The Real Cost of the 2008 Financial Crisis

Re:The Real Cost of the 2008 Financial Crisis by rando444 on Tuesday September 11, 2018 @11:32AM (#17960622)

What about the people that didn't have good intentions?

How do you feel about Lehman's Repo 105 maneuver where they intentionally used a Tobashi scheme to hide their losses from their investors?

The state of New York went after Ernst and Young on fraud charges for helping facilitate the scam and E&Y ended up paying a $10mil fine.

Is this justice? It doesn't feel like it.

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Re:The Real Cost of the 2008 Financial Crisis by hueving on Tuesday September 11, 2018 @11:36AM (#17960667)

Lehman went bankrupt. It seems they got precisely what they deserved.

If the only problem were the bad actors it wouldn't have been a systemic collapse.

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Re:The Real Cost of the 2008 Financial Crisis by ergothus on Tuesday September 11, 2018 @11:47AM (#17960772)

A company going bankrupt does not mean any decision makers were negatively influenced enough to not repeat the actions. I doubt THEY went bankrupt.

I don't know enough to say if your conclusion is true or false, but I dont follow your logic. Why can't bad actors, if they are pervasive, cause a systemic collapse? From what I heard, incomes were fabricated, risks downplayed, and policies ignored. The insurance against the risk was priced on false premises. How can these bad acts (by bad actors) not cause a risk of systemic collapse?

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Re:The Real Cost of the 2008 Financial Crisis by inthewoods on Tuesday September 11, 2018 @04:19PM (#17962982)

I never understood why Dick Fuld wasn't put in jail. He deliberately misled investors on the amount of leverage they were operating under. I thought Sarbox, which required the CEO and CFO to sign off on their public financial statements, would have caught this.

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