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Wednesday, January 16, 2013

How ill-gotten gains are legally bypassed

As evident in the infographic below, investment banks and the Treasury Department make money via an unspoken collusion of rewarding ill-gotten gains via the guise of  economic stewardship. One need not look far to see how the Securities and Exchange Commission, and a seemingly weak or soft-handed judiciary has fallen short of firm financial regulation countless times.

In the past, the SEC has even admitted as much per the New York Times. Steve Denning, a contributor to Forbes magazine reiterates the problem that big banks are still getting away with risky derivatives trading that has the potential to cause another financial meltdown. Why? The reason, according to another NYT article by Gar Alperovitz, is that Wall Street is too big to regulate. However, the lucrative fines that are redistributed to the Treasury and cost-benefit of the fines to financial institutions offer another reason, specifically financial incentive.

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