Why Isn’t Wall Street in Jail?
2011 02 23
By Matt Taibbi | RollingStone.com
Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.
"Everything’s fucked up, and nobody goes to jail," he said. "That’s your whole story right there. Hell, you don’t even have to write the rest of it. Just write that."
I put down my notebook. "Just that?"
"That’s right," he said, signaling to the waitress for the check. "Everything’s fucked up, and nobody goes to jail. You can end the piece right there."
Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.
The rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. Their names by now are familiar to even the most casual Middle American news consumer: companies like AIG, Goldman Sachs, Lehman Brothers, JP Morgan Chase, Bank of America and Morgan Stanley. Most of these firms were directly involved in elaborate fraud and theft. Lehman Brothers hid billions in loans from its investors. Bank of America lied about billions in bonuses. Goldman Sachs failed to tell clients how it put together the born-to-lose toxic mortgage deals it was selling. What’s more, many of these companies had corporate chieftains whose actions cost investors billions — from AIG derivatives chief Joe Cassano, who assured investors they would not lose even "one dollar" just months before his unit imploded, to the $263 million in compensation that former Lehman chief Dick "The Gorilla" Fuld conveniently failed to disclose. Yet not one of them has faced time behind bars.
Instead, federal regulators and prosecutors have let the banks and finance companies that tried to burn the world economy to the ground get off with carefully orchestrated settlements — whitewash jobs that involve the firms paying pathetically small fines without even being required to admit wrongdoing. To add insult to injury, the people who actually committed the crimes almost never pay the fines themselves; banks caught defrauding their shareholders often use shareholder money to foot the tab of justice. "If the allegations in these settlements are true," says Jed Rakoff, a federal judge in the Southern District of New York, "it’s management buying its way off cheap, from the pockets of their victims."
To understand the significance of this, one has to think carefully about the efficacy of fines as a punishment for a defendant pool that includes the richest people on earth — people who simply get their companies to pay their fines for them. Conversely, one has to consider the powerful deterrent to further wrongdoing that the state is missing by not introducing this particular class of people to the experience of incarceration. "You put Lloyd Blankfein in pound-me-in-the-ass prison for one six-month term, and all this bullshit would stop, all over Wall Street," says a former congressional aide. "That’s all it would take. Just once."
But that hasn’t happened. Because the entire system set up to monitor and regulate Wall Street is fucked up.
Just ask the people who tried to do the right thing.
Read the full article at: rollingstone.com
Image: Illustration by Victor Juhasz
Video from: YouTube.com
Also tune into:
John Perkins - An Economic Hitman on Predatory Capitalism & Corporate Monopoly
Tracy Twyman - Alconomics, Money & Magic
Tracy Twyman - Knights Templar, The Banking System, Gold & Sacrifice
Alan Watt - Money, Magic and Words
Ellen Brown - The Web of Debt & The Manufactured Financial Crash
Jim Marrs - Trillion-Dollar Bailout Conspiracy, American Revolutions & Wikileaks
Mary Croft - Natural Man vs. Artificial Person, Law, Money & Banking
Robert Hieronimus - The United Symbolism of America, All Seeing Eye Origins, Freemasons & The Enlightenment
Taibblog: Commentary on politics and the economy by Matt Taibbi
6 Charts Which Prove That Central Banks All Over The Globe Are Recklessly Printing Money
Inside Job: how bankers caused the financial crisis
Spain to bailout their banks
Big banks running an oligopoly, says Virgin Money chief
Swiss arrest ex-banker for giving data to WikiLeaks
Do I Suggest Opening an Account with the Bank of China?
Occult Symbols Found on the Bank of America Murals
Latest News from our Front Page
Pyramid of the Sun Turning to Dust
2014 03 10
All we are is dust in the wind, so the saying goes, but it’s troubling when it happens to great ancient monuments that we assume will be around forever.
Pyramid of the Sun, Pirámide del Sol, Teotihuacán, México (Wikimedia Commons)
New Scientist reports that the Pyramid of the Sun in Mexico is turning to dust and could collapse:
The Pyramid of the ...
Elephants Never Forget A Voice
2014 03 10
According to a new study, wild elephants are discerning listeners who can differentiate between various human languages, genders, ages, and more. Such surprising skills continue to marvel researchers.
Not all the intellectual surprises are on the large animal front. Research has shown that crows are extremely intelligent, some dogs recognize over a thousand words and have the intellect of a toddler, ...
RIP, psychiatry: the “chemical-imbalance” theory is dead
2014 03 10
This one is big.
Dr. Ronald Pies, the editor-in-chief emeritus of the Psychiatric Times, laid the theory to rest in the July 11, 2011, issue of the Times with this staggering admission:
“In truth, the ‘chemical imbalance’ notion was always a kind of urban legend — never a theory seriously propounded by well-informed psychiatrists.”
The point is, for decades the whole basis of ...
Space Elevator By 2035, Says International Academy of Astronautics
2014 03 10
Going up? Way up?
The space elevator - An idea which used to be pure speculative science fiction has gained renewed interest.
ExtremeTech.com lays out the technical challenges of the audacious (crazy?) plan to extend the 100,000-kilometers-long tether into space. Especially problematic to the mission is the fact that the materials and technology needed to create the space elevator don’t actually exist ...
One million Britons descended from Vikings says new study
2014 03 10
A new study is showing that approximately 930,000 people can claim to be of direct Viking descent in Great Britain today, especially in the north of Scotland. The ancient Norse peoples’ influence is still being felt in modern times.
Around one million Britons are directly related to Vikings, with people from the north of Scotland most likely to have Viking ...
|More News » |