Posts filed under “Crony Capitalists”

No Crimes? That’s The Biggest Lie of the New Century

Yesterday, we looked at why bankers weren’t busted for crimes committed during the financial crisis. Political corruption, prosecutorial malfeasance, rewritten legislation and cowardice on the part of government officials were among the many reasons.

But I saved the biggest reason so many financial felons escaped justice for today: They dumped the cost of their criminal activities on you, the shareholder (never mind the taxpayer).

Corporate executives theoretically work for the owners of the company, namely, the shareholders. But there is an agency problem in that owners can’t closely manage and object to the actions of these executives. Collective owners, such as mutual funds, seem to have no interest in doing so. What we end up with is a management class that works for itself instead of on behalf of the owners of the publicly traded banks. Many of these executives committed crimes; got big bonuses for doing so; and paid huge fines using shareholder assets (i.e., company cash), helping them avoid prosecution.

As for claims, like those of white-collar crime defense attorney Mark F. Pomerantz, that “the executives running companies like Bank of America, Citigroup and JP Morgan were not committing criminal acts,” they simply implausible if not laughable. Consider a brief survey of some of the more egregious acts of wrongdoing:

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Category: Corporate Management, Crony Capitalists, Legal, Really, really bad calls

Corporate Deadbeats (Newsweek Cover)

Nice cover: Source:  Corporate Deadbeats: How Companies Get Rich Off Of Taxes, David Cay Johnston, Newsweek, September 4, 2014  

Category: Crony Capitalists, Digital Media, Financial Press

Inversion of the Money Snatchers

The Daily ShowGet More: Daily Show Full Episodes,Indecision Political Humor,The Daily Show on Facebook 7/30/14 – (8:55)

Category: Corporate Management, Crony Capitalists, Taxes and Policy, Television

Contextualizing Bank Fines

click for larger version Source: BV, FT   This morning we discussed the danger that arises from merely fining banks instead of prosecuting them for violating laws. Since the news cycle is focusing on the potential multibillion-dollar fines for BNP Paribas SA and Bank of America Corp., let’s have a look at the amount of…Read More

Category: Bailouts, Credit, Crony Capitalists, Legal

Jefferson on Corporatocracy

Source: The Cagle Post

Category: Crony Capitalists, Digital Media, Politics, Really, really bad calls

Its Great to be the CEO Running a Huge Criminal Bank

Every day brings multiple new scandals.  At least they used to be scandals.  Now they’re simply news items strained of ethical content by business journalists who see no evil, hear no evil, and speak not about evil.  The Wall Street Journal, our principal U.S. financial journal ran two such stories today.  The first story deals…Read More

Category: Bailouts, Corporate Management, Crony Capitalists, Legal, Think Tank

“Outrageous & Piggish” CEO Compensation

CEO pay: ‘Unbelievably piggish and outrageous,’ no matter how you slice it

Autoplay video after the jump
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Category: Corporate Management, Crony Capitalists, Video, Wages & Income

Sorry Banks, Millennials Hate You

Source: FastCo

Category: Bailouts, Credit, Crony Capitalists, Sentiment

The Shadow Lobbying Complex

click for ginormous graphic Source: The Nation

Category: Crony Capitalists, Digital Media, Politics, Really, really bad calls

Debt Ceiling Debacle Has Already Damaged the U.S.

Dysfunction Is Limiting U.S. Position Abroad, Observers Say; ‘Sadness From Our Trading Partners’ click for ginormous graphic Source: WSJ     Here is the problem with using the debt ceiling as a negotiating tactic: It does permanent, long lasting damage to the reputation of the US, and hastens the day when the US Dollar is…Read More

Category: Credit, Crony Capitalists, Digital Media, Really, really bad calls