Description
Jason Hartman has often said that Wall Street is the modern version of organized crime. And he’s not wrong–the things that happen on Wall Street are beyond deplorable. Masquerading as the place where our financial heart beats, where our cash arteries thrive with the life force of money, Wall Street is instead a bit of a hole down which we flush our financial dreams.
Some pretty crazy things have gone on there, but what are the worst among them? Quite honestly, it can be hard to tell–but allow us to provide a look at some of the highlights or, more accurately, low lights.
Richard Fuld
You’ve probably heard Fuld’s name tossed around, and never affectionately. Initially patted on the back for his handling of the sub prime mortgage crisis, Fuld was the longest tenured CEO on all of Wall Street. While other bigwigs were forced to resign, Fuld kept his job though he drastically underestimated the spiraling housing market in the United Stated and the effect it might have on Lehman’s business.
He failed to complete deals that many thought would prevent Lehman Brothers from bankruptcy on the basis that he thought the firm was worth more–it wasn’t. But in 2008, Fuld (along with twelve other Lehman Brothers higher ups) were summoned by the grand jury in connection with three investigations related to securities fraud.
Fuld was nicknamed the “Gorilla” because of his competitiveness and rumors circulated that he was once punched in the face at a company gym. He’s made a lot of Worst CEO of All Time lists and is one of Time magazines top 25 people to blame for the financial crisis.
Jamie Dimon
This J.P. Morgan Chase CEO was head of an extremely mighty bank, though much of his corruptive acts were born of the Federal Reserve. The Fed has twelve regional offices in which officials from that regions banks make up the board of directors. This meant that Jamie Dimon was on the board of the New York Fed, who was supposed to regulate J.P. Morgan.
Is this a conflict of interest? Certainly. Does it happen with regularity? Absolutely. And Jamie Dimon didn’t even have to try very hard to help his bank out, negotiating a bailout package with the New York Fed during his time on the board. On Wall Street, Dimon’s otherwise criminal behavior was likely celebrated.
Phil and Wendy Gramm
Why do alone what you can do with a loving partner? Texas Senator Phil Gramm helped push through the Commodity Futures Modernization Act, which banned federal regulation of poker chips and state enforcement against anti-gambling laws against derivatives trading. Enron was a lobbying force, though they later memorably collapsed under fraudulent derivatives trades.
At the time the bill passed, Wendy Gramm served on the Enron board of directors and, while the company collapsed, Wendy made her share of cash.
Phil left the senate for the vice chairmanship at UBS, a Swiss bank. Since, UBS has been involved in a number of scandals. A lot of folks have gotten in trouble, but Phil and Wendy seem to be doing alright.
Warren Buffett
Not to be confused with Jimmy, the more fun Buffett, Warren was once a spokesperson for many, speaking out about class warfare. Now, he actively lobbies against Wall Street reform. He’s used his wealth to buy friends who will do the same–a Nebraska Senator filibustered on reform for Buffett. Buffett has defended Goldman Sachs–he is, after all, an investor.
In 2008, he put a casual $10 billion into Goldman Sachs. He’s since acknowledged that he did that only because he thought Goldman would be bailed out by the government. He was right many times over and was handsomely rewarded with the help of taxpayers.
Robert Rubin
Robert Rubin was a Goldman Sachs chairman who happened upon the position of Treasury Secretary under President Bill Clinton. Rubin ruled over a time of great deregulation and was a heavy poli
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