No consequences, no justice in Goldman Sachs settlement

[think]

No consequences, no justice in Goldman Sachs settlement

By PHIL ANGELIDES - APRIL 16, 2016 5:00 PM

The U.S. Department of Justice last week announced with great fanfare a settlement under which Goldman Sachs would ostensibly pay out more than $5 billion for misconduct related to its sales of mortgage securities to investors in the run up to the 2008 financial crisis.

It’s now clear from a review of the settlement that Goldman Sachs likely will pay much less in penalties than the Justice Department claims, due to special credits included in the deal and, unbelievably, tax deductions Goldman Sachs will receive for payments it makes under the settlement.

Disturbing as this may be, what’s most troubling is that this settlement agreement – like previous deals between the Justice Department and big financial institutions – contains no consequences for the executives who drove or condoned wrongdoing. As a result, it will not deter future financial lawbreaking and will further undermine the public’s faith in the fairness of our legal system.

~Snip~

THE JUSTICE DEPARTMENT’S FAILURE TO PUNISH WRONGDOING AT MAJOR FINANCIAL INSTITUTIONS STANDS IN STARK CONTRAST TO ITS VIGOROUS PROSECUTION OF MORE THAN 2,700 INDIVIDUALS AT THE LOCAL LEVEL – MORTGAGE BROKERS, BORROWERS, APPRAISERS – WHO WERE SMALL COGS IN THE CORRUPT MORTGAGE MACHINE.

Citing the commission’s evidence, the government obtained more than $40 billion in fines from 18 major financial institutions, including Goldman Sachs – fines that will be paid by shareholders (read: your pension fund or mutual fund). Yet, stunningly, more than five years after the commission’s evidence was made public, the Justice Department has not named one single executive in any civil or criminal action or otherwise held any individuals accountable for the conduct that led to those fines. The Goldman Sachs settlement continues this shameful practice.

How is it possible that banks engaged in such massive misconduct, but no banker was involved? Is it possible that we have witnessed an immaculate corruption? It defies common sense....


Read more here: http://www.sacbee.com/opinion/california-forum/article71877727.html#storylink=cpy

[EdwardBernays]

1. Proof again

Proof again - as if we needed any more - that the US justice system is corrupt as hell. And proof that rich people can be guilty and no one in a position to do anything, does.

There's rules for those worth 100m plus and rules for the rest of us.

[deathrind]

2. My second...

Biggest disappointment in President Obama.

Recently watched "Inside Job" again. If you have not seen it I highly recommend it.

[think]

3. I really thought his administration would be tough on bank crime.

Have to agree that this was a big disappointment.

I haven't watched "Inside Job" yet. Thank you for the reminder.

[KoKo]

4. Recommend for Exposure...