Cross posted from The Stars Hollow Gazette
Rolling Stone‘s Matt Taibbi joins Bill to discuss the continuing lack of accountability for “too big to fail” banks which continue to break laws and act unethically because they know they can get away with it. Taibbi refers specifically to the government’s recent settlement with HSBC – “a serial offender on the money laundering score” – who merely had to pay a big fine for shocking offenses, including, Taibbi says, laundering money for both drug cartels and banks connected to terrorists.
Taibbi also expresses his concern over recent Obama appointees – including Jack Lew and Mary Jo White – who go from working on behalf of major banks in the private sector to policing them in the public sector.
Matt has more on Mary Jo White and her involvement with squashing the insider trading case against future Morgan Stanley CEO John Mack by Sec investigator Gary Aguirre.
There are a few more troubling details about this incident that haven’t been disclosed publicly yet. The first involve White’s deposition about this case, which she gave in February 2007, as part of the SEC Inspector General’s investigation. In this deposition, White is asked to recount the process by which Berger came to work at D&P. There are several striking exchanges, in which she gives highly revealing answers.
First, White describes the results of her informal queries about Berger as a hire candidate. “I got some feedback,” she says, “that Paul Berger was considered very aggressive by the defense bar, the defense enforcement bar.” White is saying that lawyers who represent Wall Street banks think of Berger as being kind of a hard-ass. She is immediately asked if it is considered a good thing for an SEC official to be “aggressive”:
Q: When you say that Berger was considered to be very aggressive, was that a positive thing for you?
A: It was an issue to explore.
Later, she is again asked about this “aggressiveness” question, and her answers provide outstanding insight into the thinking of Wall Street’s hired legal guns – what White describes as “the defense enforcement bar.” In this exchange, White is essentially saying that she had to weigh how much Berger’s negative reputation for “aggressiveness” among her little community of bought-off banker lawyers might hurt her firm.
Q: During your process of performing due diligence on Paul Berger, did you explore what you had heard earlier about him being very aggressive?
A: Yes.
Q: What did you learn about that?
A: That some people thought he was very aggressive. That was an issue, we really did talk to a number of people about.
Q: Did they expand on that as to why or how they thought he was aggressive?
A: I think and as a former prosecutor, sometimes people refer to me as Attila the Hun. I understand how people can get a reputation sometimes. We were trying to obviously figure out whether this was something beyond, you always have a spectrum on the aggressiveness scale for government types and was this an issue that was beyond real commitment to the job and the mission and bringing cases, which is a positive thing in the government, to a point. Or was it a broader issue that could leave resentment in the business community or in the legal community that would hamper his ability to function well in the private sector?
It’s certainly strange that White has to qualify the idea that bringing cases is a positive thing in a government official – that bringing cases is a “positive thing . . . to a point.” Can anyone imagine the future head of the DEA saying something like, “For a prosecutor, bringing drug cases is a positive, to a point?”
Somehow this sounds like more of the same at the from the Obama administration.
1 comments
Author