What does it take to get prosecuted in this town? The NY Post asks just how many federal regulators have pored
over financial documents and calling records, dissected trading ledgers for
suspicious money movements and probed years of voice mails and e-mails, to no
avail?
Oh, to be sure, a few investigations have resulted in civil
fines being paid with the caveat of not admitting or denying any wrongdoing.
It’s less than a slap on the wrist.
All of which brings us to the latest prosecutorial
pronouncements. Just last week, we had federal regulators of all stripes
tripping over themselves to launch investigations into Jamie Dimon’s handling
of a possible $5 billion in trading losses at JPMorgan’s London
derivative-trading operation, and James Gorman’s Morgan Stanley and its
handling of the Facebook IPO and whether the firm provided differing
information to its clients on the social medium’s revenue prospects in the near
term.
Prosecution paralysis: Federal regulators have prodded and
probed Wall Street since the crisis of 2008, yet the banks still have an
unblemished record.
Will anything come
of these investigations? Will Dimon and his reckless band of traders face any
real punishment? Will Morgan Stanley execs face a court for allegedly duping
the average investor? Not bloody likely.
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