tag:blogger.com,1999:blog-6581586488456314302.post685569378103281084..comments2023-12-08T00:05:03.649-07:00Comments on FraudBytes: $67.5 Million Settlement for Former Countrywide CEOAaronhttp://www.blogger.com/profile/10138733175602274983noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6581586488456314302.post-3914457856917122162010-10-16T23:09:41.569-06:002010-10-16T23:09:41.569-06:00Dr. Zimbelman,
Here are my thoughts which really ...Dr. Zimbelman,<br /><br />Here are my thoughts which really arise from questioning as to what has been happening or actually not happening this year.<br /><br />Mr. Mozilo may or may not be criminaly charged here. But I question, particularly as of the last 4-5 months now, as to why there haven't been a wave of arrests and criminal convictions, particularly of some of the senior executives from Lehman, Bear Sterns, Goldman, etc.? Take Goldman for example. This past Spring they settled with the SEC and paid out over 500 million (just a drop in the bucket for them). The SEC at the same time didn't waste any time referring the case to the FBI. But to this day, we have nothing.<br /><br />There is at the same time speculation that the lack of any substantial law enforcement activity may be due to a Supreme Court action in Skilling vs. United States, wherein the high court limited the right of the honest services provision in 18 U.S.C. § 1346, for criminal fraud prosecutions. The challenge in the law is that to be able to pursue criminal cases against corporate executives for questionable conduct that involved some measure of dishonesty that caused harm to the company… it also must result in that executive(s) financially benefiting from that questionable conduct.<br /><br />Now with all of the egregious bonuses that Wall street has been paying themselves over the last few years (w. tax payer money no less), I fail to understand how the govt. can't prove that. <br /><br />Nevertheless,it reminds me of the old adage: He who has the gold makes the rules. Wall street has the gold + politicians make the rules = a free pass. Using Goldman as the prime example, let's not forget their historical presence in the White House. Hence, unless Mozilo has any serious political clout, he just may end up wearing bracelets in lieue of cufflinks.Anonymousnoreply@blogger.com