Sometime in May or June of 2008, I stumbled across an absolutely unbelievable podcast that explained the burgeoning housing crisis and soon-to-be catastrophic turmoil on Wall Street. The Giant Pool of Money (parts 1 and 2) talked about well… a giant pool of money, and why this might be a concern for all of us.
We’re all well familiar with the hubris of the financial industry and Wall Street in particular by now. And, whilst many lives were changed and the fall-out from the 2008 global financial collapse is a bit better understood now, we’ve seemingly moved on. Fines were levied against banks and their CEOs and directors. Much money was pumped into an industry that created an unimaginable mess all in the name of greed. Yet, no one was really held to account for creating economic calamity for millions. At least no one in the US.
As Main Street called for ‘heads to roll’, no real consequences befell those who orchestrated the largest financial collapse since the Great Depression. Enter the single attempt to prosecute those ‘responsible’. And, enter hubris of an entirely different sort.
Ultimately, Abacus Federal Savings Bank in Manhattan was found not guilty (quite rightly). But, why was it the target of prosecution for acting precisely as it should once employees acting against the law were discovered and following established risk procedures? Yet, still, the larger, more powerful banks that instituted predatory lending practices, whose CEOs earned billions whilst their banks nearly failed, remain untouched and unscathed?
Perhaps Ralph Nader was right: only the super-rich can save us all. I’m not holding my breath, but I will cheer for and applaud institutions like Abacus.