Total Posts:12|Showing Posts:1-12
Jump to topic:

Head of the SEC Steps Down, Gets paid

DeFool
Posts: 626
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 5:20:19 PM
Posted: 3 years ago
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...
YYW
Posts: 36,252
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 10:21:27 PM
Posted: 3 years ago
At 8/21/2013 5:20:19 PM, DeFool wrote:
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...

Ba ha ha!
Tsar of DDO
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 10:31:29 PM
Posted: 3 years ago
At 8/21/2013 5:20:19 PM, DeFool wrote:
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...

In order to obtain a criminal arrest, you actually have to do something illegal. Just because the banks lost a lot of money due to the financial recession doesn't mean they're criminals.

In any event, it is well known that people have been arrested due to ponzi schemes and fraud, Bernie Madoff is an example.

http://en.wikipedia.org...
Open borders debate:
http://www.debate.org...
DeFool
Posts: 626
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 10:39:21 PM
Posted: 3 years ago
At 8/21/2013 10:31:29 PM, darkkermit wrote:
At 8/21/2013 5:20:19 PM, DeFool wrote:
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...

In order to obtain a criminal arrest, you actually have to do something illegal. Just because the banks lost a lot of money due to the financial recession doesn't mean they're criminals.

In any event, it is well known that people have been arrested due to ponzi schemes and fraud, Bernie Madoff is an example.

http://en.wikipedia.org...

I agree with the bromides, but are you also willing to defend the claim that no crimes were committed - or that nothing suspicious went on during the collapse of the American financial sector? (I am happy to say that Madoff is incarcerated) It seems that you are suggesting that the conduct of these institutions was not worthy of investigation.
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 10:49:30 PM
Posted: 3 years ago
At 8/21/2013 10:39:21 PM, DeFool wrote:
At 8/21/2013 10:31:29 PM, darkkermit wrote:
At 8/21/2013 5:20:19 PM, DeFool wrote:
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...

In order to obtain a criminal arrest, you actually have to do something illegal. Just because the banks lost a lot of money due to the financial recession doesn't mean they're criminals.

In any event, it is well known that people have been arrested due to ponzi schemes and fraud, Bernie Madoff is an example.

http://en.wikipedia.org...

I agree with the bromides, but are you also willing to defend the claim that no crimes were committed - or that nothing suspicious went on during the collapse of the American financial sector? (I am happy to say that Madoff is incarcerated) It seems that you are suggesting that the conduct of these institutions was not worthy of investigation.

I'd say that the idea that the financial crisis was due mainly to criminal activity absurd. Is there anything suspicious about the collapse of the American financial sector? No, not really. Keynesians and Austrians predicted it years before it actually occurred. There's also Minsky's Financial Instability Hypothesis which successfully predicted and modeled the great recession.

Yes, there are acts of fraud and whatnot. However, I have my doubts that it contributed to the Great Recessions and they've always been around. And yes, people do get arrested for insider trading and fraud.

In term of bankers getting arrested, I'm a bit suspicious of that claim being true or not, but having trouble finding evidence for it being false (although absent of evidence =/= the claim is true). In any event, its not like there are a lot of major banks to begin with. (although there are a lot of credit unions).
Open borders debate:
http://www.debate.org...
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 10:52:50 PM
Posted: 3 years ago
http://www.politifact.com...

"If you're looking for arrests and prosecutions against executives associated with the biggest banks, you won't find them. And we found no arrests of execs with the firms most widely associated with the financial crisis such as Countrywide, AIG or Lehman Brothers.

The highest-profile convictions we found were from Taylor, Bean & Whitaker, which was a mortgage lending firm based not on Wall Street, but in Ocala, Fla. Its former chairman, Lee B. Farkas, was convicted of directing nearly $3 billion in fraud that put thousands out of work and contributed to the collapse of Colonial Bank. The collapse was the sixth-largest bank collapse in U.S. history. A judge sentenced Farkas to 30 years in prison on June 30, 2011. Several other executives associated with the firm pleaded guilty in related cases.

There were also criminal charges brought against two hedge fund managers at Bear Stearns, who were accused of lying to investors and put on trial for securities fraud. But a jury acquitted them in 2009, and the two men were mid-level managers, not top executives.

There have been many other prosecutions of mortgage fraud and insider trading. The U.S. Justice Department pointed us to its StopFraud.gov website, and sent us a long list of other ongoing actions against mortgage fraud, investment fraud, insider trading and other corporate offenses."
Open borders debate:
http://www.debate.org...
DeFool
Posts: 626
Add as Friend
Challenge to a Debate
Send a Message
8/21/2013 11:12:29 PM
Posted: 3 years ago
At 8/21/2013 10:52:50 PM, darkkermit wrote:
http://www.politifact.com...

"If you're looking for arrests and prosecutions against executives associated with the biggest banks, you won't find them. And we found no arrests of execs with the firms most widely associated with the financial crisis such as Countrywide, AIG or Lehman Brothers.

The highest-profile convictions we found were from Taylor, Bean & Whitaker, which was a mortgage lending firm based not on Wall Street, but in Ocala, Fla. Its former chairman, Lee B. Farkas, was convicted of directing nearly $3 billion in fraud that put thousands out of work and contributed to the collapse of Colonial Bank. The collapse was the sixth-largest bank collapse in U.S. history. A judge sentenced Farkas to 30 years in prison on June 30, 2011. Several other executives associated with the firm pleaded guilty in related cases.

There were also criminal charges brought against two hedge fund managers at Bear Stearns, who were accused of lying to investors and put on trial for securities fraud. But a jury acquitted them in 2009, and the two men were mid-level managers, not top executives.

There have been many other prosecutions of mortgage fraud and insider trading. The U.S. Justice Department pointed us to its StopFraud.gov website, and sent us a long list of other ongoing actions against mortgage fraud, investment fraud, insider trading and other corporate offenses."

I am looking for arrests. The criminals you list here are rightfully investigated.

You mentioned earlier that the Financial Crisis was not mostly caused by criminality, although here you offer evidence that crimes were committed. They were not punished sooner, due to what I regard as laxity on the part of the regulators.

To this point, The Financial Crisis Inquiry Commission states, in its report:
http://fcic.law.stanford.edu...
"the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve"s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels."

This is a clear condemnation of the entire system; from the CEO to the consumer, politician to policy. There are no clean hands.
wrichcirw
Posts: 11,196
Add as Friend
Challenge to a Debate
Send a Message
8/22/2013 11:33:54 AM
Posted: 3 years ago
At 8/21/2013 5:20:19 PM, DeFool wrote:
After resigning his role as top enforcer at the SEC, Robert Khuzami joins a law firm for a reputed $5 million.

During Khuzami's reign at the SEC, no regulators prevented the Bernie Madoff scandal, the financial crisis was not averted, and no bankers went to prison for their crimes. The SEC did not prosecute any of these crimes. Now, Khuzami works for one of the companies with an interest in those same decisions.

This is why we can't have nice things.

http://money.cnn.com...

I don't understand the problem here. He got hired to do something, and now he's being rewarded for what he did (or didn't do).

Or do you really think the SEC is there to protect investors? LOL
At 8/9/2013 9:41:24 AM, wrichcirw wrote:
If you are civil with me, I will be civil to you. If you decide to bring unreasonable animosity to bear in a reasonable discussion, then what would you expect other than to get flustered?
wrichcirw
Posts: 11,196
Add as Friend
Challenge to a Debate
Send a Message
8/22/2013 11:37:52 AM
Posted: 3 years ago
At 8/21/2013 10:49:30 PM, darkkermit wrote:
At 8/21/2013 10:39:21 PM, DeFool wrote:

I'd say that the idea that the financial crisis was due mainly to criminal activity absurd. Is there anything suspicious about the collapse of the American financial sector? No, not really. Keynesians and Austrians predicted it years before it actually occurred. There's also Minsky's Financial Instability Hypothesis which successfully predicted and modeled the great recession.

Off the top of my head:

http://www.washingtontimes.com...

You would think entities like Countrywide, HAD THEY BEEN PROSECUTED BEFORE THE CRISIS, may have been less responsible for the crisis.

As usual, the SEC is years late to this one, and only after catastrophe had not been averted.
At 8/9/2013 9:41:24 AM, wrichcirw wrote:
If you are civil with me, I will be civil to you. If you decide to bring unreasonable animosity to bear in a reasonable discussion, then what would you expect other than to get flustered?
darkkermit
Posts: 11,204
Add as Friend
Challenge to a Debate
Send a Message
8/22/2013 7:36:02 PM
Posted: 3 years ago
At 8/21/2013 11:12:29 PM, DeFool wrote:
At 8/21/2013 10:52:50 PM, darkkermit wrote:
http://www.politifact.com...

"If you're looking for arrests and prosecutions against executives mwith the biggest banks, you won't find them. And we found no arrests of execs with the firms most widely associated with the financial crisis such as Countrywide, AIG or Lehman Brothers.

The highest-profile convictions we found were from Taylor, Bean & Whitaker, which was a mortgage lending firm based not on Wall Street, but in Ocala, Fla. Its former chairman, Lee B. Farkas, was convicted of directing nearly $3 billion in fraud that put thousands out of work and contributed to the collapse of Colonial Bank. The collapse was the sixth-largest bank collapse in U.S. history. A judge sentenced Farkas to 30 years in prison on June 30, 2011. Several other executives associated with the firm pleaded guilty in related cases.

There were also criminal charges brought against two hedge fund managers at Bear Stearns, who were accused of lying to investors and put on trial for securities fraud. But a jury acquitted them in 2009, and the two men were mid-level managers, not top executives.

There have been many other prosecutions of mortgage fraud and insider trading. The U.S. Justice Department pointed us to its StopFraud.gov website, and sent us a long list of other ongoing actions against mortgage fraud, investment fraud, insider trading and other corporate offenses."

I am looking for arrests. The criminals you list here are rightfully investigated.

You mentioned earlier that the Financial Crisis was not mostly caused by criminality, although here you offer evidence that crimes were committed. They were not punished sooner, due to what I regard as laxity on the part of the regulators.

To this point, The Financial Crisis Inquiry Commission states, in its report:
http://fcic.law.stanford.edu...
"the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve"s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels."

This is a clear condemnation of the entire system; from the CEO to the consumer, politician to policy. There are no clean hands.

Crimes are always being committed. Did a murder cause the global financial crisis? No, that's stupid.

It's simple scapegoating what's going on here. Since something bad happened, someone must be at fault or doing something illegal. Accidents, people acting in unison to create a sub-optimal outcome and irrational exuberance simply don't occur.
Open borders debate:
http://www.debate.org...
wrichcirw
Posts: 11,196
Add as Friend
Challenge to a Debate
Send a Message
8/22/2013 7:50:39 PM
Posted: 3 years ago
At 8/22/2013 7:36:02 PM, darkkermit wrote:
At 8/21/2013 11:12:29 PM, DeFool wrote:
At 8/21/2013 10:52:50 PM, darkkermit wrote:
http://www.politifact.com...

"If you're looking for arrests and prosecutions against executives mwith the biggest banks, you won't find them. And we found no arrests of execs with the firms most widely associated with the financial crisis such as Countrywide, AIG or Lehman Brothers.

The highest-profile convictions we found were from Taylor, Bean & Whitaker, which was a mortgage lending firm based not on Wall Street, but in Ocala, Fla. Its former chairman, Lee B. Farkas, was convicted of directing nearly $3 billion in fraud that put thousands out of work and contributed to the collapse of Colonial Bank. The collapse was the sixth-largest bank collapse in U.S. history. A judge sentenced Farkas to 30 years in prison on June 30, 2011. Several other executives associated with the firm pleaded guilty in related cases.

There were also criminal charges brought against two hedge fund managers at Bear Stearns, who were accused of lying to investors and put on trial for securities fraud. But a jury acquitted them in 2009, and the two men were mid-level managers, not top executives.

There have been many other prosecutions of mortgage fraud and insider trading. The U.S. Justice Department pointed us to its StopFraud.gov website, and sent us a long list of other ongoing actions against mortgage fraud, investment fraud, insider trading and other corporate offenses."

I am looking for arrests. The criminals you list here are rightfully investigated.

You mentioned earlier that the Financial Crisis was not mostly caused by criminality, although here you offer evidence that crimes were committed. They were not punished sooner, due to what I regard as laxity on the part of the regulators.

To this point, The Financial Crisis Inquiry Commission states, in its report:
http://fcic.law.stanford.edu...
"the crisis was avoidable and was caused by: Widespread failures in financial regulation, including the Federal Reserve"s failure to stem the tide of toxic mortgages; Dramatic breakdowns in corporate governance including too many financial firms acting recklessly and taking on too much risk; An explosive mix of excessive borrowing and risk by households and Wall Street that put the financial system on a collision course with crisis; Key policy makers ill prepared for the crisis, lacking a full understanding of the financial system they oversaw; and systemic breaches in accountability and ethics at all levels."

This is a clear condemnation of the entire system; from the CEO to the consumer, politician to policy. There are no clean hands.

Crimes are always being committed. Did a murder cause the global financial crisis? No, that's stupid.

It's simple scapegoating what's going on here. Since something bad happened, someone must be at fault or doing something illegal. Accidents, people acting in unison to create a sub-optimal outcome and irrational exuberance simply don't occur.

The above comment from DK smells like whitewash. DeFool makes it clear he is not scapegoating anyone...the ENTIRE SYSTEM is guilty, and in case DeFool did not make this clear, the customers who took out liar loans were also guilty.

Back to my "Friends of Angelo" scenario, the only reason why most of the politicians involved in that program were not arrested is because the statute of limitations for those crimes had already expired. Such is justice.
http://thehill.com...
http://www.zerohedge.com...
At 8/9/2013 9:41:24 AM, wrichcirw wrote:
If you are civil with me, I will be civil to you. If you decide to bring unreasonable animosity to bear in a reasonable discussion, then what would you expect other than to get flustered?
DeFool
Posts: 626
Add as Friend
Challenge to a Debate
Send a Message
8/22/2013 10:06:43 PM
Posted: 3 years ago
We here argue for separation of powers, and a stable system of checks and balances.

It is easy to forgo this fail-safe when it is profitable, or strengthens the in-group. We must remind ourselves that we nevertheless do not want to find ourselves the victim of loaded dice tomorrow.