Free Republic
Browse · Search
General/Chat
Topics · Post Article


1 posted on 07/11/2011 7:22:37 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies ]


To: SeekAndFind

Sadly, this reporter does not do a good job of identifying and explaining issues so let’s do it for her:

1. If this Justin Paperny was siphoning off money from client accounts, that is theft. Not “fronting for a Ponzi scheme.” That is something that, sadly, happens every once in a while and the investment banks need to do a better job of catching it. However, its not evidence of some systematic fraud.

2. If he sold investments in a hedge fund that collapsed, he and others are guilty of not doing due diligence. This is closer to “fronting for a Ponzi scheme” but its not as if the bank set it up. This, sadly, happened more than it should have. Banks sold investments in pooled investment vehicles without the proper due diligence. Its bad but it isn’t a crime unless there is evidence of kickbacks or intent ot defraud.

3. Which brings us to the true Wall Street “Ponzi Scheme” which is that these young bankers got paid on the upside but did not have any consequences for the downside. When everything went to Hell, Wall Street went screaming to the government (ie, taxpayers) for a bailout. They did not have to face the consequences (ie, bankruptcy, personal lawsuits against bankers, etc) of their risk seeking behaviour. That is the true crime of it all, and its a crime that was legal.


7 posted on 07/11/2011 8:28:33 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
[ Post Reply | Private Reply | To 1 | View Replies ]

To: SeekAndFind
Paperny looks like the hundreds of thousands of well-bred youngsters who go to work on Wall Street every year

Sounds like a bit of a strech, considering:

Wall Street Employment Jumps 5.4%

"...Wall Street — a key contributor to New York state and New York City’s economy –reported 169,400 professionals, up from 160,700 a year earlier, and 169,100 in January. The financial services industry has added 8,700 jobs from a year ago, but grew by just 300 in February."
9 posted on 07/11/2011 9:26:31 AM PDT by struwwelpeter
[ Post Reply | Private Reply | To 1 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson