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Prosecutors Expected To Spare Wall St. Firms

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posted on Oct, 5 2008 @ 03:42 PM
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Prosecutors Expected To Spare Wall St. Firms


www.washingtonpost.com

Justice Department officials yesterday vowed to unravel the complex financial deals that helped prompt a market crisis in an effort that will generally seek criminal charges against individual brokers and bankers, rather than companies themselves, according to interviews with lawyers involved in the cases.

Mindful of the fallout from the last wave of business fraud cases six years ago, authorities are leaning against seeking indictments of major banks and insurers that may have inflated the value of their mortgage-related investments.
(visit the link for the full news article)


Related News Links:
www.abovetopsecret.com

[edit on 10/5/2008 by Keyhole]




posted on Oct, 5 2008 @ 03:42 PM
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So it looks like the big corporations win again!

The FBI is no longer "investigating companies at the heart of meltdown" (an earlier thread) now, or at least the Justice Department isn't, they are now afraid that it will cause further damage to the economy!

If these big companies broke laws that in fact helped exasperate our economic problems that our country is facing now, then they should be held accountable!

I think it is total BS when a company is not investigated for breaking laws simply because of the economic impact it might have if the company fails later due to the fact that they were breaking the law, were investigated, and were then prosecuted, fined, or whatever for their illegal activity!



www.washingtonpost.com
(visit the link for the full news article)

[edit on 10/5/2008 by Keyhole]



posted on Oct, 5 2008 @ 03:47 PM
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Here's a quote from the article!

Prosecutors Expected To Spare Wall St. Firms


Yet the tenor is markedly different from the last wave of financial scandals, which began with the indictment of accounting firm Arthur Andersen six years ago. The firm swiftly collapsed, costing tens of thousands of jobs. More recently, corporate executives and civil liberties advocates pressed for legislation that would bar strong-arm prosecution tactics. In August, Filip issued guidance that reminds prosecutors to consider the rights of corporate employees.

Among other factors, the guidelines require government lawyers to take into account the health of a business when they make decisions about whether to file criminal charges. Given the current landscape, with Lehman in bankruptcy proceedings, Fannie Mae and Freddie Mac under federal control, and AIG surviving only after an $85 billion infusion from the Treasury, lawyers with experience in such cases predict few major criminal prosecutions of businesses.



So what they are saying is if a company is big enough, they probably won't be prosecuted for illegal acts!



posted on Oct, 5 2008 @ 03:54 PM
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This is just as I expected. Same line of how the case would turn out of a 3rd world person tried to sue, say Bill Gates.
I think we all know how that would come out..



posted on Oct, 5 2008 @ 03:57 PM
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So the companies are found guilty of fraudulent / illegal behaviour and the execs are fined and / or thrown in jail. The business winds up and a few thousand brokers lose their jobs and have to sell their beachfront condos and Ferraris. Well boo hoo!

What actual use are these brokers to society in general anyway? It's not like they actually contribute anything meaningful or tangible to the well being of the rest of us.

This is nothing short of blackmail and endorses and even rewards fraud at extreme levels.

I expect to see a few low-level brokers thrown to the wolves to placate the public and give the impression that something is being done, while the top guys continue to offshore their ill gotten gains and get to play their "get out of jail free" cards.



posted on Oct, 5 2008 @ 04:02 PM
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Ah another example of corporate double-standards.

"All the right of an individual, and more, with fewer of the responsibilities."

This would seem equivalent to an individual claiming they shouldn't be prosecuted for theft, because while in prison they wouldn't be able to contribute to the economy. Guess what, that excuse doesn't fly -- others, with more integrity, will step-up to the plate. Not persecuting corporations that knowingly flaunted the law, as reflected in corporate-level actions, is encouraging dishonesty and tilting the playfield away from those who would follow the rules.



posted on Oct, 5 2008 @ 04:07 PM
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Let's own up to the reality that Corporate citizens are superior to regular citizens. This should be no surprise.

If you prosecute the corporate bodies you have to challenge the dogmatic principles of profit over people. That cannot be allowed to be scrutinized in a public forum.

People were doing exactly what their superiors told them to do; this fact will invariably be suppressed. The system functioned PRECISELY as intended; with zero resistance from the responsible oversight authorities, and actual encouragement from the corporate 'boards' themselves.

Let's jail more people, that'll solve the problem, oh yeah



posted on Oct, 5 2008 @ 04:11 PM
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The thing that gets me, is that patsies are always the small fry, they always take the small persons in companies, to hang out to dry.



posted on Oct, 5 2008 @ 04:23 PM
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The article mentions recent changes to DoJ policy. Here's a speech from Oct 2, by Mark R. Filip at the ABA Securities Fraud Conference, which may raise some eyebrows:

news.findlaw.com...


Take, for example, a salesperson at a pharmaceutical company who asks the general counsel's office whether her marketing practices are lawful under a complex set of federal statutes. Permitting and respecting the need for such attorney-client communications is critical, because they are often a necessary, and typically a salutary, part of a company's effort to obey the law on an ongoing basis. The new guidance forbids prosecutors from asking for such communications, with only two exceptions, both of which are well-recognized in existing law.

So if a corporation sought deliberately to skirt regulatory provisions and deceptively market and collate securities, such coordination, analysis, and planning involving their legal council is now considered 'privileged', regardless of the evidence it might present towards motive and intent.


Fifth, prior guidance allowed prosecutors to consider whether a corporation retained or sanctioned employees for the purpose of evaluating cooperation. That is now disallowed.

Corporations may now, with impunity, monitor and 'sanction' employees for cooperating or 'not meeting corporate expectations of cooperation'. In other words, there's no more whistle-blower protection or investigation into coercion of cover-ups -- corporations may do as they will, to keep the investigations to the level of 'a few bad apples'.



posted on Oct, 5 2008 @ 04:50 PM
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As long as the two branchs of the corporate party,democrats and republicans
are in power this is what you are going to get.They'll find someone low on the totem pole and throw him to the wolfs while those higher up will breeze away with our money.Until the people realise dems and repubs are just branchs of the corporate party and vote them out nothing is going to change whether Obama,McCain say they are for change or not.



posted on Oct, 5 2008 @ 04:54 PM
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Like I said in the other topic about the 'investigation' into the collapse.. the laws have been written by the money to protect the money.. legaleze has nothing to do with Justice..

Reminds me of that case couple months back in France. A guy was charged with unlawfully extending hundreds of millions worth of speculations at the stock market or something like that.. he got burned, fried, tossed to the wolves, you name it.

But the investigation never zoomed in on the fact the bank managers hàd to have known this was going on, yet did nothing.. only the regular Joe's will ever be put under scrutiny for their actions, the money will allways be above the law




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