Posts Tagged too big to fail\
This is an example of how regulation has completely and utterly failed, despite it being there technically and looking like it has succeeded by mere virtue of existing. In other words, regulations have to be meaningful otherwise their mere existence is just lip service.
Case in point: JP Morgan Chase’s $410 million deal to settle charges it manipulated electricity markets in California and Michigan. This brings the amount the bank has paid in fines and settlements in the past couple of years to nearly $7 billion.
That may sound like a lot, until you consider the metric fuck tons of money the bank has made during that time.
The Daily Beast recently did the hard legwork of compiling all of these settlements into one helpful post, which are summarized in these charts.
See, if you keep breaking the law and pay the fine while continuing to break the law because you recognize that paying the “fine” is still more profitable than obeying the law, then that fine is no longer a fine, but a tax or a fee. In other words, the fines imposed on these banks are not harsh enough so they are seen by the company just as a fee or tax they have to pay so they can continue violating the law. In essence, therefore, they are just basically paying a fee for a license to break the law. Thing is, if the “fine” does not hurt the company, it is not a punishment. Seven billion may seem a lot to you and I, but for a company that makes above $50 billion, the fine they have to pay is a drop in the bucket.
And this is pretty much what it comes down to. We do have regulations which the GOP and its peons like to cite, but they are not really stringent enough. They are more like a slap on the wrist. Because that is the case, the thinking by such companies is “well, let’s just pay the fine and break the law.”
(I am using hypothetical figures to illustrate the point):
Option A: Don’t break the law = $40 billion profit
Option B: Break the law: $ 75 billion profit
Option C: Pay a fine, break the law: $75 billion minus $7 billion fine = $68 billion profit.
In conclusion: choose Option c: Break the law, pay the fee for the licence to break the law.
Case in point, the stink everyone is raising over Rolling Stone’s cover featuring the Boston Marathon bomber suspect Dzhokhar Tsarnaev. Not content with simply not buying Rolling Stone’s latest issue, one man is actually calling for the magazine to be burned in public. How so very 1933 Hitler of him.
This strong, and frankly misplaced reaction of people is so random. I mean we had George W. Bush on the cover of many magazines before and Dick Cheney and those are war criminals who have more blood on their hands than the Boston marathon bombers could ever have. I mean let’s be real here. And no one ever protested that. No, they even voted the crooks back into office. How many lives have they destoryed, directly or indirectly, as a result of their policies – domestic and otherwise? People are so easily swayed by titles and appearances. I mean shit, even Obama got the Nobel Peace Prize and he is still using drones that kill more innocent people than the bad guys.
There is overt violence, in the form of what the Tsarnaev brothers did, and then there is covert, structural violence, which is what Bush did with his two wars and atrocities under fraudulent premises, not to mention his devastating domestic policies that have lead to “too big to fail” and the meltdown with millions of people losing their jobs, livelihoods, retirements, futures and houses while the ones who helped destroy them were escorted out with fat bail out checks paid by the very tax payers they spit on.
Bush and the military industrial complex that line Congresses pockets lead us to wars that cost a lot of innocent people their lives. But no one sees that. Instead people are offended at a cover photo and want to burn it. Where is the rhyme and logic behind that?
Priorities people. This nation got none. Everyone hates the cover…no one reads the article, how very….American.