Former Park Avenue Bank President Charles Antonucci has been sentenced to two and a half years in prison for his role in a scheme to defraud the Troubled Asset Relief Program (TARP). Antonucci will also pay $54.6 million in restitution and forfeit $11.2 million.
On August 17, Citigroup agreed to pay $180 million to settle charges from the SEC that two of the megabank’s hedge funds defrauded investors. According to the SEC, Citigroup’s hedge funds “made false and misleading representations to investors” about how risky investing in the funds were.
Last month, the nonpartisan financial reform organization Better Markets put out a report claiming that the total cost for the 2008 financial crisis and resulting recession reached$20 trillion. The number comes from an estimate of how much of a toll the crash put on the gross domestic product with high unemployment/underemployment and the hollowing out of the middle class through foreclosures, deferred education, and bankruptcies.
According to a study at the University of Syracuse using data from the Justice Department, federal prosecutions of white collar criminals are at a twenty year low. The decline began in the Clinton Administration and has continued to drop ever downward.
Fraudulent paperwork, cheated counterparties, robosigning — no it’s not the housing crisis again. This time the crimes are related to the Too Big To Fail/Jail banks’ conduct with credit cards. Both JPMorgan and Citigroup have now reached settlements with the government related to their criminal credit card practices.
Senator Elizabeth Warren condemned the Obama Administration for perpetually siding with Wall Street instead of Wall Street’s victims.
In a letter to Wall Street CEOs behind the 2008 financial crisis, Elizabeth Warren asks that they disclose their connections to think tanks like Third Way.