Hey, these three underwriters can do whatever they want -- and they know it.
Until some bankers get indicted -- which doesn't seem likely anytime soon, given the glacial pace of the Administration's much-hyped (but now apparently forgotten) mortgage fraud task force -- they can break any law or rule they want to break. What's the worst that could happen to them? If they get caught they'll negotiate another gigantic fine and let the shareholders (including working people's pension funds and 401ks) pick up the tab while they collect their bonuses and head off to the Hamptons.
So, until the Administration shows us some Wall Street indictments, the usual suspects will keep committing the usual offenses over and over. The Justice Department needs to get serious about investigating Wall Street fraud. And more states should join Massachusetts in investigating this deal.
This one goes to 11 ...
Do we know that's what happened with the Facebook IPO? No -- and we won't know without a proper investigation. But we do know that the Facebook plunge reflects a classic scenario for shady traders who make money hyping a stock while secretly betting against it.
And we know that all three of these institutions are perfectly capable of doing it. They have the means, they have the motive, and -- until our government does something about it -- they have the opportunity.
So get on with it, Washington. You better update your status on those fraud investigations before it's too late.(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
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