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I don't understand how this myth persists. Of course they broke laws. Do you think Goldman Sachs would have paid out a 5 billion dollar settlement if they tho
by rando444 9y ago
I don't understand how this myth persists. Of course they broke laws. Do you think Goldman Sachs would have paid out a 5 billion dollar settlement if they thought they could win in a courtroom?.. of course not.
The problem isn't that they didn't break laws.. it's the justice department's fault for accepting cash settlements instead of actually taking people to trial and holding them accountable. The criminals always win in this scenario because nobody goes to jail, the fines are less than the profit, and there are no lessons to be learned other than to not get caught.
Matt Taibbi does a really good job of examining this shift in the Justice Department's strategy in his book The Divide: American Injustice in the Age of the Wealth Gap, which I recommend if this is a subject you are interested in.
- jjeaff 9y agoThe reason in many cases they accept fines instead of jail time is because it is very hard to pin the actions of large corporations on any one person. What is one specific law that one of these executives broke? I have yet to see anyone specify what law they broke. Just like the Wells Fargo CEO, bad incentives are not illegal. He didn't personally break any laws or illegally sign anyone up for an account without their knowledge. He may have even known that a bunch of their accounts were fake, but there is no evidence he had any knowledge of specific accounts.