When Charles Ferguson received an Oscar for his documentary on the financial crisis, Inside Job, he reminded the audience that “not a single financial executive has gone to jail, and that’s wrong.” Given the abundant evidence of massive fraud, Americans everywhere have asked the same question: Why haven’t any of those bankers gone to jail? If federal investigators could not establish criminal intent for any top-flight executives, didn’t they have enough evidence to prosecute banks or financial houses as law-breaking corporations?
Evidently not. Except for occasional civil complaints by the Securities and Exchange Commission, the nation is left to face a disturbing spectacle: crime without punishment. Massive injuries were done to millions of people by reckless bankers, and vast wealth was destroyed by elaborate financial deceptions. Yet there are no culprits to be held responsible.
Former Senator Ted Kaufman was especially upset by this. Kaufman was appointed in 2008 to fill out the remaining two years of Vice President Biden’s term as senator from Delaware. With no ambition to stay in politics, he was free to speak his mind. He made unpunished bankers his special cause.
It may have been very difficult to prove fraud, but it was not difficult, at all, to simply allow these firms to go bankrupt.
“People know that if they rob a bank they will go to jail,” Kaufman declared in an early speech. “Bankers should know that if they rob people, they will go to jail too.” Serving on the Senate Judiciary Committee, he helped get expanded funding and manpower for investigative agencies. In hearings, he politely prodded the Justice Department, the SEC and the FBI to be more aggressive.
“At the end of the day,” Senator Kaufman warned, “this is a test of whether we have one justice system in this country or two. If we do not treat a Wall Street firm that defrauded investors of millions of dollars the same way we treat someone who stole $500 from a cash register, then how can we expect our citizens to have any faith in the rule of law?”
Kaufman, now retired, sounded slightly embarrassed when I reminded him of his question. “When you look at what we got, it ain’t very much,” he conceded. “I’m genuinely concerned there are a lot of guys walking around Wall Street, the bad apples, saying, ‘Hey, man, we got away with it. We’re going to do it again.’”
If the legal system cannot locate the villains in this story, then “the law is a ass—a idiot,” as Charles Dickens put it. The technical difficulties in making a case for criminal prosecutions are real enough, given the complexities of modern finance. But the government’s lack of response to enormous wrongdoing reflects a deeper conflict of values. Will society’s sense of right and wrong prevail, or will corporate capitalism’s amoral need to maximize profit? So far, the marketplace appears to be winning.
We’re trying to take care of the audio on those ads, please be patient. Hitting refresh can stop some of them.
You know, I’ve seen a lot of really awful things done by Republican governors in the past few months, but this really, really takes the cake:
Florida Gov. Rick Scott ordered deep cuts Thursday to programs that serve tens of thousands of residents with Down syndrome, cerebral palsy, autism and other developmental disabilities.
Though a range of state services face cuts from this year’s Legislature, the governor invoked his emergency powers to order the state Agency for Persons with Disabilities to immediately roll back payments to group homes and social workers by 15 percent — an amount providers say could put them out of business and threaten their clients’ safety.
“lt’s not like, ‘Gee, does this mean I have to skip a vacation this year?’” said Amy Van Bergen, executive director of the Down Syndrome Association of Central Florida. “Potentially, these cuts have life and death implications for these people.”
An estimated 30,000 Floridians with severe developmental disabilities receive services that help them live outside of nursing homes — typically with family or in small group homes. Aides help them eat, bathe, take medication and otherwise care for themselves.
Yes, but are they a PROFIT CENTER? I think not!
Six to go — recall petitions for Wisconsin Republicans! If you can, please give a few bucks.