Will Any of the Big Fish Go To Jail?

In General Interest by Jonathan Tasini1 Comment

Well, the answer is probably no — at least so far. I’m all for the Treasury socking away some money. But, the money collected for these pathetic fines (pathetic in the big scheme) does not come close to outweighing the pain these manipulators, crooks, big-shot financiers imposed on tens of millions of people around the globe. It’s a travesty.

So, another fine and no jail:

Two affiliates of SAC Capital, the giant hedge fund, settled insider trading charges with the Securities and Exchange Commission for $614 million on Friday, in what the agency said was the biggest ever settlement for such cases.

The settlements spare SAC’s founder, the billionaire Steven A. Cohen, who hasn’t been charged with wrongdoing. Mr. Cohen, one of the most successful hedge fund managers in the world, has long been considered a target of federal investigators.

But the settlements represent one of the biggest financial coups by the S.E.C. in insider trading cases yet. The amounts paid by SAC surpass the $400 million that Michael Milken paid to settle charges by the agency in 1990.

And on another side of town:

JPMorgan Chase ignored internal controls and manipulated documents as the nation’s biggest bank racked up trading losses last year, while its influential chief executive, Jamie Dimon, briefly withheld some information from regulators, a new Senate report says.

The findings by Senate investigators shed new light on the $6.2 billion trading blunder, which has claimed the jobs of some top executives and prompted investigations by authorities. The 300-page report, released Thursday, will escalate the debate in Washington over regulating Wall Street.

Well, duh. And yet Jamie Dimon walks around a free man. Hello?

You see, the bottom line is this: none of these politicians or regulators want to touch these people. I’ve been writing for a long time that the Big Fish just get away, and the shareholders and customers pay the price.

The politicians need campaign contributions. The regulators, which includes the Justice Department, either worked in the industry or hope some day to get a big fat paycheck working for one of these financial institutions — because they aren’t skilled to do anything else worthwhile. The financiers are treated like the

So, there will be no change in the system. Greed is just taking a breather until the next opportunity floats along. And it will.


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