Too big to fail often means too big for jail
The Pit & The Pendulum (for Greece) by SnowViolent
License (according to Flickr): Attribution License
License (according to Flickr): Attribution License
There’s a reason top executives haven’t gone to jail for engineering the worst financial crisis since the Great Depression. Some bankers are just too big to convict. The latest example came Tuesday with British global banking giant HSBC’s agreement to pay a record $1. 9 billion – about six weeks’ worth of the bank’s profits – to settle money-laundering charges with U.S. prosecutors. The deal ends a three-year probe into accusations of a widespread, multi-year string of illegal transactions violating sanctions against Iran and Latin American drug lords. Five years after a wave of risky mortgage bets cratered the banking system and sent the global economy into recession, the banking industry’s players have paid or agreed to pay billions of dollars in fines and restitution. But not a single senior executive from the biggest banks has gone to jail.
Keywords:
crisis government financial crisis banking cases biggest banks global banking worst financial crisis Exchange Commission HSBC law banking giant HSBC Hurley professor Cornelius Hurley high-profile criminal convictions complex financial engineering risky mortgage bets Latin American drug complex financial cases. Boston University law financial services industry financial stability oversight five-year deferred prosecution single senior executive fundamentally different organization financial regulatory reform collar criminal case securities fraud cases inexperienced SEC staffers well-funded legal defenses global capital network orderly liquidation authority fines Consumer Protection Act Dodd-Frank Wall Street meltdown financial meltdown Financial Law loan crisis financial settlements banking industry government commission prosecutors money-laundering charges high-profile cases U.S. prosecutors subprime meltdown High-profile convictions bankers SEC casesPeople:
Cornelius Hurley
Overall Sentiment: -0.0352482
Relevance: 0.541425
| Sentiment | Quote |
|---|---|
| 0.0605666 | “If you look at the pre- and post-numbers as far as concentration in the financial services industry, it’s way more concentrated than it was in 2007,” said Hurley. |
| -0.164592 | “If you look at the pre- and post-numbers as far as concentration in the financial services industry, it’s way more concentrated than it was in 2007,” said Hurley. “They’re humongous in terms of their threat to the system.” |
| 0 | "Dodd-Frank set up orderly liquidation authority and a financial stability oversight council -- all of this what I call ambient noise," Hurley said. ... |
| -0.0216092 | "Dodd-Frank set up orderly liquidation authority and a financial stability oversight council -- all of this what I call ambient noise," Hurley said. "And it’s not bad to have. But we fooled ourselves into thinking that it solved the problem. Too big to fail is as big a problem or more than it was before the crisis." |
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Andrew Stoltmann
Overall Sentiment: -0.230046
Relevance: 0.426564
| Sentiment | Quote |
|---|---|
| -0.295566 | “Virtually every white collar criminal case is difficult (to make)," said Andrew Stoltmann, ... |
| -0.157949 | “Virtually every white collar criminal case is difficult (to make)," said Andrew Stoltmann, a Chicago attorney who specializes in securities fraud cases. “But look at the savings and loan crisis, where 1,000 bankers ended up going to prison with the same sort of legal hurdles that we have in the 2008 subprime meltdown.” |
| 0 | “You have inexperienced SEC staffers who are hoping to get jobs with a lot of the law firms that defend these executives,” he said. ... |
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Phil Angelides
Overall Sentiment: -0.11557
Relevance: 0.332246
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Country: Iran
Overall Sentiment: -0.531623
Relevance: 0.367802
Disambiguation: References:
Country: U.S.
Overall Sentiment: -0.0411505
Relevance: 0.340541
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Organization: government
Overall Sentiment: -0.086765
Relevance: 0.893143
Organization: Securities and Exchange Commission
Overall Sentiment: -0.279236
Relevance: 0.573055
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Organization: Morin Center for Banking and Financial Law
Overall Sentiment: 0
Relevance: 0.454375
Organization: Boston University
Overall Sentiment: -0.273976
Relevance: 0.322841
Disambiguation: Location | CollegeUniversity | UniversityReferences:
Organization: Justice Department
Overall Sentiment: 0
Relevance: 0.308978
Company: HSBC
Overall Sentiment: 0.178601
Relevance: 0.695834
Disambiguation: References:
PrintMedia: Politico
Overall Sentiment: -0.0574897
Relevance: 0.303069
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Too big to fail often means too big for jail
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There’s a reason top executives haven’t gone to jail for engineering the worst financial crisis since the Great Depression. Some bankers are just too big to convict.
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