Prosecutors denied it, but Sullivan described their offering as a "sweetheart deal" and suggested that the public might see it as "a free ride." None of the Barclays employees faced punishment, just the corporation -- and ultimately the shareholders.
The Wall Street Journal notes that these cases share more than defendants who accepted bailout money:
The common thread of the rejected settlements seems to be a request for "more serious sanctions against individual managers," said Robert Heim, a former SEC assistant regional director. "Right now, it's numbers negotiated between prosecutors and the accused. Judges are concerned the penalties are too small" and that shareholders are burned twice, first by the wrongdoing and second by the fines.
Think of the alleged Wall Street miscreants of the last decade: Merrill Lynch's Henry Blodget, Credit Suisse's Frank Quattrone, Bear Stearns's Ralph Cioffi and Matthew Tanin, Bank of America's Theodore Siphol, the New York Stock Exchange's Dick Grasso, Morgan Stanley's Mary Meeker, and Citi's Jack Grubman--the list goes on.
None of those individuals were convicted.
That pattern has been a big concern for the three judges, who the New York Times points out were all appointed by President Bill Clinton. The Times noted the frustration of Sullivan in the Barclays case, after asking the lead prosecutor, "You agree there must have been some human being who violated U.S. laws?"
He proceeded to ask that same question in a dozen different ways, growing increasingly exasperated with the answers, until he finally interrupted the government lawyer to ask, "Can I just share a thought with you?"
"You know what?" he asked. "If other banks saw that the government was being rough and tough with banks and requiring banking officials to stand before federal judges and enter pleas of guilty, that might be a powerful deterrent to this type of conduct."
If putting a banking official on trial would please the court, it may happen soon in Rakoff's chambers. That's a location Bank of America has been trying to avoid since last year's ruling. Now, two of the company's former executives, ex-CEO Kenneth Lewis and ex-CFO Joe Price, are facing fraud charges connected to their personal involvement in the same Merrill Lynch deal. This time, it's not federal prosecutors pressing charges but New York Attorney General Andrew Cuomo. Defense lawyers are asking for the case to be thrown out.
But baring a dismissal from Rakoff, an individual banker could finally have his own day in court.
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I am a 25 year old college student (school, job + savings, back to school… long story) and boy do I wish I knew about all the resources available to me back then. Good for you for starting early!
Lucky for me I have 1 parent (divorced) who is so bad with money that I have been scared into financial responsibility from a young age. Was I perfect? Hahaha.. but I am doing better than 95% of my friends are right now so I guess I am doing something right?
Here is my advice:
1. GET A JOB! - 2 shifts a week is all it takes. I have friends who just graduated from college without ever having a job. Result? No work experience so nowhere will hire them. Some had problems even getting an internship! Try for customer service jobs. Employers value people skills more than flipping burgers.
2. BUDGET! - Cant teach an old dog new tricks so it is best to start young. Add up your monthly expenses such as rent/insurance/cell/gas/etc and divide by 2 or 4 (depending on weekly/bi-weekly payday). Put this money in savings and no touchy! Once you can live on that budget a certain % for an emergency fund and then % for savings. The rest is your “fun” money. As others have said: pizza, ipods, and clothes are “fun money” and NOT emergencies!
3. DEBIT, CREDIT, or CASH?
DEBIT- I am a die hard debit card user. My credit union has detailed (free) online banking. I check my online bank statement in the morning and at night and go over my spending. Think of it as an instant virtual slap in the face about your spending habits. It hurts for the best.
CASH - Some people just cant be responsible enough to respect the plastic and do better with cash. Try and keep bigger bills on you. Breaking a $5 is less mentally painful than breaking a $20. $1s are dangerous. That can of coke is “only $1″. $7 a week, $30 a month. It adds up.
CREDIT - Many say don’t get a credit card, but I disagree. If you are responsible college is a great time to build credit (unless you have some serious control issues… if that is the case, these are not the droids you are looking for…). Not building credit early is the BIGGEST regret I have. Good credit means better rates when buying a house or a car. Do your research first. Consider a student, or if you have to a secured card.
More about credit-
*Do NOT apply for a credit card on campus. It is like selling your soul for a candy bar. Every time you apply for a credit card they run a credit check, which “pings” you. Too many pings hurts your credit score. Not good. Friend did that at every kiosk that offered something free to sign up when she was 20. This was 7 years ago and her credit is still recovering! The same is true for store credit cards. Do.Not.WANT!
*Pick a required expense, such as gas or cell phone bill and put it on the credit card. Pay off the card at the end of each month. Repeat.
*Do NOT use your credit card to buy “fun money” purchases. No clothes, no ipods, no pizza. This is why you have your debit card of cash. Don’t even think about it mr.!
4. EATING/DRINKING - This is going to be the weird random one from one young person to another.(Part of this only applies to you on/after your 21st birthday!) The young person’s life revolves around being social. For a 20 something this normally involves dinner and/or drinks with friends. It is expensive! So much money can be saved if you plan ahead!
*Eating - Going out to eat is a much needed social experience but NEVER go out to eat starving! Just like you don’t go shopping when you are hungry you never want to experience the whole “eyes bigger than stomach” thing while dining out. Have a snack an hour or so before you meet friends for dinner. This will help you avoid ordering that $8 appetizer! Also, try and order things that reheat or are good cold. LEFTOVERS! Also, water is free. It is good for you! Coke is $3. Go buy yourself a 12 pack and have one when you get home.
*Drinking - Most 20 somethings drink. It is a very expensive part of our lives. It is a social event to help us forget about school and work. We like bars. Unfortunately $5 for a beer is highway robbery! NEVER go to a bar completely sober (when you are 21+ & no drinky + drivey!). Have a drink or 2 at home and then have a beer at the bar. You will save TONS. Also, bring cash to a bar. Only bring as much cash as your sober self would like to spend. Alcohol impairs judgment. Sober you will thank drunk you for not spending. Drunk you will thank sober you for being smart enough to make sure you can afford the advil to take care of that hangover the next day. It is a win win.
Put all that saved food and drink money towards something that will last.
5. BOOKS - Buy used whenever possible. Check online first because campus stores are normally a ripoff. Try and sell the books back online, even if they have released a new edition. Most student book stores on campus will only give you 1/2 of what someone online will be willing to give you!
6. CARS - Buy used and reliable, but not “cheap”. New cars lose tons of value when you drive them off the lot. Don’t buy a “cheap” used car on it’s last leg. Think Goldilocks - not too new, not too old, juuusssttt right! Save up as much money as possible. Pay for it in cash if you can. If not, save up at least 2/3 before purchasing and do your homework!
And whatever you do: AVOID parking tickets, speeding tickets, registration fines.. may as well light the money on fire! Or if you do not want it I will give it a nice home and save you the trouble.
zrcnizv
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