Piqued by new disclosures of Merrill Lynch's (BAC) techniques of hiding leverage and losses,...

Piqued by new disclosures of Merrill Lynch's (BAC) techniques of hiding leverage and losses, Barry Ritholtz thinks we may finally begin to see some "justice" to perpetrators of Wall Street fraud. "When this all plays out, we might very well see bonus clawbacks, fines and penalties, disgorgement of ill gotten gains, and criminal arrests."
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Comments (5)
  • Michael Clark
    , contributor
    Comments (11579) | Send Message
    Hurray! Are you saying that we might not need a civil war to get some justice! I sincerely hope so.
    11 Aug 2010, 10:27 AM Reply Like
  • Anwar Bhamla
    , contributor
    Comments (100) | Send Message
    Barry, you are too much of an optimist..Just do not hold your breath.
    11 Aug 2010, 10:43 AM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
    from your lips, that being said what impact could that have on the financial industries bottom line
    11 Aug 2010, 10:45 AM Reply Like
  • nobby73
    , contributor
    Comments (1176) | Send Message
    For those who don't know the story, shortly before ML was sold to BoA, the firm paid $3.6 billion in bonuses, which included 700 payments over $1mm. They actually accelerated the bonuses so they were paid in December, before the announcement of the 4Q losses. It can be easily said that this was both fraud and theft from the American taxpayer.


    It is a perfect example of what is wrong with the US business model and why, frankly, the US is screwed.


    11 Aug 2010, 10:58 AM Reply Like
  • ain't no fortunate son
    , contributor
    Comments (1607) | Send Message
    I'll believe it when I see it.


    In the S&L crisis in the early '90's over 1000 S&L executives, officers and board members were arrested, indicted, tried and sentenced to JAIL. And they served real time. I had a college friend who served 36 months in a federal joint as a matter of fact. He knew he had done wrong, he did his time, he took it like a man.


    In this crisis, which one could realistically state is at an order of magnitude so exponentially greater than the S&L crisis as to be incomprehensible, not one single CRIMINAL at one single financial institution, ratings agency, mortgage company, or any of their associated accomplices, got so much as a slapped wrist, a rebuke, a warning. NOTHING. NOT ONE SINGLE CRIMINAL was brought to justice. Many thousands of individuals singularly and in concert perpetrated the largest conspiracy to commit securities and bank fraud in the history of mankind, and for their sins most of them got even bigger bonuses in 2009!


    Where in the name of GOD is the justice in THAT?


    Not one single scum sucking POS got hauled into the District Court of Lower Manhattan in chains, and this in a nation which supposedly, and very hypocritically, trumpets itself to the world as a nation of laws. Well, this is a nation of bullschitt, and a nation crippled by regulatory capture, legislative capture, judicial capture, media capture and every single other type of conflict of interest and bribe taking that can be imagined. This is a nation owned and operated by financial whores.


    These slime have gotten off scott free and its apparent that NOBODY in a position of political, regulatory or law enforcement power is going to do a damn thing about it.


    And why? Look to our politicians from both parties for an answer to that. And look to ourselves for staying locked in front of a television sucking our thumbs instead of getting in their GD faces and taking back OUR freaking country... in the end the government we have is the government we allow, and by our cowardice and apathy we have allowed this crime to be perpetrated.
    11 Aug 2010, 11:02 AM Reply Like
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