Tag: Morgan Stanley

Aug 10

Fines Not Commensurate with the Crime

Cross posted from The Stars Hollow Gazette

The fines that are being levied against banks and companies for investment fraud, fraudulent advertising, money laundering and the like are large but come nowhere near the cost to tax payers and investors. Since these fines are but a fraction of the profits that these criminals reap, the fines won’t deter them from repeating the offense. Nor does it help that as part of the settlement the company and its employees are let off the hook for criminal wrongdoing.

Glaxo Agrees to Pay $3 Billion in Fraud Settlement

In the largest settlement involving a pharmaceutical company, the British drugmaker GlaxoSmithKline agreed to plead guilty to criminal charges and pay $3 billion in fines for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about a top diabetes drug, federal prosecutors announced Monday. The agreement also includes civil penalties for improper marketing of a half-dozen other drugs. [..]

Part of the civil settlement also includes claims that the company overcharged the government for drugs. Glaxo did not admit any wrongdoing in the civil settlement.

Despite the large amount, $3 billion represents only a portion of what Glaxo made on the drugs. Avandia, for example, racked up $10.4 billion in sales, Paxil brought in $11.6 billion, and Wellbutrin sales were $5.9 billion during the years covered by the settlement, according to IMS Health, a data group that consults for drugmakers.

In the New York Times article, Patrick Burns, spokesman for the whistle-blower advocacy group Taxpayers Against Fraud, stated, “So a $3 billion settlement for half a dozen drugs over 10 years can be rationalized as the cost of doing business.” Also, Eliot Spitzer, former New York State Attorney General who sued GlaxoSmithKline in 2004 over allegations about the drug Paxil, was quoted as saying that “What we’re learning is that money doesn’t deter corporate malfeasance, The only thing that will work in my view is C.E.O.’s and officials being forced to resign and individual culpability being enforced.”

In another case, Morgan Stanley, an international investment firm, has agreed to pay a fine of $4.8 million with no admission of wrongdoing for electricity price-fixing said to cost consumers $300 million. Justice department officials said that it sends a message to the banking industry. What message would that be?

The government said the arrangement allowed KeySpan to withhold substantial electricity generating capacity from the market, driving prices higher for consumers, and generated $21.6 million of net revenue for Morgan Stanley.

U.S. District Judge William Pauley in Manhattan said he shared the concerns of state officials and the AARP, a nonprofit serving people 50 and older, that any settlement should have reflected the harm to consumers and forced Morgan Stanley to give up the $21.6 million.

“Given the government’s stark allegations of manipulative conduct against Morgan Stanley, disgorgement of $4.8 million is a relatively mild sanction,” Pauley wrote. “There is a risk that a large financial services firm like Morgan Stanley could view such a modest penalty as merely a cost of doing business.

“But despite this court’s misgivings, the government’s decision to settle for less than full damages is entitled to judicial deference, particularly in view of the novelty of the government’s theory.”

The judge also rejected the AARP argument that the $4.8 million be returned to consumers, in part because sending it instead to the U.S. Treasury served the public interest.

So the consumers are left holding the bag, particularly the financially stressed elderly and poor, while the Morgan Stanley and Keyspan continue business as usual concocting new ways to break the law.

If whistleblowers can reveal it, why can’t the government prosecute it? The claim by the Obama administration that it’s too hard to find the evidence to pin on an individual just rings too hollow. It may be hard but it is possible with subpoenas and little more effort. It is well past time we held the criminals responsible for breaking the laws and stop prosecuting those who expose it.

Jul 25

The reason why they will never hold Wall Street accountable

  A lot of people who are hoping that once Obama gets re-elected that he will prosecute the criminals on Wall Street who currently blatantly flaunt the law.

  I hate to shatter naive illusions, but if Obama was ever going to be serious about cracking down on white-collar crime and the rape of the working class he would have already started.

 However, some of you might not be discouraged so easily. For those people I would like to point out that next Wednesday is the 5-year anniversary of the two major Bear Stearns hedge funds filing for bankruptcy. This immediately ended the housing bubble and triggered a credit crunch that eventually led to Lehman Brothers going under and the global economic crisis that is with us today.

 So what has that got to do with prosecuting the criminals on Wall Street? Because the SEC has a 5 year statute of limitations for financial fraud.

May 07

Senate Saves Too Big To Fail, Orders Another Iceberg

Yippee !  Wall Street is saved !

Senator Sherrod Brown’s (D OH)  amendment 3733 on the Financial Stability Act bill, to break up the Big 6 Banks into smaller ones that couldn’t take down the entire nation’s economy if they failed, itself did not pass the vote in the Senate this evening, failing by a spectacular 61 noes to 33 yeas, with 6 senators too timid to approach the subject.


Not all bought and paid for yet:

YEAs — 33 votes

Begich (D-AK)

Bingaman (D-NM)

Boxer (D-CA)

Brown (D-OH)

Burris (D-IL)

Cantwell (D-WA)

Cardin (D-MD)

Casey (D-PA)

Coburn (R-OK)***** Republican

Dorgan (D-ND)

Durbin (D-IL)

Ensign (R-NV)

Feingold (D-WI)

Franken (D-MN)

Harkin (D-IA)

Kaufman (D-DE)

Leahy (D-VT)

Levin (D-MI)

Lincoln (D-AR)

Merkley (D-OR)

Mikulski (D-MD)

Murray (D-WA)

Pryor (D-AR)

Reid (D-NV)

Rockefeller (D-WV)

Sanders (I-VT)

Shelby (R-AL)*****   Republican

Specter (D-PA)*****  ex Republican

Stabenow (D-MI)

Udall (D-NM)

Webb (D-VA)

Whitehouse (D-RI)

Wyden (D-OR)

_______________________ end of people who don’t like Great Depressions and financial chaos

___________   Begin list of Senators who liked that Citizens United Ruling by the Supreme Court:

NAYs — 61

Akaka (D-HI)

Alexander (R-TN)

Barrasso (R-WY)

Baucus (D-MT)  a small, cold, scenic state of tiny population,  which votes with Utah.  wtf.

Bayh (D-IN)  does you wife get more insura/pharma stock options for this ?

Bennet (D-CO)

Bond (R-MO)

Brown (R-MA)

Brownback (R-KS)

Burr (R-NC)

Carper (D-DE)   meh. typical.

Chambliss (R-GA)

Cochran (R-MS)

Collins (R-ME)

Conrad (D-ND)

Corker (R-TN)

Cornyn (R-TX)

Crapo (R-ID)

Dodd (D-CT)  looking for that Golden Parachute……

Enzi (R-WY)

Feinstein (D-CA)  meh.

Gillibrand (D-NY)  really, Kirsten, how could you

Graham (R-SC)

Grassley (R-IA)

Gregg (R-NH)

Hagan (D-NC)

Hatch (R-UT)

Hutchison (R-TX)

Inhofe (R-OK)

Inouye (D-HI)

Isakson (R-GA)

Johanns (R-NE)

Johnson (D-SD)

Kerry (D-MA) meh. first no public option, an excise tax, and now this.   you still suck.

Klobuchar (D-MN)

Kohl (D-WI)

Kyl (R-AZ)

Landrieu (D-LA)  say, how’s the Gulf doing, Ms. Mary of Louisiana?

Lautenberg (D-NJ)

LeMieux (R-FL)

Lieberman (ID-CT)  suing Atty General Holder over the tragic Ft Hood shooting information release, too

McCain (R-AZ)

McCaskill (D-MO) midwestern Blew Dawg who thinks she’s a hot shot financial whiz.  ya huh. not.

McConnell (R-KY)

Menendez (D-NJ)

Murkowski (R-AK)

Nelson (D-FL)

Nelson (D-NE)  at least he’s consistently not on our side

Reed (D-RI)

Risch (R-ID)

Roberts (R-KS)

Schumer (D-NY)  wants to be next Majority Leader after making us all get biometric cards. Swell.

Sessions (R-AL)

Shaheen (D-NH)

Snowe (R-ME)

Tester (D-MT)  meh. These netroots Dems.

Thune (R-SD)

Udall (D-CO)

Voinovich (R-OH)

Warner (D-VA)

Wicker (R-MS)

__________________   chickenhearts

Not Voting – 6  

Bennett (R-UT)

Bunning (R-KY)

Byrd (D-WV)  okay, you’re old and frail.  pass. barely.

DeMint (R-SC)

Lugar (R-IN)

Vitter (R-LA)  you don’t have enough diapers to clean anything up

May 06

Futures Exchange warns: That $100 Oil = $4 a gallon Gasoline

Crude Oil Futures: Crude Oil Tops $100 for 2018 on Threat From BP Spill

Energy Markets

Margot Habiby, Bloomberg – May 5, 2010

Crude oil futures for delivery in 2018 surged above $100 a barrel this week as the BP oil spill in the Gulf of Mexico led the government to consider a halt in future drilling.

The crude oil futures contract dated furthest into the future jumped after President Barack Obama said no new offshore drilling leases should be issued until a “thorough review” of the April 20 rig explosion. […]

Crude oil futures for delivery in December 2018 rose to $100.38 a barrel May 3 on the New York Mercantile Exchange, the highest settlement since Jan. 20. […]

You may not pay today, but we will pay tomorrow,” Phil Flynn, vice president of research at PFGBest in Chicago, said in a report.


That $100 oil equates to pretty close to $4 a gallon gasoline” in the U.S., said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas. “We know when it hit $3 a gallon two years ago drivers started to get concerned, and at $4 a gallon demand evaporated.”

Nov 19

Say What?, you freakin wallstreet crook

Morgan Stanley’s Mack: ‘We Cannot Control Ourselves’

Say What?? But you clowns are supposed to be the best of the best of the best……………………………………., which is supposedly the reason you get Extreme Compensation and ever growing Company Perks, writeoffs by the way, No One Else Can Do What You Do, or so the crap is stated and You Can’t Control Yourselves, say it ain’t so you freak!!!

Oct 18

10% of $700 billion bailout to cover Wall Street banker pay and bonuses

One tenth of the $700 billion bailout to be footed by U.S. taxpayers is projected to go to the pay and bonuses of Wall Street bankers. The same captains of finance who sent the world into a financial meltdown are now going to be rewarded handsomely.

The Guardian has found that the Top Wall Street bankers are to receive $70 billion in pay deals.

Financial workers at Wall Street’s top banks are to receive pay deals worth more than $70bn (£40.4bn), a substantial proportion of which is expected to be paid in bonuses, for their work so far this year – despite plunging the global financial system into its worst crisis since the 1929 stock market crash…

Staff at six banks including Goldman Sachs and Citigroup will pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted widespread criticism. The government cash has been poured in on the condition that excessive executive pay will be curbed.