Too Big To Jail?

Are you surprised by the news that Ralph Cioffi and Matthew Tannin skated on all charges? I know I am. I'm just not used to seeing a government case collapse after they've piled on a bunch of charges. The jury was unconvinced, though, and only took 9 hours of deliberation to deliver their Not Guilty verdict.

This got me wondering about the state of public outrage toward bankers and how maybe the sentiment portrayed by the media produces more light than heat. At the end of the day (annoying bankerspeak), maybe individual Americans are still able to set emotions aside and approach a deliberative process dispassionately. Perhaps this bodes well for the next bankers on the chopping block.

I'm beginning to wonder if Raj Rajaratnam's flamboyance might sway a jury. Imagine the blow to the government that acquittal would represent. I mean, they think this guy went so far as to fund the Tamil Tigers - a known terrorist organization. Cioffi-Tannin has to be a major wake-up call for the Feds that they'd better bring their "A" game if they're hoping for convictions.

My old boss is going to trial in January for some pretty nefarious shit. To make a long story short, he bilked investors out of about $10 million in a FOREX scam and now he's facing a total of 300 years in prison and about $20 million in fines. He waived his right to a speedy trial when he was indicted in mid-2007, probably thinking he wanted to put a little distance between his jury and all the bad press he was getting at the time.

A couple months ago, I would've bet that a jury would give him the chair if they could. But after yesterday's verdict, I'm no longer so sure. The government had pretty damning recorded evidence against Cioffi and Tannin, and it wasn't enough to sway the jury. Maybe my old boss will skate too, and go back to doing big lines of crystal meth and banging his butt-ugly trading assistant.

On the one hand, you have guys like Madoff who are just so tired of being a crook that they cop to everything and make it easy. On the other hand, you have guys who are very, very careful and make building a case against them pretty tough. I generally believe the government goes after the low-hanging fruit. This tendency and the government's reliance upon taped evidence may actually work in Raj's (and my old boss's) favor.


Prosecutors today told Katz they have a strong case against Rajaratnam, 52, which is based on recorded conversations he made and on the testimony of several witnesses including former Intel Corp. executive Roomy Khan.

I think it's going to take more than the tapes to get a conviction.

 
Edmundo Braverman:
I generally believe the government goes after the low-hanging fruit.

Yezz, on more levels than one. Great stat: IRS audited only about 15 percent of large financial services companies - those with $250 million or more in assets - compared with 64 percent of corporations of similar sizes.

Forgot who said it on CNBC, but despite it being a jury's decision, when asked what is a Regulator?

Someone not smart enough to get the job (hence understand, and make valid conviction) of the people he 'regulates.'

 

Iure ea quo soluta ut aut sapiente nisi maxime. Quibusdam rerum iusto dolor natus. Dicta accusantium culpa dolores ipsum quia velit quia veritatis. Sunt voluptas nihil et tenetur odit nam. Sunt molestiae enim fugit nostrum enim. Maiores voluptates aut mollitia nostrum itaque non ab.

Quam consequatur eos similique qui sapiente sunt ad. Est quas rerum dignissimos doloribus. Doloremque soluta vitae ut rerum alias occaecati rerum. Nulla dolores id quisquam. Deserunt sit similique facilis nobis repellendus soluta voluptatem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”