There are two justice systems operating in America today. The justice system for the majority of Americans and small businesses, and the justice system for Wall Street and the largest most powerful banks. In the case of the former, guilty verdicts for civil and criminal acts are met with harsh sentences usually resulting in imprisonment. In the case of the latter, criminal acts are quickly resolved with cash settlements resulting in no admission of guilt or imprisonment.
The justice system in America is an injustice system in which criminal acts can go unpunished if one has the power, influence and money to buy their freedom. How did the justice system evolve into the injustice systems. How do you stop bad behavior if you can simply pay a fine which amounts to a fraction of the cost of the crime. Where is the disincentive, there is none. Bringing back frontier justice may be the only solution, one in which a good hanging helps focus the mind.
Galleon Group hedge fund founder Raj Rajaratnam was recently convicted on 14 counts of fraud. He will be sentenced in July and each guilty count could result in a 20 year sentence . You might ask yourself, how is it he can be wiretapped, found guilty and not be given the opportunity to buy his freedom when that is new standard of justice in America. It would appear as though the conviction of Rajaratnam is all about show, it gives the impression that the SEC and Justice department have teeth and it diverts attention away from the real criminals who get off with a slap on the wrist. Is this justice or injustice?
Not surprisingly, on the same day Raj’s verdict was announced, the largest US Banks and Brokers at the center of the largest foreclosure fraud in American history offered to settle their for $5 billion. That’s right, the Wall Street Banks and Brokers who are directly responsible for the fraud which caused billions, perhaps trillions of dollars in losses are going to buy their freedom for $5 billion and of course there will be no admission of guilt. Making matters worse, these same executives will use shareholder money to pay the settlement. If this settlement is reached, not one executive from Wall Street will be prosecuted for the largest financial catastrophe in the history of the world. Not one, how sad.
Big business and the corporate elites literally owns elected officials through massive financial donations to campaigns. In addition, every major position of influence in Government is littered with ex-Wall Street bankers. It’s a revolving door between Wall Street, Government, Treasury, SEC and the Justice department. The regulators at the SEC and Justice departments yearn for the opportunity to get a shot at the big Wall Street bonus pool, if they play their cards correctly, they will get that opportunity. If they cause problems and try to do their job, there are silenced quickly. Don’t bite the hands that will one day feed you beyond your wildest dreams. How can they possibly be relied on to regulate the industry they so desperately want to join. Hush, hush, wink, wink, this case has no merit, drop it.
After the Great Depression, the Glass-Steagall Act was enacted to prevent banks and brokers from merging. However, in the late 90’s, those powerful banks and brokers lobbied congress and even Fed Chairman, Alan Greenspan who argued that markets can regulate themselves and allowing banks and brokers to merge was a good thing for America. Former President, Bill Clinton repealed the Glass-Steagall Act and thus was born the “Financial Services Modernization Act of 1999 which allowed banks and brokers to merge and most certainly played a large part in the 2008 financial crisis that has brought America to its knees.
One day the American people will awaken to realize there is no difference between Republicans and Democrats. It’s all about power, greed and money, your money that they sprinkle out in small doses buying your votes while they line their pockets, immune from prosecution. The corporate elites view their own indiscretions as trivial matters which are easily put to bed with a little small payment. How dare we sit in judgement of the elites.
The system today will collapse under its own weight.
A simple google of “SEC Settlements” reveals all one needs to know of the American Injustice System”
Parag Saxena, a former money manager, paid a $250,000 fine in 1994 to settle civil claims that he had received pre-initial- public-offering stock in companies at big discounts and then recommended the shares to his clients at Chancellor Capital Management Inc., after the companies went public.
In January 2006, Victor Menezes, a former Citigroup Inc. (C) senior vice chairman, paid $2.7 million in a fine and forfeited trading profits to the U.S. to settle SEC charges that he sold Citigroup holdings ahead of an announcement of losses from a subsidiary in Argentina. Both men neither admitted nor denied wrongdoing.
10 Apr 2011 … J&J agreed to pay a US$21.4 million fine to settle Justice Department … tosettle charges by the Securities and Exchange Commission (SEC), …
http://www.taipeitimes.com/News/biz/archives/2011/04/10/2003500337 – Cached
It’s a sad state of affairs and one day the world will awaken and rise up in disgust.