Richard Bowen

  • Home
  • About
  • Speaking
  • Videos
  • Media/Press
  • Testimonials
  • Blog
  • Contact
  • +1-214-604-5492

August 20, 2015 By Richard Bowen

How Bankers Avoid the Slammer

#mortgagecrisis
In a recent Atlantic article, “How Wall Street’s Bankers Stayed Out of Jail,” William D. Cohan asks, “the probes into bank fraud, leading to the financial industry’s crash have been quietly closed. Is this justice?” 

It appears that the legal window for punishing Wall Street bankers for fraudulent actions that contributed to the 2008 crash has just about closed. And, few tough, just actions have been taken.

Image Source: williamcohan.com
Image Source: williamcohan.com

Both Cohan and I have been writing about the Department of Justice’s indictments of the major Wall Street banks for some time, starting with former Attorney General Eric Holder and continuing with our new Attorney General, Loretta Lynch. Cohan quotes Attorney General Lynch on bank behavior: “The indictment alleges corruption that is rampant, systemic, and deep-rooted both abroad and here in the United States,”… “Today’s action makes clear that this Department of Justice intends to end any such corrupt practices, to root out misconduct, and to bring wrongdoers to justice.”

Her intentions and Holder’s seemed fairly forthright, yet as Cohan and I point out, the department of Justice has lost sight of the larger issue that is the fraudulent behavior of the Wall Street bankers and traders that resulted in our 2008 financial crisis. The D.O.J. has only managed to indict and jail one banker.

We conveniently overlook that in the 1980’s financial crisis over 1,000 bankers were jailed, not let off with just a fine. They paid for their fraud and financial wrong doing.  To date, the 2008 crisis has resulted in nearly $190 billion in fines and settlements from 49 separate financial institutions (Keefe, Bruyette & Woods analysis).

That’s a hefty number, indeed. However, let’s not forget that those fines and settlements were paid by the bank’s shareholders, not the bankers themselves. And, they were paid out as corporate expenses. In other words, the payments were treated as the cost of doing business and in some cases these expenses were tax deductible. Unbelievable, but true!

Astonishing as it seems, the bankers robbed their banks, customers and tax payers and only one banker, Credit Suisse’ senior trader, Kareem Serageldin, has gone to jail. So, in the 2008 crisis, 1; 1980’s crisis, 1000! Incredible odds and odds that just don’t add up.

The message is clear. Regardless of what our past and present Attorney Generals claim — that the lack of prosecutions are not a result of their lack of effor — to date, the D.O.J. has not displayed the desire to seek punishment for the misconduct on the part of individual bankers.

A long list of whistleblowers, including me, have repeatedly testified that the evidence of fraud is there. We’ve uncovered it. And the D.O.J. is apparently using that and additional evidence to levy large settlements.

[tweetthis]A long list of whistleblowers have repeatedly testified that the evidence of fraud is there. ~ @RichardMBowen #tbtf #2008 #doj[/tweetthis]

So how is it possible we keep finding evidence to force these large settlements and yet not enough to prosecute? There’s obviously a huge piece missing here which just doesn’t add up. But William Cohan provides much of the answer by clearly showing the template repeatedly used by the D.O.J. in getting these settlements from the banks.

Cohan describes how the D.O.J. threatens to publicly disclose the evidence of wrongdoing and then, in exchange for large settlements by the banks, the D.O.J. seals the evidence so it will never become known by the public and bank executives are not inconvenienced by a perp walk.

By following this template the D.O.J. gets to show the media and public how tough they are on the big bad banks. The banks simply have another expense and the public never sees how widespread the fraud really was.

I have also written in “Were Bank Payments Really Payments of Extortion to the Justice Department,” that the settlements are merely payments to the D.O.J. to hide the evidence. And, not one penny of the billions paid to the D.O.J. coffers goes to the investors who lost the money. 

The infamous bank robber Willie Sutton, when asked why he robs banks, supposedly said, “Cause that’s where the money is.” The D.O.J. has also obviously taken that to heart in filling their own coffers.

Related Posts

Were Bank Settlements Really Payments of Extortion to the Department of Justice??

Broken Windows, Broken Banks! It’s time to institute a Wall Street “Zero Tolerance” policy.

Senator Warren: Enough is Enough with “Too Big To Fail” Citigroup

Is Dodd-Frank the Real Culprit Today? -- YES!
Don’t Stay Silent: Stand up and Raise Your Hand!

Ethics on your mind? Subscribe to my ezine to get my latest article delivered right to your inbox. Click Here to Subscribe

Richard Bowen is widely known as the Citigroup whistleblower. As Business Chief Underwriter for Citigroup during the housing bubble financial crisis meltdown, he repeatedly warned Citi executive management and the board about fraudulent behavior within the organization. The company certified poor mortgages as quality mortgages and sold them to Fannie Mae, Freddie Mac and other investors.

Related Posts

  • The D.O.J gets ready for the next round….lets see if the banks get  away…again!The D.O.J gets ready for the next round….lets see if the banks get away…again!
  • Damn the Evidence! No Prosecutions for Citi
  • Senator Warren: Enough is Enough with “Too Big To Fail” CitigroupSenator Warren: Enough is Enough with “Too Big To Fail” Citigroup
  • What Caused the 2008 Financial Crisis? Interview by NCPAWhat Caused the 2008 Financial Crisis? Interview by NCPA

What People Are Saying About Richard M. Bowen

William D. Cohan"Richard Bowen is one of my heroes. His is a story of human fortitude at its best and Wall Street at its worst."

~ William D. Cohan, NY Times Best Selling Author
2017-06-30T10:08:59+00:00
"Richard Bowen is one of my heroes. His is a story of human fortitude at its best and Wall Street at its worst." ~ William D. Cohan, NY Times Best Selling Author
https://www.richardmbowen.com/testimonials/2556/

Eileen McDonnell"Richard Bowen reinforced my motto that "there is no right way to do a wrong thing.” Long after his presentation, the conversation has continued about personal responsibility and the courage to challenge things that appear to be wrong. We encourage this dialog and rely on it to help make our business stronger."

~ Eileen McDonnell, Chairman, CEO, & President, Penn Mutual
2015-02-13T19:51:19+00:00
"Richard Bowen reinforced my motto that "there is no right way to do a wrong thing.” Long after his presentation, the conversation has continued about personal responsibility and the courage to challenge things that appear to be wrong. We encourage this dialog and rely on it to help make our business stronger." ~ Eileen McDonnell, Chairman, CEO, & President, Penn Mutual
https://www.richardmbowen.com/testimonials/711/

Ben Stein"Richard Bowen, you are a star and a hero."

~ Ben Stein, Economist and Political Commentator
2015-02-13T19:50:26+00:00
"Richard Bowen, you are a star and a hero." ~ Ben Stein, Economist and Political Commentator
https://www.richardmbowen.com/testimonials/712/

Jim Farrell"Richard's speech at the April Financial Executives International dinner was informative, interesting, riveting, and fast moving.  The feedback from members was overwhelming positive, and Richard received one of the few standing ovations given by our membership."

~ Jim Farrell, Program Chairman, Dallas Chapter, Financial Executives International
2014-12-28T19:48:17+00:00
"Richard's speech at the April Financial Executives International dinner was informative, interesting, riveting, and fast moving.  The feedback from members was overwhelming positive, and Richard received one of the few standing ovations given by our membership." ~ Jim Farrell, Program Chairman, Dallas Chapter, Financial Executives International
https://www.richardmbowen.com/testimonials/532/

Dennis McCuistion"Richard Bowen has been there, done that, and has the scars to prove it, and his message of corruption at the highest levels of industry and government needs to be heard. I only wish that more bankers had the courage that Bowen exhibits. He is not only one of the most talented bankers I have ever met, he has more integrity than all the bankers on Wall Street put together. If his former employer had listened to him taxpayers would not have had to bail out Citi for the third time in the last 30 years."

~ Dennis McCuistion, Host of the McCuistion TV program
2014-12-28T19:48:06+00:00
"Richard Bowen has been there, done that, and has the scars to prove it, and his message of corruption at the highest levels of industry and government needs to be heard. I only wish that more bankers had the courage that Bowen exhibits. He is not only one of the most talented bankers I have ever met, he has more integrity than all the bankers on Wall Street put together. If his former employer had listened to him taxpayers would not have had to bail out Citi for the third time in the last 30 years." ~ Dennis McCuistion, Host of the McCuistion TV program
https://www.richardmbowen.com/testimonials/533/

Betty Garrett"Richard Bowen is a dynamic, entertaining speaker and story-teller - a CPA with a great personality!"

~ Betty Garrett, Garrett Speakers International
2014-12-28T19:47:50+00:00
"Richard Bowen is a dynamic, entertaining speaker and story-teller - a CPA with a great personality!" ~ Betty Garrett, Garrett Speakers International
https://www.richardmbowen.com/testimonials/531/

fred-timmons"I believe Richard Bowen is the only keynote speaker to ever receive a standing ovation from the Texas Society of CPA’s at any of its annual conferences."

~ Fred Timmons, Chairman of The Texas Society of CPA's
2014-12-28T19:47:22+00:00
"I believe Richard Bowen is the only keynote speaker to ever receive a standing ovation from the Texas Society of CPA’s at any of its annual conferences." ~ Fred Timmons, Chairman of The Texas Society of CPA's
https://www.richardmbowen.com/testimonials/530/

Presentation Topics

Playing for High Stakes: The Principles and Practice of Ethical Leadership

Dark Citi: The Story of a Whistleblower

Want to Hire Richard?

Watch Richard

See What Clients are Saying

About Richard

Recent Posts

  • Warmest thoughts and best wishes for a wonderful and safe holiday
  • Thanksgiving 2020
  • Pausing For A While
  • The world is in crisis
  • Relationships Count

Categories

  • Business Ethics
  • Congress
  • Corporate Debt
  • Corruption
  • Ethical Leadership
  • Financial Crime
  • Financial Crisis
  • Financial Crisis of 2008
  • Holiday
  • International
  • Mortgage Lending
  • Mortgage Meltdown
  • Relationships
  • Texas Politics
  • The Fed
  • Too Big To Fail
  • Uncategorized
  • Updates
  • Wall Street
  • Whistle Blowers

About Richard

Now an ethical leadership speaker, Richard Bowen was Citigroup's Business Chief Underwriter during the housing bubble.

Read more

Connect with Richard

  Facebook   Twitter   Linked   Google Plus   YouTube

Contact Us

Phone: +1-214-604-5492

Email: Richard@RichardMBowen.com

Contact Richard
Google+

Copyright 2019© 2021 · Richard M. Bowen | ALL RIGHTS RESERVED.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.

Necessary Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

X
Sign up to receive my blog posts via email!
Subscribe >>