Thursday, September 10, 2015

Stating the Obvious

Justice Department to Set Sights on Wall Street Executives:

Stung by years of criticism that it has coddled Wall Street criminals, the Justice Department issued new policies on Wednesday that prioritize the prosecution of individual employees — not just their companies — and put pressure on corporations to turn over evidence against their executives.

The new rules, issued in a memo to federal prosecutors nationwide, are the first major policy announcement by Attorney General Loretta E. Lynch since she took office in April. The memo is a tacit acknowledgment of criticism that despite securing record fines from major corporations, the Justice Department under President Obama has punished few executives involved in the housing crisis, the financial meltdown and corporate scandals.


“Corporations can only commit crimes through flesh-and-blood people,” Sally Q. Yates, the deputy attorney general and the author of the memo, said in an interview on Wednesday. “It’s only fair that the people who are responsible for committing those crimes be held accountable. The public needs to have confidence that there is one system of justice and it applies equally regardless of whether that crime occurs on a street corner or in a boardroom.”
Excuse me while I cough up the hairball that's stuck in my throat so I can let out a hearty LMFAO. 

Or put more academically:
“It’s a good memo, but it states what should have been the policy for years,” said Brandon L. Garrett, a University of Virginia law professor and the author of the book “Too Big to Jail: How Prosecutors Compromise With Corporations.” “And without more resources, how are prosecutors going to know whether companies are still burying information about their employees?”
Uh, yeah. This is years late, billions of dollars short, and thousands of empty prison cells that should have been filled with Wall Street executives, instead filled with penny-ante criminals guilty of taking a five-spot out of the cash register at the Quickie Mart.
While the idea of white-collar investigations may conjure images of raids of corporate offices by federal agents, the reality is much different. When suspected of wrongdoing, large companies typically hire lawyers to conduct internal investigations and turn their findings over to the Justice Department. Those conclusions form the basis for settlement discussions, and they are likely to take on greater significance now that companies will be expected to name names.
As I've written about a million times here on this blog over the past seven years, can you imagine if we treated organized crime/the mafia that way? The Family's consigliere conducts the "internal investigation" and then turns over the findings to the FBI or local cops, and then everyone sits down and engages in a settlement discussion? "Leave the gun, take the money."

Or if we dealt with gang-related crime that way? Or just run of the mill petty theft? "Tell your mom to investigate, then call us and we'll cut a deal."

Only in the rarefied world of Wall Street sociopaths, white-shoe law firms, and boatloads of cocaine (er cash) changing hands could criminal acts ever be conceived that way. And the lack of prosecutions was a case of the fish rotting from the head down. As one reader puts it in comments:
The DOJ under AG Holder allowed a generation of financial and corporate executives to get away with a wide range of criminal activity knowing that even if their company's wrongdoing was exposed, the chance that they as individuals would face prosecution and substantial jail time was extraordinarily slim to nil. Obama, by picking Holder, a white-shoe firm corporate lawyer (who just returned to the same firm - one known for its massive corporate clients - to applause), as AG signaled to the business community that they would be exempted from criminal punishment as a whole. The nomination of Holder was a shameful act of telegraphing to the power elite that they were protected.
And who are we, at the Power-Elite Blog, to argue with that?

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