Tuesday, March 5, 2019

Moral Hazard in the Making: "Prosecuting Bankers Proves Tough Task"


I'm not a big fan of "punishment" as a paradigm for changing behavior but there must be transparency, culpability, and accountability in making sense of the causes, consequences, and prevention of catastrophic crises, such as the 2007-1008 financial crisis.

Yesterday the Wall Street Journal reported that prosecuting bankers has been tough:
Viswanatha, Aruna (2019, March 4). Prosecuting Bankers Proves Tough Task. The Wall Street Journal, pp. B1, B6.

The article investigates "whether individuals can be held to account for activity involving an entire bank." This is an important question and of course due process is critical to distinguish those who pursued fraud and deception as an active strategy and those who merely carried out orders, although they too may share a level of moral culpability.

I think the problem is that the evidence usually involves low-level players and so the decision-makers behind a lot of unscrupulous behavior are ignored or are simply not examined critically because of lack of evidence.

The effect is moral hazard, where those making bad decisions are absolved of the consequences.


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6 comments:

  1. https://sites.google.com/site/livingwithoutmoney/

    https://en.m.wikipedia.org/wiki/Suelo

    Suelo
    Moneyless Living TED
    https://youtu.be/A2o5gKAUaxM

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  2. You are too kind, Majia. Personally, I agree with the results of the Nuremburg Trials on this matter.

    Those who run the show do so because of their brain-washed minions who serve their will.

    On the other hand, the conditioned mind always has a chance of waking up (I am but one example). What chance do we have of changing the minds of the psychopaths that rule them?

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  3. https://www.youtube.com/watch?v=5hfEBupAeo4&t=709s

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    1. The current 22 trillion debt is from the bank bailout of the housing and wall street crash of 2008..
      With each succeeding neoliberal repuklikan. And conservative democrap-travesty, like Ronald Reagans bailouts of wall street in 1987, the Clinton cashed crash of 1999, the Ultimate CRIMNAL-Crackhead bush WALLSTREET bailout of 2008 that was enabled by obamy and has created a covered-up depressionary economy for most, the debt has doubled and quadrupled.
      Banks and wall street bailouts have gotten worse and made things worse.

      George W Bush-allowed 911, did the patriot act, CREATED the worse housing crisis IN HISTORY!

      George W Bush illegally invaded Iraq and murder a million men women and children.

      The rightwing counterpart democrats, that are neoconservative neoliberal nuclear-imperialist enablers, and actors are complicit.
      The stupid American people, have gone on and put in this abomination in. The Orange abomination is easily as bad or worse than Reagan or crackhead George W.
      Go figure.

      Fuk u and ur lying libertarian Ayn rand fascists Dr shit heart. Fuck ur shitty propaganda accommodating bullshit that allows Fuko to exist, nuclear imperialism to get worse and will lead to meltdowns and extreme nuclear fuel fires . you and ur idiot viewers find give a darned

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