Tabibi’s Tale

Matt Tabibi encapsulates the story of Wall Street in a diatribe against one Jeffrey Verschleiser, who apparently has enriched himself by all means of sleazy tactics.

Anyway, given that much of Verschleiser’s questionable behavior is in writing, his case sure seems court-ready. But for whatever reason, he has not been indicted.

One can almost understand a regulator not wanting to take on the whole circular securitization scheme — Bear lends money to corrupt mortgage firm, mortgage firm makes bad loans, Bear packages bad loans and sells to investors, then takes the proceeds and creates more bad loans — because it is so complex and difficult to prove.

But in this case there are simple issues of fraud and theft that could be taken on without having to prosecute broader crimes related to securitization. But prosecutors, apparently, just blew those off. In the current environment, regulators even miss the layups.

Or, in Cicero’s immortal words:

O tempora, o mores! Senatus haec intellegit. Consul videt; hic tamen vivit. Vivit? immo vero etiam in senatum venit, fit publici consilii particeps, notat et designat oculis ad caedem unum quemque nostrum. Nos autem fortes viri satisfacere rei publicae videmur, si istius furorem ac tela vitemus. Ad mortem te, Catilina, duci iussu consulis iam pridem oportebat, in te conferri pestem, quam tu in nos [omnes iam diu] machinaris.

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