Matt Taibbi: Wall St. Has No Incentive Not To Commit Crimes (VIDEO)

In a video interview with RT America, Rolling Stone's Matt Taibbi, the author of Griftopia, says that as of now, and until the government more aggressively prosecutes financial fraud, Wall Street has a continued incentive to bend the rules in their favor. (Hat tip to Naked Capitalism.)

Since the financial crisis, Taibbi has been one of Wall Street's most outspoken critics. Earlier this month, Taibbi wrote "The People. vs. Goldman Sachs," a sweeping investigation into the Senate report on Goldman Sachs that accused the investment bank of profiting by misleading investors.

"There's really no incentive going forward for people on Wall Street not to commit crimes," Taibbi says in the interview. "The number one thing that came out of this whole period is that there were absolutely no consequences for any of the people that committed this widespread fraud."

Right now, Taibbi continues, Wall Street rightfully sees themselves as above the law, pointing to the billions of dollars in bank bailouts and a lack of prosecution.

Still, with Goldman Sachs last week announcing it is expecting federal subpoenas for its mortgage business, Taibbi sees the current climate as the "last opportunity" for the federal government to take direct action against Wall Street for their role in the financial crisis.

"Personally, I'm hopeful that they actually will do something. It's just too late, but at least it will come eventually," Taibbi said.

Watch the interview here:

Comments

[Luis Soto]

02:24 PM on 06/17/2011

He got it wrong. It is the government tht has no incentive to limit wall street as long as wall street pays his campaigns... but of course we have created a system of beggar politicians without rights to print money for free as bankers have done for centuries. This ensures since the beginning of 'democracies' in Holland, invented by the first corporation VOC, with 'limits' to vote by income (GOP should think in this 'wise' reform)... that democracies are ruled by corporations. But of course now nobody knows history - audiovisual media and fiction big brother helps to that more than the book of history for handicapped peasants of the bronze age. Now, as a system scientist, i know information within any system is censored within the system, but the DEGREE of corruption, misinformation, disconnection to humanity - the only real system worth to consider - observed int he world today only happens in...
corpses. Then suddenly the rossy corpse with all its cells fattened by the blood explodes and the insects come in... soon you will have a replacement for all humans, robot, pc and mobile included
www.economicstruth.com

[HeyJoeHere]

03:35 PM on 06/02/2011

Since Ronald Reagan declared war on government, we have systematically reduced the number of 'watch dog' government auditors monitoring large businesses on behalf of regular Americans. Gingrich's Contract For America kept this foolish notion alive during the Clinton years. George Bush, of course, dramatically increased the demise of any notion of a government 'for the people' bringing us to where we are now.

So, today we are talking about the fleecing of the regular investors by Wall Street with little to no possible chance of punishment by the perpetrators. But other noteworthy failures include watching our children chow down on toys laced with lead, reading about mine disasters, etc. I could go on, the list is long, feel free to post your own additions to this republican folly.

As Mr Taibbi said about Wall Street, all of this activity goes on, everyday, with little to no chance of detection or consequence.

I'm proposing a 3 pronged approach to fixing this. First, the Tea Party folks need to take their wonderful energy back to high school to brush up on their history and civics. The Republicans need to hold their nose and vote a 100% Independent or Democratic ticket in 2012 so that their party can rebuild itself with real, qualified candidates. The Democrats need to scold their elected folks for not working harder to fix all this, and then hold their noses and vote to give them one last chance.

[ChasG]

08:17 PM on 05/29/2011

Matt Taibbi has no incentive to tell the truth, nor has he.

[Peter Suppa]

09:34 AM on 05/26/2011

MATT TAIBBI

[KDMac]

04:41 PM on 05/25/2011

I know he's as liberal and unmanly as they come, but I find him to be incredibly attractive for some reason : )

[hamsteronwheel]

12:57 PM on 05/25/2011

we are all hamsters on neocon "financially engineered" wheels...

investigate, prosecute, incarcerate next to madoff, CLAWBACK!

start with blankfein's snake pit:

“The investigation found a "financial snake pit rife with greed, conflicts of interest, and wrongdoing," Levin said.”

blankfein said "just doing God's work"

http://www.huffingtonpost.com/2011/04/14/goldman-financial-crisis-prosecution_n_848994.html

[joncavanaugh]

11:32 AM on 05/25/2011

Taibbi lays it out point by point. The only thing he fails to mention was the willful inattention of the American people who allowed and continue to allow them to get away with it.

[ChasG]

12:51 AM on 05/25/2011

I just listened to the video.  Matt Taibbi thinks "ordinary people" don't know what he knows.
 
He says government has made no real changes since 2008 in response to the financial crisis. 
 
TARP?  Stimulus projects? Including infrastructure and alternative energy development?  Dodd Frank was nothing?  CFPB and Elizabeth Warren are nothing?  Is a bank bailout a "bailout" if the bank repays it with a market rate of interest?  There have been changes to the way banks may charge fees and interest to consumers.  More changes will be coming from Elizabeth Warren and CFPB.
 
Matt Taibbi is about foregone conclusions looking for rationalizations, just supposition based on supposition, and presented as "facts" he has "uncovered."  Taibbi has a sack full of scapegoats to feed the anger and disillusionment just to keep them alive. 
 
I'll bet all the pharma companies that make SSRIs just love Taibbi.  He's definitely good for their business.  [snark, in case it's not obvious]
 
Taibbi never walks back an error.  He just moves on to the next outrage.  At best, he's a shock jock, an entertainer. "$trillions given to banks by the Fed" never happened that way.

[Corners]

12:22 PM on 05/25/2011

"$trillion­s given to banks by the Fed"

They are borrowing tons of cash at almost 0% from our goverment. Thast a subsidy that any of us would wish we had.

Dodd Frank was weak.

Banks can still charge you 30% on your credit cards, good credit or bad.

Tarp and stimulus for banks and the rich, but we are about to ax medicare and ss because of budget shortfalls
The gop is trying to netuar the CFPB and bloody up Mrs. Warren before the agency even starts.

They are trying to dismantle dodd frank and the credit card legalization passed., Now i ask you why? The reform that we got from one of the biggest financial disasters ever was weak , and you know it.

[ChasG]

05:16 PM on 05/25/2011

Banks may borrow from the Fed at the Fed's "discount rate," currently 0.75% per annum, overnight loans only.  Banks with a surplus may lend their money back to the Fed at the Fed Funds Rate, currently tarfeted at 0.25% or less.  That means the Federal Reserve earns the difference, or at least 0.5% per annuum, from the banks.  About 96% of that income for the Fed is refunded to the US Treasury, fot the taxpayers' benefit.  Banks do not make money on this turn around.  These are normal day-to-day transactions that help the Fed to mainatin a stable money supply, nationally, regionally, and locally.
 
Dodd-Frank was the strongest re-regulation of financial markets since Glass Steagall, meaning it did go as far as Glass Steagall but went further than any other legislation regulating financial markets.  I agree, it time, Glass Steagall needs to be restored, and regulation needs to be extended to investment banks to regulate "systemic risks."
 
You can avoid paying any interest at all on your credit card two ways:
(a) pay off the entire balance every month by never charging more than you already have in your bank account earning a little interest; or (b) don't use a credit card.
 
TARP loans are being repaid with interest.  TARP equity positions have been partially sold for substantial capital gains so far.  What stimulus for the rich are you talking about? 
 
Democrats aren't about to axe social security and Medicare, CFPB, Dodd Frank, or consumer financial protection legislation. 
 
The reform we got was a beginning only.  Political and social change have always happened incrementally.  It's wise to change direction with your car gradually, so as to avoid rolling it into a ditch.  If Democrats regain the reins of government, change will progress, but it will take more than two terms of Obama to get it all done.  We only spent 30 or more years of profligate borrowing and spending to get us into this mess.  You can't expect to turn it all around in just 2 or 3.

[joni brit]

06:09 PM on 05/29/2011

WELL THEN KEEP ON MOVING TO THE NEXT OUTRAGE MATT -- YOUR ARTICLE, ROCKET DOCKET, ENABLED US 'ORDINARY PEOPLE' TO START CHANGING THE FACE OF FORECLOSURE. KEEP FEEDING THE ANGER AND DISILLUSIONMENT MATT, BECAUSE YOU SAY IT MUCH BETTER THAN US!!!!

[ChasG]

08:13 PM on 05/29/2011

Anger at reality will never cease, and will eat you alive from the inside out like a cancer.

[too young but old enough]

05:02 PM on 05/24/2011

"There's really no incentive going forward for people on Wall Street not to commit crimes."

I'm not sure that is as much of the problem as the fact that they have so many incentives TO commit crimes. They are the proverbial fox in charge of the hen-house.

[ChasG]

01:46 AM on 05/25/2011

Which fox in the hen house?  Bernanke, an economist and educator who never worked for a bank of any kind until he was appointed to fill one of the government position on the Federal Reserve Board of Governors in 2002 (wow, a real insider)?  Geithner, an economist who never worked for a bank either till he joined the New York Federal Reserve Bank?  (another real insider?)

[DustinTime]

04:34 PM on 05/24/2011

An even more incisive segment from RT:

http://www.youtube.com/watch?v=O35_Ai6EsMU&sns=fb

[ChasG]

11:41 PM on 05/24/2011

Not only speculating in gold, but speculating about gold.
 
If Africa is going to start demanding gold in exchange for oil, it won't usher in "self-determination" for any African who doesn't already own gold.  I wonder how many Africans that would be, besides Gaddafi of course.

[joni brit]

07:37 PM on 05/30/2011

Is it true the Fed has no gold reserves? Just paper currency and derivitives?.

[ChasG]

08:16 PM on 05/29/2011

RT calls "gold currency" a "true sharing of the wealth?" ROFLMAO !!! __________________________________________________________________________ Remember the golden rule.

[Urban Pink]

04:17 PM on 05/24/2011

Great job you're doing, people will wake up!!

[ChasG]

08:39 PM on 06/02/2011

Dream on...

[joni brit]

10:25 PM on 06/02/2011

why am I so obsessed with gold? Because it's real, it's worth something, you can barter with it. If you have a place called Ft Knox loaded with an asset called 'gold' you could sell some of it and raise capital, raise cash, instead of tax, tax, tax. The Fed is a business with what assets??? just debt. They cannot run a business, yet they now run health care, the Banks, and War. The US is not a Democracy any more, we are not a capitalistic society where someone can run a business, and be successful without the Government stepping in to take it over. The United States is in worse shape than Quebec. We are more Socialist than Russia, I wouldn't invest in this country anymore. TARP stands for Banks asset relief program and make sure bonuses are paid again. This Government is giving Asset Relief to Fraud,

[CarolinaDem]

02:58 PM on 05/24/2011

If too many of the women of america were not all courtesans at heart, these guys would have to choose between their moolah and good lovin'. As it is, they buy it with marriage and perks. I'm kidding, but I mean, what kind of woman would love one of these guys?

[Badfinger1]

03:32 PM on 05/25/2011

....Mmmm....$500k revolving account at Tiffanys' comes to mind, oh, and the retirement package....sad...I know a divorcee(he left her) that got about $40m for her broken heart....

[joni brit]

07:43 PM on 05/30/2011

?? There are some amazing women on Wall Street!!! Honest, hard working, brilliant, supporting families, juggling responsibilities, giving charity and raising money for charities. There are outstanding women working everywhere in NYC, in challenging, responsible positions. courtesans at heart, you've got to be kidding, right? That is so offensive.

[Carmen Madonna Campos]

02:15 PM on 05/24/2011

when they own the courts and the politicians and the media - of course they get off.
it's people, our elected officials, our judges, who let them get away with it because they have been bought and paid for. there really is nothing we can do.

[Badfinger1]

03:33 PM on 05/25/2011

....operation; Mindcrime....Great Rock opera....

[CaliGrown78]

01:59 PM on 05/24/2011

can't we just have an uprising already!!??

[ChasG]

11:42 PM on 05/24/2011

We are having an uprising.  They're called the "Tea Party."  You want more of that?

[CaliGrown78]

07:21 AM on 05/25/2011

The teabigots? An uprising? Lmfao please, they're nothing more than a buncha angry rednecks, playing dress up & being used as pawns, I'm talking about a REAL uprising.

[skooney]

01:59 PM on 05/24/2011

We as "normal" society look upon this and expect that those at the top of financial/banking/wall street are like us. They are not. The people causing this are "sociopaths" or at the very least extreme narcissists. The only way to protect ourselves is to make sure we have strong regulations in place and make them accountable for their actions, we cannot expect them to act out of some sense of conscience, they will not. Legal consequences are the only thing that will keep these people in check.

[Carmen Madonna Campos]

02:16 PM on 05/24/2011

agree - and those regulations cannot be made up pay people who are beholden to wall st.

[ChasG]

11:45 PM on 05/24/2011

Agree, but those regulation do have to come from people who understand what they are regulating.