We Were All ****d: Close The Big Banks

smiley I’d say “I told you so”, but this isn’t exactly news…. what is news is that despite these rulings and admissions – including intentionally covering up bid-rigging – these institutions are not under indictment for Racketeering and closed down.

In an 11th-floor federal courtroom in Manhattan on a gray September afternoon, a banker stood with a somber face and admitted to rigging bids for contracts to invest bond proceeds and then lying about it — as part of the biggest criminal conspiracy in the history of the 198-year-old municipal finance market.

When a group of people get together and conspire to rob banks (the old-fashioned way) or sell drugs, we break up the ring, confiscate everything they have, and if there are “legitimate” businesses used as cover for the scam, we confiscate that too.

But not here.  And this is not “small potatoes” either:

By mid-1999, Murphy and Campbell were joined by two former First Union colleagues, Jay Saunders and Dean Pinard. Within three years, the small group made more in revenue for Bank of America than its corporate derivatives unit. Pinard knew Image well. After graduating from Villanova University, he went to work at Wheat First Securities Inc. in Philadelphia with two bankers who later joined Image, broker registration records show.

So once again I ask: Since this was such a material part of the firm’s revenue, why is it that the government has not seized this institution and shut it down?

Can someone explain how this doesn’t fit within the definition of “Operating a continuing criminal enterprise”, otherwise known as Racketeering?

View this entry with comments