This article makes the case that better regulation is far more effective than criminal prosecution for corporate misdeeds.
A well-enforced regulatory regime lacks the TV-movie narrative arc of a criminal trial. But none of these crimes could have been committed if the government had been doing its job properly.
With regulatory structures in willful disrepair, the corporate world has become one more sphere colonized by the police and prosecutors. But even as progressives have begun to question the overuse of criminal law elsewhere, its encroachments into the white-collar world are generally cheered: Finally, a chance to stick it to “crime in the suites”!
Criminal law, however, turns out to be a lot better at catching the small, sad fish of middle management than the sharks of industry and finance. Go to the F.B.I.’s “most wanted” webpage for white-collar crime and what leaps out is how many on the list are nonwhite and how petty their swindles are.
The injustice of the Flint contamination and other safety disasters demand a meaningful response. Criminal law is not the right tool for the job.
The Real Crime Is What’s Not Done http://nyti.ms/2bF6sum
Finally a way to get the Wall Street scofflaws.
Too bad banks can’t go to jail.
NYTimes: From Anonymity to Scourge of Wall Street
We need laws that hold financial executives personally responsible for actions that society deems harmful. And we need banking rules that make the system safer. The $13 billion in this deal buys us neither.
An analogy simple enough to help Tea Party mouth breathers understand that you can’t trust business (or the free market) to do whats right for the country.
a simple separation of commercial and investment banking. That would end the too-big-to-fail problem by splitting the federally insured restaurant of deposit taking and lending from the risky casino of trading.
NYTimes: A.C.L.U. to Sue Morgan Stanley Over Mortgage Loans http://nyti.ms/V0A4ig
How do you look at the sub prime mess and blame it on the people who took loans they never should have?
I’ll tell you how. Failure to see the bigger picture.
This failure underpins our pilot-less plane phenomenon. Start with home owners accepting some responsibility. More importantly this article points to the systemic problem created by banks and mortgage companies. We have to acknowledge their role in our current economic problems. We also have to recognize their culpability for fraudulent loan activity.
It’s very easy to point fingers at the low income home owner who got duped by the bank. Why has it taken so long to hold the responsible parties accountable for their widespread fraudulent practices. The homeowners are certainly being punished. Conservatives might want you to believe that a whole bunch of undeserving poor folk got free rides and homes they didn’t deserve, but I’m sure the vast majority of people at all income levels who took those bad loans are suffering the consequences. Now perhaps one of the many true perpetrators of this fraud will be held accountable and punished.
We are so quick to pillory a guilty individual. Why are we so reluctant to hold corporations accountable for their crimes?