Enemy of The State: Wall Street Corporate Greed

Corporate Bankers and Bailouts

President Barack Obama asked the nation’s top bankers for a “commitment from them to help rebuild our economy.”

Isn’t that why we gave them taxpayer money to begin with?

Unfortunately, the president’s statement sounded more like a plea than a demand. Given the fact these gluttons gorged themselves through thievery shouldn’t we demand —and not ask—that they start using taxpayer money to help spur the economy like we were told they would?

Perhaps, it’s been forgotten: they were supposed to use that money to address the fallout from the sub-prime mortgage crisis and resume lending to small
businesses and the like.

Instead, they’ve used taxpayer money to further enrich themselves by engaging in mergers and buyouts. For example, PNC Financial used $5 billion in TARP funds to buy National City Corp only a few hours after receiving these funds. And last October, a New York Times reporter, accessed a JP Morgan employee conference call, where the following was said: “Twenty-five billion is obviously going to help the folks who are struggling more than Chase. What we do think it will help us (JP Morgan) do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling.

And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Sterns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know we have that as a backstop.”

President Obama has stated: “Ultimately in this country we rise and fall together: banks and small businesses, consumers and large corporations.”

But these bankers have shown utter disregard towards American taxpayers. While the American economy is in shambles these unscrupulous opportunists see this as “some great opportunities for us to grow in this environment.”

This recession was caused by the corporate avarice running rampant on Wall Street. Bankers are up to their noses in it. What price, or, sacrifice have these people paid for their role in last year’s economic meltdown?

Several banks including Citigroup Inc, J.P Morgan Chase, Bank of America Corp and Goldman Sachs were recipients of taxpayer largesse. Ironically, the very people who’ve sunk the country into the worst recession since the Great Depression were “bailed out” by the very people they’ve swindled. Talk about adding insult to injury, but I guess they’re “too big to fail.”

These corrupt characters were given a slap-on-the-wrist scolding by President Obama and Congress. Reform has to be implemented to curb the obscene business practices of these Wall Street shysters. For, many are now maneuvering so they can return to giving themselves multi-million dollar bonuses, while the rest of America slips further into the gutter.

New York Attorney General Andrew Cuomo told the Wall Street Journal that JP Morgan Chase gave hundreds of millions in bonuses, after receiving TARP funds. Over 200 JP Morgan employees were given bonuses, for 2008, exceeding $3 million. Even worse JP Morgan Chase has, reportedly, been recalcitrant in easing the interest rate of many homeowners facing foreclosure, and continues to process hundreds of thousands of foreclosures.

It’s bad enough these people have defrauded the American people pushing the economy to the brink of catastrophe. Will any of these charlatans face prosecution for their crimes? Bernie Madoff isn’t the only one that should be exchanging Armani suits for prison orange.

Madoff defrauded investors to the tune of around $65 billion. Ironically, as a friend reminded me, if Madoff hadn’t been ripping-off rich people he’d still be free. Apparently, if you hustle and swindle working-class, poor people that’s perfectly acceptable. Is Madoff any worse that these amoral money changers still operating with impunity on Wall Street?

Wall Street must be reined in. Ex-Governor Eliot Spitzer, who resigned over his involvement with prostitutes made some attempts to do this. Spitzer was known as the “Sheriff of Wall Street.” Somebody must reassume the task of policing these thieves; Cuomo, on the local level, maybe that guy. But nationally, Congress must get into the act.

Congress should immediately reenact measures similar to the Glass-Steagall Act, of 1933, instituted in the wake of the banking crisis and Wall Street Crash of 1929. The Wall Street Crash of 1929, and the 2008 Wall Street Crisis, were both underpinned by the very same shady, speculative financial schemes.

Changing the way Wall Street does business is imperative for a healthy America. The risk and greed that caused the Wall Street Crash of 1929 led directly to the Great Depression. Presently, were in a recession. Yet, the people who caused us to be in this precarious place don’t care about the hardships they’ve caused. If we allow them to continue with their “business as usual” behavior, what will happen to America’s economy next time?