Sunday, May 27, 2012

Corzine proves there’s no justice on Wall St.





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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