Get out your cynicism pills

 Tomorrow sees the start of the great circus, the insider-trading trial of Raj Rajaratnam of Galleon Group. It should have everything the Justice Department and the media craves: wire taps,a hugely rich defendant and, with luck, maybe even some sex. But most important, it will deflect attention from the real scandal here, the refusal of the Justice Department to pursue the people behind the financial collapse of 2008.

Country Wide’s Mozillo, a friend of Dodd? No criminal charges. Dodd himself? Off to collect $1.5 million per year as a lobbyist in California. Dick Fuld? Jamie Diamon? Fannie Mae’s execs? Are you kidding me? It can be argued, and I do, that insider trading causes no harm to investors – the same can not be said for what establishment Wall Street and Washington’s pals in the mortgage business did. But the latter have political protection, Raj does not.

So enjoy the spectacle, but don’t lose sight of the fact that this is all intended to create the illusion that our government is policing Wall Street when in fact it is doing nothing of the sort.


Filed under Uncategorized

15 responses to “Get out your cynicism pills

  1. The storyline is sooooo old. Egomaniacal Man gets filthy rich managing a hedge fund. Man wants even more moola so he cheats the system. Gets caught. Says “I didn’t do anything wrong.” Feds say “not so fast.” Man lands in the slammer for twenty years. Who needs a trial for this obvious conclusion?

    I want the royalty rights for the title of the made-for-TV-movie Walt and I are making about Raj: “Bunking With Bernie.”

  2. Libertarian Advocate

    You forgot that fat ugly turd representing Massachusetts’ 4th Congressional district.

  3. Peg

    Preach it, Brother Chris!

  4. Treepart

    20 years! Less than 5 easy time at a country club prison.

    The toothless, gutless, easily outwitted SEC is only capable of catching people like this guy and Martha Stewart who wander away from the herd long enough to get taken down, while the real criminals who run everything get no time. And it continues today. How is it possible for JP Morgue to only have one day of trading losses since July? This whole thing is scammed and rigged and there is no threat of penalty for the biggest of players.

    Again, everyone should read Matt Taibbi’s latest in Rolling Stone titled “Why isn’t Wall Street in jail”

  5. Inagua

    Just because Dodd got off does not make this guy any less of a cheat. EOS nailed it; this is pure meglomania. A vigorous defense and appeal will keep him free for a few more years, but then he is going away for five to ten. A less delusional person knows when the jig is up and cuts a deal. Boesky got two years because he folded, and Milken got ten because he fought it.


    CF, have you read Matt Taibbi’s article in Rolling Stone?

  7. Anonymous

    Great article that offers some perspective on why they all got off.

    Why Isn’t Wall Street in Jail?

  8. Anonymous

    Why isn’t congress in jail?

  9. just_looking

    I am not a banker, nor do I defend any of what they do, however I do not believe that the bankers are to blame for the mortgage mess. The bankers may have cheated investors and each other with poor due diligence and misrepresentation of some deals but that will be sorted out and settled financially.

    What you, and most others refer to as the mortgage mess or the ruined economy or similar line was caused by 1. greedy lying ignorant mortgage applicants and 2. greedy lying ignorant mortgage brokers. Every person that thought they know housing only goes up is to blame, ignorant of a basic concept in life that you do not get something for nothing. Every person making $50k/yr that believed the mortgage broker they could afford a $1MM house when they knew in their hearts this was wrong, everyone how ‘streached’ the truth on applications or let the broker help them fill it out. They all lied, and passed it on. The banks got caught with the crap, and they should have reviewed it, checked it, done some review and they did not. If the banks had paid attention and sent back the liars paperwork, the problem might have been avoided. But since they did not then they should have been stuck with the problem caused by their own doing.

    Whatever the bankers did would not have mattered if the applicants had not lied. Lied about their income, lied about the source of their down payment, lied about the value (appraisal) , lied about everything.

    BUT low and behold, when it comes time for the sh!t to hit the fan, and the banks should have been punished for not checking the paperwork that the liars submitted, the gov’t takes away the banks problem and makes it mine and yours. This is the most egregious thing that I have ever witnessed. And this is not the bankers fault either. It lies with the government, and this is why the government should be disbanded. Emlinate the almost every agency from the SEC, HUD, and on down. They are useless and a waste of valuable resources.

  10. pulled up in OG

    IIRC, a good number of people that got sucked into subprime loans would have qualified for conventional loans.

  11. Mr. Independent

    Even the floor sweepers at mortgage banks and brokerages knew that most sub-prime loans would default when the rate adjusted upward.

    The great fallacy of our financial regulatory system is that companies, their owners and creditors get punished instead of wrongdoers. Tthe Bear Stearns shareholders were badly punished. The Lehman shareholders, bond holders and note holders were wiped out. Meanwhile, those who created this mess continue living like royalty, and can afford their political contributions to Republicans and Dems alike.

  12. sw

    And most of the Bear Stearns and Lehman bankers have landed safely at the investment banks that remained standing, many of these banks got a share of the bail out. And the bankers are all back to making deals, making their big compensations (AVERAGE Wall St. bonus for 2010 was $128k… yikes), and living happily ever after.

  13. Anonymous

    Talk to the bondholders at Chrysler and GM – they got F-ed