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View Diary: Tough Choice: If DOJ Prosecutes Wall Street, Banks Could Collapse (196 comments)

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  •  Not true -- investors are lied to all the time (9+ / 0-)

    Investors are entitled to sue the principals or make a claim to the bankruptcy court or other supervisory body unraveling the collapsed banks, but they're not entitled to win.  Do you think investors think they have a guarantee that the information given in investment documents is the whole truth and nothing but the truth?  Maybe, if we had an SEC with teeth, that might be a reasonable assumption.  But we don't, and everybody knows that.  The art of misrepresentation on Wall Street is highly developed, and lawyers are its most accomplished practitioners.

    I certainly agree that investors should file suits if they think they can prove fraud and material misrepresentation, but those are not easy suits to win.

    Citizens United defeated by citizens, united.

    by Dallasdoc on Wed Feb 06, 2013 at 06:06:59 PM PST

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    •  Lying to investors is a serious felony (6+ / 0-)

      That it hasn't been treated as such doesn't make it not so, or mean that it won't be treated as such. The interesting thing about civil suits is that the discovery process will reveal everything, including criminal liability. Which means that they're likely to settle. Lawyers are lining up to take these cases.

      "Liberty without virtue would be no blessing to us" - Benjamin Rush, 1777

      by kovie on Wed Feb 06, 2013 at 08:28:03 PM PST

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      •  It may be a serious felony, but it is (7+ / 0-)

        an unenforced law, generally speaking.

        The SEC, Treasury, and Federal Reserve have been notoriously lax in letting anything goes be the rule of law.  

        Hell, in this one area, I'd prefer the George H. W. Bush administration's policies more than Obama's:  They prosecuted hundreds and thousands of savings and loans officers and boards for crimes much less serious than these.  And real prison time was handed out.

        Wow.... enforcing the law on Wall Street?  Who would have thunk it?  And by a Republican administration?  

        This particular area is one of the Obama administration's most glaring and obvious failures.  And one that the history books will not treat kindly.

        "The law is meant to be my servant and not my master, still less my torturer and my murderer." -- James Baldwin. July 11, 1966.

        by YucatanMan on Wed Feb 06, 2013 at 11:25:36 PM PST

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