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.com: The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Audible Audio Edition: Jesse Eisinger, Jonathan Todd Ross, Simon Schuster Audio: Books free read Í PDF, eBook or Kindle ePUB read Ç PDF, eBook or Kindle ePUB ´ foothillflyingclub.co From Pulitzer Prize winning journalist Jesse Eisinger a blistering account of corporate greed and impunity and the reckless often anemic response from the Department of Justice Why were no bankers put in prison after the financial crisis of 2008 Why do CEOs seem to commit wrongdoing with impunity The problem goes beyond banks deemed too big to fail to almost every large corporation in America to pharmaceutical companies and auto manufacturers and beyond The Chickenshit Club an inside reference to prosecutors too scared of failure and too daunted. James Comey gave Eisinger the title for his book when he took over as prosecutor for the Southern District of New York under a newly elected George W Bush It was composed of prosecutors who were too timid to take a case to court especially one against individualsEisinger says that the very moment Comey gave that speech may have represented the apogee of prosecutorial zeal on the part of the financial enforcement regime Corporations grew stronger and court rulings made it difficult to go after individuals No individuals from the higher levels of the Too Big to Fail banks have been prosecutedEisinger is a dogged reporter He lives in a world of corrupt souls and he knows his way around pretty well I include a comment about my own contact with him which leads me to respect his skill and tenacityThe first uarter of his book is a lengthy preamble about the Enron and Arthur Anderson cases Though the government won both the fallout was so strong that they came to decline to prosecute either companies or individuals with much vigor choosing instead to work out financial settlements The incentives for executives to avoid fraud were minimized and fraud is what emergedMy experience with the short sellers and the prevalence of fraud in corporate reporting leads me to believe that whatever ill might be said about these vultures of the capitalist world they are essential As Eisenger reports so well in this book the official bodies appointed to protect the public interest simply do not do so The investor has to look out for himself Even sadder there is nobody looking out for the interests of the taxpayer who is the pigeon of last resort picking up the tab when the abuses that have been covered up by financial shenanigans finally cause a massive collapse Bimbo Invasion under a newly elected George W Bush It was composed of prosecutors who were too timid to take a case to court especially one against individualsEisinger says that the very moment Comey gave that speech may have represented the apogee of prosecutorial zeal on the part of the financial enforcement regime Corporations grew stronger and court rulings made it difficult to go after individuals No individuals from the higher levels of the Too Big to Fail banks have been prosecutedEisinger is a dogged reporter He lives in a world of corrupt souls and he knows his way around pretty well I include a comment about my own contact with him which leads me to respect his skill and tenacityThe first Sideways in Neverland Life in the Santa Ynez Valley California uarter of his book is a lengthy preamble about the Enron and Arthur Anderson cases Though the government won both the fallout was so strong that they came to decline to prosecute either companies or individuals with much vigor choosing instead to work out financial settlements The incentives for executives to avoid fraud were minimized and fraud is what emergedMy experience with the short sellers and the prevalence of fraud in corporate reporting leads me to believe that whatever ill might be said about these vultures of the capitalist world they are essential As Eisenger reports so well in this book the official bodies appointed to protect the public interest simply do not do so The investor has to look out for himself Even sadder there is nobody looking out for the interests of the taxpayer who is the pigeon of last resort picking Pandora up the tab when the abuses that have been covered Anayurt Oteli up by financial shenanigans finally cause a massive collapse

read .com: The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Audible Audio Edition: Jesse Eisinger, Jonathan Todd Ross, Simon Schuster Audio: Books

.com: The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Audible Audio Edition: Jesse Eisinger, Jonathan Todd Ross, Simon Schuster Audio: Books

.com: The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Audible Audio Edition: Jesse Eisinger, Jonathan Todd Ross, Simon Schuster Audio: Books free read Í PDF, eBook or Kindle ePUB read Ç PDF, eBook or Kindle ePUB ´ foothillflyingclub.co On The book travels to trading desks on Wall Street to corporate boardrooms and the offices of prosecutors and FBI agents These revealing looks provide context for the evolution of the Justice Department's approach to pursuing corporate criminals through the early 2000s and into the Justice Department of today Exposing one of the most important scandals of our time The Chickenshit Club provides a clear detailed explanation as to how our Justice Department has come to avoid bungle and mismanage the fight to bring these alleged criminals to justic. A needed review of the revolving door between Wall Street defence legal firms and the DOJ s office If you can t understand why no banker went to jail for the massive and blatant fraud in 2008 read this book

read Ç PDF, eBook or Kindle ePUB ´ foothillflyingclub.co

.com: The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives Audible Audio Edition: Jesse Eisinger, Jonathan Todd Ross, Simon Schuster Audio: Books free read Í PDF, eBook or Kindle ePUB read Ç PDF, eBook or Kindle ePUB ´ foothillflyingclub.co By legal impediments to do their jobs explains why A character driven narrative the book tells the story from inside the Department of Justice The complex and richly reported story spans the last decade and a half of prosecutorial fiascos corporate lobbying trial losses and culture shifts that have stripped the government of the will and ability to prosecute top corporate executives The book begins in the 1970s when the government pioneered the notion that top corporate executives not just seedy crooks could commit heinous crimes and go to pris. It s been said and I for one tend to agree that in November 2016 the American public punished the Democrats for not having successfully or otherwise prosecuted any senior Wall Street executives during the eight years following the crash 2008 I was hoping that this book was the one that would help me decide if that s trueAuthor Jesse Eisinger kicks off bombastically in early 2002 with the appointment of James Comey yes the one who went on to star in the Hillary vs Trump operetta as the 58th US Attorney for of the prestigious Southern District of New York The first time Comey assembled his crew he asked everyone who d never lost a case to raise their hand The go getters who did were in for a surprise me and my friends have a name for you guys he announced You are the members of what we like to call the Chickensht Club his shorthand for guys who failed to prosecute hard cases for fear of losingSadly that is as good as it gets It s where the book peaks It has a style that works fine for a full page spread in the newspaper but totally breaks down when you convert to a longer format You cannot paste together fifty such articles and hope the readers will string together a narrativeA story does emerge of course It is the author s account of how the entire justice system and Comey with it has turned into one giant Chickensht Club Sadly it reads like a project that was abandoned at some stage picked up later and rushed to print before somebody had bothered to actually turn it into a bookEisinger has evident passion for the subject and has done extensive research He s not uoting from others he s tracked down all the protagonists in the book who are still alive and has gotten their story straight from their mouth In short he is clearly is a first class journalistHe would make at best a second class prosecutorIf The Chickensht Club was meant to be written as a modern day J Accuse against the accommodation between big business and the modern legal complex it falls well short The author s gone out there he s listed the individual crimes he s done the groundwork he s found all the evidence but at grave risk of losing the interest of the jury you his reader he feels compelled to call every possible witness to the stand he does not walk you through the motive you almost need to infer it he certainly fails to follow judge Fleming s advice p 80 to try a thin case Worst of all he does not bother with a closing statement You will look in vain for the chapter that wraps up the main ideas of the book pp 194 201 with 130 pages still to go are the sole attemptDepressingly he does not even dream for one second of pointing out what we can do to make things better In rather un American fashion no attempt is made here to point at a better future if we try a bunch of solutionsThe story is not told linearly It starts in medias res with the Enron trial in year 2000 it stops well short of the 2008 crisis it goes back to the Great Depression and the Pecora trials all through to the glory years of the 1980 s from where we are transported back to AIG Lehman Merrill G0ldman etcFor all of the author s efforts to liven up the book by giving the main actors biographies those main actors are well lawyers I must have counted at least a hundred lawyers names I m not only talking legends like Ferdinand Pecora and Robert Morgenthau Here s a heavily abridged list of important people who play a significant part in this book all lawyers in real world chronological appearance Stanley Sporkin Peter Fleming Kathy Ruemmler Leslie Caldwell Sean Berkowitz Bob Fiske Sheirah Neiman Bob Mueller Paul Pelletier Justin Weddle Judge Lewis Kaplan Tom Hanusik Jemes Tendick Colleen Conry Adam Safwat Lanny Breuer David Ogden Ben Lawsky and Jim Kidney That s on top of maruee names I d heard before picking up the book people still on TV today or at least on TV in living memory like Rudi Giuliani Michael Chertoff Larry Thompson Eric Holder Jed Rakoff Andrew Cuomo the ubiuitous Preet Bharara Mary Jo White and James Comey It s fair to say that at least half of them get a biographical note in the book Judge Rakoff gets 8 count em pages Tolstoy really has nothing on Jesse EisingerFor every single legal episode in the book the book goes into minutiae that would arguably not even be appropriate for a full page in depth spread in the newspaper I doing so the author drowns his story in the detail which is a crying shame because it s an important story So allow me to summarize the Chickensht Club for you the way the author never does1 After the Great Depression and the excess that led to it the law for the first time became serious about white collar crime a term that was defined by Edwin Sutherland pp 59 632 Enforcement had a silver era that lasted into the late eighties when the likes of Boesky and Milken were jailed The talismanic enforcer of the times was the SEC s Stanley Sporkin pp 63 823 When in December of 1975 the CEO of United Fruit Leon Black s dad Eli jumped out of the window of his 44th floor NYC office to avoid the embarrassment of going to court to defend his company s actions in the Honduras an important precedent was set since it was impossible to sue Black the government sued his employer United Fruit The company pleaded guilty in July of 1978 and paid a 15000 fine The prosecutor at the Southern District who prosecuted the case was one Jed Rakoff pp 83 89 This was not a good development and planted an important seed Investigations of top executives are time consuming They reuire better evidence since the executives are much likely to go all the way to trial rather than plead guilty An executive can go to jail A company can not p 1984 A further development that traces its roots to the 1970 s relates to the defense of white collar crime Until the 1970 s criminal defense had been 100% the work of specialized boutiues By 1980 the top law firms had realized that criminal defense started to look like business that was not only respectable but also lucrative p91 The book lists some of the first prosecutors who left their jobs working for the government to join the newly formed white collar practices of the top law firms5 The final piece of the puzzle was the Deferred Prosecution Agreement DPA After a suggestion by her deputy Sheirah Neiman Mary Jo White secured the first DPA against a large corporate in 1994 Until the Prudential agreed to a 330 million DPA in 1994 for misdirecting small investors to risky investments Deferred Prosecution Agreements had only been used for petty or juvenile criminals pp 93 98 Neiman additionally penned the Holder memo regarding the principles for charging corporations and the factors prosecutors should consider when deciding if they would indict a corporation pp 98 1016 Within the space of ten short years negotiating DPAs had become a science with a dance all of its own involving set pieces where first lawyers from the two sides would meet the uestions would be set for the defendants and then the prosecutors would finally meet with executives Significantly perhaps MOST significantly the internal investigation defendants had to conduct as part of the settlement became a massive source of lucrative fees Lucrative enough to hire and pay the very best When Bank of America had to defend itself after the collapse of 2008 its defense was led by none other than the inventor of the DPA Mary Jo White herself In 2016 the government scale topped out at 160300 A top partner at a good firm can easily make 3 to 4 million a year In the meantime the cost of living in the nation s most coveted and powerful cities has skyrocketed A prosecutor s salary has become difficult to live on while in private practice a partner s income has dramatically outpaced inflation p 201 Eric Holder s career truly stands out here When he was attorney general Eric Holder made 199700 a year As a newly returned Covington partner Holder who in 1999 reportedly pulled in 25 million including deferred compensation when he left the firm to head up Justice would make many times that p 189 The rise of the internal investigation had an unappreciated conseuence Eisinger further argues Setting up an enforcement regime based on cooperation and compliance hurt the government s ability to conduct investigations on its own Prosecutors look upon sprawling multinationals in despair They believe they cannot take on giant corporations without their compliance and cooperation The law firms do the investigating Prosecutorial skills erode The government has outsourced and privatized work to the misbehaving corporations themselves p 196Internal investigations really come under the microscope and are revealed for what they are on top of being the way to earn massive fees they are long drawn recruitment events for big law During settlement negotiations the prosecutors want to appear tough to the defense lawyers on the other side of the table They want to dazzle them with their knowledge of legal precedent mastery of details and bargaining skills But young prosecutors also want their adversaries to imagine them as future partners They want to be seen as formidable but not unreasonable They want to demonstrate they are people of proportion p 199 Prosecutors who push too aggressively court social discomfort and few young assistant US attorneys are willing to do so Young Justice Department hires are typically products of elite American educational institutions They tend to be among the most ambitious students their youths given over to endless hours slaving to achieve the highest grades to please mentors and tutors to get into the best middle schools high schools colleges and law schools p 200 a legal career has become the reliable route to an upper middle class life analogous to working for IBM in middle management in the 1950s p 2007 The watershed event which changed the course of justice was the collapse of Enron The victory the government won when it jailed Enron s principals turned decidedly pyrrhic when in its zeal to go after Enron s enablers the SEC put Enron s robo shredding accountants Arthur Andersen under so much pressure that they went out of business but not before having succeeded in putting a human face on the thousands of its accountants who lost their jobs When the Supreme Court reversed the guilty verdict on Andersen Consulting in 2005 the scene was set for an enormous reversal pp 1 58 A number of mea culpa style speeches are included regarding the fall of Andersen Consulting including by eventual SEC head Mary Jo White p107 and by prosecutor Lanny Breuer p 57 which demonstrate how much the Andersen bankruptcy changed opinion8 The seminal case that showed the course of justice itself had changed was the case brought against KPMG who were found to have aggressively marketed sophisticated but illegal tax shelters to rich individuals This is the case where in the related Senate hearings Carl Levin famously urged the KPMG partner who had offered I don t know how to change my answer to try an honest answer p 127Represented by Skadden Arps KPMG completely refused to cooperate in the case Prosecutors Justin Weddle and Sheirah Neiman would not back down either and the scene was set for a showdown in court The same James Comey who had decried the Chickensht Club attitude a short 35 years earlier now deputy attorney general and after consulting with Attorney General John Ashcroft prevailed over his prosecutors to come back to the table and discuss a settlement with KPMG On August 29 2005 KPMG paid a 456mm fine and laid out in detail how their schemes workedCrucially in line with the guidelines set by the Holder memo but also perhaps as the result of Weddle having threatened if you have discretion re fees we d look at that under a microscope KPMG had stopped paying Skadden Arps fees for the defense of some of its indicted executives including its former chairman Jeffrey SteinThe indicted executives defense was based on the sixth amendment of the constitution On June 27 2006 Judge Kaplan acuitted Stein and accused the prosecution of letting its zeal get in the way of its judgement and of having been economical with the truth He went on to say that prosecutors deliberately or callously prevented many of these defendants from obtaining funds for their defense that they lawfully would have had That was the end of the Thompson memoIn what must still function as a strong warning to prosecutors Weddle ended up having to go to Romania to find work Much better to follow the way of Mary Jo White and Eric HolderBeyond what all this meant for the motivations of all players the guidelines themselves were officially changed and the Holder memo was banished to historyJesse Eisinger nicely summarizes this whole episode In his words and here his Pulitzer winning credentials are evident this was either a victory of a company against the unfair pressure and power brought to bear by the government A justified reassertion of Sixth Amendment rights or an example of how the government is outdueled and outgunned at court or a fight predominantly by major law firms to preserve a funding stream for a lucrative and growing area of practice in essence protecting the ability of law firms to receive compensation through indemnification and advancement 9 Next comes a long list of cases where corporates basically wiped the floor with the governmentThe options backdating scandal happened right after KPMG and most prosecutions fizzledIn 2005 the west communications CEO was indicted for selling shares when he knew targets would be missed He was convicted in April 2007 The conviction overturned in March 2008In 2005 AIG entered with Gen Re two 500mm sham transactions whose sole purpose was to help Gen Re massage earnings In February 2008 five defendants were convicted but Hank Greenberg was never prosecuted In August 2011 the convictions were overturned10 Finally we make it to the 2008 financial crisis and the way it was handled by the Obama administration The author explains the motivations of the government well Rather than punish companies and executive and hurt the economy the choice was made to go down the South African inspired path of truth and reconciliation Except there was no truth and no reconciliation which is the title of the chapter in the book because an essential element of the defense of a corporation was NOT to admit guilt The Justice Department argued that the large fines signaled just how tough it had been But since these settlements lacked transparency the public didn t receive basic information about why the agreement had been reached how the fine had been determined what the scale of the wrongdoing was and which cases prosecutors never took up p 197 The public did not want to tax corporations anywhere near as much as it wanted justice basically and it was denied that justice A trial is nearly the only place where the entire criminal justice system is put to the test of truth and that a system of justice that chiefly operates behind closed doors will sooner or later be a system that leads to abuse p 226 Those trials never happenedThe government under Preet Bharara went for the easy headlines and chased after cases that were at best tangential to the crisis such as Rajaratnam Madoff and Stanford The author is caustic when assessing Bharara s motivations It s a hell of a thing to tell someone they will spend the next three years of their life where we have virtually no evidence whereas you can work on a case where you have evidence p 232 The Southern District passed on the Bear Sterns hedge fund case and some Manhattan prosecutors felt private vindication when the Brooklyn US Attorney who picked up the case and lost p 232 By then they were fully paid up members of the Chickensht Club Between the fears of the government for the economy the Chickensht attitude of the prosecution the vast difference in resources between prosecutors and defendants and the changes in the law which now favored the defendants the scene was set for the great whitewash of 2008 2016The author gives the full and I mean it detail of the main cases and intertwines them with a mini biography of judge Jed Rakoff the very same man who had secured the conviction of United Fruit some three decades earlier and is the only senior guy who comes out of this story smelling of rosesHow Bank of America did not tell anybody about the bonuses it had promised to Merrill executives ahead of the takeover with a full account of how Jed Rakoff sent the settlement between the SEC and Merrill back in September 2009 only of course to have to accept an only slightly higher settlement laterThe G0ldman Sachs Paulson Abacus IKB case where only a 28 year old Frenchman ended up being indicted Even his direct superior Jonathan Egol was spared G0ldman was only charged with omitting information that would have been useful to investors in Abacus It was left to Senator Levin s committee and the press to bring the line of command to light as well as Tom Montag s famous shtty deal email regarding a different deal it has to be noted G0ldman settled for 550 million At his going away speech from the SEC prosecutor Kidney who had investigated the case said that For the powerful we are at most a tollbooth on the bankster turnpike The backdoor bailout of Wall Street via AIG and how Obama appointed Lanny Breuer refused to prosecute AIG despite the fact that that prosecutors Paul Pelletier Adam Safwat and James Tendick had the perfect case in AIG AIG FP executives knew they were facing huge losses had motive to hide them took steps to do so made erroneous statements and misled investors p 278 In Joe Cassano they also had one of the great villains of the crisis to present to a jury up there with Dick Fuld and Angelo Mozilo They also ought to prosecute Cassano s underlings Forster and Athan and flip them all the way up to Greenberg But Obama s appointee made sure this never occurredThe October 2011 Citigroup 285mm settlement on a mortgage investment which was originally also rejected by Jed Rakoff When a public agency asks a court to become its partner in enforcement the court and the public need some knowledge of what the underlying facts are for otherwise the court becomes a mere handmaiden to a settlement privately negotiated on the basis of unknown facts while the public is deprived of ever knowing the truth in a matter of obvious public importance p 300 In March 2012 a Second Circuit Court of Appeals panel stayed his decision and attacked his reasoning saying the scope of a court s authority to second guess an agency s discretionary and policy based decision to settle is at best minimal And there you have it If you think this was longwinded confusing and a bit too precious that s because you have not read the book