UBS-a Nostra
Mind boggling. That is the only way I can describe the acquittal of UBS by the U.S. Department of Justice. Actually, there was no acquittal...UBS has never gone to trial for money laundering and the paper mache case against them has now officially been tossed. In spite of admitting guilt for making fraud a key business practice the Union Bank of Switzerland escapes unscathed...
But before I get into the punchline of this sick joke, let's take a quick trip down memory lane...
NYC in the early-to-mid 1980's was a sight to behold. Much of the old school crime and grime associated with the city's gritty nostalgia has gone the way of Lehman and Bear, but to those who remember The Rotten Apple, a story like this cannot help but to invoke very specific memories.
I recall walking into a Brooklyn deli, witnessing a huge Lincoln Town Car parked on the curb. The short, pudgy gentleman would stroll in and out with the grace of a pregnant ballerina, the gold chain dripping all over his coiffed chest hair. Every time there was a plain brown bag in his hand and it wasn't lunch he was collecting
Back in those days, the code of silence still stood in many of the city's neighborhoods. You kept your mouth shut and you definitely did not call the police. If by some chance you did make it to the witness stand, chances are you would have been made to realize why you ought to keep quiet. Sadly for him, Bradley Birkenfeld never learned that lesson.
The story of Birkenfeld's conviction and how smoothly and silently UBS has skated away home free for committing the financial world's equivalent of RICO violation is one of the most bizarre and sickening in recent memory.
I don't think that I need to qualify myself as a pro-market, pro-business, pro-money sort of guy...but when the situation merits it, I am all for the hanging of corporate banksters.
How in the world is the whistleblower the only one who goes to jail? For those of you who recall the multiple trials of John Gotti, the situational outcome isn't much different. At least the people who testified against The Teflon Don did not see prison time as a result.
Now let's be clear Birkenfeld was no church boy, but anyone who isn't shocked and appalled by this turn of events should have their head examined. Anyone who claims that we have a fair and impartial market after today is off their rocker.
Today, UBS has managed to achieve what organized crime never could...they have simply put a price on and made a market in white collar crime.
The bid is $780,000,000 gentlemen...
Going once...
I mean, are you really THAT surprised? We live in a new world and an entirely different country.
Think of it this way: The supreme court ruled that corporations have the same rights as a person. Most corporations that would stand trial like this are worth billions, have deep connections, etc. Do you honestly think that the government, politicians, etc. want to make waves for companies like UBS when they can simply collect money?
tl:dr the government doesn't profit in anyway by making UBS miserable.
Midas,
I was under the impression that as a whistleblower, he would be protected, so to speak, from this kind of backlash, given both the fact that there are SARBOX rules concerning White Collar and Corporate Whistleblowers and he did so voluntarily, with the assurance he would be immune for prosection. I would be hard pressed to assume that UBS would not qualify as a Corporate Entity for whistleblowing purposes under SOX.
While I am aware that this may seem a bit extreme, as I am ususally more understanding, I cannot agree with what the DOJ did and as a result, I propse that three things need to happen as a result of this:
1) Kevin Downling and Jeff Neimann should be fired from the DOJ and disbarred from practice. They completely screwed an innocent man that tried to do the right thing. Not only that, they barely used him for information, let UBS walk free and the man behind this whole issue in the first place head back to Switzerland a Free Man. 2) Both the lawsuit against Birkenfeld and UBS case needs to be appealed to a higher body of law, with Birkenfeld being pardoned for this and UBS and their bankers being required to own up to their sins. 3) New rules regarding protecting legitimate whisteblowers from this kind of bullshit needs to be passed so they do not get screwed while trying to do what's right and fair.
Between this and the matter of the Mark Pittman case, the FOIA Lawsuit filed against the Fed, I would be hard pressed to believe that our own government is not beyond selling us out to protect everyone but the people they represent.
Frieds,
Your points are solid as always. In this situation, however, I don't think any serious thought needs to be given or analysis performed. It's a simple matter of which names would have been dropped as tax evaders if UBS were to face trial. I wouldn't be surprised if Birkenfeld was both pardoned and allowed to collect 2-3% of the UBS fine just so the story goes away.
The amount of money the government could have clawed back from UBS would easily surpass any returns they'll see of Citi, GM and the like. The only answer that makes sense and the only reason that the whistleblower is the only guy doing time (fyi, he got MORE time handed to him by the judge than the prosecution asked for) is addressed in the title of the topic.
But then again, you're from Jersey...you don't need much schooling on the subject.
Midas,
Fair enough. I would read the commution of sentance filed on behalf of Birkfield, as it definitely paints a very good picture of what happened and how an innocent man got screwed for far more than he should. The anwers to questions 5 and 7 are extremely illumination.
http://www.whistleblowers.org/storage/whistleblowers/documents/Birkenfe…
And wait, which mob are we talking about? The Trenton Machine? The NJEA (The Teacher's Union aka the Extortion Association) ? Or are we talking the old school Mob? They all play the game by a different set of rules. Trenton extorts the masses. The NJEA extorts both Trenton and the Masses. The Mob... well, they run the waste management.
You need to run for office bro. Form a tag team with Chris Christie, start jacking NJEA members.
This transript's ridiculous. Comments futile. Resistance futile. Futility futile.
U.S. slips to historic low in global corruption index....
http://finance.yahoo.com/news/US-slips-to-historic-low-in-rb-3603521040…
Birkenfeld got the fat screwgie. I mean--I don't really understand the DOJ's goal here. I am sure they would claim they are trying to discourage fraud and encourage whistleblowers to come forward early and be inordinately cooperative. But after hearing what happened to this guy, why would anyone come forward to report corporate mischief?
Bear,
That's the point. No one understands why in gods name the DOJ bended their will to prosecute a guy who was continually willing to provide information even while incarcerated, and why I reiterate my point that Downling and Neimann need to go. The fact is, the DOJ screwed him over, and will screw over the FOIA when its heard before the Supreme Court thanks to the Clearing House Association (Read: The Bankers Union) and the defendant that is sitting in the background, the Fed not actively choosing to be involved. That, by the way, is a bunch of bullshit. This is going to be a huge issue, particularly over what can and cannot be allowed to be provided under FOIA. Oh, this a great shitstorm that will go down in history as one of the worst things ever.
Midas,
I would, but that requires Law School. I would, however, not be opposed to the idea if it meant the potential for the Presidency.
I read the pdf; this is insane. The only reason why, to me at least, the DOJ reacted in that way would be because in that list of 19 00 clients would be listed a bunch of highly recognized US lawyers, members of the DOJ, politicians and people working at the IRS.
"Although the legal and ethical definitions of right are the antithesis of each other, most writers use them as synonyms. They confuse power with goodness, and mistake law for justice." Charles T. Sprading, Freedom and its Fundamentals. I just had to put that quote somewhere ;)
Frieds,
Funk all that, man. Just put on a hundred pounds and form a tag team with Chris Christie, you guys can go toe-to-toe with the fattest laziest twats the NJEA has to offer. I am sure that will keep you busy for a decade at least.
Midas,
And I'll make sure we walk around with the WWE Tag Team Titles wherever we go! Really though, after the Corzine Fiasco, I maintain my stance that a Law Degree is security when it comes to politics... that or a union rep gig as my day job while serving in Trenton. Corzine's view that as a businessman, he could change the world, was far from the truth. The only way to shield yourself is to be a practicing lawyer, as there's something about knowing how to legally cover your ass. Trenton does not take well to business people with a sense of reality because it scares them... wait, anyone that can see the real way of the world scares them.
As to the NJEA, there's a new war brewing thanks to the man who exposed ACORN when he went undercover as a Pimp... Since I'm being hit with the spamfilter (Really? I mean, Really...), google Jame O'Keefe NJEA to get the whole story on his expose.
The Videos - Since I apparently have way to many links, look for "Teachers Gone Wild: Volume 1" and "Teachers Gone Wild: Volume 2" on Youtube.
That stuff is scary, but it looks like I won't be able to go for the jugular, I'll be the vulture circling the pack.
16RL,
Of course it's a means of protecting their own and they know it. It doens't matter, as whoever has been doing this should be screwed. What bothered me most about comparing the pushiments of those indicted as a result of Birkfield's help got a slap on the wrist as their punishment instead of a real punishment worthy of the crime.
NJEA--->Frieds=ACORN--->Midas
Seen those vids before, out of control.
You're right about the law degree, though I think it is more the derivative scumbag option held by most lawyers that keeps them out of trouble than any sort of legalese.
I remember catching the 60 minutes video on this when it came out.
here's the link for those interested:
http://www.cbsnews.com/stories/2009/12/30/60minutes/main6038169.shtml
unfortunatley without sound on my computer I can't watch it, but if I remember correctly Birkenfeld failed to play the political game correctly. He was not entirely forthcoming and tried to muscle the DOJ by using the information as leverage. Again, it's been a while since I watched the video but I think it ultimatley came down to Birkenfeld creating enemies with the people he thought would protect him.
Birkenfeld was very forthcoming. He was willing to tell them all and was asking for immunity in return. In exchange for the type of information Birkenfeld was offering up on his bosses, immunity is granted in these types of cases even for those who get caught doing something red-handed - so why not for a guy coming in VOLUNTARILY??
Sensing their hostility and realizing DOJ had no intention of granting him immunity regardless of what he told them, Birkenfeld therefore decided to spill that beans to the Senate and SEC instead of DOJ.
Coincidentally, here's a recent follow up which starts to explain what was really going on at DOJ: http://www.forexyard.com/en/news/UBS-whistleblower-prosecutor-obstructed-probe-2010-10-29T143041Z-INTERVIEW-US
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