4 ms·

Ah yeah, I remember when people went to jail because of the 2008 financial crisis. (sure, apparently nothing illegal was done, it was just recklessness and poo

Ah yeah, I remember when people went to jail because of the 2008 financial crisis. (sure, apparently nothing illegal was done, it was just recklessness and poor judgement, but I see why people would think wall street always get off scot-free)

JumpCrisscross 9y ago
> commits a securities crime >> the 2008 financial crisis The problem evidenced by the 2008 crisis was that many destructive behaviors were not, in fact, illegal. (Some were, and many of those people are barred from industry or going to jail [1].) [1] http://money.cnn.com/2015/08/03/news/libor-scandal-tom-hayes-jail/index.html http://money.cnn.com/2015/08/03/news/libor-scandal-tom-hayes...
- kevindqc 9y ago
  Yeah which is too bad. If you're reckless in your car and get into an accident, can you be jailed? Yes, for reckless endangerment. Why is there no such thing in the financial world, especially after 2008 :(
  - JumpCrisscross 9y ago
    > Why is there no such thing in the financial world, especially after 2008 Recklessness is well defined in respect of cars. (It wasn't when they first came out.) Recklessness is well defined in respect of selling stocks and bonds. (It wasn't a century ago.) Recklessness was not well defined in respect of certain new financial products in 2008. It is now.
    - mcny 9y ago
      > Recklessness was not well defined in respect of certain new financial products in 2008. It is now. I am not too well-versed with laws and legislations (especially because everything sounds partisan) but are you talking about Dodd Frank? https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street... The last I read about it, Congress is trying to get rid of it, no? Is there some other regulation that makes what was not against the law in 2008 (actually I don't know much about this either) against the law now?
deadmetheny 9y ago
Except for that part where people did go to jail[1], it's just that they were all from smaller institutions rather than any of the top executives from national banks. That is certainly a problem, but it does illustrate that if you (like most of us) are a nobody, you're not necessarily gonna get away with anything. [1] http://money.cnn.com/2016/04/28/news/companies/bankers-prison/index.html http://money.cnn.com/2016/04/28/news/companies/bankers-priso...
- kevindqc 9y ago
  Well the example they give, Edward Woodard, is someone who got 23 years sentence for fraud, which is not really related to what happened during the 2008 financial crisis? >From 2008 to 2011, Woodard and Stephen Fields, a former executive vice president and commercial loan officer at the bank, hid the bank’s financial condition, authorities said. Bank insiders also gave preferential financing to troubled borrowers to buy properties Bank of the Commonwealth owned, prosecutors said. So that was after the crisis - they wanted to hide how bad it affected them?
- camelite 9y ago
  That's the second time in two days I've seen that cited in response to the claim no Banker went to jail. But as far as I can make out it's about Tarp fraud, which came at the crisis. Wheres it coming from, first Google result?

JumpCrisscross 9y ago

> commits a securities crime >> the 2008 financial crisis The problem evidenced by the 2008 crisis was that many destructive behaviors were not, in fact, illegal. (Some were, and many of those people are barred from industry or going to jail [1].) [1] http://money.cnn.com/2015/08/03/news/libor-scandal-tom-hayes-jail/index.html http://money.cnn.com/2015/08/03/news/libor-scandal-tom-hayes...

kevindqc 9y ago
Yeah which is too bad. If you're reckless in your car and get into an accident, can you be jailed? Yes, for reckless endangerment. Why is there no such thing in the financial world, especially after 2008 :(
- JumpCrisscross 9y ago
  > Why is there no such thing in the financial world, especially after 2008 Recklessness is well defined in respect of cars. (It wasn't when they first came out.) Recklessness is well defined in respect of selling stocks and bonds. (It wasn't a century ago.) Recklessness was not well defined in respect of certain new financial products in 2008. It is now.
  - mcny 9y ago
    > Recklessness was not well defined in respect of certain new financial products in 2008. It is now. I am not too well-versed with laws and legislations (especially because everything sounds partisan) but are you talking about Dodd Frank? https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street_Reform_and_Consumer_Protection_Act https://en.wikipedia.org/wiki/Dodd%E2%80%93Frank_Wall_Street... The last I read about it, Congress is trying to get rid of it, no? Is there some other regulation that makes what was not against the law in 2008 (actually I don't know much about this either) against the law now?

deadmetheny 9y ago

Except for that part where people did go to jail[1], it's just that they were all from smaller institutions rather than any of the top executives from national banks. That is certainly a problem, but it does illustrate that if you (like most of us) are a nobody, you're not necessarily gonna get away with anything. [1] http://money.cnn.com/2016/04/28/news/companies/bankers-prison/index.html http://money.cnn.com/2016/04/28/news/companies/bankers-priso...

kevindqc 9y ago
Well the example they give, Edward Woodard, is someone who got 23 years sentence for fraud, which is not really related to what happened during the 2008 financial crisis? >From 2008 to 2011, Woodard and Stephen Fields, a former executive vice president and commercial loan officer at the bank, hid the bank’s financial condition, authorities said. Bank insiders also gave preferential financing to troubled borrowers to buy properties Bank of the Commonwealth owned, prosecutors said. So that was after the crisis - they wanted to hide how bad it affected them?
camelite 9y ago
That's the second time in two days I've seen that cited in response to the claim no Banker went to jail. But as far as I can make out it's about Tarp fraud, which came at the crisis. Wheres it coming from, first Google result?