The Economist reported in November that the only executives to face criminal charges relating to the financial crisis were acquitted of lying to investors about the state of the subprime-stuffed hedge funds they ran at Bear Stearns. The funds collapse caused losses of $1.6 billion.
Bear Stearns profited to the tune of billions by swindling working people during the sub prime boom, and they received $30 billion in bailout money from our tax dollars. Corporations gamble our welfare away, leaving workers and the poor to suffer the losses while the top executives give themselves bigger bonuses.
Corporate crimes and corruption arent due to a few bad individuals. They are a result of how capitalism prioritizes profits over people. Corporate executives are under a tremendous amount of pressure to hold high profit margins. Even with tougher laws against corporate crime, there would be much greater penalties in the unwritten rules of corporate America for executives not willing to cut corners.
Fines or penalties are partially effective if corporations believe they will be caught and prosecuted. Instead, most companies would dodge the fines. If they were caught, they would probably make ordinary workers suffer with layoffs or cut hours.
As reported by The Economist: one Wall Street hedge-fund manager speaks for many when he says the banks arent afraid of the government any more. If youre too big to fail, then the government gives you a pat on the back, plus a bonus during this recession. If youre a worker, then you get a pink slip and lose your home.
Corporate crimes cost ordinary people their livelihoods, yet the wealthy executives responsible are rarely punished. Meanwhile, over a million people are in jail for nonviolent offenses. What kind of a system is this?