Dear Friends,
It seems to me, if one punishes that which he wants less of, and rewards that which he wants more of, then why are corporate executives rewarded for breaking the law? Unless the government indeed wants the criminality to continue, and that is a valid argument, since the government is itself rewarded by the criminality. Take the latest example, Merrill Lynch and it’s parent company Bank of America, was just fined 25 million dollars for manipulating the precious metals markets. The paltry fine, that surely doesn’t come close to the profits made from that fraud, coupled with the fact no one is criminally charged, or is even losing their job, and you have proof government colluding with executives to defraud shareholders of money. “Crime that pays is crime that stays…” – a Zero Hedge comment.
The crime Merrill Lynch and therefore it’s parent company, Bank of America, committed, was fraudulently placing orders for precious metals, that they canceled just before the orders were filled… to trick other market participants into making disadvantageous decisions, based on those fraudulently placed orders. Presumably, Bank of America made far in excess of 25 million, and huge bonuses were awarded based on the profits of that fraud. Not a single executive is being criminally charged, fired, or even forced to return the bonus based on the fraud. Yet the shareholders, pensions, retirees, IRAs, etc… are out the returns they otherwise would have received based on their investment. That money is instead going to the government to fund abortions, war, tin pot dictators, oppression and progressivism.
Which makes the government in general and the regulatory agency that levied the fine, co conspirators to defraud precious metal investors, Bank of America shareholders, the public, currency traders and anyone else who trades in anything based on precious metal prices. Quite a slew of victims to that crime. Especially considering no one is being criminally charged. Imagine how you would be treated were you to defraud Bank of America out of 25 million dollars, let alone the public, BOA shareholders, investors, etc…? The proverbial book would be tossed at you from orbit reaching near relativistic speeds. Showing the clear double standard which is proof of arbitrary rule, or that government officials desire that laws be broken, as a means to corruptly fund government.
Sadly, the Merrill Lynch, Bank of America story is far too common. Duetsche Bank was recently fined millions for manipulating silver metal markets a few years ago. Goldman’s shareholders profits get harvested regularly, while the crimes of Wells Fargo are as storied as Bonnie and Clyde, but on the other side. Every too big to fail bank is above the law. If armed robbery was treated like stealing from investors, then a thug who was caught, would have his victims pay back some of the money, to the government, not to the themselves… with no jail or even criminal charges. This would obviously drastically lower the incidence of violence and thievery in our society… just as the policy has led to a drastic reduction in white collar crime… Or has it?
What does this whole sordid story tell us? That the government does not want such criminality to stop. It is a revenue stream. True, a stream of largess that comes at cost to the investing public, pensions, IRAs, and tangentially, every single American, but if one cares nothing for these people, then the fraud is the best deal going. We know this because if the government and regulatory agencies did care, they would not fine the shareholders, the victims, but criminally charge the actors, the people who actually decided to break the law, and make examples of them. That the government fleeces shareholders, and lets the criminals get off without even a slap on the wrist, is clear evidence they want such crimes to continue, so the government itself can reap profits from the fraud. How progressive!
Sincerely,
John Pepin
