws have been written in their favor and they've bought most politicians, there's nothing we can do.
Everyone knows they are lying, but since the laws have been written in their favor and they've bought most politicians, there's nothing we can do.
3
Leveling a money fine against these banks is about as painful as depriving a plumbing contractor of ten pipe wrenches. These fines are a joke and an insult to the American people. If corporations are people, then these "people" should be wearing orange jumpsuits: they are convicted felons.
2
Shame on the Justice Department for what amounts to simply getting a share of the illegal profits. Shame of them for not going after the bosses who encouraged these crimes, Shame on the Congress for being so weak and taking no action to police these criminal banking operations. Shame on all for us for not being more vigilant of the crooks, fools, and cowards who are OUR government.
1
Dare I suggest that nationalizing the largest banks might be a proper course of action now? Decapitate these institutions and install entirely new top management, answerable to regulators (who also probably need replacement, if truth be told).
2
Commenters are right here, of course, until some individuals are enjoying three hots and a cot courtesy of the United States Government nothing will change. The problem is that these people are not stupid and the governmental burden is beyond a reasonable doubt.
2
Least anyone have any doubts about how the deck is stacked, Justice offers this shining example.
2
You say "a scam that has lasted five years". Sorry, but this has been going on for the past 40 years. Imagine the "good old days" before we all had access to the internet but had to trust the banks. Back then the traders could really do what they wanted. To quote a favourite Doonesbury strip of mine: " GUILTY, GUILTY, GUILTY"!
2
Week after week, article after article, expose after expose: another bank, another series of manipulations, another moment of regulatory capture revealed, another slap on the wrist, another socialized loss. And we hear the champagne glasses clink; and we see the stock price tick ever upward.
If you still think that legal and political leaders exert pressure against corporate domination, the litany of evidence is stacked against you. The good news is that everyone knows how illegitimate those leaders are now. This is the first step towards re-asserting--in the smug faces of the grifters, moneyed philistines, and casuists--the real meaning of political virtue.
If you still think that legal and political leaders exert pressure against corporate domination, the litany of evidence is stacked against you. The good news is that everyone knows how illegitimate those leaders are now. This is the first step towards re-asserting--in the smug faces of the grifters, moneyed philistines, and casuists--the real meaning of political virtue.
1
Corporations are not people and money is not speech except in the exceptionally disunited states of America. Where too big to fail and too big to jail is also another iconic exceptional American value for those who are not poor black and brown non-violent illegal drug user or in possession of illegal drugs. Thanks to a U.S. Congress that is now one big House of Mighty Corrupt Venal Plutocrat Immoral Demon Lords and Ladies.
Thanks to a banking industry that Arkansas Elvis Clinton deregulated to allow investment banks to own commercial and retail banks turning them into gambling casinos there has been politically bipartisan organized corporate plutocrat banking barbarian debauchery and mayhem. Obama, Clinton and Bush pay homage and bow down to Wall Street.
People are people. And they run corporations. The love of money is the root of all evil. Pride is the gravest of sins. We need a perpetrators walk of top corporate criminal prosecution for senior executives to just prison sentences and confiscation of all of their stolen gains. We need more Tyco and Enron style prosecutions of corporate wrong doing. We need to separate the investment weasels from the retail and commercial chickens. We need to make banks tiny enough to fail and their corrupt criminal fraudulent chieftains ripe for jail.
God bless America? Why? America the beautiful? When? America the land of the free and the home of the brave? Where? Who? The Founding Fathers were plutocrats. Not corporations
Thanks to a banking industry that Arkansas Elvis Clinton deregulated to allow investment banks to own commercial and retail banks turning them into gambling casinos there has been politically bipartisan organized corporate plutocrat banking barbarian debauchery and mayhem. Obama, Clinton and Bush pay homage and bow down to Wall Street.
People are people. And they run corporations. The love of money is the root of all evil. Pride is the gravest of sins. We need a perpetrators walk of top corporate criminal prosecution for senior executives to just prison sentences and confiscation of all of their stolen gains. We need more Tyco and Enron style prosecutions of corporate wrong doing. We need to separate the investment weasels from the retail and commercial chickens. We need to make banks tiny enough to fail and their corrupt criminal fraudulent chieftains ripe for jail.
God bless America? Why? America the beautiful? When? America the land of the free and the home of the brave? Where? Who? The Founding Fathers were plutocrats. Not corporations
2
Fines are a ridiculous way to pretend to punish banks (and in general, any large businesses that are virtual or actual founts of cash). They don't even amount to a slap on the wrist.
The only way to punish large businesses that break the law in a serious way is to put the executives responsible behind bars with a stiff sentence.
The only way to punish large businesses that break the law in a serious way is to put the executives responsible behind bars with a stiff sentence.
2
Beyond MR. Corbat, of CIti why aren't the chief executives of JP morgan Chase and Royal Bank of Scotland and the rest of this criminal miscreant cohort named? Surely hey should all be sharing prison cells with Bernie Madoff.
1
If our government as a matter of "policy" refuses to proceed further against institutional felons or those individuals who condoned or personally benefited from their criminal behavure such as employees, managers, officers and members of the Board of Directors, shouldn't their auditors have some obligation to disclose such criminality? Or at least to withdraw their audit letter pending further review of this pattern of criminal activity?
2
what if I set up a corporation and my mission was to embezzle from the above-cited banks. I would 'earn' about $9 billion, and if/when caught, 'negotiate' a deal to pay back less than 10% of my 'profits'. no jail time for me, of course!
7
As if a banker cares if he's a felon. These people have no shame or conscience. The only thing they will care about is taking "their hard earned money," or putting them in prison.
7
“Corporate probation?” You must mean “Pretend probation.” Our Justice Department is a joke.
Bernie Sanders is right. If a bank is too big to fail, it’s time to break it up.
Bernie Sanders is right. If a bank is too big to fail, it’s time to break it up.
11
The same goes for gold,libor,energy,copper.the question for me is,why did the times turn a blind eye over the last 10 years and not investigate the obvious.From mortgages to wedding rings,the innocents were harmed! All of it was common knowledge.Gotta love those advertising dollars and exclusive Sorkin interviews with Morgan,Goldman and Citi..
1
Corporate leaders of banks are crooks. They want to be big players and treated like aristocrats. The new trade accord caters to these types. This elitist sense of entitlement plagues the world economy.
4
It was the same thing in Jesus' day with King Herod's tax scheme: - Herod came up with road taxes, inspection taxes, land taxes, all kinds of taxes on the peasant farmers of Galilee's rich land, and when they couldn't pay, offered them loans on the collateral of their farm plots, and when they couldn't pay the loans, seized them and offered them off to his cronies (government officials) to run. The plots were combined into large farms, the peasants were hired now as labor, and the produce sold through the Roman trade routes, the profits went to officialdom. When Jesus is railing about the "rich" he is actually talking about corrupt government officialdom, the only real wealth of the times. Now we're seeing it all again - the political class simply sets up "to big to fail" and the banks run their schemes defrauding the public.
2
Felons lose many civil rights, including the right to vote.
Why not prohibit felon banks from spending any money on political activities? Including lobbying?
If voting is manifestation of free speech, and if money donations are no longer limited because it is also free speech (vz Citizens United) -- let them lose the right, at least for some years.
Why not prohibit felon banks from spending any money on political activities? Including lobbying?
If voting is manifestation of free speech, and if money donations are no longer limited because it is also free speech (vz Citizens United) -- let them lose the right, at least for some years.
4
If you want to change organizational behavior, executives must be held accountable for their actions. This means jail time. Otherwise, these fines will be regarded by management as a "cost of doing business." And, these "costs" will only have to be paid if they are caught in the next felonious activity.
In the future, the magnitude of the fine should equal the incremental revenue (not profit) generated by the illegal activity.
I am tired of the argument that banks are "too big to fail" or that revoking their privileges "might disrupt the economy." If they are "too big to fail", make them smaller ... that way, criminal activity in one or two will have less impact on the economy. Right now, they are holding the American economy hostage. Its the equivalent of a bank robber saying: "Drop your guns or the lady gets it in the head!"
In the future, the magnitude of the fine should equal the incremental revenue (not profit) generated by the illegal activity.
I am tired of the argument that banks are "too big to fail" or that revoking their privileges "might disrupt the economy." If they are "too big to fail", make them smaller ... that way, criminal activity in one or two will have less impact on the economy. Right now, they are holding the American economy hostage. Its the equivalent of a bank robber saying: "Drop your guns or the lady gets it in the head!"
4
If "corporations are people too," and a corporation commits a felony, what's the comparable punishment? Felons lose their right to vote. How about the corporation losing their right to lobby?
3
Congress reinstating Glass-Steagall would possibly be a deterrent to the appalling behavior of Wall Street banks.
4
Ironic this falls on the anniversary of Bonnie and Clyde being shot to death for robbing banks.
3
Seems like a rule of thumb. The negotiated settlements with these big banks include an implied or confidentially stated automatic pardon for the individuals committing, or aiding and abetting, the felony crimes.
If none of thee criminals are going to jail, can't we at least have a public shaming? To me, an interesting revelation would be the pay and bonuses this bunch received while they engaged in criminal activity, and a compilation of the banks punitive actions taken against them.
If none of thee criminals are going to jail, can't we at least have a public shaming? To me, an interesting revelation would be the pay and bonuses this bunch received while they engaged in criminal activity, and a compilation of the banks punitive actions taken against them.
1
It seems that to ask the S.E.C to do its job would be like asking the oil lobby to regaudlate that industry. The S.E.C is a pawn of the financial industry' afraid to do its job.
2
Anyone would take a deal where you have to pay $9 billion in penalties after you've made $85 billion in profits. Fines aren't the corrective holy grail in these corporate bank felonies. Don't believe the hype that any of these banks would crumble if the top tier went to prison where they belong.
7
thank you NYT for pointing out severals aspects of this deal that I have not seen written up anywhere else. The deviation from the usual practice of have a plea deal be a prelude to further investigations,(possibly of individuals), rather than the 'resolution' I now can so clearly see our new attorney general Loretta lynch voicing so confidently, and secondly that the banks obtained from the agreement the right to continue to operate as normally, rather than as felons, with a three year probation period for which the consequences of violation is not spelled out in any way.
Good editorial. And I don't think I can ever see Ms. Lynch the same way again, in addition to her lack of spine with the HBC deal earlier in her career.
What type of personality ( Elliot Spitzer, where are ya?) has the courage to prosecute individuals for these bank crimes..Neither Holder nor Ms Lynch have it.
Good editorial. And I don't think I can ever see Ms. Lynch the same way again, in addition to her lack of spine with the HBC deal earlier in her career.
What type of personality ( Elliot Spitzer, where are ya?) has the courage to prosecute individuals for these bank crimes..Neither Holder nor Ms Lynch have it.
1
"holding individuals accountable is all the more important in instances of wrongdoing by banks "
Bankers tend to hold conservative views, such as the belief that individuals ought to be responsible for the choices they make. But though they would apply this standard to burglars and muggers, they do not apply it to their own "embarrassments."
Bankers tend to hold conservative views, such as the belief that individuals ought to be responsible for the choices they make. But though they would apply this standard to burglars and muggers, they do not apply it to their own "embarrassments."
4
Bankers set the moral blueprint for society more than priests, ministers, rabbis and imams. If we want this country to exist as a democratic republic into the next century, we have to send corrupt bankers to prison for significant terms--decades, not months. Failure to do this will undermine the moral foundations of America more than mere peccadillos such as polygamy, abortion and drug use.
2
Every time I hear these overpaid boardroom thieves say they are working for their shareholders I just gag.
9
At some point, someone at these banks committed to paper a directive to commit a crime. The schemes run by the banks are too complicated to execute by phone calls and face to meetings. Once that bank official is identified, his or her name should be listed on the indictment and should stand trial along with the corporate "person". I suspect a "perp walk" would be a very humbling experience.
2
Disgraceful, on the part of the banks and on the part of the "Justice Department".
3
So now the NYT Editorial Board cares about 'the law', 'the public good', enforcement and deterrence? Only when it fits the narrative apparently. How is mass law breaking and economic opportunism by the illegal migrants you so fervently champion any different than the self serving, criminal behavior of these bankers? Neither has any regard for the law or certainly 'the public good and all have powerful political lobbies that prevent punishment. See a pattern here?
2
The message being ignored the pubic-at-large and leveraged repeatedly by the financial community, is that existing laws and punishments are woefully inadequate. Fix and the rest will follow. Ignore and continue the status quo of issuing speed tickets.
Excerpt from one of the plea agreements:
" no order of restitution, pursuant to l8 U.S.C. $ 3663A(c)(3), as the number of identifiable victims is so large as to make restitution impracticable and determining complex issues of fact related to the cause or amount of victims' losses would complicate or prolong the sentencing process to a degree that the need to provide restitution to any victim is outweighed by the burden on the sentencing process"
Excerpt from one of the plea agreements:
" no order of restitution, pursuant to l8 U.S.C. $ 3663A(c)(3), as the number of identifiable victims is so large as to make restitution impracticable and determining complex issues of fact related to the cause or amount of victims' losses would complicate or prolong the sentencing process to a degree that the need to provide restitution to any victim is outweighed by the burden on the sentencing process"
1
Exactly right. As long as individuals are not held accountable for their actions, crimes admitted to by institutions are a sort of fiction, as if the banks are mythical figures with nothing else behind them.
2
Everybody wants to be a BANKSTA...
1
As per the failure to end bulk public data collection, the failure to end banking abuses is just another example of the oligarchy in action. The federal version of "for the people" whispered through the great halls of the Capitol is "for the filthy rich . . .only" followed by "please don't give us your tired and poor. Just give us your campaign donations, your party invitations and a weekend on the yacht."
57
Wrong, they'll take cheap labor and shoddy products any day.
1
The funniest part of this article: "as well as the cessation of all criminal activity". I suppose that one could assume that the banks will be shutting down?
7
Wonder whether the Times might print an occasional (continuing) chronology of the most egregiously wrong of these bankster revelations? They shouldn't blur in our memories.
2
It's time to stop prosecuting banks and switch to prosecuting bankers.
3
"Citicorp, JPMorgan Chase, Barclays and Royal Bank of Scotland..."
Looks like a list of businesses that paid a certain husband, wife and daughter millions of dollars for speaking at them. Not to mention the banks' largesse to scads of other ne'er do wells.
Looks like a list of businesses that paid a certain husband, wife and daughter millions of dollars for speaking at them. Not to mention the banks' largesse to scads of other ne'er do wells.
5
The obsequiousness of the government, its representatives, and others towards the big banks is at the core of a level of dishonesty that most Americans know cannot change now. Not only did the banks set things up for a grand fall in the economy through the well known mortgage security scandals, they're repeatedly shown that their other choices for shaving billions into their profit barrel are those which the Feds, even if they catch them doing it, cannot penalize to discourage further criminal behavior.
If the Feds really wanted to punish the banks for ruining the economy, they would centralize all mortgage trade and cut the banks out from the exorbitant interest rates they charge, and put some people in jail for the 2008 scandal, including the people personally responsible at the top for the behavior of those below.
Meanwhile, we listen to stories on Newshour about how seniors in Naples, FL who were hurt by the 2008 scandal can't afford a box of cereal.
If the Feds really wanted to punish the banks for ruining the economy, they would centralize all mortgage trade and cut the banks out from the exorbitant interest rates they charge, and put some people in jail for the 2008 scandal, including the people personally responsible at the top for the behavior of those below.
Meanwhile, we listen to stories on Newshour about how seniors in Naples, FL who were hurt by the 2008 scandal can't afford a box of cereal.
1
To the Editors,
Lest one thinks justice is blind in America, I suggest reading Brandon Garrett's excellent book "Too Big To Jail" which explains in detail how banks and lending institutions pay their way out of both jail time and culpability.
Nobody in a bespoke suit goes to jail; they pay fines and, generally, 'negotiate' their sentences with so-called 'prosecutors' because these institutions, pardon me, corporate entities are also still "Too Big To Fail" and they know it.
What has changed since 2008? Though the fines levied seem high, they are a 'drop in the bucket' compared to how much these corporate thieves made off with.
One would think SOMEBODY, other than the middle and lower class, would suffer from the "biggest financial disaster since the Great Depression" but, guess what, money talks very loudly in both politics and court cases.
Hence, the DJIA is soaring to new heights because, well, because is such a 'nasty'term, is't it? Basically, 2008 is over so let's start setting up for the next disaster knowing full well that the public will not only "bail them out" but any prosecution is merely another 'deal' to be negotiated.
Great system we got here at least for the wealthy among us.
Lest one thinks justice is blind in America, I suggest reading Brandon Garrett's excellent book "Too Big To Jail" which explains in detail how banks and lending institutions pay their way out of both jail time and culpability.
Nobody in a bespoke suit goes to jail; they pay fines and, generally, 'negotiate' their sentences with so-called 'prosecutors' because these institutions, pardon me, corporate entities are also still "Too Big To Fail" and they know it.
What has changed since 2008? Though the fines levied seem high, they are a 'drop in the bucket' compared to how much these corporate thieves made off with.
One would think SOMEBODY, other than the middle and lower class, would suffer from the "biggest financial disaster since the Great Depression" but, guess what, money talks very loudly in both politics and court cases.
Hence, the DJIA is soaring to new heights because, well, because is such a 'nasty'term, is't it? Basically, 2008 is over so let's start setting up for the next disaster knowing full well that the public will not only "bail them out" but any prosecution is merely another 'deal' to be negotiated.
Great system we got here at least for the wealthy among us.
7
Justice Roberst and his friends must explain how the corporate bank persons are persons in light of their evasion of law.
6
I am confused. Since the Supreme Court ruled that Corporations are people then why aren't these felons going to jail.
Or is it because these people are too important and therfore not sent to jail. No matter how I slice this it makes no sense.
Clearly their SarbanesvOxley mandated controls failed and the internal and external auditors charged with identifying weaknesses and notifying management of their findings failed. Their aboard of Directors also failed since the Audit Committees of The Board failed to oversee the audit functions.
Bottom line these corporations can do whatever they want without any concern for the consequences
Or is it because these people are too important and therfore not sent to jail. No matter how I slice this it makes no sense.
Clearly their SarbanesvOxley mandated controls failed and the internal and external auditors charged with identifying weaknesses and notifying management of their findings failed. Their aboard of Directors also failed since the Audit Committees of The Board failed to oversee the audit functions.
Bottom line these corporations can do whatever they want without any concern for the consequences
2
When "banks" or any corporation admits guilt it means nothing because banks are not people regardless of what SCOTUS says. Only the people who make the criminal decisions are people and they get off completely free of liability and responsibility. No jail time for the real crooks! That is the embarrassment.
Corporate CEOs use the corporate veil to protect themselves from liability and responsibility and jail time by saying that's not me that's the corporation but corporations and the same CEOs argue that corporations are people and deserve the same rights as humans. The fact that a corporation cannot be deprived of its freedom or die makes is crystal clear it is not a person as envisioned by the Constituion. Until and unless the humans who actually commit the crimes are forced to spend some time in jail...nothing will change.
Corporate CEOs use the corporate veil to protect themselves from liability and responsibility and jail time by saying that's not me that's the corporation but corporations and the same CEOs argue that corporations are people and deserve the same rights as humans. The fact that a corporation cannot be deprived of its freedom or die makes is crystal clear it is not a person as envisioned by the Constituion. Until and unless the humans who actually commit the crimes are forced to spend some time in jail...nothing will change.
2
I think that time has come to seriously question the basic for profit structure of the banking system and to consider making banks utilities given the many financial scandals, particularly their currency manipulations.
How the utility banking approach can be placed in the context of the global financial, economic, commercial and especially the monetary systems is shown in Verhagen 2012 “The Tierra Solution: Resolving the climate crisis through monetary transformation” and updated at www.timun.net. These banking utilities would be part of carbon-based international monetary system with its standard of a specific tonnage of CO2e per person. Transforming the present unjust, unsustainable, and therefore, unstable international monetary system would mean transforming the other global systems given that the international monetary system, like glue, binds together monetary, financial, economic and commercial systems.
How the utility banking approach can be placed in the context of the global financial, economic, commercial and especially the monetary systems is shown in Verhagen 2012 “The Tierra Solution: Resolving the climate crisis through monetary transformation” and updated at www.timun.net. These banking utilities would be part of carbon-based international monetary system with its standard of a specific tonnage of CO2e per person. Transforming the present unjust, unsustainable, and therefore, unstable international monetary system would mean transforming the other global systems given that the international monetary system, like glue, binds together monetary, financial, economic and commercial systems.
2
No mercy!
Incarcerate to the fullest extent allowed by law the corporations...if not the, SCOTUS ridiculously decreed, humanized buildings by closing and locking the doors, then pour the traders and the officers overseeing the operations down some deep 'black hole of Calcutta.' (the 'corporation pleading guilty' surely carries its wheels and cogs in that guilt)
This spending by the Justice Dept. of vast sums of the taxpayers' money to end up with these utterly ridiculous and completely empty symbolic gestures which lack an iota of substance and are utterly devoid of consequences is getting...Boring!
Incarcerate to the fullest extent allowed by law the corporations...if not the, SCOTUS ridiculously decreed, humanized buildings by closing and locking the doors, then pour the traders and the officers overseeing the operations down some deep 'black hole of Calcutta.' (the 'corporation pleading guilty' surely carries its wheels and cogs in that guilt)
This spending by the Justice Dept. of vast sums of the taxpayers' money to end up with these utterly ridiculous and completely empty symbolic gestures which lack an iota of substance and are utterly devoid of consequences is getting...Boring!
2
While this case was handled by the Holder Justice Department, it was finalized by Ms. Lynch. In announcing the resolution, Ms. Lynch indicated her support for the final agreement. It's a dubious debut at the Justice Department for her.
2
President Obama has declared two kind of criminals exempt from criminal prosecution with jail terms: (1) big banks; (2) war criminals in the Executive Branch. I would have thought the Editorial Board understood that.
At the same time, the worst crime in the United States is to be poor and all branches of government, particularly Congress, are working diligently to punish that crime.
At the same time, the worst crime in the United States is to be poor and all branches of government, particularly Congress, are working diligently to punish that crime.
3
Yet a handful of teachers in Atlanta who inflated their students' grade were tried for conspiracy under rico statutes....yeesh.
Over persecution of have-not citizens but kids gloves for corporation and the senior executives who defraud the public to the tune of billions.....
Over persecution of have-not citizens but kids gloves for corporation and the senior executives who defraud the public to the tune of billions.....
6
When our laws are arbitrary and negotiable, and enforcement and punishment is simply a matter of political power, the rest of us are left wondering why we should continue to be good citizens at all.
6
There was a piece in the Financial Times lamenting that these big fines on the banks were fleecing shareholders of their money. While I cannot share their tears, it does make the point that the fines the banks are paying is being paid with money that is not theirs. When blue collar crimes are committed, people go to jail. For instance when those motorcycle enthusiasts in Waco Texas shot each other ( persons whom none of us would ever miss) 170 of them were immediately jailed on 1 million dollars bond. Until these white collar criminals are forced to reckon with the possibility of losing their cushy lifestyles, there will never be any incentive to change.
2
"For instance when those motorcycle enthusiasts in Waco Texas shot each other ( persons whom none of us would ever miss)"
The meanness of the Left never fails to astound me for all its preaching against Conservatives supposed meanness.
The meanness of the Left never fails to astound me for all its preaching against Conservatives supposed meanness.
Easier to go to jail in this country for petty crimes like shoplifting.
Until the traders and their bosses are actually held responsible for their
behavior nothing much will change.
The world's economy was brought to its knees by some of these players and nobody went to prison. Stark contrast to the savings and loan mess where at least 1000 executives were found criminally liable and sentenced.
Until the traders and their bosses are actually held responsible for their
behavior nothing much will change.
The world's economy was brought to its knees by some of these players and nobody went to prison. Stark contrast to the savings and loan mess where at least 1000 executives were found criminally liable and sentenced.
2
This might look like a light touch but with a guilty plea all of the Banks' currency trades in the period of the indictment are suspect and each customer has a case to litigate. The banks will likely have to go into firefighting mode to deal with it all and will spend more billions settling law suits. I am not a lawyer but it looks to me like this is only the beginning of death by a thousand paper cuts.
2
Denis, you're a dreamer. They will get an amnesty cut-off just like G.M. These banks don't need lawyers, they have already bought Reps. and Senators.
The reason why this is so rampant is because all the same people sit on each others' board of directors. It's the same reason for gag inducing pay. I'd be all for obscene pay if the company was skyrocketing and paying ALL employees a decent wage. But, when the Dimons and Blakfeins start demanding tax payer dollars when they admitted to tanking their companies, I have a problem. I have never even come close to screwing up at a job that badly. I had a better record at 16 at Dairy Queen and I never robbed the place.
I'm not a fan of the death penalty but Justice Bobby led a charge of corporations being people and they certainly are serial killers, so let's let Texas, Florida and Oklahoma get a crack at these "people". And feel free not to use the first drug to ease the pain.
I'm not a fan of the death penalty but Justice Bobby led a charge of corporations being people and they certainly are serial killers, so let's let Texas, Florida and Oklahoma get a crack at these "people". And feel free not to use the first drug to ease the pain.
So, if corporations are people they could be put in jail. Who should represent the corporation in prison? I suggest the executives who sold their stocks and stock options in 2008 in the 8 months before the crash. That would tell us who knew the crash was surely coming and that's what I want to know.
2
When "they" supposedly pay these large "fines" where does this money go? No one ever says who get the money. I assume the US Treasury gets the money so we end up paying twice first we pay the banks and lose then they pay the US Treasury and we lose again. When the banks have all the money, what happens? That's where things are headed.
1
The bankers, the traders, the auditors, regulators etc. scratch each others' backs from sunup to sundown- until some of them start doing prison time for their financial crimes, it is the justice system that is "an embarrassment." Read some of the threatening emails sent by those involved in the manipulation of the inter-bank lending rates (Libor)) scandal to the few who wouldn't play ball and you think you're dealing with the Corleones.
2
Seems to me that there is no evidence of a crime just a supposition - that is the reason why no one is going to jail. The great recession was caused by the federal government as much as anyone and no one is taking any of that blame. the settlements are the result of a large government bullying the banks into submission because they have unlimited lawyers and access to the courts while private business does not. bullying does not make them guilty of anything. it's simply bullying by the government that caused the problem in the first place. and it will happen again because of the ignorance of our legislators to recognize their complicity in the cause of the great recession.
1
Since George Bush headed the government, does that make him culpable in your skewed view? How culpable are all the Republican members of Congress who have blocked any consequential reforms of the banking system? How culpable are all the deliberately self uneducated voters who voted these people in to represent them and also to choose the majority on the Supreme Court which voted for Citizens United? When will you figure out that the legislative branch of our Federal government is an active employee of big money interests?
1
After the corrupt fiasco of 2008 no one in his right mind thinks that bankers go to jail. They r truly above the law and can do as they wish -stealing from the tax payer and corrupting the economy on a daily basis. The regulators as the politicians r in their pockets waiting for rich jobs with hardly any work , corrupting the economy further once they leave govt. Obama should be ashamed that such a mockery of the law is taking place under his watch when even under republicans some went to jail. How sad and unfair indeed for the law respecting average American.
1
The banks complain that they are being unfairly vilified as criminals. It is quite simple. If you want people to stop thinking of you as a criminal you have to stop acting like criminals.
3
Until money is removed from the political process here in pay-to-play America, these sorts of show trials, spurious "punishments", and immediate return to the "punished" behavior will continue. There is a direct link, whether you choose to believe that or not, between a political contribution to a US senator or representative and favorable regulations or removal of any regulations. There is no such thing as "the free market," any semblance of that died when the stock market was born, midwifed by bought and paid for professional politicians of all stripes.
3
These criminals are above the laws of the land. We should start calling these folks, the Wall street mafia.
5
Holding individuals accountable for crimes is not a bad idea in general ,but it is rather lame if the system these individuals command is criminogenic to the core. The possibilities for billion fraud and manipulation are so plentiful and so hidden in the present monetary system that in my eyes holding THE SYSTEM accountable would make more sense. Manipulating Libor, manipulating oil or copper price levels on a global scale, actually being so awash with money that manipulating the globe is possible with the right kind of coordination: should this state of affairs be enabled any longer?
2
No justice here. Paying fines and admitting guilt does not fit the crime. Until we have people actually put in jail over these type offenses, nothing will change. Cost of doing business, a ticket for 'speeding', no justice.
Warren was right.
Warren was right.
3
If the SCOTUS have determined that corporations are people, it should follow that banks can be punished as people. Start collecting those feloniously-gained assets, law enforcement! Certainly the banks deserve at least as much punishment as Bernie Madoff. Fair is Fair!
9
It is the beauty of the SCOTUS giving these corporations personhood they get all the benefits and none literally of the responsibilities. If I a real human person commit a crime, jail is in my future. If I kill someone there is a chance that my life will be taken. If I am a corporation, at worst I may have to pay a fine of a lesser amount than I made off of my crime.
This is what the SCOTUS has in its corruption given us, entities that are immune from the penalties of man. Of course the really nice part is many of these same protections extend to the wealthy as well. Three criminal systems, one that is harsh for normal people who relatively speaking commit minor crimes, a milder gentler system for the wealthy, and an totally forgiving system for when the wealthy hide behind their corporate personages.
The experiment begun in 1789 has failed and the aristocracy has won thanks to their ability to corrupt the SCOTUS.
This is what the SCOTUS has in its corruption given us, entities that are immune from the penalties of man. Of course the really nice part is many of these same protections extend to the wealthy as well. Three criminal systems, one that is harsh for normal people who relatively speaking commit minor crimes, a milder gentler system for the wealthy, and an totally forgiving system for when the wealthy hide behind their corporate personages.
The experiment begun in 1789 has failed and the aristocracy has won thanks to their ability to corrupt the SCOTUS.
7
The individual culprits should be punished.
2
So, steal $85 billion, pay back $9 billion. And no one goes to jail. All while harming the world economy the rest of us depend on.
Such impunity would lead a rational person to believe we no longer live in a democracy.
Such impunity would lead a rational person to believe we no longer live in a democracy.
7
Let's not forget that TPP, including a provision allowing corporations to sue countries that enact regulations hurting through their profits, got through the Senate this week.
Unfettered corporate power is going only one way: it's expanding.
Unfettered corporate power is going only one way: it's expanding.
6
An excellent editorial, and one of the reasons I still read the Times.
It is a national disgrace that senior banking officials have not walked the "perp walk" while wearing handcuffs and being carted off to prison.
The greatest dichotomy in this country is in the application of criminal law and punishment, or the lack thereof, to financial services officers.
The general impression, as your editorial suggests, is that just as certain financial institutions were "too big to fail," to apply the full rigors of the criminal law to felonious banking conduct would "damage the economy."
Since when did an MBA insulate from criminal liability?
If you wish to get me out into the streets, keep giving these bankers an easy ride, while Freddy gets the rough one.
It is a national disgrace that senior banking officials have not walked the "perp walk" while wearing handcuffs and being carted off to prison.
The greatest dichotomy in this country is in the application of criminal law and punishment, or the lack thereof, to financial services officers.
The general impression, as your editorial suggests, is that just as certain financial institutions were "too big to fail," to apply the full rigors of the criminal law to felonious banking conduct would "damage the economy."
Since when did an MBA insulate from criminal liability?
If you wish to get me out into the streets, keep giving these bankers an easy ride, while Freddy gets the rough one.
7
Pray, please explain why a petty shop lifter can get a hefty jail term but these white collar criminals who do more harm to the public go unscathed? The "monetary fines" does not affect them at all--they comes out of the pocket of shareholders and banking customers!
3
Just another example, if need be, that compliance with the Law and effective corporate and social responsibility do not apply to financial industry executives.
This has been a complete scandal for decades, especially for the US, the nation which claims to be "Under God" and whose politicians and executives are constantly lecturing others on the importance of the rule of Law and of effective personal responsibility.... while acting otherwise.
This is just another example that, in reality, we are the "Nation under greed and violence", all wrapped in hypocrisy.... sad, very sad, but factual.
This has been a complete scandal for decades, especially for the US, the nation which claims to be "Under God" and whose politicians and executives are constantly lecturing others on the importance of the rule of Law and of effective personal responsibility.... while acting otherwise.
This is just another example that, in reality, we are the "Nation under greed and violence", all wrapped in hypocrisy.... sad, very sad, but factual.
2
There are two sets of rules and laws in this country.
One for the extremely wealthy, one for the other 99 percent.
From the recession to now, that a small group of people can play fast and lose with money that destroys our economy, tramples on the world's economy, loses people their jobs and their homes, and then to have no consequences for their known, criminal behavior is sickening.
We are a bought and paid for country. Anyone who doesn't see it is being deliberately blind to our reality.
Think I'm wrong? Go out and rob a 7 11 of five hundred bucks. You will, I guarantee it, go to jail. For years.
If, however, you are a slick investment banker tinkering with a real estate market you know will collapse and selling your own clients bad stock to pad your gigantic commission, or you mess with the values of the world currencies, and people's lives, you will get a yacht.
It's sad. It's discouraging. It's infuriating.
One for the extremely wealthy, one for the other 99 percent.
From the recession to now, that a small group of people can play fast and lose with money that destroys our economy, tramples on the world's economy, loses people their jobs and their homes, and then to have no consequences for their known, criminal behavior is sickening.
We are a bought and paid for country. Anyone who doesn't see it is being deliberately blind to our reality.
Think I'm wrong? Go out and rob a 7 11 of five hundred bucks. You will, I guarantee it, go to jail. For years.
If, however, you are a slick investment banker tinkering with a real estate market you know will collapse and selling your own clients bad stock to pad your gigantic commission, or you mess with the values of the world currencies, and people's lives, you will get a yacht.
It's sad. It's discouraging. It's infuriating.
7
Hilarious. Not one of these institutionalized freeloaders is personally liable for anything, by definition. You could rob a bank and say "It's OK, I work for a corporate entity", and this ridiculous system would let you get away with it. There is no personal accountability, no risk, in fact. America's corporations have become a front for all kinds of illegal money handling, in so many ways. Breaking the law is now normal practice. In 2016, you might as well elect Bernie Madoff for president. It would make no difference. The days of probity and non-vermin management of major corporations are long gone. This is a basic weather report, not a revelation. Check out and see if you can see any major corporations which don't have a record as long as a freeway in terms of breaches of law. See if you can find even one with a remotely credible record of compliance. Anyone want to take bets on that?
3
I am a convicted felon. How could my cellmate have been a corporation"
1
Corporations, are simply not people. But the people who instigate and are complicit with these acts should be held accountable.
2
Corporations are people so declared the Supreme Court eons ago. Any real people who is convicted of felony goes to jail so I think it is fair that incorporated people should also go to jail: put a huge chain at every entrance and exit of these corporate felons' offices for a number of years. To minimize the "impact" on the economy let them continue to do business by renting new offices. In fact that will help the economy, at least the real estate portion of it.
1
America is a young country, hopefully some day it will develop a real justice system, where real criminals get prosecuted. Although nobody writes better fiction about Law as demonstrated by your TV series "Law and Order", sadly in American real life, big criminals never get punished and of course then, there is no incentive ever, to stop them repeating endlessly their crimes.
1
The Attorney General has a obligation to address Federal Sentencing Guidelines in these felony cases, explaining why they are not applied in these heinous crimes.
2
I'm considered a relatively bright & intelligent guy and I have no idea why Republicans and Democrats are letting corporations destroy our Democracy.
The poor and middle-class built this country from nothing and yet, in this century, we relegate those classes to non-metaphorical slaves while we hold corporations and corporate leaders up as saviors. Banks should be broken up, bankers placed in prison if they break the law (just like us if we broke the law), derivatives trading should be completely outlawed (they serves no useful purpose) and investment arms of banks should be dissolved.
Instead we get nothing but the justification of any harm for profit and any of you who read this who take part in this industry are willful participants in a business model that has become parasitic. Defending what corporate America has become is a morally bankrupt joke. Quit pretending it is not.
The poor and middle-class built this country from nothing and yet, in this century, we relegate those classes to non-metaphorical slaves while we hold corporations and corporate leaders up as saviors. Banks should be broken up, bankers placed in prison if they break the law (just like us if we broke the law), derivatives trading should be completely outlawed (they serves no useful purpose) and investment arms of banks should be dissolved.
Instead we get nothing but the justification of any harm for profit and any of you who read this who take part in this industry are willful participants in a business model that has become parasitic. Defending what corporate America has become is a morally bankrupt joke. Quit pretending it is not.
3
The entire business model of financial firms have been largely a scam. The scam benefits politicians and bureaucrats by way of the revolving door, or campaign contributions.
What's the difference between corruption in Afghanistan and corruption in US? Yes, we are more refined, we don't stuff envelopes with cash and hand it in broad daylight. We are much more refined, we do it by way of checks and perks.
What's the difference between corruption in Afghanistan and corruption in US? Yes, we are more refined, we don't stuff envelopes with cash and hand it in broad daylight. We are much more refined, we do it by way of checks and perks.
6
This administration has made it quite clear with it's inaction regarding the prosecution of Wall St banks and other corporations, that they do not feel that these "Types" of people deserve jail time. Fines=maybe; jail=no. These banks have called in their debt from Obama for their past big campaign $$$$ to him and his merry band of hooligans. So people, corporations which are defined by the Supreme Court as human get a slap on the wrist, a finger waving, and a "Don't you do it again", and that's it. Why are we so stupid to let this farce continue? It's baseball season, that's why, who has time to be concerned about politics? Pass me that $10 hot dog please.
1
I wonder how many welfare cheats equals 5 billion dollars.
13
How about every person involved with the crime receives the same criminal charges as the company involved?
The SEC has done enough waivers on this. 19 to be exact. It's time for prison sentences or shut the SEC down and throw it in the waste bin of history as ineffectual as the League of Nations.
The SEC has done enough waivers on this. 19 to be exact. It's time for prison sentences or shut the SEC down and throw it in the waste bin of history as ineffectual as the League of Nations.
2
It's not enough to fine a bank. That's like yelling at a dog. Prison time, plain and simple, just punishment, like any felon gets, is what the CEO's deserve. Fines are just business expenses. What's the difference between a crime boss and the CEO of a thieving bank?
Very little.
Very little.
4
Unless and until a real human - or humans - is put behind bars, the crimes will continue. See also General Motors, Santa Barbara oil spill, Toyota, ETCETERA, ETCETERA, ETCETERA!!
6
As an individual I would go to jail for criminal activity then why do banks get immunity from the same. Neither the banks nor the individuals have been prosecuted for filching money from billions of people.
The integrity of the justice system is being compromised for the privileged few. And why are the bankers so privileged that they can cock a snook at the justice system and yet whine about the immense deprivations they are being forced to undergo by regulatory authorities.
The world abhors unequality publicly, demonstates its concern pretentiously but America is demonstrating its lack of concern for inequality flagrantly.
The integrity of the justice system is being compromised for the privileged few. And why are the bankers so privileged that they can cock a snook at the justice system and yet whine about the immense deprivations they are being forced to undergo by regulatory authorities.
The world abhors unequality publicly, demonstates its concern pretentiously but America is demonstrating its lack of concern for inequality flagrantly.
6
Keep up the pressure NY Times!
After the financial crisis in 2008, Iceland put its bankers who were responsible in jail. Four of the top officers of the failed Kaupthing Bank were put in prison.
Sweden had a major banking failure in 1992, and here is what Sweden did after bailing out its ailing banks:
"Banks had to write down losses and issue warrants to the government….That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well." http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html?_r=0
The Swedish plan was the result of a coalition between the conservative government and the center-left, because both parties agreed that wrong and serious harm had been done (largely as a result of deregulation in the 1980s, the banks' irresponsible behavior and the housing bubble and collapse), and the taxpayers should not be on the hook for the costs.
What did one banking expert say about the United States in 2013?
Of "the six largest [too big to fail banks in the U.S.]… 37 percent [are] bigger than they were in 2008. They hold sway over the economy. They hold sway over the government. And we are doing the exact same things that led to a collapse in 2008."
http://rt.com/op-edge/iceland-bank-sentence-model-246/
We not only do not punish bankers for wrongdoing, we reward them.
After the financial crisis in 2008, Iceland put its bankers who were responsible in jail. Four of the top officers of the failed Kaupthing Bank were put in prison.
Sweden had a major banking failure in 1992, and here is what Sweden did after bailing out its ailing banks:
"Banks had to write down losses and issue warrants to the government….That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well." http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html?_r=0
The Swedish plan was the result of a coalition between the conservative government and the center-left, because both parties agreed that wrong and serious harm had been done (largely as a result of deregulation in the 1980s, the banks' irresponsible behavior and the housing bubble and collapse), and the taxpayers should not be on the hook for the costs.
What did one banking expert say about the United States in 2013?
Of "the six largest [too big to fail banks in the U.S.]… 37 percent [are] bigger than they were in 2008. They hold sway over the economy. They hold sway over the government. And we are doing the exact same things that led to a collapse in 2008."
http://rt.com/op-edge/iceland-bank-sentence-model-246/
We not only do not punish bankers for wrongdoing, we reward them.
6
In America, if you bounce a check for $50 the system will come down on you like a ton of bricks. White collar criminals and the corporations that employ them, on the other hand, get special treatment.
2
"The banks will also be placed on "corporate probation" for three years, which will be overseen by the court and require regular reporting to the authorities as well as the cessation of all criminal activity."
Wow. They have to cease all criminal activity for three years! The rest of us are expected to not participate in criminal activity for our entire lives! That just gives the banks three years to come up with another illegal criminal activity to enrich themselves ... then they can do that until they get caught again.
Wow. They have to cease all criminal activity for three years! The rest of us are expected to not participate in criminal activity for our entire lives! That just gives the banks three years to come up with another illegal criminal activity to enrich themselves ... then they can do that until they get caught again.
6
What happened to "corporations are people too"? They should be punished like people too!
3
When you have a puppet government that does the bidding for the rich and powerful, what else would you expect?
7
Moral hazard provides implicit protection to these institutions to engage in criminal behavior. This is an insurance policy that allows these banks to break the law with no risk of going to jail because corporations cannot be jailed. They can only be penalized financially.
JP Morgan the biggest bank in the US has broken some many laws and paid billions in fines and yet there is no evidence that this behemoth has any incentive or threat from the law to stop this behavior. In fact Jaime Dimon , the long time CEO of JP Morgan has been extolled in the media that he is one of the greatest bankers that has ever lived!
JP Morgan the biggest bank in the US has broken some many laws and paid billions in fines and yet there is no evidence that this behemoth has any incentive or threat from the law to stop this behavior. In fact Jaime Dimon , the long time CEO of JP Morgan has been extolled in the media that he is one of the greatest bankers that has ever lived!
3
Not felons. Gangsters.
4
I still do not understand how in cases such as these, the fines are not imposed on top of the recovery of the illegally acquired goods. It's like someone were to steal a 6-pack from a convenience store and, upon being caught, was allowed to keep the 6-pack, but fined the cost of half of one beer, and then allowed to write the fine off on his income tax as a business expense. Oh, and the conviction for the theft is attributed to The Association of Six-Pack Thieves rather than to any individual, flesh-and-blood human being.
This does not and will not change until the CEO of one of the banks is prosecuted for a RICO conspiracy, convicted and sent away for a long, long, long time.
4
"Bankster".....a person or entity that steals or defrauds others of more money or property than a common thief.
Why are the Directors or Managers not prosecuted? Does a Bank steal by itself or does it require human assistance? Wo profits from these crimes? Why are the shareholders of these Banks not paid a major share of the fines and penalties. Are these fines merely a new form of tax, intended to punish but to allow this behavior? Is this merely the prelude to a movement to Government control and Management of Banks- and ultimately conversion of currency into electronic form purchased from the State- presumably run by robots?
Why are the Directors or Managers not prosecuted? Does a Bank steal by itself or does it require human assistance? Wo profits from these crimes? Why are the shareholders of these Banks not paid a major share of the fines and penalties. Are these fines merely a new form of tax, intended to punish but to allow this behavior? Is this merely the prelude to a movement to Government control and Management of Banks- and ultimately conversion of currency into electronic form purchased from the State- presumably run by robots?
Meanwhile, middle class teachers are charged with federal racketeering.
Look, we are are what we do, not what we say we do, not what we believe we do.
What we are doing is attacking & destroy the middle class & shifting the money & power upwards to defacto oligarchs.
We magically have money for prisons but not schools; for no-interest loans to banks but not to students; for statistically invalid very expensive unscientific tests & technology but not for teachers & paper; for endless wars but not for domestic infrastructure.
The common denominator here is simple: All our decisions enrich the investor 'banks' (they are no longer really banks as we used to define it) & their sycophants.
This transcends political party. The facts are that the democratic party is every bit as complicit as the Republican in this transformation (with the lone exception of Ms Warren, who was sneered at by Mr Obama when she objected to another middle-class-jobs-destroying initiative, the secret trade deal).
This massive shift in power is not done in secret, but it does require us to connect the dots & stay focused. The oligarchic class knows this so it stirs up fear & hatred amongst one another (for instance, jealousy of pensions between segments of middle class).Our standardized testing is training future students to ask no questions, to conform, to accept whatever is given no matter how dreary or stupid.That's deliberate.
The media is in a pivotal role here. But will it connect the dots?
Look, we are are what we do, not what we say we do, not what we believe we do.
What we are doing is attacking & destroy the middle class & shifting the money & power upwards to defacto oligarchs.
We magically have money for prisons but not schools; for no-interest loans to banks but not to students; for statistically invalid very expensive unscientific tests & technology but not for teachers & paper; for endless wars but not for domestic infrastructure.
The common denominator here is simple: All our decisions enrich the investor 'banks' (they are no longer really banks as we used to define it) & their sycophants.
This transcends political party. The facts are that the democratic party is every bit as complicit as the Republican in this transformation (with the lone exception of Ms Warren, who was sneered at by Mr Obama when she objected to another middle-class-jobs-destroying initiative, the secret trade deal).
This massive shift in power is not done in secret, but it does require us to connect the dots & stay focused. The oligarchic class knows this so it stirs up fear & hatred amongst one another (for instance, jealousy of pensions between segments of middle class).Our standardized testing is training future students to ask no questions, to conform, to accept whatever is given no matter how dreary or stupid.That's deliberate.
The media is in a pivotal role here. But will it connect the dots?
2
When asked by Elizabeth Warren during a Senate hearing why his DoJ had not criminally prosecuted a single high ranking official for their crimes, he replied that "it might harm the economy."
Really. He said that.
It's especially galling when one remembers that HSBC was caught red handed laundering more than a billion dollars in drug cartel money and only paid a fine worth a fraction of gross revenues while Holder's DoJ has shoveled untold thousands of mostly poor drug criminals into prison.
At what point do we Americans demand that our government be accountable for its complicity in the enormous crimes of the financial elite?
Really. He said that.
It's especially galling when one remembers that HSBC was caught red handed laundering more than a billion dollars in drug cartel money and only paid a fine worth a fraction of gross revenues while Holder's DoJ has shoveled untold thousands of mostly poor drug criminals into prison.
At what point do we Americans demand that our government be accountable for its complicity in the enormous crimes of the financial elite?
4
You must realize that some of these "crimes" are technical violations of extremely complex banking laws. And the banks agree to plead guilty (like many accused) and pay a fine to end continued prosecution. It is a pattern of governmental abuse of prosecutorial power to charge the accused with hundreds of counts to cow them into pleading guilty.
Lock up the CEOs. If they get to claim credit for the performance of their institutions then they should do then tme.
Biut we got the world we really wanted here. Just like in sports, politics, or entertainment, if the bucks are big enough you get to walk
This is the America of greed is good. Why lock up the bad rich guys when we're all supposed to want to be one
Biut we got the world we really wanted here. Just like in sports, politics, or entertainment, if the bucks are big enough you get to walk
This is the America of greed is good. Why lock up the bad rich guys when we're all supposed to want to be one
3
Where do the billions of dollars in fines go, and what are they used for? I've read so many times about financial institutions agreeing to pay billions in fines for imploding the economy...but I've never once read what agency collects the fines and how the money is used.
5
The key is the banks committed crimes on which they profited by $85 billion; they paid $9 billion in fines. Who says crime does not pay?
6
A candid new course at Harvard Business school "the new foolproof business model approved by all branches of the Federal Government"--1. Incorporate because corporations are people. 2. Appoint yourself CEO 3. Rob a bank or a little old widow or a pension fund for $5000 or $50,000 or five million. 4. Pay a lawyer to explain that it was the corporation that did the robbing, 5. The corporation pays a fine while never admitting guilt--$3,000 fine if it was just a $5,000 robbery, three million if it was a five million dollar robbery., 6. Have a party , buy a house in the Hamptons, take a European vacation. 7. Do another robbery.
It's a basic business plan that has been working as long as money controls the government.
It's been working so far .
It's a basic business plan that has been working as long as money controls the government.
It's been working so far .
8
"If you do the crime, you do the time."
Except when you don't.
Welcome to America's two tiered justice system.
This is one of the few ways America remains "exceptional."
Except when you don't.
Welcome to America's two tiered justice system.
This is one of the few ways America remains "exceptional."
11
"An argument has been made that the S.E.C. was right not to revoke the banks’ capital-market privileges because doing so might disrupt the economy. That is debatable. What is not debatable is that bringing criminal charges against individuals and even sending some of them to jail would not disrupt the economy. To the contrary, holding individuals accountable is all the more important in instances of wrongdoing by banks that, for whatever reason, have been exempted from the full legal consequences of their criminal behavior."
And we are told that corporations are people - as the country continues its slide into disarray.
And we are told that corporations are people - as the country continues its slide into disarray.
3
I agree. To the growing ranks of the lower percentiles of income where firing is the punishment of choice for offences like being more than 5 minutes late three times, having less than 95% quality control scores on a scale tilted strongly against them, calling sick because their child was sick or child care fell through, the punish meted out is betrayal by society.
To all young black men who know their lives are at risk just when an officer asks them to stop, it is more than mere betrayal. It is outright injustice. Even if party to a crime, how much is involved, maybe $20 in the case of the cigarette selling man from Staten Island. The proceeds of their crimes keep them still in barely subsistence level.
The crimes of the banks are in the millions and billions of dollars and affect everyone in society. It's a step up that they had to plead guilty than previous paying a fine for the right evade admitting no crime, but for the proper sentencing, go ask people fired for being more than 5 minutes late.
To all young black men who know their lives are at risk just when an officer asks them to stop, it is more than mere betrayal. It is outright injustice. Even if party to a crime, how much is involved, maybe $20 in the case of the cigarette selling man from Staten Island. The proceeds of their crimes keep them still in barely subsistence level.
The crimes of the banks are in the millions and billions of dollars and affect everyone in society. It's a step up that they had to plead guilty than previous paying a fine for the right evade admitting no crime, but for the proper sentencing, go ask people fired for being more than 5 minutes late.
71
There has never been a mafia ring the size of these miscreants who have been able to rape and pillage at will with no criminal actions taken. Only the shareholders pay.
2
Play their cards quite well---
"Get Out of Jail Free" their ace;
Wall Street's One Track 'Mine.'
"Get Out of Jail Free" their ace;
Wall Street's One Track 'Mine.'
blah, blah, blah
same old same old
all of the banks mentioned here are repeat offenders. not one penny of these fines will actually be paid by the offending individuals, but rather by stockholders. No doubt every one of these felons will have received boocoo
bonuses based on their criminal behavior
the stench here is so great that even a staid institution like the Times has been forced to say something.
But talk is cheap and talk is just talk
same old same old
all of the banks mentioned here are repeat offenders. not one penny of these fines will actually be paid by the offending individuals, but rather by stockholders. No doubt every one of these felons will have received boocoo
bonuses based on their criminal behavior
the stench here is so great that even a staid institution like the Times has been forced to say something.
But talk is cheap and talk is just talk
8
good thing these guys were just caught robbing people and weren't caught with pot, our prisons are already overcrowded
8
" In all, the banks will pay fines totaling about $9 billion... a sweet deal for a scam that lasted for at least five years... during which the banks’ revenue from foreign exchange was some $85 billion."
"Citizen Bank" has in effect made a nice return on investment upon which it has paid barely a 10% tax while its executive decision makers and their bonuses once again get away unpunished, perhaps, beyond allowing the outright "purchase" of our legislators an intended(?) purpose of Citizens United was to insulate the brains of Citizen Bank.
"Citizen Bank" has in effect made a nice return on investment upon which it has paid barely a 10% tax while its executive decision makers and their bonuses once again get away unpunished, perhaps, beyond allowing the outright "purchase" of our legislators an intended(?) purpose of Citizens United was to insulate the brains of Citizen Bank.
1
The government gets far more money this way. They receive $9 billion in fines! If they had to prosecute low-level traders, they wouldn't get any money out of them, and in fact it would cost a lot of money.
Having worked in a bank, I would say this is definitely the sort of thing the traders would not have let their supervisors in on. Their immediate supervisors might have had some idea of what was going on, but not the details. Nobody higher in the chain would be in on it. The fewer people who knew, the more likely the scheme was to work successfully. Usually, the next level of management is located in another building, often far away, and is fed with monthly status reports that are nothing but propaganda.
Having worked in a bank, I would say this is definitely the sort of thing the traders would not have let their supervisors in on. Their immediate supervisors might have had some idea of what was going on, but not the details. Nobody higher in the chain would be in on it. The fewer people who knew, the more likely the scheme was to work successfully. Usually, the next level of management is located in another building, often far away, and is fed with monthly status reports that are nothing but propaganda.
1
Felons, instead of going to prison, should all be fined proportionally to what these banks are fined. Rob a bank, a $10,000 fine. If you believe robbing a bank should be punished by prison time, then you should agree that banks that rob the public should have prison time for the CEOs that enabled this. The captain goes down with his ship.
Is there a difference between crime bosses who flaunt the law and bank bosses who do the same, other than the fact that the former sometimes pay for their crimes?
Is there a difference between crime bosses who flaunt the law and bank bosses who do the same, other than the fact that the former sometimes pay for their crimes?
89
A person steals a car and they do time. You steal from everyone and nothing happens? These guys should be in orange jumpsuits. When society sees this level of criminality with no consequences, it literally dissolves the fabric that holds society together. Prison sentences are essential.
178
Nothing was stolen. The countless comments comparing petty theft to FX trading and police abuse to capital markets demonstrates just how uninformed the public really are.
A currency trade involves 4 basic transactions. One person buying one currency and selling another and the counterparty selling one and buying the other. Most FX trading is bank to bank. If JPM trades 100M US$/€ with RBS JPM sell RBS $ and buys €. RBS does the reverse. No one is stealing.
The price for a currency is established by the parties in the trade, not by an exchange like stocks. It is dealer to dealer. Hundreds of dealers - dozens of desks from the same bank (e.g JPM might have 10 desks in NYC that traded $/£) - contribute to pricing systems like EBS, Reuters, FXall and Bloomberg. Those systems display composited, indicative rates. Traders base their bids and offers based on those indicative prices.
Corporations like Apple manage their FX exposures by dealing with their banks. They have the same access to indicative prices as Goldman Sachs. As do pension funds, teachers retirement systems and the Fed.
The story reports $85B in "revenue" & a $9B fine. Revenue isn't profit.
The Times does a horrible job of informing its readers. Instead they perpetuate the ignorance.
A currency trade involves 4 basic transactions. One person buying one currency and selling another and the counterparty selling one and buying the other. Most FX trading is bank to bank. If JPM trades 100M US$/€ with RBS JPM sell RBS $ and buys €. RBS does the reverse. No one is stealing.
The price for a currency is established by the parties in the trade, not by an exchange like stocks. It is dealer to dealer. Hundreds of dealers - dozens of desks from the same bank (e.g JPM might have 10 desks in NYC that traded $/£) - contribute to pricing systems like EBS, Reuters, FXall and Bloomberg. Those systems display composited, indicative rates. Traders base their bids and offers based on those indicative prices.
Corporations like Apple manage their FX exposures by dealing with their banks. They have the same access to indicative prices as Goldman Sachs. As do pension funds, teachers retirement systems and the Fed.
The story reports $85B in "revenue" & a $9B fine. Revenue isn't profit.
The Times does a horrible job of informing its readers. Instead they perpetuate the ignorance.
If a corporation is a "person" -- and according to the Supreme Court, that's so -- then send these (felon) "persons" to prison.
And if the answer is a shocked, "We can't send an entire BANK to prison" then maybe an entire bank cannot possibly be a "person," either.
And if the answer is a shocked, "We can't send an entire BANK to prison" then maybe an entire bank cannot possibly be a "person," either.
6
These criminal bank employees should be in jail, and not "country club" jails. They have been fleecing us all for years and it's time they paid the price. How wonderful it would be if they got the punishment they deserve. I keep wondering why they go unpunished.
1
Here here.
Unsaid but implicit in this timely editorial is the problem with 'corporation'. The entities that are materialized by charters, animated through meetings and vitalized by state and federal laws do not in fact exist. There are no corporations. There are instead conspiracies disguised as 'persons' with names as varied as Exxon or Enron or Goldman Sachs that operate in and outside of our laws to enrich only the conspirators who power them.
To put it more simply, corporations are shields for criminals.
Unsaid but implicit in this timely editorial is the problem with 'corporation'. The entities that are materialized by charters, animated through meetings and vitalized by state and federal laws do not in fact exist. There are no corporations. There are instead conspiracies disguised as 'persons' with names as varied as Exxon or Enron or Goldman Sachs that operate in and outside of our laws to enrich only the conspirators who power them.
To put it more simply, corporations are shields for criminals.
2
Unfortunately, Eric Holder seems to have transferred the wet noodle of divine vengeance to Loretta Lynch when he stepped down and she has demurely accepted.
2
Amazing. It would be much more effective if the government became more Skinnerian with some adversive reinforcement that put the bad actors in jail. If bank executives and other decision makers actually risked jail time, they would be much more unlikely to take such risks. If Madoff can go to jail for ten years for his white collar crimes, so can these people. Many should have seen jail time for the misconduct leading to the financial meltdown. It seems that there are two kinds of justice - jail for stand alone bad actors and fines for banks. As long as they are able to buy their way out of a predicament instead of going to jail, the point will not be made that this conduct will not be tolerated.
3
No need for me to ask, Hey, where were you guys in 2008, 2009, 2010, 2011, 2012, 2013 and 2014, is there?
But let's look ahead: If, as the Supremes say, a corporation is a "person," (actually, a deaf, dumb, mute, inanimate, non-sentient "person" who looks an awful lot like a piece of paper, with a Secretary of State's "seal" on it--that gold starburst thingy)...if, as they say, a corporation is a person, then, upon conviction, the courts should just slide that convicted charter-person into the PendaFlex Prison--a filing cabinet set aside in the secretary of state's office for convicted corporations.
Incarcerate that person in his Pendaflex Prison for the duration of his sentence.
AND FOR THE DURATION OF HIS SENTENCE, THE CORPORATION CAN DO NO BUSINESS. None. Nada. Zip.
And there can be no "delegation of authority" by the corporation to low-life employees, directors, etc. Because the "corporation" is, as noted, deaf, dumb, blind, non sentient, inanimate. But very real, as the corporate charter proves. That charter is "the objective correlative" of the corporation, the "spirit" of it, you might say.
Employees and directors, etc., could certainly show up on visiting day to chat with their once-active corporation. But it would be a completely one-sided conversation, wouldn't it.
If "corporations" want to be "people," then they can be imprisoned like people (after due process, of course).
Employees of the imprisoned corporation can seek temporary jobs elsewhere.
But let's look ahead: If, as the Supremes say, a corporation is a "person," (actually, a deaf, dumb, mute, inanimate, non-sentient "person" who looks an awful lot like a piece of paper, with a Secretary of State's "seal" on it--that gold starburst thingy)...if, as they say, a corporation is a person, then, upon conviction, the courts should just slide that convicted charter-person into the PendaFlex Prison--a filing cabinet set aside in the secretary of state's office for convicted corporations.
Incarcerate that person in his Pendaflex Prison for the duration of his sentence.
AND FOR THE DURATION OF HIS SENTENCE, THE CORPORATION CAN DO NO BUSINESS. None. Nada. Zip.
And there can be no "delegation of authority" by the corporation to low-life employees, directors, etc. Because the "corporation" is, as noted, deaf, dumb, blind, non sentient, inanimate. But very real, as the corporate charter proves. That charter is "the objective correlative" of the corporation, the "spirit" of it, you might say.
Employees and directors, etc., could certainly show up on visiting day to chat with their once-active corporation. But it would be a completely one-sided conversation, wouldn't it.
If "corporations" want to be "people," then they can be imprisoned like people (after due process, of course).
Employees of the imprisoned corporation can seek temporary jobs elsewhere.
6
If corporations are "people" as the Supreme Court has declared, then banks committing felonies are also "people," so they should go to jail. But how do you put JP Morgan and others in jail? The best way is to put the bank's officers in jail since they are the proxies for the whole organization. And that means, even if they were not the underlings who actually commit the crime, if they have knowledge, or approved of, or even tolerated it, then they should serve time. Enough of this pussyfooting with criminals in suits.
2
And whose pockets do the fines end up coming out of? Not the guilty (make that non-guilty) parties. It's all win-win for the big banks, lose-lose for the public.
2
If the institutions of justice in this country allow convicted felons to essentially go free, while the shareholders of those companies foot the bill... what does this mean?
There are now different sets of laws depending on one's identity. A Rasta selling dime bags in Washington Square Park who gets busted, serves time. A board member or exec of a large financial services business that engages in a long-term conspiracy to rig a market, goes free. Yet, the latter felon has harmed far more people. Unfortunately, it increasingly appears as if our legal system is really two disparate legal systems.
Has it really come to the point that the people of this country need to rise up, again, in violence, to throw off the corrupt upper class as we did with the Brits?
The other angle to this is the rest of the world is watching, and understands that the "System" and our markets are rigged - no better than anywhere else. Eventually an alternative system, controlled by another power, will take its place, and America will diminish just as England has.
The fact that our financial markets used to be the cleanest is the reason the Street became the financial center of the world. Now that the SEC, with the exception of Kara Stein, has wagged its collective finger at the banks, and said, "bad boys," it is quite clear that the markets here will remain rigged.
The idea of the single floor-exchange where there is one bid and ask price for all players is now dead.`
There are now different sets of laws depending on one's identity. A Rasta selling dime bags in Washington Square Park who gets busted, serves time. A board member or exec of a large financial services business that engages in a long-term conspiracy to rig a market, goes free. Yet, the latter felon has harmed far more people. Unfortunately, it increasingly appears as if our legal system is really two disparate legal systems.
Has it really come to the point that the people of this country need to rise up, again, in violence, to throw off the corrupt upper class as we did with the Brits?
The other angle to this is the rest of the world is watching, and understands that the "System" and our markets are rigged - no better than anywhere else. Eventually an alternative system, controlled by another power, will take its place, and America will diminish just as England has.
The fact that our financial markets used to be the cleanest is the reason the Street became the financial center of the world. Now that the SEC, with the exception of Kara Stein, has wagged its collective finger at the banks, and said, "bad boys," it is quite clear that the markets here will remain rigged.
The idea of the single floor-exchange where there is one bid and ask price for all players is now dead.`
5
Time after time after time... the banks are caught with their hands in the cookie jar and every single time the DOJ lets their executives and managers off with a slap on the wrist. So they can continue to wring the public purse and credulity.
This is no longer a bank problem. This is a problem with the revolving doors at the DOJ where prosecutors are always looking for their next job opportunity.
This is no longer a bank problem. This is a problem with the revolving doors at the DOJ where prosecutors are always looking for their next job opportunity.
4
Everyone in "the cartel," which is what they called themselves, should go to jail. As should everybody up the ladder who knew about the currency manipulation and condoned it. These smug, privileged, entitled criminals and the system that lets them get away with it makes me sick. I guess it's okay to be a looter as long as you don't break any windows.
http://www.cheesefoodnation.com
http://www.cheesefoodnation.com
2
Where in all this is the media coverage - beyond the NYT's editorial page? If this story of ongoing, unpunished finance crimes was at the top of the news near Johnny Depp's dogs, maybe the public would start to take notice. Fortunately, the banks own the media as well as the government.
2
I will know that we are serious about fixing the economy for everyone to thrive when some big bankers see the inside of a prison cell! Now, it is the "cost of business" to commit financial crimes, pay the fine, and keep on thieving!
7
If I had no conscience and knew that the only penalties I'd face were fines that I could pass on to others, I'd commit any crime any time I felt like it.
4
A simple test should be done. If a Military has the ultimate role in deciding Policy, Foreign, and domestic, then it is labelled a Dictatorship. In our Constitution, the ultimate power resides within the will of the Citizens, through selected individuals who are elected to office, on a Plank, an actual stated personal goal, indicating a promise if elected. Under this presumption, if a Citizenship became disenchanted with the Social Contract with their City Police Force, any Citizen should be able to run for Mayor on a Plank of specifically dissolving the entire Law Enforcement Apparatus. If they were elected by a common will of the people, to perform that very act, could a Mayor of an average City in America actually achieve this? This is the critical mass point. If there is ANY push-back from ANY of the Enforcers, then we would technically be living in an Elected Fascist State, which pretty much defines NAZI Germany under the Elected Hitler. Obama, a Citizen, ran for the highest Elected position in our Government. One of the actions he was to achieve, was to shut down a single Prison. He still has not achieved it. But, he pretty much Check-Mated his opponent's, by normalizing relations with Cuba. And negotiating a Truce between FARK and the Columbian Government the same day, in Cuba. Still, this is pretty much Fascism, because he ran on a Plank, then received Push-Back, and Guantanamo Bay still exists. And he is on his Second Term.
Ordinary people go to jail when they commit felonies. This is just one example of how corrupt and of course unequal our society is. Not one of these criminals has served a day in jail. Ah to see Jamie Dimon et al in handcuffs! And perhaps relieved of some of their ill-gotten gains. I do think your editorial may make a difference. At least, I hope so.
2
You are entitled to your views. I would note that the banks in question, or their officers or directors, would hardly have pled guilty if jail time was in the offing. Why would you expect otherwise? So there would be a sustained battle for five years, at huge expense to the government ... and at the end of the day the government might lose, and all for the sake of your pound of flesh.
1
And why aren't the republicans paying a price for blocking financial reform that might avoid this happening again?
3
So, Citi's CEO Michael Corbat called the criminal behavior "an embarrassment'?
An "embarrassment" is when you leave your zipper open or back over your neighbor's mailbox with your car. Since when does a corporate felony for a lucrative conspiracy of consciously defrauding humankind of billions of dollars including fellow citizens and company customers equate to "an embarrassment?!"
At what level then, would Corbat become "ashamed?"
But it doesn’t take prowess in divine clairvoyancy for a moral compass to determine what is ethically right as a CEO of Citi. You just need to know which way is up.
An "embarrassment" is when you leave your zipper open or back over your neighbor's mailbox with your car. Since when does a corporate felony for a lucrative conspiracy of consciously defrauding humankind of billions of dollars including fellow citizens and company customers equate to "an embarrassment?!"
At what level then, would Corbat become "ashamed?"
But it doesn’t take prowess in divine clairvoyancy for a moral compass to determine what is ethically right as a CEO of Citi. You just need to know which way is up.
7
If I walked into one of these banks and robbed it of $10,000, but was caught does anyone think the DA would let me payback $1000, keep the rest, and then walk out the door?
These banks have robbed all of us but walk free with a minor fine. At the very least the fine should greatly exceed any profits they made on their crimes, perhaps all the profits for the entire year. Better yet some managers to jail.
These banks have robbed all of us but walk free with a minor fine. At the very least the fine should greatly exceed any profits they made on their crimes, perhaps all the profits for the entire year. Better yet some managers to jail.
4
Apply the Rule of Tens, which I just made up:
For the next ten years the top ten executives of each criminal bank can receive no more than ten times the total compensation of the tenth percentile of their full time employees. If they leave the criminal bank, the prohibition remains.
Also, the banks should be required to add "FELON" in big red letters to their letterhead, business cards, storefronts, websites, and advertising materials for the next ten years.
For the next ten years the top ten executives of each criminal bank can receive no more than ten times the total compensation of the tenth percentile of their full time employees. If they leave the criminal bank, the prohibition remains.
Also, the banks should be required to add "FELON" in big red letters to their letterhead, business cards, storefronts, websites, and advertising materials for the next ten years.
6
There is no way we will ever see any of these fat cat corporate scammers face any meaningful penalties unless we can get them out of their cushy penthouse offices and onto the streets where they have to try to earn a semi-honest living.
If we want them to understand how justice works for the vast majority, let them try to make a buck or two by selling a couple of untaxed cigarettes to the many citizens who can't afford a whole pack at the local bodega.
If we want them to understand how justice works for the vast majority, let them try to make a buck or two by selling a couple of untaxed cigarettes to the many citizens who can't afford a whole pack at the local bodega.
5
Felony conspiracy pleas from too big to fail banks, then billions in fines. No bankers do the perp walk. No bankers go to jail. Guess what? Those same criminal bankers have already figured out how to cover those fines by raising fees and credit card interest for the common man. They're still gaming the system any way they can. They never pay, only the little people pay! These same bankers are raking in record pay and bonuses this year! http://www.theguardian.com/money/us-money-blog/2015/mar/15/wall-street-b...
You know the woman who symbolizes Justice, she's standing and holding a scale aloft. The story goes that she wears a bandage over her eyes because she's blind. It's more likely that the bandage is a giant hankie, since lately Justice just can't stop crying.
You know the woman who symbolizes Justice, she's standing and holding a scale aloft. The story goes that she wears a bandage over her eyes because she's blind. It's more likely that the bandage is a giant hankie, since lately Justice just can't stop crying.
93
What you don't see is the goon behind her, hired by the big banks, to drape a blindfold over her so she can't see what's going on in broad daylight.
Also, Deborah, not only do the the banks raise their rates, they deduct the fines as business expenses.
Organized crime doesn't have a thing over these organized banks. I'm sure many a mobster now in prison wishes he ran a bank and many a bank president has blood on his hands.
Also, Deborah, not only do the the banks raise their rates, they deduct the fines as business expenses.
Organized crime doesn't have a thing over these organized banks. I'm sure many a mobster now in prison wishes he ran a bank and many a bank president has blood on his hands.
1
It is so depressing to see the system rigged. A poor dude steals some food in a store because he is hungry and goes to jail. The banks steal billions and no one goes to jail. I have lost all faith in our democracy.
7
As long as bankers themselves escape indictment and jail time, nothing will change. The only losers here are the holders of the banks stock and the American public.
2
The lead article in the Business section of today's Times is "G.M. Inquiry Said to Find Criminal Wrongdoing."
Banking industry leaders are guilty of even greater crimes. This is now routine news, including prosecutorial abstention that keeps the selfish executives executing it all from going to prison.
Is there not a single wily federal prosecutor out there called the rule of law?
Banking industry leaders are guilty of even greater crimes. This is now routine news, including prosecutorial abstention that keeps the selfish executives executing it all from going to prison.
Is there not a single wily federal prosecutor out there called the rule of law?
2
Think of it this way. Someone steals your or your wife's diamond wedding and engagement rings, for a penalty they have to buy you a Big Mac. At least that is the way it looks to me. Oh, one more thing, they get to keep the rings.
221
No you got that wrong. They have to buy the arresting officer and his boss a Big Mac. You get the paper napkins and the bag, but don't get disgusted and throw them on the ground, that's littering, you're going to jail.
3
Sadly, stealing diamond rings may constitute grand larceny, resulting in jailtime upwards of a year or more.
However, the theft of billions of dollars is seemingly seen as a lesser crime, not warranting a prison sentence.
However, the theft of billions of dollars is seemingly seen as a lesser crime, not warranting a prison sentence.
2
According to this article, the Justice Department levied fines of $9 billion for illegal behavior that reaped $85 billion dollars. About a 10% take for the government.
I can understand why the government does not want to stop the banks' illegal behavior, but I wish that we would get a more realistic share of the loot, say one third or one half. After all, the government is an equal partner by virtue of looking the other way as much as it does.
And Lord knows that with enough extra billions coming from the banks and other corporations, we would be able to afford to cut the taxes of the CEOs a bit.
Seems only fair to me.
I can understand why the government does not want to stop the banks' illegal behavior, but I wish that we would get a more realistic share of the loot, say one third or one half. After all, the government is an equal partner by virtue of looking the other way as much as it does.
And Lord knows that with enough extra billions coming from the banks and other corporations, we would be able to afford to cut the taxes of the CEOs a bit.
Seems only fair to me.
3
Banks didn't reap $85 billion - that was the revenue. Typically, the bank's take - the profit - was in the order of tenths of a percent of the revenue. Meaning in the tens of millions. But then the Times' editors wouldn't want its readers to know that fact. Billions sounds so much more impressive.
So, in China the government has been known to execute heads of corporations that have messed up big time. Now that is incentive to stay on the straight and narrow. I am not a fan a capital punishment but apparently it has its uses.
7
We surely are on the last page of Gibbon.
Banks have functional immunity for any wrong-doing, thanks to Eric Holder (a former and future Wall Street lawyer) and Barack Obama (who seems to owe much to Wall Street and clearly hopes to gain much in the future). Banks are never really punished. The bank picks up the tab for the fines (always substantially less than the gains produced by the illegal activity), and no individual is sanctioned---they keep their bonuses, and they keep on operating as before except that a few low-level employees may be fired (from one bank, doubtless to get a job at another). In general, the result of committing a felony, for a banker, is (as Jamie Dimon can attest) a big bonus and a promotion.
And I don't see it changing: the banks have too much control over Congress, the SEC, and the DoJ. Nothing will really be done, though the fines paid will be highlighted in press releases.
And I don't see it changing: the banks have too much control over Congress, the SEC, and the DoJ. Nothing will really be done, though the fines paid will be highlighted in press releases.
2
I suppose that’s one view of recent regulatory findings. Here’s another.
The left has it in for the banks. The perception is that they’re staffed by the 0.1% -- and the left bears enough odium for these worthies to fill the Grand Canyon; and that profits are “bad”, while an unwillingness to turn over what would have been profits via taxes to political elites to do with as THEY please instead of how those who earned the profits please is even worse.
The truth is that via Dodd-Frank provisions and a CFPB that is unaccountable to ANYONE or anything but its own perceptions of who is “good” and who is “bad”, billions have been extorted in settlements from banks largely for paperwork shortcuts seeking to make this maelstrom of regulatory foofaraw manageable. In the meantime, a very concerted effort has been made by regulators and liberal pundits and editors to demonize bank management as gangsters. Those whom you would fleece you must first demonize.
But this editorial counsels getting tougher on penalties. Why not – but, then, why be such pikers? Our current account deficit for fiscal 2015 is still projected by the CBO to be about $468 billion. Why not try to fill that hole ENTIRELY by bank expropriations via CFPB and SEC settlements?
It’s a tough time for ANYONE engaging in tough global competition when Uncle Sam is forced to go around with cap in hand, trying to sell pencils.
The left has it in for the banks. The perception is that they’re staffed by the 0.1% -- and the left bears enough odium for these worthies to fill the Grand Canyon; and that profits are “bad”, while an unwillingness to turn over what would have been profits via taxes to political elites to do with as THEY please instead of how those who earned the profits please is even worse.
The truth is that via Dodd-Frank provisions and a CFPB that is unaccountable to ANYONE or anything but its own perceptions of who is “good” and who is “bad”, billions have been extorted in settlements from banks largely for paperwork shortcuts seeking to make this maelstrom of regulatory foofaraw manageable. In the meantime, a very concerted effort has been made by regulators and liberal pundits and editors to demonize bank management as gangsters. Those whom you would fleece you must first demonize.
But this editorial counsels getting tougher on penalties. Why not – but, then, why be such pikers? Our current account deficit for fiscal 2015 is still projected by the CBO to be about $468 billion. Why not try to fill that hole ENTIRELY by bank expropriations via CFPB and SEC settlements?
It’s a tough time for ANYONE engaging in tough global competition when Uncle Sam is forced to go around with cap in hand, trying to sell pencils.
1
Good luck in trying to absolve the bankers, Richard.
wayne:
I don't seek to absolve the bankers. I merely point out that regulators have their own purposes in castigating them; and that they're both selectively ideological and pecuniary.
I don't seek to absolve the bankers. I merely point out that regulators have their own purposes in castigating them; and that they're both selectively ideological and pecuniary.
Banks and their hierarchy actually run the FR and the fundamentally flawed economic system that they with there economic cohorts set up. It is just not only the American taxpayers who bear the burden of their malfeasance but rather the world at large in particular the poor countries and the people in those countries are at the mercy of the rotten to the core system. In this ideologically divided, polarized nation, that is on a fast track of self destruction from within. Thanks to the 5 conservative republicans on the Supreme Court even bribery is a legal avenue to buy the politician with their agenda set up the a dubious down right rotten system beyond repair.
Far worst is that Clinton by repealing the Glass-Steagall deregulated the whole financial structure , which hence forth is nothing but down right criminal in each and every sense.
Of course Citicorp, JP Morgan Chase and others are felons , but for all practical intends and purposes their criminal actions have done nothing but pay off along with the people like the Clintons collecting IOUs to keep their so called Charitable Foundation healthy wealthy and enjoying its dubious not for profits and tax free status or differed taxes, which will never be paid.
All these too big to fall banks are not only corrupt to the hilt but the operate illegally with impunity. The worst of it is that the people are in this misled nation have been kept in the dark while the politicians render lip service .
Far worst is that Clinton by repealing the Glass-Steagall deregulated the whole financial structure , which hence forth is nothing but down right criminal in each and every sense.
Of course Citicorp, JP Morgan Chase and others are felons , but for all practical intends and purposes their criminal actions have done nothing but pay off along with the people like the Clintons collecting IOUs to keep their so called Charitable Foundation healthy wealthy and enjoying its dubious not for profits and tax free status or differed taxes, which will never be paid.
All these too big to fall banks are not only corrupt to the hilt but the operate illegally with impunity. The worst of it is that the people are in this misled nation have been kept in the dark while the politicians render lip service .
4
Any one of these banksters would howl in outrage if a serial felon pointed a gun at them and took a couple of hundred bucks. They would lambaste and threaten any detective or prosecutor who failed to identify and try a suspect, and would expect jail time as "just".
But robbing millions of investors of hundreds of billions of dollars is "smart", "aggressive", "gutsy".
Every one of the traders involved, their bosses and the CEOs responsible for bank operations should go to jail, and once out should be denied professional access to any financial markets.
These little fines are laughable. Jail time would stop this cold.
If the current SEC prosecutors won't do it, fire them and replace them with people who can tell crime from 'errors'.
But robbing millions of investors of hundreds of billions of dollars is "smart", "aggressive", "gutsy".
Every one of the traders involved, their bosses and the CEOs responsible for bank operations should go to jail, and once out should be denied professional access to any financial markets.
These little fines are laughable. Jail time would stop this cold.
If the current SEC prosecutors won't do it, fire them and replace them with people who can tell crime from 'errors'.
12
I'm not convinced that only individuals should be punished. The corporation itself shouldn't be allowed to profit from ill-gotten gains, or it will find a way to do so again. We need a deterrent that makes it against the corporation's interest to cheat. (Are corporations eligible for the death penalty, now that they have freedom of speech and freedom of religion?)
6
Hold on here. Shouldn't these banks have been on probation already for other crimes since 2008? And so now, having violated that probation, can't we revoke their charters or something that will really hurt? Fines are just a footnote in their annual reports.
Let's be clear whose fault this is. You don't blame the cockroaches for the infestation - you blame the incompetent pest control guy. President Obama, Eric Holder, Mary Jo White and now Loretta Lynch are GUILTY. They have intentionally given the felonious banks and guilty banksters a free pass by punishing ONLY the innocent shareholders of these criminal banks. Not ONE bankster has gone to jail during Obama's reign. Warren/Sanders in 16!!!
112
Too big to jail
Maybe. But you do exterminate the cockroaches, nonetheless.
It's also the fault of the lobbyists paid for by the financial industry that write the laws, to make these shenanigans legal. Don't just blame the democrats, there are plenty of republicans who are guilty as well.
you clearly don't understand who the gov't is set up to serve these days. Giving up a portion of their gains in fines is just a cost of doing business. Meanwhile the traders who took part in the felony and their managers who either abetted it or turned a blind eye are enjoying this weekend in their Hampton digs.
4
This seems like another shakedown by the government at least in regard to Chase. The government claims that 1 chase employee out of there 250,000 employees took part in the scheme and Chase should pay $900,000,000 but nothing happend to the employee. This was not a scheme carried out by sr management or a division or even a team, it was 1 person the definition of a rougue employee. I am sure the government said pay us or we pull your banking license and you will be out of business. I just don't see how this is justice.
1
Let's face it: our whole economic setup is corrupt. If they pull hard enough on one thread, the whole edifice implodes. And this is one measly example. Repeat this hundreds of times every day with the stock market. But what will those in power do? Nothing, because they live off it. This is true corruption, where even wisdom bows to self interest.
7
I bet none of the guilty parties in this scam were put in a choke hold - or subject any police harassment whatsoever.
These fines are nothing more than the cost of doing "business" in an America were the poor are routinely brutalized, in countless ways, while the wealthy and powerful get away with just about anything.
These fines are nothing more than the cost of doing "business" in an America were the poor are routinely brutalized, in countless ways, while the wealthy and powerful get away with just about anything.
13
The problem isn't the corporations. Strangely enough, in a way it is true that corporations are "like" people in the sense that given the opportunity to further their own ends by any means available, right or wrong, they'll do it. And this is because they are run by people, and people do these kinds of things.
And if there's no fear of the consequences, then whats to stop them?
The real problem here is the government. The government is so completely sold out, if not working in tandem in some ways with these entities that they are paralyzed from taking any kind of meaningful action. If I'm a regulator, I might be working of one of them as a consultant in a few years and I wouldn't want to hurt my future employment prospects. So they'll go ahead and work out a "settlement" with the banks, strictly for PR purposes, but its basically business as usual underneath it all. The banks write it off as a cost of doing business (and the fines are probably deductible) and the government can go the public and say "see, we punished the bad guys!".
Oh and jailing any of these kleptomaniacs in suits, not happening. Their lawyers will see to that and the government, as usual will cave to whatever they want.
Frankly I don't know who annoys me more, the nefarious banks, or the compliant government who take us for fools.
Personally I blame the government. Too much cheap money, too little accountability.
And if there's no fear of the consequences, then whats to stop them?
The real problem here is the government. The government is so completely sold out, if not working in tandem in some ways with these entities that they are paralyzed from taking any kind of meaningful action. If I'm a regulator, I might be working of one of them as a consultant in a few years and I wouldn't want to hurt my future employment prospects. So they'll go ahead and work out a "settlement" with the banks, strictly for PR purposes, but its basically business as usual underneath it all. The banks write it off as a cost of doing business (and the fines are probably deductible) and the government can go the public and say "see, we punished the bad guys!".
Oh and jailing any of these kleptomaniacs in suits, not happening. Their lawyers will see to that and the government, as usual will cave to whatever they want.
Frankly I don't know who annoys me more, the nefarious banks, or the compliant government who take us for fools.
Personally I blame the government. Too much cheap money, too little accountability.
119
People get the government they deserve. Blame yourself.
"The government" is us.
This kind of a deal will not modify bank behavior. It is just another sign of how owned our government is by the one percent. Once, and if the outrage reaches the level of a populist vigilante activity will the owned political system take notice. There will be a few scapegoats sacrificed, like Scooter Libby, but the system will roll on as long as we keep electing tools and money equals speech.
2
There is no justice in the "Justice Department". The Justice Department is a joke. It has been made abundantly clear that justice (in the form of meaningful punishment) is for little people. The government of this country has done more to alienate the general public in this decade than in all the years of my memory. Who cares if a candidate is a crook? Who cares about the next ruling of the Supreme Court? It has all become a joke. I only wish it was funny.
8
Banks will continue to misbehave until CEOs are held accountable for their misdeeds. To pretend that the chief executives of these banks have no knowledge of these (very lucrative) crimes stretches credibility past the breaking point.
9
Look past the crimes and delve into the mindset: how does the bi-section of behavior, ideas, justifications, and actions occur in employees specifically hired for quantities of trust, ethical decision-making; responsibility and being risk adverse? Where does the process break down and engulf desk traders sitting at sleek machines, so they feel compelled to cross into blatant criminal territory--to take advantage of a system that already affords them every advantage short of theft?
What is the source of their compulsion and comfort? It is membership in the email group and lunch bunch exhibiting age-old traditions of peer bonding and tribalism that supersede outside constraints on their activities, the sense of being pin-striped Falstaffs, one of a group of secret outliers with control of value of the world's currencies at their fingertips, mocking their own power, laughing at the ease of their riches? Was it the bonuses they no doubt received as management turned an eager blind eye? Were they angry at their relative anonymity, bored by unthinking repetition, fueled by giant challenges--or just plain thieves, enjoying their craft?
The facts of their crimes are appalling. But the psychology of their actions is enthralling, if cynicism is dismissed and we dig deeper than the usual labels and cliches. If we don't, we become complacent, too. And accessories. Our response is a part of what's broken.
What is the source of their compulsion and comfort? It is membership in the email group and lunch bunch exhibiting age-old traditions of peer bonding and tribalism that supersede outside constraints on their activities, the sense of being pin-striped Falstaffs, one of a group of secret outliers with control of value of the world's currencies at their fingertips, mocking their own power, laughing at the ease of their riches? Was it the bonuses they no doubt received as management turned an eager blind eye? Were they angry at their relative anonymity, bored by unthinking repetition, fueled by giant challenges--or just plain thieves, enjoying their craft?
The facts of their crimes are appalling. But the psychology of their actions is enthralling, if cynicism is dismissed and we dig deeper than the usual labels and cliches. If we don't, we become complacent, too. And accessories. Our response is a part of what's broken.
25
In a recent survey of 1200 financial services professionals (http://www.labaton.com/en/about/press/Historic-Survey-of-Financial-Servi... 'nearly one in five professionals feels it is at least sometimes necessary for financial services professionals to engage in illegal or unethical activity in order to succeed'. Thus by their own account, the ones who have succeeded the most in that industry (VP and above?) should automatically qualify for jail time.
15
I seriously question the deterrent effect of criminal penalties for corporations. Corporations don't respond to the same incentives as people. Instead of thinking about how best to punish banks, we should be punishing bankers. Can it possibly be the case that no individual person actually broke the law? It boggles the mind that not a single bank employee is being held publicly responsible for participating in this conspiracy. Take a few bankers on a standard perp walk; bring them to trial, then outfit them in orange jumpsuits, and see if that doesn't motivate others to clean up their acts.
37
Until it is the norm that upper class white banksters receive jail sentences for their illegal deeds, nothing will change. Rich white lawbreakers do not see themselves as the criminals that they are.
1
The banks have pleaded guilty to federal criminal charges. No estimates on the amount of money stolen, reckoning of damages to the victims, no meaningful investigation of who the leaders of the corrupt cartels are, and no consequences for their crimes.
Except to reward the organizers of these massive thefts. And pay money for fines taken from the stockholders of these firms.
The banksters keep bribing our political leaders and they stay bought.
Once, long ago, I lived in a very imperfect democracy; now I don't.
Except to reward the organizers of these massive thefts. And pay money for fines taken from the stockholders of these firms.
The banksters keep bribing our political leaders and they stay bought.
Once, long ago, I lived in a very imperfect democracy; now I don't.
30
I'm guessing that becoming rich is deeply intoxicating. Seems as though the upper echelon of this country is wedded together through an incestuous labyrinth of wealth, income, property and power. Once you have a million, you then work towards the second million and so forth.
Of course nobody at the bank got in trouble: they're part of the family. If one goes down, well, more than likely some of the other crimes will be prosecuted and more of the family will lose much of what they've gained. No, an oligarchy, a plutocracy sticks together. They have each other's backs because that's good for business. What's good for one billionaire is probably good for most billionaires.
No, no penalty, no sentence, no crime. The only crime is America's public behavior when electing politicians, when watching the meltdown without reaction, and when acting as if we're not all complicit in the advance of avarice and the corruption of spiritual, social and moral integrity.
Of course nobody at the bank got in trouble: they're part of the family. If one goes down, well, more than likely some of the other crimes will be prosecuted and more of the family will lose much of what they've gained. No, an oligarchy, a plutocracy sticks together. They have each other's backs because that's good for business. What's good for one billionaire is probably good for most billionaires.
No, no penalty, no sentence, no crime. The only crime is America's public behavior when electing politicians, when watching the meltdown without reaction, and when acting as if we're not all complicit in the advance of avarice and the corruption of spiritual, social and moral integrity.
26
As reprehensible as bank behavior has been, it is a mere surface ripple compared to the outrage of a privately owned banking system being granted monopoly rights on the creation of our money through the Federal Reserve and through fractional reserve lending. As long as they retain the power to create money, we will continue to experience booms and busts while they maintain their privileged status. There is a real answer - constitutional money - something like what was proposed in Kucinich's HR 2990 some time back (which was dismissed out of hand). Until or unless the monopoly is broken, we can only expect more of the same.
2
Nonsense. The description here demonstrates an utter failure to comprehend fundamental monetary principles.
Right on Mr Cambell. For a 2 hour education and understanding of all this.Watch
https://www.youtube.com/watch?v=0LVfmpv71TQ
There is some fascinating history about money in this video.
https://www.youtube.com/watch?v=0LVfmpv71TQ
There is some fascinating history about money in this video.
No fines are large enough to deter these criminal banks. No matter how much one charges them for their criminal activity the cost to them will be written off as a cost of doing business and the nation's taxpayers will eventually pay in the form of increased fees and lowered returns.
And then there is the "reduction of uncertainty" boost to the stock prices of these banks. After the fines were announced the shares went up. Stockholders breathed a sign of relief that the fines weren't worse, and that no person was punished. On to greater, cleverer violations and greater profits. Excelsior!
The persons responsible must go to jail, plain and simple. Only actual jail time will put the fear of God in these thugs. And after jail, they should be prevented from ever working in finance again. Billionaires don't go to jail, we know--not because they are blameless, but because they are white and rich/ But in this case we all paid for their greed and dishonesty, and we will continue to pay for the costs of their their punishment adding insult to injury. We need to break the "rules" of the financial world and make these criminals pay dearly with loss of freedom until they have an epiphany--until the entire industry has an epiphany.
And then there is the "reduction of uncertainty" boost to the stock prices of these banks. After the fines were announced the shares went up. Stockholders breathed a sign of relief that the fines weren't worse, and that no person was punished. On to greater, cleverer violations and greater profits. Excelsior!
The persons responsible must go to jail, plain and simple. Only actual jail time will put the fear of God in these thugs. And after jail, they should be prevented from ever working in finance again. Billionaires don't go to jail, we know--not because they are blameless, but because they are white and rich/ But in this case we all paid for their greed and dishonesty, and we will continue to pay for the costs of their their punishment adding insult to injury. We need to break the "rules" of the financial world and make these criminals pay dearly with loss of freedom until they have an epiphany--until the entire industry has an epiphany.
30
40 years ago, I saw women go to jail for
bouncing checks, stealing bread - none of it amounted to
what these criminals have done.
They OWN Lynch and the Attorney General's office.
DISGUSTING!
bouncing checks, stealing bread - none of it amounted to
what these criminals have done.
They OWN Lynch and the Attorney General's office.
DISGUSTING!
1
"Billionaires don't go to jail, we know--not because they are blameless, but because they are white and rich"
Bernie Madoff isn't white? I didn't know that.
Bernie Madoff isn't white? I didn't know that.
1
You couldn't be more right! Wish We The People could vote on this! Some states have a referendum process. We need a federal version. If the Suprene Court has lost all sense of fairness and democracy , and the billionaires have bought off too many representatives, we must evolve the government infrastructure so our voices, the voice of the majority, can be heard. It is patently insane not to jail the muggers of our economy.
This just the latest example of "the too big to fail, and too important to jail" corporate influence that is unraveling the public's faith in our criminal justice system. How long we can sustain a civil society under "the rule of law" when there seems to be one set of rules for the elite and another for everyone else is problematic. The "inequality" that pervades our society is clearly not just in income, but also, as this case clearly demonstrates, about justice. When the basic pillars of society crumble, the society will collapse. We have been witnessing this in Ferguson, Cleveland, and now on Wall Street. Our supposedly self-correcting democratic process has reached a "tipping point" under the relentless and lawless pressure of corporate power and money that poses the greatest challenge to the nation.
227
Machinations within the business field are as old as Methuselah, and a source of even worse conspiracies with traumatic effects as a result: many many murders have - at bottom - a financial motive, and when murder is not involved, equally traumatic results are in issue. Think about what sparked global financial crisis back in mid-2000 snowballing to Europe and worldwide later. Will a media denunciation change something? Hardly. The system has embedded within itself unimaginable ironclad mechanisms that produce protection from any kind of shocking occurrence, usually playing with appropriate incomprehensible linguistic jargon: i.e. the ability to sell what is wrong passing as right, or make you reason the way the system requires.
5
Banking as an industry has produced no profit in the last 30 years. Bad investments, bad loans, dabbling in instruments that no one understands, crazy schemes, big bets etc., regularly wipe off the profits made during the good years.
Yet, bankers seem to prosper endlessly.
We thought bank robbers were crooks. They emerge as so much sad sacks when compared to robber bankers.
They have legalized robbery, socialized losses, privatized profits, taken no risks, shafted the government, bullied regulators, held the planet ransom. They have successfully created a system of valuing things that have no intrinsic value because humans are inherently greedy, driven by belief, and the inalienable faith in the notion that we are special, and nothing bad can happen. How else would we explain the notion of derivatives, hedge funds, and the stock exchange to an alien?
I guess the only thing worse than banks and bankers is an economy without banks and bankers.
I guess therefore we need to find the bigger robbers and routinely feather and tar them.
Kalidan
Yet, bankers seem to prosper endlessly.
We thought bank robbers were crooks. They emerge as so much sad sacks when compared to robber bankers.
They have legalized robbery, socialized losses, privatized profits, taken no risks, shafted the government, bullied regulators, held the planet ransom. They have successfully created a system of valuing things that have no intrinsic value because humans are inherently greedy, driven by belief, and the inalienable faith in the notion that we are special, and nothing bad can happen. How else would we explain the notion of derivatives, hedge funds, and the stock exchange to an alien?
I guess the only thing worse than banks and bankers is an economy without banks and bankers.
I guess therefore we need to find the bigger robbers and routinely feather and tar them.
Kalidan
10
Trickle up economics
The concerned banks made $85 billion, they are fined for only $9 billion. Thus they have to payback only about 10 percent. This sounds like a highly profitable business--90 percent of ill-gotten money would be yours if you pay just 10 percent penalty for a felony. There is, however, nothing surprising here. The NYT editorial laments that no criminal charges was brought against individuals who were responsible for such a "lengthy and lucrative criminal conduct." How many bankers ended up in prison for the housing debacle that cost millions of jobs just recently, during the last Great Recession? Nobody committed any criminal offense for sending the American economy to a free-fall? In recent months, national outrage on police brutality and cover-ups exposed only a small part of the problems with American judicial system. The bigger fishes--the courts, the judges, and the prosecutors--the ultimate protectors of white-collar crimes--are still at large, still walking tall.
15
How do you expect any banking reform when ex-bankers, particularly from Goldman Sachs, run the U.S. Government? It's like expecting dictators to sentence themselves to jail.
Unfortunately, repeal of the Glass-Steagall Act transformed banks into speculative businesses. A new class of privileged entrepreneurs arose, a class that speculated with public funds, including client savings and pensions, and became "too big to fail". The investment banks, in particular, awarded unbelievable bonuses to 25-year-olds whose sole aim was to "do deals" without any thought to the commercial viability of those "deals". When those deals went sour they simply moved onto to other pastures, their ill-gotten bonuses unaffected.
The impunity with which banks destroy people's savings and lives is the biggest shortcoming of Anglo-Saxon capitalism. The real problem is, nobody cares.
Unfortunately, repeal of the Glass-Steagall Act transformed banks into speculative businesses. A new class of privileged entrepreneurs arose, a class that speculated with public funds, including client savings and pensions, and became "too big to fail". The investment banks, in particular, awarded unbelievable bonuses to 25-year-olds whose sole aim was to "do deals" without any thought to the commercial viability of those "deals". When those deals went sour they simply moved onto to other pastures, their ill-gotten bonuses unaffected.
The impunity with which banks destroy people's savings and lives is the biggest shortcoming of Anglo-Saxon capitalism. The real problem is, nobody cares.
24
What about compensating the victims of their schemes for lost revenue or adversely impacted business opportunities? If the value of currencies was rigged in the past, companies or individuals operating in those currencies were harmed. For someone who has capital capacity to absorb shocks, the harm might be less noticeable than for someone with no margin to spare. I am thinking specifically of students studying away from home and making do on a very tight budget. The impact for them of a few bucks here or there quickly becomes a matter of adequate nutrition, safe accommodation, money for resources or in the case of an illness for medicine. Bankers need to become more thoroughly schooled in the implications worldwide of their self-serving moves. Too many abstract formulas & graphs obscure the fact that human lives are affected by unscrupulous manipulation of rates. There has to be a way of making amends, of correcting the wrong done. Figure out that way. Don't just drop the subject in a pile of briefing language.
7
The problem is simple, and obvious to everyone. Bankers have been able to exist in a system in which no individual is accountable for fraud. So fraud is almost mandatory for highest profits -- the cost of fraud is a fine, a cost in money, and calculated into the equation.
1. The chief executive or board members must be implicitly responsible for wrongdoing, and so sentenced, unless they can show, beyond reasonable doubt, that business fraud is the result of a completely encapsulated conspiracy of the underlings.
2. Fraud, above a certain large amount, as set by the legislature, should be a capital offense, and sentenced like one. There should be no doubt that all meaningful freedom should be lost in the event of huge frauds.
I believe that unlike violent crimes, heavy punishment will act as a strong deterrent to financial crimes, and have the side effect of higher profits and better services from the financial service industry.
1. The chief executive or board members must be implicitly responsible for wrongdoing, and so sentenced, unless they can show, beyond reasonable doubt, that business fraud is the result of a completely encapsulated conspiracy of the underlings.
2. Fraud, above a certain large amount, as set by the legislature, should be a capital offense, and sentenced like one. There should be no doubt that all meaningful freedom should be lost in the event of huge frauds.
I believe that unlike violent crimes, heavy punishment will act as a strong deterrent to financial crimes, and have the side effect of higher profits and better services from the financial service industry.
14
Do today's Corporations no longer fill the traditional position once known as that of General Counsel.
A General Counsel is typically the head of the corporate legal department and is responsible for the legal affairs of the entire corporation.
Some years ago a friend of mine filled that important position in a major corporation. By chance I happened to sit next to him on our daily commuter train leaving the City - NYC.
He told me of his busy day and recounted a meeting with the corporate board that day wherein plans were drawn up for some activity or other.
When he was asked for his opinion, he told them it was a pretty could plan.
There was only one problem - it was "illegal" and against the law.
The plan was abandoned.
The question now becomes - is such an happenstance no longer possible.
Has corruption become the modus operandi of the current day in the corporate world and is the traditional legal department now complicit or simply no longer involved.
So it would appear - and to our overall detriment, I am sorry to say.
A General Counsel is typically the head of the corporate legal department and is responsible for the legal affairs of the entire corporation.
Some years ago a friend of mine filled that important position in a major corporation. By chance I happened to sit next to him on our daily commuter train leaving the City - NYC.
He told me of his busy day and recounted a meeting with the corporate board that day wherein plans were drawn up for some activity or other.
When he was asked for his opinion, he told them it was a pretty could plan.
There was only one problem - it was "illegal" and against the law.
The plan was abandoned.
The question now becomes - is such an happenstance no longer possible.
Has corruption become the modus operandi of the current day in the corporate world and is the traditional legal department now complicit or simply no longer involved.
So it would appear - and to our overall detriment, I am sorry to say.
7
Banksters and corporados are also responsible for turning over much of our economy to the People's Republic of China. There's a common misconception that "capitalism" is a philosophy that always values individual liberty, personal freedom and a free society. In fact, although many capitalists believe this there's no inherent reason that it has to be true. The purpose of capitalism is to make money and at the upper levels of control they are not particularly auspicious about how they do it or what the trade-offs are.
Modern one-world globalism is a product of this kind of thinking and it is not a system that rests well with American concepts of civil liberties, due process, individual liberty or even private property. Given the choice, these global capitalists will go where the money and power takes them.
Because of its obsession with money and profits and its disdain for cultural values -- particularly as understood in America -- globalist capitalists have no particular allegiance to our people or way of life. If there's money to be made offshoring American jobs, they will do it in a heartbeat. If swamping the US with Chinese and other immigrants who will do IT work for less, even if it means putting Americans out of work, they will do that, too. As long as their banking and corporate interests are secure they are safe to follow any policy they choose.
No "rules" will change this. It's entirely a question of national values and ours have been deeply subverted.
Modern one-world globalism is a product of this kind of thinking and it is not a system that rests well with American concepts of civil liberties, due process, individual liberty or even private property. Given the choice, these global capitalists will go where the money and power takes them.
Because of its obsession with money and profits and its disdain for cultural values -- particularly as understood in America -- globalist capitalists have no particular allegiance to our people or way of life. If there's money to be made offshoring American jobs, they will do it in a heartbeat. If swamping the US with Chinese and other immigrants who will do IT work for less, even if it means putting Americans out of work, they will do that, too. As long as their banking and corporate interests are secure they are safe to follow any policy they choose.
No "rules" will change this. It's entirely a question of national values and ours have been deeply subverted.
12
Banks do not make decisions to break the law individuals at banks make decisions to break the law. I thing than most of us realize that but unless we are willing to do something about it, it is a wasted mental effort. As responsible voters and citizens we need to apply pressure to our legislators promulgate laws and regulations that discourage bank personnel, from the top down, from engaging in activities that harm not only investors but our economy as a whole. It is very likely that if those that engage in illegal financial chicanery face some time in a penal institution it is less likely to engage in those actions. Those drawn to the financial industry are probably the people most susceptible to being seduced by it. Greed is inherent in human nature and to many of those in the financial world it is like being a child in a candy store since the system is so easily perverted, much like our political system. In the end it is our own fault if we allow it.
123
But if you have many indidviduals at an organisation acting as criminals, then you certainly can call that organization a crime syndicate.
1
I agree with you- however what must be addressed is the hypocrisy on the part of those who criticize the banks' behavior when they are literally invested in that behavior though their 401 K's, pensions, mutual funds investments, etc.
It's not us vs. them, it's us.
It's not us vs. them, it's us.
1
If there was ever going to be jail time for bank CEOs it would have happened after the crash of 2008, when millions of Americans were really angry at those who ran the banks and collected salaries in the multi-millions for their essentially anti-social efforts. People were angry because they or their friends and family members had lost jobs and/or life savings. If nothing was done then to change the way banks operate or punish those was ran the banks in a way that was opposed to the public interest, why should things change now, in the absence of a great public outcry?
1
The nearly immediate securitization of mortgages, which is yet the commonplace of the perverse incentives, which have driven banking, since the collateralized debt obligation first reared its ugly head, has accelerated a long slide down a slippery slope for the American Middle Class and the future of the World's Financial Industry.
When W Bush compounded the negative effects of Bill Clinton's deregulation of the Banking Industry by issuing an edict of the Federal Primacy of mortgage origination in 2003, he destroyed the consumer services divisions of the fifty states, and from that day on anything, which had once been considered illegal or fraudulent, became acceptable as standard practise in the origination of mortgages. The System fell apart as a result of institutionalized perverse incentive, but to the amazement of many Americans the banks were rewarded with a public subsidy, and QE became the preferred means for the members of the Banking Industry to ride the credit wave created by Fed bond purchases.
With the above facts in mind, it should come as no surprise that Felon Banks are in nearly every case beyond the reach of not just the law, but any restraint whatsoever. If they are fined, the fine is merely chump change when compared with the proceeds of dodgy behavior. This is the current condition not just of banking, but also of the entire Shadow Banking System, which Americans seem willing to tolerate. Can it be changed? Just ask Elizabeth Warren how hard it is!
When W Bush compounded the negative effects of Bill Clinton's deregulation of the Banking Industry by issuing an edict of the Federal Primacy of mortgage origination in 2003, he destroyed the consumer services divisions of the fifty states, and from that day on anything, which had once been considered illegal or fraudulent, became acceptable as standard practise in the origination of mortgages. The System fell apart as a result of institutionalized perverse incentive, but to the amazement of many Americans the banks were rewarded with a public subsidy, and QE became the preferred means for the members of the Banking Industry to ride the credit wave created by Fed bond purchases.
With the above facts in mind, it should come as no surprise that Felon Banks are in nearly every case beyond the reach of not just the law, but any restraint whatsoever. If they are fined, the fine is merely chump change when compared with the proceeds of dodgy behavior. This is the current condition not just of banking, but also of the entire Shadow Banking System, which Americans seem willing to tolerate. Can it be changed? Just ask Elizabeth Warren how hard it is!
5
This explains the widespread and increasing contempt for our criminal justice system. Why do you suppose people are filled with such rage against our legal system, and the police? Could it be that the citizenry are tired of seeing people incarcerated for years over victimless drug possession, while those who steal the equivalent of a small nation's GDP go free? I find our current system of "justice" utterly contemptible lacking even the basic mandate of criminal law enforcement. Our prisons are now nothing more than for-profit facilities designed to warehouse those without job prospects (the surplus population if you will.)
Our police, with their paramilitary operations methodology, now simply keep our for-profit penal system filled up to the capacity that the municipal governments are contractually bound to. Yet not a single corporate CEO has been indicted for massive crimes that have had negative effects from coast to coast. And the "fines" that are levied amount to little more than 10% of the amount that was illegally appropriated. I am not some young inexperienced kid railing against "the man" but am a successful business owner who quite unexpectedly finds himself in a circumstance of total disrespect for "authority." I can hardly imagine how those who have suffered direct predation by "the man" must feel. I suspect however, that the riots in cities like Baltimore are but the fuse that will ignight a full scale civil rebellion.
Our police, with their paramilitary operations methodology, now simply keep our for-profit penal system filled up to the capacity that the municipal governments are contractually bound to. Yet not a single corporate CEO has been indicted for massive crimes that have had negative effects from coast to coast. And the "fines" that are levied amount to little more than 10% of the amount that was illegally appropriated. I am not some young inexperienced kid railing against "the man" but am a successful business owner who quite unexpectedly finds himself in a circumstance of total disrespect for "authority." I can hardly imagine how those who have suffered direct predation by "the man" must feel. I suspect however, that the riots in cities like Baltimore are but the fuse that will ignight a full scale civil rebellion.
374
I agree; who tells the Justice Department they are not doing their job? The President? Like many Americans I've worked hard, payed my taxes, and served my country. For me, this is nothing more than a slap in the face for being a good citizen.
2
Truly, the current "justice" system is intolerable.
2
This systemic view is very helpful. We hope people can begin to connect the dots -- the private, for profit prison system, and the tolerance for corporate crime. Dickensian!
2
I wondered if any of these corporate thugs would be chased by real-life cops, and shot in the back as they ran away...
Silly me.
Silly me.
23
What is the Inspector General’s opinion of the Justice Department’s prosecution of bank employees?
8
One wonders how there can be a felony with no felon. Does anybody — anybody?! — still believe that the rules apply to us all?
56
The criminal law does apply to all EXCEPT big corporations and those who operate or direct them.
1
Wow! They got away with it. We can't punish them because they are so big that we don't want to disrupt the economy, so we let them keep disrupting it.
Maybe if we had a Democrat in the White House, they couldn't get away with stuff like this.
Maybe if we had a Democrat in the White House, they couldn't get away with stuff like this.
44
That's absolutely correct.
This action is by far thebest roofs hate we on to have a Democrat in the White House. And the candidate who has been anointed to win the nomination, without so much as a meaningful debate, actually has an even worse record of cozying up to the Wall Street banks and doing their bidding.
Any American who believes there is an iota of difference between the two parties is not considering the facts. We are no longer a democracy, we are an oligarchy. Citizens United made this oligarchy "legal".
The reelection rate to the U.S. Congress rival the relelection rate to the old Soviet Politburo - where there weren't even real elections! One can argue we don't have "real" elections here anymore, as the candidate with the most money wins almost uniformly.
The criminality of the banks extends far and wide. While outside of the scope of a comment here, the educated readers of the NYT should familiarize themselves with the writing of Ted Butler regarding the blatant and criminal manipulations in the precious metals markets, which government regulators have turned a blind eye toward for decades.
This action is by far thebest roofs hate we on to have a Democrat in the White House. And the candidate who has been anointed to win the nomination, without so much as a meaningful debate, actually has an even worse record of cozying up to the Wall Street banks and doing their bidding.
Any American who believes there is an iota of difference between the two parties is not considering the facts. We are no longer a democracy, we are an oligarchy. Citizens United made this oligarchy "legal".
The reelection rate to the U.S. Congress rival the relelection rate to the old Soviet Politburo - where there weren't even real elections! One can argue we don't have "real" elections here anymore, as the candidate with the most money wins almost uniformly.
The criminality of the banks extends far and wide. While outside of the scope of a comment here, the educated readers of the NYT should familiarize themselves with the writing of Ted Butler regarding the blatant and criminal manipulations in the precious metals markets, which government regulators have turned a blind eye toward for decades.
3
QUESTION: What is the difference between these "banksters" and Al Capone?
ANSWER: Elliot Ness is dead
ANSWER: Elliot Ness is dead
82
only if the Dem was Elizabeth Warren. She's the only one with a strong enough backbone to stand up to the Corporate thiefs
1
The old saying holds true: Rob a bank with a gun, you go to jail. Rob a bank with a pen (or a computer), you get rich.
22
There's a fine old maritime tradition that the captain, bearing ultimate responsibility, goes down with the ship. These fines should be paid first out of the pockets of top management, continuing down as far as necessary. The prospect of being reduced to poverty might serve as an incentive to avoid future "embarassment", as would some serious jail time. As it is now, the fines are merely a business expense, perhaps deductible. And if the ship sinks, the captain and officers are the first ones into the (very luxurious) lifeboats, and soon awarded a larger, faster ship -- paid for by the hapless passengers.
457
But the ship didn't sink. At worst it took on a little water as it sped past the regulatory iceberg and completed another profitable crossing. No hazard for the SS Bank Fraud in these legal waters, so we can expect another mad run soon.
Perhaps the CEO and higher management will get a bonus for handling the situation so well.
1
Yeah. That would be satisfying, but it probably won't happen.
The Times has rightfully pointed out a terrible injustice
Is anybody alive out there?
Is anybody alive out there?
17
Steal a car worth $10,000 do up to 3 years in jail. Steal $1,000,000,000, and so "I'm sorry I got caught." Disgusting.
45
You'll get elected governor of Florida.
I am so, so, so tired of these stories where the "bank" or the "company" is the presumed criminal. Even tonight, there's a new story about GM and the penalty the Justice Department is "negotiating" (imagine - they are not IMPOSING a penalty, they are "negotiating"). But again, any penalty is on the company, not on any individuals. How many more times does it have to be said: People commit these crimes - not companies!
The people who make the decisions in these entities must be held accountable. This continuous and nonsensical indictment of companies, as if the people who run them don't exist, must cease, and individuals must be held responsible. By refusing to indict individuals, the Justice Department has become nearly a co-conspirator in the crime, because company executives have come to expect that they will never personally be a target.
This practice MUST stop, and all candidates running for any office that impacts federal or state prosecutions should be forced to take a position - indict the individual, or indict the company? For me, this is nearly a litmus test at this point.
The people who make the decisions in these entities must be held accountable. This continuous and nonsensical indictment of companies, as if the people who run them don't exist, must cease, and individuals must be held responsible. By refusing to indict individuals, the Justice Department has become nearly a co-conspirator in the crime, because company executives have come to expect that they will never personally be a target.
This practice MUST stop, and all candidates running for any office that impacts federal or state prosecutions should be forced to take a position - indict the individual, or indict the company? For me, this is nearly a litmus test at this point.
53
The SC in Citizens United said that corporations are people. Mitt Romney said that corporations are people, my friend. People who are felons are not allowed to vote. Likewise corporations that are felons should not be allowed to participate in the political process.
91
ANd they should do jail time just as we would if we robbed a bank
1
All of their ads and contracts should have a disclosure statement saying they have been convicted of a crime. For 7 years.
In a democracy, one would expect fair punishment for these crimes. But, (sigh) we are no longer a democracy; we are a plutocracy.
26
If each of the guilty CEOs were sentenced to a year or so in a REAL prison and not a country club, I'm sure it would send a message to those that take over for them that these things CANNOT HAPPEN AGAIN. Amazing what a year's worth of real "jailhousing" can do for ones humility.
22
These entities shold lose the right to operate under the protective umbrella of LLC type incorporation including owning any shell companies. They should not be allowed to operate in any tax havens . Their compensation structure should require sign-off by the FED with the caveat that no bonuses be awarded.
As felons all senior management, Board of Directors, and 'cartel" traders should lose their right to vote, and own weapons. The IRS should audit all of their personal tax statements for the next 10 years and they should be drug tested monthly.
As felons all senior management, Board of Directors, and 'cartel" traders should lose their right to vote, and own weapons. The IRS should audit all of their personal tax statements for the next 10 years and they should be drug tested monthly.
25
As a former employee of one of the major banks, it is important to note that a handful of employees engaged in these actions. Most employees are committed to their clients and took up their current jobs in the hopes of helping small savers and borrowers. They abide to very strict codes of conduct and a myriad of laws and regulations. This is the less than 1% of banking employees that cause 99% of the problems. Same was true with the melt down ten years ago.
7
All the more reason to put those individuals in the slammer.
Employees with integrity are often the first victims of the lack of management oversight that fosters these abuses. It's hard to believe that this went on for five years and no one in management at any of these five world class banks noticed. Maybe it had something to do with the $85 billion in profits realized -- and the fact that they ended up keeping $76 billion at least. Lots of innocents will continue to suffer if no one is held accountable for these crimes.
True BUT nothing happened to the 1%, and the shareholders paid not the senior management or the board.
Just like Ancient Rome, the U.S. Is rotting from the inside out.
One wonders what the folks at the "Justice Deptartment" and SEC tell their families after a hard day at the office. It must be tiring to give out these slaps on the wrist. They all must be so proud of their daddies.
It would appear that the banks are "untouchable".
NYT please help us by shaming the DOJ and SEC into action. Name the folks that being us this "justice". Don't let them remain invisible drones.
One wonders what the folks at the "Justice Deptartment" and SEC tell their families after a hard day at the office. It must be tiring to give out these slaps on the wrist. They all must be so proud of their daddies.
It would appear that the banks are "untouchable".
NYT please help us by shaming the DOJ and SEC into action. Name the folks that being us this "justice". Don't let them remain invisible drones.
32
Where is Ferdinand Pecora when we really need him?
6
"....The Senate committee hearings that Pecora led probed the causes of the Wall Street Crash of 1929 that launched a major reform of the American financial system.
Pecora's investigation unearthed evidence of irregular practices in the financial markets that benefited the rich at the expense of ordinary investors," See: http://en.wikipedia.org/wiki/Ferdinand_Pecora
Pecora's investigation unearthed evidence of irregular practices in the financial markets that benefited the rich at the expense of ordinary investors," See: http://en.wikipedia.org/wiki/Ferdinand_Pecora
2
These comments make the essential point; without personal liability, i.e. prison time, all the government is doing is hurting the shareholders of these corrupt organizations. Forget about corporations "being people" according to some tortured logic, until some flesh & blood executives report to do some serious time, this will never stop and barely slow down as events have shown.
346
There should be and maybe it's already happening - plaintiff's class action suit against these banks.
This reasoning used by the justice department does not stand up to logical analysis. Executives can't be charged and/or convicted because it would disrupt the economy? What in the world happens when one of these people is involved in an accident or an illness? Does the company close the doors? No, they find someone to replace the employee who is unable to perform. All of these banks likely brag to themselves and their employees about how deep and competent their replacement base is. Even the CEO is subject to accident or illness. What makes them irreplaceable in cases of criminal activity?
15
The whole point of corporations is to make employees readily interchangeable.
1
Do we need any more proof that, after l'affaire Enron, the masters of the universe and their ilk made a deal with the Feds.
They can do the crime, but never have to do the time.
Hypocrisy in our justice system at the highest levels.
They can do the crime, but never have to do the time.
Hypocrisy in our justice system at the highest levels.
10
The Hypocrisy is in our Congressional system too.
Which is why nothing EVER gets done.
Despite the excellent pay & benefits members of Congress receive for some reason.
Which is why nothing EVER gets done.
Despite the excellent pay & benefits members of Congress receive for some reason.
2
The $9 billion is just part of the cost of doing business. Somehow I'm not surprised.
2
Run, Elizabeth, run!
8
And they put teachers in jail for rigging test results.
27
Thank you Editorial Board, you have taken a step toward possible punishment for these felons. Please keep the story in the news.
16
The problem is not that the banks have not been punished. Rather, it is that the actual perpetrators of the crimes, people, have not been punished.
Criminal law is designed to punish those who commit crimes, not the groups to which they belong. The biggest difference between the biker gangs, some of whose members engaged in a deadly shoot-out in Waco and the big banks, some of whose members ripped off millions of Americans, is that the former bought guns and the latter bought legislators.
People who belong to a group and rob a bank go to jail. People who belong to a bank and rob members of a group, Americans, get to continue with their high-on-the-hog lives.
Criminal law is designed to punish those who commit crimes, not the groups to which they belong. The biggest difference between the biker gangs, some of whose members engaged in a deadly shoot-out in Waco and the big banks, some of whose members ripped off millions of Americans, is that the former bought guns and the latter bought legislators.
People who belong to a group and rob a bank go to jail. People who belong to a bank and rob members of a group, Americans, get to continue with their high-on-the-hog lives.
38
Some banks act as criminal enterprises. That's what they are. We should treat as that. We pervert society when we say they're guilty, but.....
10
This along with every crime the banks have gotten away with under the Obama administration with be the lasting epitaph of this president. It's so hard to digest the fact the our nations first African American president which is a triumph in itself could let the banks off the hook for everything they did. It's just too sad to contemplate. In hindsight everything he has done is just a little bit of a fix but never anything substantial.
5
What puzzles me is why Justice bothers to do this. Who are they trying to impress? The public knows and cares nothing about these things -- they're too bloodless and technical. Business people are in on the joke. Is this just a game Justice likes to play. It probably doesn't cost the public anything -- aside from contempt for the law.
Also do companies ever actually pay these settlements or is there an out on that too -- yet another lie?
Also do companies ever actually pay these settlements or is there an out on that too -- yet another lie?
10
These people are sociopaths whose disregard for the public good does more damage then all the regular criminals put together.
15
Spanking is an understatement. These are criminals. They should be prosecuted as such. When it comes to the "monied", they never seem to suffer the consequences as the "unmonied". A one way street for certain.
12
But that's how our Republican Congress prefers things. Wouldn't surprise me to learn that they are involved in this too.
This charade by the too big to fail, too big to jail banksters is the work of the Justice department and the Securities and Exchange Commission. That in and of itself appears to be a criminal conspiracy.
13
Department heads are ALL political appointees.
Unless guilty people go to jail, there is virtually no incentive for the banks to change their behavior. They came out way ahead, financilly, in this instance. And every instance.
392
Coming out ahead financially is the only reason these banking businesses exist. Profit is the primary purpose and any social good coming out of their activities is a casual by-product.
Roomin prison could be made for these criminals by pardoning non violent pot/drug offenders who are usually poor and black.
1
As is usual of late, the U.S.Government has disgraced itself.
1
I love it! Plead guilty to criminal charges, pay a small percentage of the take to the government and call it another day in the Hampton's! Life is good.
I wonder how many idiots are still depositing money in Chase and Citibank?
I wonder how many idiots are still depositing money in Chase and Citibank?
3
Great deal!!
Commit a felony crime, give up only $1 for ever $9 you illegally obtained, and you walk away with 90% of your gains and no jail time or serious repercussions!
See, this is where the "corporations as people" nonsense falls apart. As someone posted once, I'll believe corporations are people when Texas executes one!
Commit a felony crime, give up only $1 for ever $9 you illegally obtained, and you walk away with 90% of your gains and no jail time or serious repercussions!
See, this is where the "corporations as people" nonsense falls apart. As someone posted once, I'll believe corporations are people when Texas executes one!
43
Bankster Mafia!
7
Scotus says they're people. Treat them with respect to their "personhood"! Jail time!
3
The Boards of Directors and senior executives of these banks are clearly incapable of governing the corporations they are supposed to be in charge of. At the very least, every one of these people should should be removed from their positions. They should be prohibited from ever serving on the board of any publicly traded corporation. And they should be barred from any employment in any part of the financial services industry. The point of this is not to punish them, but to protect the public from their gross incompetence.
10
What does it say about our political system when our biggest financial institutions, secured by the FDIC and regulated by an alphabet soup of government agencies, have become organized crime syndicates and primary drivers of economic inequality?
It says that the continous rotation of graduates and professors from Harvard, Stanford and other a few other universities to Wall Street, Treasury, Justice, regulators and lobbying firms has become a kind of fraternal order whose mission is to make the United States safe for financial piracy.
Consider the evidence, mortgage securities and foreclosure fraud, currency trading cartels, utilities manipulation, money laundering, illegal lending discrimination, tax evasion schemes,
It says that the continous rotation of graduates and professors from Harvard, Stanford and other a few other universities to Wall Street, Treasury, Justice, regulators and lobbying firms has become a kind of fraternal order whose mission is to make the United States safe for financial piracy.
Consider the evidence, mortgage securities and foreclosure fraud, currency trading cartels, utilities manipulation, money laundering, illegal lending discrimination, tax evasion schemes,
112
It says that the clueless locusts voting them in are heading towards their destined cliff.
In Citizens United the majority of the Supremes held that corporations are persons for the purpose of making unlimited political contributions. Shouldn't it follow that these banks should be deemed people, and their culpable executive officers should be sentenced to prison for their actions in this matter? Jail 'em then let the let 'em appeal, and let's see what how the Supremes will handle this case for their cronies.
72
Perhaps the boards of directors should be held accountable and sent to prison, or at least community service.
1
Also include jail time for members of the Board of Directors, as they also share corporate responsibility.
1
All this rhetoric about what criminals some banks are.
Now does anyone really think you could produce enough evidence that some one like Jamie Dimon could be convicted of some felony? You would have to prove that he issued commands to certain underlings to violate some law, and to commit a criminal act.
The most responsible people in these schemes are the boards of directors.they are paid to monitor and audit the banks activities, they are experts in their own fields, and are supposed to be able to recognize these unlawful actions. Furthermore, there is supposed to be a risk manager whose job it is, to keep the BoD and management informed of company violations.
It would appear that is was certain traders who did these currency value manipulations, which gave them some big bonus payments. Upper management does not look at individual employees, they look at what the auditors give them, it is the auditors job to bring out bad practices, and let management know about them. As we saw with Enron, it was the auditors that were responsible for letting Lay and Skilling get away with their manipulations.
You may want to put these banks out of business, but you better have a way to provide financing for the economy if you do. the Great Depression was the result of many bank failures. No banks, no money, no consumers, no new jobs, so be careful what you wish for, you might get it.
Now does anyone really think you could produce enough evidence that some one like Jamie Dimon could be convicted of some felony? You would have to prove that he issued commands to certain underlings to violate some law, and to commit a criminal act.
The most responsible people in these schemes are the boards of directors.they are paid to monitor and audit the banks activities, they are experts in their own fields, and are supposed to be able to recognize these unlawful actions. Furthermore, there is supposed to be a risk manager whose job it is, to keep the BoD and management informed of company violations.
It would appear that is was certain traders who did these currency value manipulations, which gave them some big bonus payments. Upper management does not look at individual employees, they look at what the auditors give them, it is the auditors job to bring out bad practices, and let management know about them. As we saw with Enron, it was the auditors that were responsible for letting Lay and Skilling get away with their manipulations.
You may want to put these banks out of business, but you better have a way to provide financing for the economy if you do. the Great Depression was the result of many bank failures. No banks, no money, no consumers, no new jobs, so be careful what you wish for, you might get it.
8
we already have a way of providing financing for the economy, it's called- "printing money".. no need for banks , just use the Federal Reserve. It all done by computer anyway. Add one "zero" here; another there and all is well.
Nobody wants the bank of out of business, what I would like is formal charges and the conspirators brought to trial. There are emails giving blatant evidence, and Justice knows who the individuals are that exchanged those emails. Why are those individuals not being charged, as the activity is illegal according to anti-trust laws?
1
As to this misguided apology for not punishing the banks, read from the SEC dissent in which I've capped important phrases you might miss:
There are compelling reasons to reject these requests to waive the AUTOMATIC DISQUALIFICATIONS REQUIRED BY STATUTE OR RULE. Chief among them, however, is THE RECIDIVISM OF THESE INSTITUTIONS. For example, in the face of the FX criminal action, a majority of the Commission has determined to grant Citigroup yet another WKSI waiver, its fourth since 2006. It is worth noting that Citigroup was automatically disqualified from WKSI status between 2010 and 2013 for unrelated misconduct, meaning that it has effectively now triggered WKSI disqualifications five times in roughly nine years. Further, through this latest round of Orders, the Commission has granted:
Barclays its third WKSI waiver since 2007;
UBS its seventh WKSI waiver since 2008;
JPMC its sixth WKSI waiver since 2008; and
RBSG its third WKSI waiver since 2013.
----------------------
These banks, David, could have, and should have, been punished in real ways and their business distributed to non-criminal institutions. Do you really think we would have been bankless?
There are compelling reasons to reject these requests to waive the AUTOMATIC DISQUALIFICATIONS REQUIRED BY STATUTE OR RULE. Chief among them, however, is THE RECIDIVISM OF THESE INSTITUTIONS. For example, in the face of the FX criminal action, a majority of the Commission has determined to grant Citigroup yet another WKSI waiver, its fourth since 2006. It is worth noting that Citigroup was automatically disqualified from WKSI status between 2010 and 2013 for unrelated misconduct, meaning that it has effectively now triggered WKSI disqualifications five times in roughly nine years. Further, through this latest round of Orders, the Commission has granted:
Barclays its third WKSI waiver since 2007;
UBS its seventh WKSI waiver since 2008;
JPMC its sixth WKSI waiver since 2008; and
RBSG its third WKSI waiver since 2013.
----------------------
These banks, David, could have, and should have, been punished in real ways and their business distributed to non-criminal institutions. Do you really think we would have been bankless?
2
One question for the people of New York State:
Why do we keep electing Schumer -- the best friend the banks could ever have?
Why do we keep electing Schumer -- the best friend the banks could ever have?
97
because most new yorkers are democrats regardless how crooked he/she may be.
Because the New York banks nominate, fund and elect U.S. Senators in New York State.
Without reform and serious oversight, Schumer will only be replaced by the Next Bank Flunkie.
Without reform and serious oversight, Schumer will only be replaced by the Next Bank Flunkie.
The New York Bankers are politically agnostic. Republican and Democratic Bankers buy both Republican and Democratic politicians.
They're completely hedged. That's the real meaning of "hedge" in "hedge fund."
They're completely hedged. That's the real meaning of "hedge" in "hedge fund."
1
Felons in this country, in many states, can't vote and are not eligible for state assistance.
I Jamie Dimon et al. can't be carted off to jail, then it would be fair, since the way corporations vote is with the wallet, is if all these banks were placed on probation and barred from contributing to election funds for a few years. Also, since they are felons, they should be barred from either dealing with federal and state agencies, including administering and or profiting from programs run by the government
We got this way not only through Citizens United, but trusting politicians who were in favor of relaxing financial regulations. Those politicians were Democrats and Republican. They were presidents (Clinton), Treasury Secretary Larry Summers, senators, congressmen and women. As you look at presidential candidate, look at who their advisers are. As you look at candidates for Congress, look at voting records. Attend a townhall or two. Ask pointed questions. Don't just assume your congresscritter did right by you.
The only way corporations will stop being people who are above the law is voters paying much closer attention to their representation. We need folks who are committed to seeing the repeal of Citizens United through, and then its ratification by the states. This is a long-term effort.
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Some history of banking regulations and who did what...
http://www.rimaregas.com/2015/05/the-clinton-greenspan-connection-the-ca...
I Jamie Dimon et al. can't be carted off to jail, then it would be fair, since the way corporations vote is with the wallet, is if all these banks were placed on probation and barred from contributing to election funds for a few years. Also, since they are felons, they should be barred from either dealing with federal and state agencies, including administering and or profiting from programs run by the government
We got this way not only through Citizens United, but trusting politicians who were in favor of relaxing financial regulations. Those politicians were Democrats and Republican. They were presidents (Clinton), Treasury Secretary Larry Summers, senators, congressmen and women. As you look at presidential candidate, look at who their advisers are. As you look at candidates for Congress, look at voting records. Attend a townhall or two. Ask pointed questions. Don't just assume your congresscritter did right by you.
The only way corporations will stop being people who are above the law is voters paying much closer attention to their representation. We need folks who are committed to seeing the repeal of Citizens United through, and then its ratification by the states. This is a long-term effort.
---
Some history of banking regulations and who did what...
http://www.rimaregas.com/2015/05/the-clinton-greenspan-connection-the-ca...
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Citizens United was not decided until 2010. The criminal behavior that destroyed the world economy in 2007-2008 goes back years before.
The Savings & Loan disaster went on from 1989 to 1995 and the better part of 1000 institutions were closed or in other ways dealt with, with a total cost of less than $200 billion. The Great Recession has seen almost no banks closed and cost in the trillions.
While working on the constitutional amendment required to change Citizens United, a non-trivial task, let's also be realistic about where the blame lies: with the president and his administration that continue to cover for the banks and want to expand corporate power with the TPP, and his corporate buddies in both parties.
Our enemies are in power and our allies are everywhere else.
The Savings & Loan disaster went on from 1989 to 1995 and the better part of 1000 institutions were closed or in other ways dealt with, with a total cost of less than $200 billion. The Great Recession has seen almost no banks closed and cost in the trillions.
While working on the constitutional amendment required to change Citizens United, a non-trivial task, let's also be realistic about where the blame lies: with the president and his administration that continue to cover for the banks and want to expand corporate power with the TPP, and his corporate buddies in both parties.
Our enemies are in power and our allies are everywhere else.
4
They should be forced to disclose on all contracts and ads, for 7 years, that they have committed a crime.
2
Are you capable of posting a comment that focuses specifically on the article at issue? Or can you only post stump speeches that promote your blog and elicit "recommends" from people who have little knowledge of the issues discussed in articles? You don't realize that your comments sound no different from those of politicians and indicate a very superficial understanding of the issues discussed.
The Federal Reserve Bank of New York runs something called the Foreign Exchange Committee, which exists to provide "guidance and leadership" to the global foreign exchange market. It is currently chaired by an individual who works for a firm that has just pled guilty to a felony for manipulating this same market. The tidy relationship between the NY Fed and its regulated institutions sticks in the craw of those of us who are worried about growing political interference in the Central Bank's conduct of monetary policy. In a recent blog post, Ben Bernanke decries the efforts of Elizabeth Warren to amend Dodd Frank to limit the Fed's power to bail out systemically important financial institutions in a crisis. I see his point, but I wish he would use his pulpit to frankly discuss regulatory capture, and make suggestions as to how this can be reduced in the future. This would go a long way in helping defend the institution's prized independence.
65
Everyone with actual knowledge of the details is engaged in a tactit agreement to never mention the most salient fact of all, which is that the Federal Reserve is a private entity owned by the banks.
In exchange for having sole authority to create and destroy this country's money, the banks allow the president to appoint the Fed's board of governors, and the presidents of the regional Federal Reserve banks.
In practical reality, the Fed's sole function is to control the national money supply through the operations of the Federal Reserve Bank of New York. This is where the actual power lies, and always has.
Every other aspect of the Fed is irrelevant, as are all of the articles and books written about the Fed. Anyone who says what I've just written is immediately dismissed as a lunatic -- for uttering what any student of the banking system knows.
In exchange for having sole authority to create and destroy this country's money, the banks allow the president to appoint the Fed's board of governors, and the presidents of the regional Federal Reserve banks.
In practical reality, the Fed's sole function is to control the national money supply through the operations of the Federal Reserve Bank of New York. This is where the actual power lies, and always has.
Every other aspect of the Fed is irrelevant, as are all of the articles and books written about the Fed. Anyone who says what I've just written is immediately dismissed as a lunatic -- for uttering what any student of the banking system knows.
Really? Where is Bernanke working now? 7 figures? 8 figures? 9 figures?
1
As long as big banks and investment houses can buy national lawmakers and bribe officials, and grease the skids for presidential candidates willing to play along them, there will be no justice for American taxpayers. Come next financial collapse, our money will be taken from its rightful purposes to make these manicured criminals whole again, and safe from prosecution.
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Precisely why this misled nation , where over 90% of the people who have no confidence in the self interest, self righteous, corrupt to hilt US Congress , by acclimation need to dissolve this Congress.
2
There were over 1,000 felony convictions during the S&L scandal (a crisis that was 1/70 the size of the 2008 financial meltdown), because of honest regulators like William Black. We need a president who will make good appointments at the Justice Department and regulatory agencies.
Hillary Clinton is too indebted to big money interests. Bernie Sanders’ campaign is funded by ordinary Americans. Sen. Sanders issued the following statement after the five banks pled guilty to crimes:
“Today, we learn that JP Morgan Chase, Citigroup and other huge banks were fined $5 billion for rigging interest rates and manipulating currency exchanges. Sadly, this is just the tip of the iceberg. Since 2009, huge financial institutions have paid $176 billion in fines and settlement payments for fraudulent and unscrupulous activities. The reality is that seven years after too-big-to-fail banks crashed the economy, fraud still appears to be the business model on Wall Street.
“In my view, the only effective way of dealing with theses enormous financial institutions is to break them up. Today’s news is just another example of why these too big to fail banks are too big to exist.”
After 5 Big Banks Plead Guilty to Crimes, Sanders Says Wall Street Business Model is Fraud
http://www.sanders.senate.gov/newsroom/press-releases/after-5-big-banks-...
Bernie Sanders 2016!
Hillary Clinton is too indebted to big money interests. Bernie Sanders’ campaign is funded by ordinary Americans. Sen. Sanders issued the following statement after the five banks pled guilty to crimes:
“Today, we learn that JP Morgan Chase, Citigroup and other huge banks were fined $5 billion for rigging interest rates and manipulating currency exchanges. Sadly, this is just the tip of the iceberg. Since 2009, huge financial institutions have paid $176 billion in fines and settlement payments for fraudulent and unscrupulous activities. The reality is that seven years after too-big-to-fail banks crashed the economy, fraud still appears to be the business model on Wall Street.
“In my view, the only effective way of dealing with theses enormous financial institutions is to break them up. Today’s news is just another example of why these too big to fail banks are too big to exist.”
After 5 Big Banks Plead Guilty to Crimes, Sanders Says Wall Street Business Model is Fraud
http://www.sanders.senate.gov/newsroom/press-releases/after-5-big-banks-...
Bernie Sanders 2016!
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rls - There also appears to be a type of ' affinity fraud ' at work:
http://krugman.blogs.nytimes.com/2011/11/17/madoff-explains-everything/
blinding the VSP's and regulators to the fact that the people they socialize with, went to school with, see at the gym, and that support community charities/alma maters are epic serial crooks, by their own admission(s).
In the S&L crisis, it seems it was easier for prosecutions to occur because the evil-doers were out in the hinterlands of fly-over country, instead of faces constantly seen at ' disease galas ' and/or lionized on CNBC, as well as personal buddies with the power structure of the scores and scores of VSP's making up the boards of directors at these ongoing criminal enterprises that are so important to our model of capitalism that they're deemed TBTF.
The longer it goes on, the more our kids think this is somehow acceptable.
http://krugman.blogs.nytimes.com/2011/11/17/madoff-explains-everything/
blinding the VSP's and regulators to the fact that the people they socialize with, went to school with, see at the gym, and that support community charities/alma maters are epic serial crooks, by their own admission(s).
In the S&L crisis, it seems it was easier for prosecutions to occur because the evil-doers were out in the hinterlands of fly-over country, instead of faces constantly seen at ' disease galas ' and/or lionized on CNBC, as well as personal buddies with the power structure of the scores and scores of VSP's making up the boards of directors at these ongoing criminal enterprises that are so important to our model of capitalism that they're deemed TBTF.
The longer it goes on, the more our kids think this is somehow acceptable.
13
"Hillary Clinton is too indebted to big money interests."
Excuse me. Is Hillary Clinton the president or in the Senate? Is Hillary Clinton the Attorney General? The people to name are Barack Obama, Eric Holder and his ethically identical replacement Loretta Lynch.
Lets call out the people in power, not just the person you don't like.
Excuse me. Is Hillary Clinton the president or in the Senate? Is Hillary Clinton the Attorney General? The people to name are Barack Obama, Eric Holder and his ethically identical replacement Loretta Lynch.
Lets call out the people in power, not just the person you don't like.
3
Sadly, the fines are no deterrent. They are paid by the share holders of these banks, while the perpetrators are left to pursue other financial "innovation" and fight laws to bring them in line. They know they can buy their "freedom" with corrupt Washington as we know it.
Why haven't the Bankers done time?
Committed an Earthshaking crime,
As felons in stripes
Perfect prototypes,
As Justice it would be sublime!
Committed an Earthshaking crime,
As felons in stripes
Perfect prototypes,
As Justice it would be sublime!
87
And why haven't bankers done time. Well. Larry we tried pitchforks that did not work out.
Then there is our time of Annie Lennox. A true Scottish songtress yet she didn't even hit the mark.
Life - why.
And so the fight goes on.
Then there is our time of Annie Lennox. A true Scottish songtress yet she didn't even hit the mark.
Life - why.
And so the fight goes on.
The only sublime justice that prevails in this ideologically divided, polarized nation on a fast track of self destruction from within is power of money, influence pandering, subjugation of the masses by the like minded haves in difference to have nots. Justice is not only blind, but also bigoted. That has proven over again and again in the the history of this nation, where there is no assurance of tranquility for all, on equal justice for all, no promotion of general welfare of all and no blessings of liberty and posterity for all.
1
Well, Loretta Lynch has certainly distinguished herself so far, the female Eric Holder when it comes to banks.
2
I can remember, back in the 1960s, a number of General Electric executives going to prison over price fixing of industrial utility equipment. The fact that executives never go to jail anymore speaks of the power of money in today's political process.
339
The banksters win again. We're supposed to accept that the banks were the criminals but bankers are innocent? There is no certainty that the banks and the banksters will behave differently, and legally, in the future. A few questions that beg to be asked -- did anything, anything at all, happen to the felons involved in these frauds? Did they lose their jobs? Do they still hold the same positions as before? No report I have seen has provided any answers to these questions. As for how high the corruption went, we are asked to believe that these massive frauds were all the work of underlings. Who believes that? How long before we go through this charade again?
193
These banks present the same problem issue as the story on the front page about GM crimes.
Taxpayers spent big money to keep these corporations alive. Their failure would have damaged us all.
Now, big fines would undo some of what we spent all that money to do. Big fines don't penalize anyone so much as us, the ones who were just putting money in to save these corporations.
What we need is to send to jail the decision makers who decided on committing crimes as corporate strategy. They need motivation to say in the Board Rooms "We can't do that, it is a crime." Right now, they laugh and do it.
Prison orange replacing pinstripes is the cure for that, followed by a lifetime ban from employment in publicly held corporations.
The corporations were not "criminals." Only people are criminals, and nonsense excuses aside, corporations are not people.
Never mind fines. Jail them. Start at the top, and work a few levels down on those who decided to commit crimes.
Taxpayers spent big money to keep these corporations alive. Their failure would have damaged us all.
Now, big fines would undo some of what we spent all that money to do. Big fines don't penalize anyone so much as us, the ones who were just putting money in to save these corporations.
What we need is to send to jail the decision makers who decided on committing crimes as corporate strategy. They need motivation to say in the Board Rooms "We can't do that, it is a crime." Right now, they laugh and do it.
Prison orange replacing pinstripes is the cure for that, followed by a lifetime ban from employment in publicly held corporations.
The corporations were not "criminals." Only people are criminals, and nonsense excuses aside, corporations are not people.
Never mind fines. Jail them. Start at the top, and work a few levels down on those who decided to commit crimes.
419
A valid point but I would offer a distinction for consideration. To my knowledge, only two of these institutions were supported with TARP money provided by we who supplied the funding, and those funds have been fully repaid. (The megabanks repaid their TARP support actually quite quickly -- it's the smaller banks that haven't, but that's another issue.) But, to your point, punishing the actors is the kind of justice demanded, and I encourage it. Taking it further, however, we cannot discount that those actors were driven by the demands of their shareholders, and rewarded by a shareholder-sanctioned remuneration for their bad acts. There are no more growth stocks or income stocks. No Dow Utilities and Dow Industrials indices that matter to investors. Utilities were broken up into generation, distribution and delivery companies to satisfy their greed. Our industries used to export real goods (not just on paper). In response to shareholder greed, we have decimated our industrial base by shipping the work overseas, and the product back to our shores. Punishing the malfeasants has its purpose, but this will not stop until we revamp the rules. (Who suffered from the goings-on at Enron, Tyco and WorldCom? The shareholders. And the folks that acted to satisfy their share holders' demands went to prison and forfeited their lucre. What had changed? Yes, re-regulate, take a moderately protective stance on trade . . . and send a message to the share holders.
"Taxpayers spent big money to keep these corporations alive. Their failure would have damaged us all."
This has been the biggest con sold to the people since the Domino Theory of Communist expansion.
This has been the biggest con sold to the people since the Domino Theory of Communist expansion.
3
NB: Money is fungible. A good case can be made that no matter how large the monetary fee, WE THE PEOPLE/TAXPAYERS are actually paying that "fine." The lesson learned is that crime pays, especially for "corporate people." Our nation under law is a joke!
2
So the banks are admitted felons, and at least one bank is a serial felon, since it violated its plea agreement and was caught still practicing what it had just said it would stop.
Here's a (rhetorical) question: " What's going to happen to any bank caught violating its 3-year corporate probation period " ?
Here's another question: " When did it become o.k. for boards of directors to not terminate (for cause) all management presiding over such fiascoes " ?
Last question: " Shouldn't we be concerned that the largest banks have publicly admitted to being, and paid serial fines as, ongoing criminal enterprises " ?
William Dudley, New York Fed prez, understated the ' culture of corruption ' problem:
http://www.huffingtonpost.com/2013/11/07/william-dudley-big-banks_n_4235...
that begins with boards of directors sitting on their hands.
Here's a (rhetorical) question: " What's going to happen to any bank caught violating its 3-year corporate probation period " ?
Here's another question: " When did it become o.k. for boards of directors to not terminate (for cause) all management presiding over such fiascoes " ?
Last question: " Shouldn't we be concerned that the largest banks have publicly admitted to being, and paid serial fines as, ongoing criminal enterprises " ?
William Dudley, New York Fed prez, understated the ' culture of corruption ' problem:
http://www.huffingtonpost.com/2013/11/07/william-dudley-big-banks_n_4235...
that begins with boards of directors sitting on their hands.
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