Subscribe: RSS Feed | Twitter | Facebook | Email
Home | Contact Us

60 Minutes: The Case Against Lehman and Financial Regulators

Posted by Larry Doyle on April 23, 2012 7:28 AM |

Having been away for the weekend, I missed last night’s edition of 60 Minutes and thank a loyal reader who brought it to my attention.

How is it possible that even today an institution such as Lehman Brothers, which clearly engaged in accounting maneuvers designed to disguise its true financial position, is not pursued so real justice can be meted out?

We keep coming back to the same old question: Where were the regulators, both the SEC and FINRA? Pervasive evidence over the years continues to persist that our regulators were and are fully and totally captured as they served to protect Lehman and virtually every other major Wall Street firm. The fact that the SEC has still not chosen to pursue Lehman executives is a massive indictment of our financial regulatory system. This is not a difficult assessment to make. Enough with the sovereign immunity for the SEC and absolute immunity for FINRA. Put these institutions and appropriate individuals on trial along with the appropriate Lehman execs…and many more. The integrity of our nation is at stake.

Watch this 13 minute video and ask yourself the question, “Is our system corrupt”?

How can one not come to that assessment? The stench of the Wall Street-Washington Incest remains overpowering. Our children should hold us in contempt for allowing our elected officials to fail us so miserably.

Do you feel like screaming? I do…so here goes.

Barack Obama…GUTLESS!!
Joe Biden…GUTLESS!!
Eric Holder…GUTLESS!!
Mary Schapiro…REALLY GUTLESS!!
Robert Khuzami…TOTALLY GUTLESS!!
Richard Ketchum…GUTLESS!!
Appropriate House and Senate Committees…GUTLESS!!

More than GUTLESS, these individuals are all CAPTURED by the big money on Wall Street. As such, they are little more than Wall Street “BITCHES”. Do you disagree?

Watch the video…and then navigate accordingly!!

What do you think?

Larry Doyle

Please subscribe to all my work via e-mail, an RSS feed, on Twitteror Facebook.

I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Yes! Yes! Yes! The injustice is appalling. Definitely let’s go after every single one of those in-house regulators as well as all of their superiors! If not, what is the point of even having government oversight? We should be held in contempt for sitting on the sidelines and permitting this deterioration.

  • Dan

    Larry,

    I share your outrage, but am looking for your thoughts and suggestions re: what the average American can do to try and make a difference and a change?

    If you could reply or post some ideas that would be appreciated.

    Yes, I already write to the Senators and Congressmen who represent me… tired of form letters and then being spammed to death from their emails…

    Thanks in advance for your help on this!

    All the best and keep on posting.

    • LD

      Dan,

      I have become convinced that the only real way to create pressure and change in our nation is to bring things into the public domain. What are some of the methods?

      Blogs, videos, public petitions via Change.org,

      The media is either very late to the party or non-existent given their own conflicts.

      The reason why I launched my blog was to develop a voice and now use it aggressively.

      I hope you would spread my blog Sense on Cents and the link to the Wall Street-Washington Incest embedded within my commentary today.

  • Obsvr-1

    I am happy to see the MSM focus on the corruption, unethical and illegal behavior, however it is the DOJ that should have this focus. It is extremely frustrating to witness this massive crime go unpunished.

    Additional Characteristics of the CLAN ….

    Barack Obama…GUTLESS!! … Self anointed dictator, wrapped in crony-capitalist garb, with a $hit eating grin facade.

    Joe Biden…GUTLESS!! … WORTHLESS.
    Eric Holder…GUTLESS!! … TREASON-IST
    Mary Schapiro…REALLY GUTLESS!! … CAREER HEAD MASTER
    Robert Khuzami…TOTALLY GUTLESS!! … TOOTHLESS ENFORCER, KING of LOOK THE OTHER WAY

    Richard Ketchum…GUTLESS!! … CATCH-EM (Ketchum) IF YOU CAN

    Appropriate House and Senate Committees…GUTLESS!! … BOUGHT AND PAID FOR BY THE PLUTOCRATS

    Washington DC and WALL St are the modern day equivalents to
    SODOM and GOMORRAH

  • Bill

    In regard to the SEC,

    Again, let’s look at the bright side first: Regulation-hating corporate attorney Harvey Pitt isn’t running the place. That’s about it for the bright side. Failing to enforce Section 406 is just one aspect of the SEC’s lackadaisical attitude toward corporate malfeasance. Policing public companies is so low on the SEC’s list of priorities that corporate fraud wasn’t even on the agenda when the Division of Enforcement was reorganized in early 2010.

    Like Pitt, his Bush administration successors and the current chairperson, Mary Schapiro, all have deemphasized corporate wrongdoing while pursuing headline-grabbing cases. A revealing new study by New York University researchers, released last month, found that the SEC pursued marginal (but highly publicized) options backdating issues while neglecting more egregious accounting issues.

    “We cannot know which accounting and other investigations were not pursued because the SEC was occupied with backdating,” the researchers concluded, “but our analysis suggests that a real opportunity cost accompanied the SEC’s zeal for backdating investigations.”

    Enron 10 years Later- -From Bad to Worse

  • Barry

    My thoughts exactly…

  • Jim Wells

    Hard to believe that an administration that was swept into office on the claim that they would jump on the ‘Fat Cat Bankers’ could have done exactly the opposite. Not only have they allowed the Too-Big-To-Fail banks to become even larger; but they have avoided any prosecutions of any CEOs of any of the big banks and investment banks that caused the worst economic disaster in the US since the Great Depression.

    After decades of denying that any financial institutions were Too-Big-To-Fail, the trillion dollar government bailout has codified the concept. The lack of any actions to cut these institutions down in size has allowed the banks to become even bigger, to the point where they have captured the federal agencies that are supposed to regulate them and are now Too-Big-To-Behave.

    Within 18 months of the S&L scandal, Charles Keating was serving time in prison. Where did this country’s sense of justice go???

  • Jim

    Yep, the fix is in.. As a former securities industry (retired thank God) professional, I am dumbfounded on this one and the fact that Corzine is walking around free… Disgusting….

    Seems to me when I had a series 7, 8, and 24, that taking client money or violating the capital requirements was illegal.. Oh well, what do I know…

  • Chris

    Larry you say, “We keep coming back to the same old question: Where were the regulators, both the SEC and FINRA?” According to the 60 minutes piece, they had set up camp, inside Lehman.

    • LD

      Chris,

      Even though they were inside Lehman, they were and seemingly remain ‘captured’ by the industry despite all assertions to the contrary.

      In 1913 Woodrow Wilson wrote: “If the government is to tell big business men how to run their business, then don’t you see that big business men have to get closer to the government even than they are now? Don’t you see that they must capture the government, in order not to be restrained too much by it? Must capture the government? They have already captured it.”

  • Patricia

    Wow, to think there was a whistle blower that was totally ignored and dumped for standing up for what was right. On that basis alone heads should ROLL!!! I’m feeling such disgust at our financial and government institutions which permit the raping and murder of the masses with tolerated criminal activity. Until we ‘clean our house’ and take out the ‘garbage’ there is not much chance of our overall survival. Thank you for sharing this with us 🙂

  • John Galt

    What can we do? Remove your money from all the largest banking firms. That is what we can do. Those of us (I suspect we are all ‘the little guy’ here) should not have any money with Bank of America, Citi, Goldman, Morgan Stanley, JP Morgan Chase and any other large institutions. If you wish to do banking, support your local, small banks. They are the ones that are issuing loans to your local businesses. They are less likely to be involved in repos and funny accounting to take enormous wagers on CDS, sovereign debt (MF Global) and the like. You can act by not permitted these cretins from putting a stranglehold on the global financial markets. The other options are to bank with credit unions, which are essentially non-profit organizations for members. Get your money out before the collapse hits.

  • LD

    Mr. Galt,

    Well put. Thank you!!

    LD

  • Mark

    I’m speechless…..utterly speechless.

    Good work Larry

  • Disenchanted

    Why does this all sound like old news, like I heard it before. If we keep the same regulators and politicians in office, nothing will change. As Larry states in many of his articles, “incest” is the key. Follow the connecting dots. Go back 10 years and trace the leadership of thses regulators and congress and senate. See how many of the same names at the head of different agencies you can find.This is an election year. Let’s hope there will be some new names to vote for. Unfortunatley for us, many of these positions are appointed, but if we vote in new leaders, maybe they will appoint some new people and with enough preasure from the public, some will have ethics.

  • phil

    How is it possible that even today an institution such as Lehman Brothers, which clearly engaged in accounting maneuvers designed to disguise its true financial position, is not pursued so real justice can be meted out?

    Answer — Crony Capitalism….true Capitalism died over the past 25 years.

  • stan

    Lets get back to those suffering still holding auction rate securities with oppenheimer. Oppenheimer annual meeting in New York May 14th. All ars holders attend and demand your money back. Oppenheimer has committed fraud . How have they gotten away with financial rape. Where are the regulators. HOw have they gotten preferential treatment. I and others are victims. These bastards must pay for the suffering and pain they have caused me and others holding their ARS. gO TO HELL oPPENHEIMER. go TO hell.






Recent Posts


ECONOMIC ALL-STARS


Archives