From the UK, we have word that the PM will be introducing a “New Law to Jail Banksters“.
I suppose this is a good thing but I do have a problem with it. It promotes the fiction that past bank behavior was legal. The refrain is “yes, they did some terrible things but unfortunately they weren’t against the law. ” Reject this myth.
Some of the activities in the sub-prime crisis were borderline but there was also clear lawbreaking, then or more recently. For instance, a tape just came out of Irish bankers talking about how they would deceive the government into bailing them out in 2008 by lying about how bad their situation was.
I’m not a lawyer but doesn’t that sound like conspiracy to commit fraud?
Then there was the decade of money-laundering to drug cartels and others that HSBC has admitted to. Aren’t there laws against that?
And most recently, the NY Times says that the SEC is accusing JPMorgan exec Blythe Masters of “‘false and misleading statements’ under oath”
Isn’t that the definition of perjury? Isn’t perjury a crime?
This is why a chapter of Alternative Banking’s upcoming book is titled: The Legal Rules the Financial Sector Just Ignores: a list of crimes.
You can get a preview of the book here (unfortunately, not yet including that chapter).
So, we don’t need new laws as much as enforcement of existing laws.