2008-09 Financial Fiascos

"A former member of The Goldman Sachs Group’s board of directors was charged today with giving confidential tips to Galleon Management hedge fund founder Raj Rajaratnam. It was the latest allegation in a far-reaching Securities and Exchange Commission investigation of insider trading." 

Go here for one of many iterations of the story.

Why do we find plainly so many immoral or amoral actions (and inaction) taken by so many of the people running some (not all) of  the top tiers of various entities in the financial sector ? The question is posed in light of this February 5 post at The Epicurean Dealmaker (TED).  According to TED, financial instruments are just products,  and TED argues that

Remember when Paul Krugman was exploding with outrage after Goldman’ Sach’s Mr. Blankfein testified to Congress that the financial meltdown was like a hurricane no one could foresee ? Remember the Epicurean Dealmaker’s  admonition that the lack of foresight was self-induced?

Perhaps Mr. Blankfein drank his own Kool-Aid.  But he was in fact dead wrong, according to this Jason Zweig article

 With today being a holiday in the US for Dr. King’s birthday, I decided to take a holiday on the usual torts in favor of a little excursis on bankers, litigation and “litigation reform.” The main point? Recent events exemplify why some but not all of the “litigation crises” in the financial sector may be

It was just a matter of time. Seeking a civil remedy for the oft-criticized credit ratings issued by the various ratings agencies, The Ohio Attorney General retained private counsel and has filed suit “on behalf of the Ohio Public Employees Retirement System, the State Teachers Retirement System of Ohio, the Ohio Police & Fire Pension

An Amlaw article here details global government cooperation with respect to potential claims arising from the Madoff ponzi scheme. Accoridng to the article:

“Gerhard Jarosch, spokesman for the Vienna public prosecutor’s office, told The Associated Press his office is aiding the U.S. Justice Department and Britain’s Serious Fraud Office in separate investigations of Bank Medici

The AmLaw blog post here describes and includes a link to a newly filed complaint that seeks $ 1 billion and a class action for Mexican investors hurt by the Stanford ponzi scheme. The complaint invokes aiding and abetting claims against Willis and an insurance broker. Of note, the complaint was not filed by a