“There Were No Convictions of Bankers for Good Reason” is the headline of a post by Mark F. Pomerantz, a lawyer and retired partner at Paul, Weiss, Rifkind, Wharton & Garrison in the New York Times’s Room for Debate discussion:
The reason that senior bankers did not face charges, even though investigators interviewed countless witnesses and pored over truckloads of emails and other documents for many years, is that the executives running companies like Bank of America, Citigroup and JP Morgan were not engaged in criminal acts.
At least that is why according to Pomerantz. It should surprise no one that a lawyer who spent much of his career representing financial institutions and their executives wouldn’t see any prosecutable crimes. Fortunately, it is easily refutable, which is our task for today and tomorrow.
Pomerantz’s claim is, along with other like it, what we should expect from corporate management and its hired apologists. But this exercise in cynical spin also does significant damage to respect for the rule of law and undermines respect for legal institutions and the legitimacy of elected officials.
I have been following the absence of legal prosecutions since 2008, and have posted on that subject more than 500 times. But this isn’t the obsession of one lone crank (i.e., me). Many others in banking, law enforcement and government who aren’t on the payroll of banks have reviewed the events of the financial crisis and have reached the same conclusion — that the law was broken repeatedly by bankers.
I have been an Apple fanboy since my Mac Classic circa 1987, but if you give up a week of vacation days waiting on line to buy the new iPhone 6, you are obviously an idiot and a danger to yourself. Oh, and reads: • 5 things to expect from Apple’s big event (The Verge)…Read More
Category: Financial Press
The Seeds of U.S. Inflation Have Sprouted and Could Be in Full Flower in 2016 Paul Kasriel September 8, 2014 I subscribe to the tenet espoused by the late Professor Milton Friedman that inflation is a monetary phenomenon. When I speak of inflation, I include not only the behavior of prices of goods and…Read More
HQLA and Munis David Kotok September 8, 2014 High Quality Liquid Assets (HQLA) is a term that now applies to the implementation of the Liquidity Coverage Ratio (LCR) in the Basel III Rule. This highly technical mouthful of acronyms and rules specifically applies to banks, their liquidity requirements and the rules governing the…Read More
My afternoon train reads: • Going after Export-Import Bank is a strange way to attract crony capitalism (Washington Post) • Ecuador to Goldman Sachs: We win, you lose (Fortune) see also Goldman Sachs Just Says ‘Vice President’ to Be Polite (Bloomberg View) • Why inflation remains the best way to avoid stagnation (Tim Harford) • Foreign…Read More
Category: Financial Press
The following conversation took place at Harvard University. Former U.S. Treasury Secretary, Larry Summers invited Ray Dalio, founder and chairman of Bridgewater Associates, the world’s largest hedge fund, to discuss Dalio’s unique views on economics. The conversation is based off of Dalio’s 30-minute animated video entitled “How the Economic Machine Works” which is available on YouTube and at EconomicPrinciples.org.
Larry Summers and Ray Dalio on Dalio’s Unique Perspective of “How the Economic Machine Works”
The Future of Advice: Business Models and Services For the Next Generations from INResearch