There seems to be some truth in the idea that if almost everyone is committing fraud, then no one will have to pay.
The regulators have already been captured by the banking system, so naturally the rules will favor bankers.
Money in politics guarantees that the laws governing fraud and ethics will not have teeth.
When the government says that nothing illegal was done in the financial crisis, no banker has anything to worry about.
Getting a monetary settlement from civil suits for fraudulent acts is good enough.
Many groups that were supposed to investigate financial fraud cannot succeed when they lack enough resources, including proper office space.
Civil lawsuits are the only way to make banks behave ethically especially when the banks never have to admit to any wrongdoing thus saving them from lawsuits that arise from such an admission.
Regulators are afraid of failing so they don't bring criminal lawsuits.
Banks will surely learn to behave when they pay a substantial fine even when they allow for billions of lawsuits in their yearly budgets. Thus, jail time is not needed.
All regulators have to do is appear to investigate and everyone will be satisfied.
It is good enough to go after the "little guy" and leave the executives alone.
Justice is served already, then!
We await the next financial crisis and in the meantime watch the ongoing looting of wealth by the financial system.
Too Big To Jail: Wall Street Executives Unlikely To Face Criminal Charges, Source Says
By Ben Hallman - Huffington Post
. . . .
William Black, a law professor at the University of Missouri-Kansas City and a prominent former bank regulator, is in the camp that thinks prosecutors have missed a massive opportunity.
"They don't get the whole concept of looting," he said.
Black, who worked with prosecutors to develop some of the 1,100 criminal cases that emerged from the Savings & Loan crisis of the late 1980s and early 1990s, said that Wall Street accounting fraud flows from a simple recipe: grow by buying high-interest loans, leverage the business by borrowing lots of money and keep next to nothing in reserve against losses.
"You are mathematically guaranteed to report record profits," he said.
But those profits are based on a fiction, he said, one that costs investors when the bank collapses -- and in some cases, can cost taxpayers too.
Financial firms like Goldman Sachs profited tremendously by purchasing loans described widely in the industry as "liar's loans," Black said. These loans were made without the borrower having to prove income, or even that he or she had a job.
"It makes no sense that an honest lender would ever make liar's loans," he said. Nor does it make sense that a sophisticated bank like Goldman, which runs an entire business based on the ability to calculate risk, would purchase such dangerous loans without knowing that they were toxic, he said.
Read the whole article here