Thursday, February 17, 2011

Nobody Goes to Jail

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."

— Excerpt from Why Isn't Wall Street in Jail? by Matt Taibbi.
That Rolling Stone article is a must read. Matt Taibbi explains how the entire system that is designed to monitor and regulate Wall Street is so fucked up that it actually serves to protect financial criminals. This is how the system works for the richest:
Criminal justice, as it pertains to the Goldmans and Morgan Stanleys of the world, is not adversarial combat, with cops and crooks duking it out in interrogation rooms and courthouses. Instead, it's a cocktail party between friends and colleagues who from month to month and year to year are constantly switching sides and trading hats. At the Hilton conference, regulators and banker-lawyers rubbed elbows during a series of speeches and panel discussions, away from the rabble. "They were chummier in that environment," says Aguirre, who plunked down $2,200 to attend the conference.
And these super-wealthy elite criminals are amazingly skilled at whipping up a distracting frenzy of populace rage against... unbelievably... health care, socialism, and unions. I don't know what will convince them to re-aim their pitchforks.

1 comment:

Trung said...

back in 2004, under the bush administration, nearly all of the fbi agents assigned to regulate the financial market were switched from those types of roles to homeland security. subsequently, none of these agents were ever replaced, so how does one regulate the financial market? it's simple, you don't, which makes it easier for goldman sachs and morgan stanley to get away with it.

since there aren't any regulators to enforce sabarnes-oxley, it makes it even easier to get away with the fraud. most fraud begins with the ceo of the company. so for men like blankfein or angelo, they can pretty much do anything they want.