The Scam Wall Street Learned From the Mafia
[Via Rolling Stone]
Someday, it will go down in history as the first trial of the modern American mafia. Of course, you won’t hear the recent financial corruption case, United States of America v. Carollo, Goldberg and Grimm, called anything like that. If you heard about it at all, you’re probably either in the municipal bond business or married to an antitrust lawyer. Even then, all you probably heard was that a threesome of bit players on Wall Street got convicted of obscure antitrust violations in one of the most inscrutable, jargon-packed legal snoozefests since the government’s massive case against Microsoft in the Nineties – not exactly the thrilling courtroom drama offered by the famed trials of old-school mobsters like Al Capone or Anthony “Tony Ducks” Corallo.
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The article will make you mad because it shows how these guys n Wall Street cheat and game the system for their own enrichment.
This is not capitalism but outright fraud. Why do they call themselves job creators when they simply rip off towns issuing municipal bonds?
This is why regulations are needed – to level the playing field for those who actually want to play a fair game. Otherwise, we are left with criminal jokers like these guys, whose goals are to cheat and make money not through actually capitalism but by fraud.
We know there are thousands of these guys.
June 22, 2012 at 6:42 pm
Number One: we already have laws and regulations. These guys were just convicted under them.
Number Two: You don’t really know that there are “THOUSANDS” of these guys.
Number Three: The average person being hurt by these scams are the retired folk who can’t get a decent interest rate for their retirement.
June 22, 2012 at 7:39 pm
I was stating why regulations are needed in the first place.
There are 200,000 people in just NYC working in financial services and the overall financial services industry employs over 6 million people. These are just the small fry and yet there were dozens of them who copped a plea. I feel comfortable that there are thousands of cheats out of 6 million.
And that was the whole point, along with the fact that companies perpetrating these frauds pay pennies on the dollar in fines for scamming. retired folk. There should be a death penalty for the company. Like in soccer – two yellow cards and you are gone.
July 5, 2012 at 8:59 am
[...] is also a separate scandal from the bid-rigging done by bankers. That is a whole other kettle of [...]