Posts filed under “Legal”
“I don’t know what all these banks did to deserve all this but once again, when you are fining the bank, you are fining the shareholders of the bank who had nothing to with what management did. So if management did something egregious or criminal go after the people that did it and stop taking the shareholder’s wealth.”
- Howard Ward GAMCO CIO
Since I started this column, I have on occasion used this platform to poke holes in the weak analysis, bad theory and just plain dumb ideas that bounce around Wall Street all too regularly. Today, I want to highlight a surprisingly common belief that simply fails to withstand close scrutiny. Indeed, it is so rife with the sort of sloppy, ill considered thinking that it cried out for a response.
The quote above is fairly typical of the genre. Not to pick on Howard Ward or anyone else but there is this entire school of thought that treats shareholders as passive victims of reckless prosecutors. There have been some truly awful spin made in response to the recent criminal prosecutions of large banks, but this one takes the cake.
Banksters Pretend that Prosecuting Wall Street Crime Will Blow Up the Economy Banksters Pretend that Prosecuting Wall Street Crime Will Blow Up the EconomyThe Department of Justice is “considering” initiating criminal charges against 2 banks. In response, the normal cast of characters is saying – as they have for years – that prosecuting…Read More
Wall Street Manipulates Energy Prices … and Every Other Market The U.S. Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011. Pulitzer prize-winning reporter David Cay Johnston notes today…Read More
Bloomberg’s Keri Geiger, Richard Farley, partner at Paul Hastings, and Bloomberg View columnist Barry Ritholtz break down the guilty plea by Credit Suisse that ends a three-year probe on tax evasion by the U.S. Justice Department and how the outcome could potentially impact the banking industry.
Source: Bloomberg Television’s “Market Makers.”
6 Years After the Financial Crisis Hit, The Big Banks Are Still Committing Massive Crimes Preface: The “Great Recession” started in December 2007. More than 6 years later, the big banks are committing more crimes than ever. You Won’t Believe What They’ve Done … Here are just some of the improprieties by big banks over…Read More
Big Banks Started Laundering Massive Sums of Drug Money In the 1980s … And Are Still Doing It Today. It has become mainstream news that at least some of the big banks are laundering staggering sums of drug money. See this, this, this, this, this, this and and this. But you may not know the…Read More
Here are a few clips from today’s Bloomberg TV appearance:
Sanctions Won’t Change Russian Policy (but I dont care)
Source: Bloomberg, May 5 2014
Bloomberg Contributing Editor Richard Falkenrath and Bloomberg View columnist Barry Ritholtz examine the increasing violence in Eastern Ukraine and limits for potential responses from the United States and Europe on Bloomberg Television’s “Market Makers
Why Now Is the Time to File Charges Against Banks
Source: Bloomberg, May 5 2014
Bloomberg Contributing Editor Richard Falkenrath, Bloomberg View columnist Barry Ritholtz and Bloomberg’s Cristina Alesci discuss possible criminal charges against Credit Suisse and BNP Paribas on Bloomberg Television’s “Market Makers.”
Prosecutors are considering bringing criminal charges against two overseas banks for charges ranging from perjury and fraud to laundering money. As detailed yesterday by a trio of Bloomberg News reporters, the key takeaway from the banking community was reflected in the headline: “Criminal Charges Against Banks Risk Sparking Crisis.” The reaction has been swift. “Don’t’…Read More
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