–Wall Street exec. No evidence for criminal charges. Surprised?

Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

Mitchell’s laws:
●The more federal budgets are cut and taxes increased, the weaker an economy becomes.
●Austerity is the government’s method for widening the gap between rich and poor,
which ultimately leads to civil disorder.
●Until the 99% understand the need for federal deficits, the upper 1% will rule.
●To survive long term, a monetarily non-sovereign government must have a positive balance of payments.
●Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
●The penalty for ignorance is slavery.
●Everything in economics devolves to motive.


This goes under the heading, “Same old, same old: Too big to jail.”

Wall Street Journal
SEC Files Civil-Enforcement Action Against SAC Chief Cohen
By Jean Eaglesham and Jenny Strasburg

The Securities and Exchange Commission filed a civil-enforcement action against SAC Capital Advisors LP chief Steven A. Cohen, alleging he ignored “red flags” that should have alerted him to insider trading “under his watch.”

The SEC said Mr. Cohen “failed to take reasonable steps to investigate and prevent” insider trading at the Stamford, Conn., hedge-fund firm.

The SEC is seeking to bar Mr. Cohen, one of Wall Street’s most high-profile investors, from overseeing investor funds.

Federal prosecutors have concluded they don’t have enough evidence to file criminal insider-trading charges against him before a five-year statute of limitations expires at the end of the month.

It’s been five years that this guy has made millions by failing to prevent insider trading, but gosh darn it, in five years of looking, we simply can’t find enough criminal evidence, and now the statute of limitations will expire. Oh, woe is us.

It’s not that we didn’t want to jail him — well, yes it is. The Obama administration never jails big contributors. But we want you to know how sad we are.

The move is the first time regulators in the investigation have brought an action against Mr. Cohen personally. His firm has been the subject of a long-running investigation into insider-trading that has resulted in criminal charges against a number of traders and others with ties to SAC.

But, while trading involving Mr. Cohen has been cited in government documents related to those cases, he hasn’t been criminally charged in those matters or any other.

“It’s the first time, but gee, we didn’t know he even existed. You say he’s been the head of this firm all these years? Wow! We never knew.”

And gosh darn it, now, just when we’re about to get the criminal evidence on him, the statute of limitations will expire. Wouldn’t you know it?”

SAC recently agreed to pay $616 million to settle two SEC insider-trading cases involving the firm’s employees. The firm didn’t admit or deny wrongdoing in agreeing to the settlements. SAC has said Mr. Cohen and his firm acted appropriately.

Doesn’t every firm that “acts appropriately” agree to pay $616 million? Nothing criminally wrong here, folks. Yes, we know that fines don’t mean anything to these firms — just a cost of doing business. But we didn’t think you knew it.

“The SEC’s administrative proceeding has no merit,” a spokesman for SAC said in a statement. “Steve Cohen acted appropriately at all times and will fight this charge vigorously.”

Of course our Mr. Cohen and we at SAC acted appropriately. We paid the $616 million because we felt the SEC could use the money. That proves what nice people we really are.

The SEC is ignoring SAC’s “exceptional supervisory structure, its extensive compliance policies and procedures, and Steve Cohen’s strong support for SAC’s compliance program,” the spokesman said.

Yes, we at the SEC see that SAC’s own PR flak now has admitted Cohen was strongly involved in the crooked compliance program (as he is required to be), but that doesn’t mean he’s guilty of anything — at least not for two more weeks, when the statute of limitations runs out.

The SEC alleges Mr. Cohen ignored “highly suspicious information” that should have prompted “any reasonable hedge fund manager” to investigate.

“Hedge-fund managers are responsible for exercising the appropriate supervision over their employees to ensure that their firms comply with the securities laws,” Andrew J. Ceresney, co-director of the SEC’s Division of Enforcement, said in a statement.

“I, Steve Cohen, am using the Sgt. Schultz defense: ‘I see nothing; I hear nothing; I know nothing.’ Here’s $616 million. We’ll make it back in a month. But remember, if you want future campaign contributions, leave me alone.”

Ceresney said, “After learning about red flags indicating potential insider trading by his employees, Steven Cohen allegedly failed to follow up to prevent violations of the law.”

Oops, forgive the typo. That should have read: “After learning about red flags indicating potential insider trading by Cohen’s employees, the Security and Exchange Commission failed to follow up to prevent violations of the law.”

Uh, Mr. Cohen, please remember there will be an election next year. May we count on your continued and generous support?

Please, sir.

Rodger Malcolm Mitchell
Monetary Sovereignty


Nine Steps to Prosperity:
1. Eliminate FICA (Click here)
2. Medicare — parts A, B & D — for everyone
3. Send every American citizen an annual check for $5,000 or give every state $5,000 per capita (Click here)
4. Long-term nursing care for everyone
5. Free education (including post-grad) for everyone. Click here
6. Salary for attending school (Click here)
7. Eliminate corporate taxes
8. Increase the standard income tax deduction annually
9. Increase federal spending on the myriad initiatives that benefit America’s 99%

10 Steps to Economic Misery: (Click here:)
1. Maintain or increase the FICA tax..
2. Spread the myth Social Security, Medicare and the U.S. government are insolvent.
3. Cut federal employment in the military, post office, other federal agencies.
4. Broaden the income tax base so more lower income people will pay.
5. Cut financial assistance to the states.
6. Spread the myth federal taxes pay for federal spending.
7. Allow banks to trade for their own accounts; save them when their investments go sour.
8. Never prosecute any banker for criminal activity.
9. Nominate arch conservatives to the Supreme Court.
10. Reduce the federal deficit and debt

No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
Two key equations in economics:
1. Federal Deficits – Net Imports = Net Private Savings
2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports


4 thoughts on “–Wall Street exec. No evidence for criminal charges. Surprised?

  1. Hope for future generations now is completely dependent upon the dying off of those of the worst generation, those born in the 40’s, 50’s and 60’s. The defective generation, indeed. .


  2. Insider trading regulations as well as any possible prosecutions resulting against abusers are intended to thwart the little guy and assure the unsophisticated electorate all is well and up to the sniff test. Congressional and senatorial legislatures dabble, or should i say enrich, in all sorts of shady unethical and brazen abuses of inside information in order to gain an advantage investing in securities. Along with real estate opportunities, and sweet consultant and advisory positions promised post term, which amounts to flagrant bribery, if not than simply perks of the job.

    Rubenstein and his private equity stalwarts like Shwarzman built an industry dependent on directly taking advantage of the networks and relationships insiders in government had with the many enterprises they interacted with during their terms. If that isnt insider trading what is, along with lucrative pay offs for their service. Seems to be a violation of the public’s trust that ideally should be expected. These people are usually well educated from relatively wealthy families, hardly needing to sacrifice their integrity for economic survival. Usually the same types that support fiscal conservatism and fear run away inflation if government supports too many programs outside defense , which ultimately supports their cushy socio economic status. More than 900 military bases around the globe ready to take out any credible threats to our economic hegemony.

    These guys figure using ex government insiders will offer credibility and utility in attracting funds and applying them using obvious strategic benefits of “inside” information gained to find value in leveraged buy outs of public and private enterprises . Sort of circumventing insider trading laws, though i understand not exactly respecting timing. Non the less , people entrusted to efficiently govern and administer hopefully without concern for excess compensation are obviously experiencing conflicts of interest when all are fully aware that if they play ball discretely ,networking intelligently with contacts ,and duly note classified information , there is a cash out waiting in the private sector. The old revolving door sometimes brings them right back in as well. ,

    Another interesting point about this new layer of investment servicing hoping to use scale and influence to promote their limited partners capital, clients like sovereign wealth funds, is that some of the structured finance deals used to raise capital , many times engineered from debt arising out of thin air, is similar to how the federal government uses its arcane shuffle between treasury and fed to fund and create debt,; only the hypocrites whom run these private equity firms profess money is finite and the government wont be able to fund necessities if austere policies arent implemented. How or why do they think they ‘re able to basically create or conjure money up out of nothing more than a promise backed by a third parties solid reputation, while a bunch of overpaid corporate finance lawyers draw up contracts of undecipherable legalese signed between them, but the federal government is unable to do the same. Obviously private money interests dont want public sectors to pick winners and losers in the supposed free market, which is why i suppose America doesnt use its sovereign wealth fund, the social security office or treasury. But since our government isnt an unrepresentative ,unalterable ,specific entity ,but an evolving mosaic of ever changing ,hopefully benign, public purpose supporting honorable citizens ,with time limited authoritative powers, why is funding a generous safety net for its citizens so demonized.

    .The club of corporate executives, celebrity branded artists & sports figures, and trustees of prior industrialists is quite small. Government hacks bottom feed for hand outs hoping for the big score while lying ,misrepresenting , or obfuscating truths, to the exorbitantly misinformed, dismissive, over exerted , short of time, easily distracted ,and generally unintelligent masses whom either buy into the mantra of hard work and sacrifice, or figure its a rigged game they have no voice in anyway.

    Most discussions about money creation , inflation, government role, and prosperity wind up going in a thousand directions. There are no simple easy answers, and any one subject soon leads off into the weeds. Thinking about what is right or wrong, fair or oppressive, is obviously highly subjective. I believe my research has awarded me a unique perspective into the modern monetary system, but just like science , if the other party your talking to is uninformed , the discussion doesnt get very far before you loose them. Religion and culture have a huge influence on society, dumning it down and allowing for those in positions of authority to pander or just perpetuate there own mistaken beliefs. Everybody winds up having their own unsupported opinion, and myths prevail. Sad , because in this day of massive information, truths are still fleeting.

    The whole country needs a massive course on the monetary system and its implications. The system in place is useful and fair if it is implemented correctly, which since at the moment anyway, our vastly over funded military assures. Unfortunately the government is hijacked by special interests out for their own good, which doesnt necessarily trickle down effectively. Wealth disparity increases seeding the roots for future civil unrest, corporate international behemoths use arbitrage and leverage along with their economies of scale to stifle any local competition that threatens ,or just acquires it, finding the cheapest labor costs with their cross border influence, aided by research and development into technological advantages raising productivity , reducing labor costs further. Maybe corporations take over the roles of nation states soon, , they practically have them in their pockets already.

    If the world doesnt alter its economic paradigm of constant growth supported by a fantasy of sustainable debt service , humans are just going to consume the planet up at ever increasing rates. Imagine what global population control does to free market capitalism ,dependent on new markets and customers. Obviously wars and destruction are good for the survivors rebuilding in our present capitalistic system, but nobody wants that degrading stimulus,. Purposefully and carefully designing a decreasing GDP supporting a sustainable economy with fewer people, accomplished through voluntarily reducing global population , will be a challenge to market economies that rely on increasing sales to support the structured financial products allowing hyper capitalism to flourish currently. For profit oriented enterprises will have to take aback seat to social democracy that isnt so reliant on the illusion of free market capitalism. Modern monetary realism explaining operational mechanics of our dynamic system, anchored or supported by the simple idea of monetary sovereignty , provides the legal framework ,or support for how , why, and where, the money is going to come to finance unprofitable enterprises or institutions that might not attract investors. The idea that enterprises engaging competitively for profitable outcomes are better arbiters of societal needs than science must change..Instead of business being such a strong influencing agent , technology and the science that makes it all possible needs to lead. Money needs to become less important in the social interactions between man. Elephants ,rhinos, whales, primates,diverse habitats supporting myriads of life forms like coral reefs and rain forests, must be deemed more valuable and scarce than the money they are converted into through exploitation. This monetary sovereignty idea allows for money to take a back seat to the true irreplaceable treasures of our amazing life sustaining planet. .


  3. speaking of wall st., take a look at this when you get the chance:

    it’s not just because of oil that prices go up… also, i can’t believe this is legal.


    1. Front running and insider trading are absolutely illegal and a cause for jail terms — ask Martha Stewart — oh, there’s an exception for bankers who are big contributors. They are immune.

      Obama has been bribed.


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