A tale full of sound and fury, signifying nothing

Image = Bank Slot MachinesSAC honcho arrested for alleged insider trading. I’ve yet to see the harm in trading on inside information but I’ll concede that it’s illegal and thus shouldn’t be engaged in. But I notice that no one involved in the mortgage/real estate collapse has even been indicted, let alone tried and imprisoned, and it makes me wonder whether the Justice Department isn’t initiating these high profile insider trading cases solely to create the impression that they’re cracking down on Wall Street when in fact they’re doing nothing of the sort. Where’s Jon Corzine lately? Dickie Fuld? Angelo Mozillo? Ben Bernanke? Chris Dodd? Barney Frank? All safe, all free. I’m not impressed.

 

6 Comments

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6 responses to “A tale full of sound and fury, signifying nothing

  1. Publius

    CF,
    The issue is there are laws on the books for insider trading. I will admit that insider trading is actually very hard to prove and the only reason why in this recent spate of cases that there have been admitted guilt or j guilty jury verdicts is that the idiots were all caught on tape or in e mail/text message. If you look back to the days when Rudy G was the DA, he never got a court conviction, he only bullied/scared the alleged insiders to get a guilty plea. In the past the odds were good to plead innocent and take the case to a jury, not so today with rats wearing wires.
    Also, it is easier from a prosecutors standpoint to make a link between a specific event ( a takeover) and a statistically significant move in a stock. That is not the case in the bond market where securities trade over the counter and the market is very fractured and dispersed.

    The issue with much of what happened in the mortgage/real estate market was lax credit underwriting standards (stupidity) too much leverage (greed) and a regulatory and legislative environment that encouraged this whether proactively ( promoting home ownership for everyone) or by neglect (the regulators are always chasing the private markets).

    Jonny C should be in jail, no question. I have no legal background but I could take this case to a jury and win. Your last sentence puts you in the same camp as Betty Warren, rather odd bedfellow no?

    • Well if you use that term with any sexual connotation, then yes – odd and unlikely. Otherwise, even an Indian princess can get things right occasionally, hence her company’s name, “Blind Squirrel Productions”.

  2. weakleyhollow

    Bahney Fwank? Did you say Bahney Fwank? My college room mate worked on his very forst campaign back in 73. Barney has been a public employee ever since. I wonder how he manages to afford those custom suits.

  3. Balzac

    We’ll know they are serious about criminal charges for those responsible for the 2008 banking crisis when they lock up former CT Senator Chris Dodd, Chairman of the Senate Banking Committee when the mess festered and melted down completely.

  4. Tawm

    It’s probably worth taking a look at the political donations of the SAC players and other SEC targets…. I’m just sayin….

  5. Anonymous

    Dawd & Fwank benefited fwum Angewo Moziwwow’s genawosity in mowah ways den one.

    Subpwime woans out da backdoowah, baby!