Bank Leaders Are Not "Dolts" They Are Criminals

Recently a business writer in a legacy news outlet wrote a column and asked whether banks are run by "Dolts." I have a better suggestion; how about "criminals?" Evidence of this abounds but is hardly found in that paper, or practically anywhere in the news media.

The LIBOR scandal is on the front pages of every newspaper in Europe. The banks and bankers conspired to artificially manipulate interest rates affecting more than $800 trillion in derivatives and investments, according to the Telegraph. Rating agencies, like Fitch and Moodys, conspired with at least Morgan Stanley and other investment banks to rate Mortgage Backed Securities as investment grade, and can no longer hide behind a "free speech" defense. We act like Alfred E. Newman, What, me Worry?

Last but not least, Matt Taibbi also wrote of the criminal conspiracy among investment banks to artificially rig interest rates on bond monies, such as where Jefferson County Alabama ended up with $3 billion in debt for a $1 billion water treatment plant, and is now bankrupt.

These are ongoing criminal enterprises that should zealously be prosecuted under racketeering laws. These people are not "Dolts" like Homer Simpson; they are Mafiosi and should be treated as such. Where is any meaningful reporting on all this? Sure Solyndra was a boondoggle and makes for good political theater and grandstanding, but how many Wall Street people have been prosecuted for their role in crashing the economy? Easy... None(!)

The "Too big to jail" bankers like Jaime Dimon who attended the recent hearing to answer questions about the possible $9 billion loss placed by his bank was tossed softballs he probably knew in advance.

Tell ya what, one easy resolution would be to strip the investment banks of FDIC deposit protection if they gamble like that. Of course just exactly who is going to have the guts to implement such reform (que thundering sound of pin dropping...)