(By Jack Bigelow) An article in the October 29 New York Times describes a pattern of what is believed to be a series of broken promises (to be good) among big banks caught in illegal transactions. The article, authored by Ben Protess and Jessica Silver-Greenberg, describes the pattern as the \u201cWall Street equivalent of a parole violation.\u201d
\nThe article makes specific references to reopened or potentially reopened investigations of Standard Chartered (\u201cat risk of becoming Exhibit A of corporate backsliding\u2026\u201d), Bank of Tokyo-Mitsubishi UFJ, Barclays, and UBS. Prosecutors are apparently realizing that current punishment strategies fall short in preventing further wrong-doing. Also implicated are consultants (PricewaterhouseCoopers is named) suspected of compromising \u201cindependence\u201d in assessing the scope of wrongdoing to favor the firms (including defense lawyers) paying their fees.
\nThe typical case goes like this:
\n\u2022 Investigation discloses illegalities;
\n\u2022 Prosecutors agree to suspend charges if bank pays a fine and promises to behave;
\n\u2022 The magnitude of the wrongdoing (hence the use of consultants to determine it) drives the size of the fine;
\n\u2022 The fine is paid, the wrist is slapped, the promise is made;
\n\u2022 And it\u2019s back to business as usual.
\nAnd apparently, \u201cas usual\u201d can sometimes mean more transgressions. It is, as the article describes it, \u201ca cycle of misbehavior \u2026difficult to break,\u201d blamed by regulators and prosecutors on a culture that puts profit over compliance. The book, \u201cA.B.C.s of Behavioral Forensics\u201d would label that culture \u201ca bad crop (rather than just a bad apple or bushel).\u201d
\nI read the article with growing rage that the execution of justice just isn\u2019t taking place.
\nSeveral posts concerning the implications and behavioral forensics in this sordid state of affairs will follow. And the first will address one element of justice.<\/p>\n
Join us for more insights into behavioral forensics (behind fraud and similar white collar crimes) from the authors of <\/span>ABCs of Behavioral Forensics<\/span><\/span> (Wiley, 2013): Sri Ramamoorti, Ph. D., Daven Morrison, M.D., and Joe Koletar, D.P.A., along with Vic Hartman, J.D.\u00a0 These distinguished experts come from the disciplines of psychology, medicine, accounting, law, and law enforcement to explain and prevent fraud.\u00a0 Because we are inspired to bring to light and address the fraud problems in today’s headlines, we encourage our readers to come back and revisit us regularly at BringingFreudtoFraud.com. <\/span><\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":" (By Jack Bigelow) An article in the October 29 New York Times describes a pattern of what is believed to be a series of broken promises (to be good) among big banks caught in illegal transactions. The article, authored by Ben Protess and Jessica Silver-Greenberg, describes the pattern as the \u201cWall Street equivalent of a … Continue reading DOES A LEOPARD CHANGE ITS SPOTS? (NEW CASE REPRISE!)<\/span>