The Hearings of the Financial Crisis Inquiry Commission began belatedly this morning. Carrying a structure of decision making that appears to be designed to make it hard to get things done, Chairman Phil Angelides has a gargantuan task before him. The first session, which is a beginning, did have moments of import. Angelides acquitted himself well when he reminded Goldman Sachs CEO Lloyd Blankfein of the fact that there were people on the other side of the losses, particularly police pension funds, when Goldman appears to have sold the "sophisticated investors" representing them some toxic mortgage paper.
What I find important about that moment is that Angelides' questions serve to restore some humanity to this process that hides behind complexity, mathematics and screens while denying of human consequences. The sociopathic nature of Wall Street-a culture in which people see their actions as disassociated from the rest of the economy and society -- has to be shattered. These financial professionals have failed as experts and custodians of the well being and future of the nation.
Another noteworthy element of the theatre was the relative absence of Jamie Dimon. He was hardly questioned or pressed. Lloyd Blankfein has been cast as the feisty defender of Wall Street practice.
The example of Goldman Sachs's conflict of interest between the proprietary account of the firm and well being of customers is certainly not unique to the firm. It would serve us all if the FCIC were to dig deeper into how that conflict operates.
The other highlight was Blankfein's declaration that he was never asked to take less than 100 cents on the dollar on AIG settlements.
Most assuredly, future hearings will delve into the interface between private firms and the government authorities at the Federal Reserve and the Treasury Department. One only hopes that the FCIC can get to the bottom of this relationship before we pass financial reform legislation in the Congress in the coming year.
This post originally appeared on New Deal 2.0
Follow Rob Johnson on Twitter: www.twitter.com/rjocean
http://americaspeaksink.com/2010/01/obamas-brownie-moment-not-the-same/
Clean house, only then will they see who has the real power. It is a call for legislative revolution. Once we have our power under control, we can deal with these Grimer Wormtongues who have been manipulating our government and fleecing us!
The problem here is that nobody has proven the above to be the case. The timeline and the charge are in incongruent alignment.
Prosecution by McClatchy newspaper articles is likely yield a whole bunch of innocent verdicts.
It was Government that made it easy for employers to tell us to put our money into the 401k. The 401k that became easy pickings for the crooks.
What we need is better BAP and BAM -- Business Analysis for Processes and Business Activity Monitoring.
Our current annual report must be replaced by an online, real time "heart monitor" of cash flows, accounts received and assets.
The problem is that most of us are sailing in financial battleships while the Wall Street hot shots are flying fighter jets! We are easy prey. It's time for the hunted to grow scales, spikes and poisons to keep the predators at bay!
Perhaps we need to bundle a huge package of these toxic mortgage backed assets and present it to each of these CEOs with the message, here is your bonus. This is what you deserve.
Stronger wording is required.
They stole from retirees and college funds... nurses, police, firefighters, and tens of millions of others.
Throwing people on the street having sold them mortgages designed to fail...
Downplaying their deeds is what people on their payrolls should be doing.
http://www.international.ucla.edu/article.asp?parentid=3566
Depression of the 1930's - big banks and Wall Street (margin calls and mortgages notes called due)
Savings & Loan Crisis of the 1980" - caused by junk bonds and greedy bankers
The Bush financial melt down - again Wall Street and big banks
We must reinstate the Glass Stiegel Act AND watch these greedy, hunry junk yard dogs.
And of course reinstate all the economic protections put in place as an outcome of the Pecora investigation and more.
Jail. It's where sociopaths go. It's the logical extension of the premise of the piece. Sociopathic behavior often gets people put in jail, and when the crimes committed here are found, that's what should happen.
Watch them do what? Steal some more? Enough already.
But I would stress that exactly BECAUSE Dimon, Blankfein and Mack are relatively humane and knowledgeable and open-minded (and close to democrats), the fact that EVEN THEY can't help but tell fairy tales, half truths and wishful thinking PROVES once and for all that the Wall Street institutions and big banks have grown effectively UNMANAGEABLE.
In my dreams, I sincerely hope that making this insight inevitable in public will be the net outcome of the process.
And to tell you the truth, I don't see how anything else would help.
These people have no more social conscience than crack addicts. If a crack addict comes into my home and steals things to feed his habit, then supposedly something gets done about it. Stealing is stealing. They stole from the American people, and they continue to do so.
I have been saying for months that the primary function of government is to protect vulnerable people from being taken advantage of by stronger people, or from anybody who has the means to take unfair advantage. This has happened, and the government needs to act. It's really just that simple.
The use of the term sociopathic is correct, but it seems to me that this piece does not state the seriousness of this situation nearly strongly enough. Certainly the behaviors involved indicate that the perpetrators of these crimes are addicted to the accumulation of so-called "wealth", and they have no regard whatsoever for the people that are hurt and continue to be hurt- but the obvious seriousness of the consequences are not mentioned here. These so-called financial experts did much more than "fail" the American people- they used their position to steal from us. Their psychological state can be described as no better and no more aware than crack addicts.
Call it what it is, and call them out with the righteous indignation this topic deserves. They lied and stole for their own insane addicted purposes.
That's a nice sentiment, but I prefer a lot less fantasy and a little more reality in my retribution against the banksters...you know, like PRISON TIME.
Of course it is foolish not to note that, here in the United Corporate States of America, fat cats don't go to jail [unless their wealth is seized and they can't afford millions in attorney's fees].