Corruption Is Now Officially Legal in the U.S., ''But Must Be Done Right''

[Octafish]

by Erich Zeuss
GlobalResearch.ca

On December 10th, Wall Street’s federal appeals court, the 2nd Circuit Court of Appeals, ruled that if inside information about what is going to happen to a corporation is taken advantage of by an investor, it’s okay, so long as the source of the inside-tip isn’t directly paid for passing it along.

In other words, if you have friends who have inside information that they received from their friends, they are free to pass it along to you, and you are free to pass inside information that you possess along to them to pass along to others, but neither of you is permitted to pay the other for any inside tip — the information can legally be acted on only if the tipper is not paid for the tip.

CONTINUED w/links...

http://www.globalresearch.ca/corruption-is-now-officially-legal-in-the-u-s-but-must-be-done-right/5419612

PS: Another part of why the rich keep getting rich: Per GOP thinking, it's the law.

[marmar]

1. Rogue corporatocracy .............

..... that's the kindest definition I can come up with of what we live in.

[Octafish]

33. Three GOP judges don't make a country club.

It takes five.

[tclambert]

38. That array of clowns must come from before 2005.

Roberts and Alito aren't there. Bozo looks like Rehnquist and Purple-hair looks like O'Connor.

[99Forever]

2. In case you didn't notice...

... it's not just GOPers that think that way.

You're welcome.

[Octafish]

27. What would Goldman think of that?

"Summers looked at Stiglitz like Stiglitz was some kind of naive fool who'd read too many civics books."

http://www.gregpalast.com/larry-summers-goldman-sacked/

Thanks for the kind reminder.

[99Forever]

28. Thanks for the link...

... chilling and informative.

[fasttense]

3. In a totally corrupted capitalist government

Everything is up for Sale.

[RoccoR5955]

11. Which is why I believe

that capitalism is on a downfall. It has already passed reaching its peak, where most people benefit. It will reach a tipping point where it shall fail, and that tipping point will come more sooner than later, when there are fewer and fewer people with all the money, who control everything.

[closeupready]

50. Yes, I've started to think this way, as well. When people lose out

on an economy that - by the numbers - is on an upswing (and I mean, a gradually increasing percentage of working people losing out when GDP is rising), then civil society starts to break down. These people then buy into other ideas about how to improve the economy and their own circumstances, and for some of them, it's a smart move.

[blackspade]

4. WTF?

That is some twisted reasoning....

[LuvNewcastle]

5. People in the know have been doing that all along,

now they're just being bolder about it. A lot of them knew something was about to happen before 9/11. There were all those suspicious trades by people high in the government in the days leading up to 9/11. Of course, that was never really investigated. It went right down the memory hole.

[KingCharlemagne]

6. I'd like to get some attorneys' takes on this, as IANAL. It would seem that

one who advantageously trades based on insider information, whether the insider info was paid for or merely acquired for free, does so at the expense of the person who trades without access to the insider info. This creates at least a civil tort for the non-insider trader, meaning the person who traded without insider info can sue the insider trader for damages.

So I'd be curious to see what attorneys make of this ruling.

[Shrike47]

22. I'm an attorney and I'd say no go. What duty does the person with inside info have to you?

I never practiced business law so I may be wrong. However, it seems to me that the person with insider knowledge gleaned without a payoff has no duty or obligation to anybody else, particularly strangers. It would be different if the person was your investment advisor.

If you are bleeding death on the sidewalk, I have no duty or obligation to help you, even if I could save your life.

Think about this: the person with insider information could be (unlikely, I know) your hairdresser to whom you give investment advice, or someone who overhears a phone call you make. In real life, it's probably rich people exchanging information but it doesn't have to be that way.

At any rate, I don't see how a person who benefits from insider info owes the uninformed anything.

[KingCharlemagne]

26. OK, but if your investment 'win' (or capital gain) comes at the expense of my

investment 'loss' (or capital loss), haven't your profits come at the expense of my losses? Every winner must needs be paired with a loser and if your win comes as a result of insider information you have gleaned whether by paying for it or not, it seems to me you have an advantage you would not otherwise have gained, one that comes at my expense. Isn't that the classic defintiion of a 'tort'?

Again, IANAL so am using what I hope is a layperson's common sense in my approach, while recognizing that the law carves out special definitions and meanings of commonly understood terms.

Wasn't Martha Stewart prosecuted and convicted for exactly this type of 'insider trading'? IOW, IIRC, she didn't pay anything for the insider info she acted upon but her actions to get out of that stock ahead of the news allowed her to escape the losses that were inflicted upon the unwitting souls who purchased the stocks she unloaded.

[sabrina 1]

44. I agree with you. And as far as I know, it's called 'insider trading' and has

always been against the law.

My take on this is that there HAS been a lot of insider trading going on and they are afraid of being caught.

So, they are buying laws to cover their crimes. I wonder if they made it retroactive like the FISA Bill Amendment where they passed a law that went back to cover the period when the Telecoms broke the law by spying on the American people? Must be nice, you're a crook, you break the law, then your buddies slap you on the back, say 'not to worry, we'll pass a new law to make what you did legal'.

As for Martha Stewart. She wasn't charged with or prosecuted for insider trading. That WAS the initial claim, but they could not prove it. And I don't believe she was.

I believe that was a political prosecution by a moronic, Republican prosecutor. She was a Democrat.

In the end they didn't want to let her off the hook once she was on it, so the dug out an obscure law, at the time, which states that if you lie to a Federal Officer it is a crime.

She apparently talked to Federal Agents, very naive of her, and during their talks she made some statements that were not accurate.

That is what she went to jail for, on a charge of lying to a Federal Agent. It was a bogus charge and a vindictive prosecution.

The media never corrected the false claim that she was convicted of Insider Trading.

[KingCharlemagne]

47. There are some mornings when I wake up to find egg on my face, and this is surely one. Thanks

for the detailed review which shows that you are far closer to the truth than I ever should have hoped to get. (I think Stewart may have technically been charged with securities fraud, but the judge in her case threw out that charge, saying that no jury could ever convict beyond a reasonable doubt.) I was right in one respect, that the "allegation" was that Stewart's broker Bacanovic had tipped her to the impending collapse in ImClone (a tip for which the broker presumably received no compensation directly).

At all events, you are 100% correct. Stewart was convicted only of lying to federal investigators, not of securities fraud.

The case is reviewed in detail at the link below, reading of which bears directly on matters contained within this OP:

http://en.wikipedia.org/wiki/ImClone_stock_trading_case

Thanks again for taking the time to respond in such detail. (Now wiping egg off face

[2banon]

45. She was being investigated for "insider" trading but that's not what got her prosecuted/sentenced..

her big crime that she served time was for "lying" to the fed. I can't cite the question verbatim, essentially Stewart was asked if she engaged in "insider trading" , her crime was saying No, when she should of have said nothing at all, since she didn't have to. Had she consulted an attorney prior to this questioning, she might have avoided doing time and all the fall out surrounding that.

She was low hanging fruit, and that's about all that matters..

[KingCharlemagne]

48. As Sabrina1 points out immediately upthread, Stewart was a donor to Democrats. Her prosecution a

a co-inky-dink? Methinks not.

Thanks for the annotation (which should be read in conjunction with Sabrina1's immediately above). You are 100% correct that Stewart was convicted and sentenced for lying to a federal investigator, and not for securities fraud. (It was alleged that her broker Bacanovic had tipped her to the impending collapse in ImClone but the charges around that allegation were thrown out by the judge.)

For further reading on the episode:

http://en.wikipedia.org/wiki/ImClone_stock_trading_case

[2banon]

49. Thanks for the reminder on the specifics..

Even though I didn't hold her in high esteem before that event, I became very sympathetic to her when that happened. I speculated that she might have made some enemies somewhere in the circle of the 1% (or perhaps a competitor) who wanted to bring her down with the connections to target her. It was outrageous whatever/whoever was behind it. They got away with it, but she seems to be doing well despite the injustice done to her.

[closeupready]

51. I lost all respect when she tried to blame her secretary, as I recall,

in stating that her stop-loss requests were not observed (something like that).

[2banon]

53. like i said, I didn't have a high regard for her before that happened.

I regarded her as white privileged and a wanna be 1% milieu.. but when she was targeted for "insider trading", I'm thinking: Huh? What? the Feds couldn't go after the real criminals involved in insider trading? Why not? We already knew there was high position corruption back then. And this was years before the meltdown / bail out and all that had been revealed and is still being revealed. She was obviously targeted by a competitor likely or someone who wanted to bring her down for reasons unclear, but for that I have to give her some amount of cred for dealing with it and coming through the other side of it rebuilding her life. A bit more humbler it seemed to me.. it's not like I'm an avid fan or have been following her story at this point. But I do know that prosecution was highly tainted/corrupted.

[Autumn]

7. Unmarked cash in an envelope is so old school.

rec

[ret5hd]

35. but still really really effective. (nt)

[woo me with science]

8. It's in our faces now...

[Enthusiast]

17. Yes it is. As long as the media doesn't report on it, it isn't happening.

It's corruption from sea to shining sea.

[RoccoR5955]

9. Bribery has been legal for a while here in the US too.

They just do it in the form of "campaign contributions."
Name one politician today, who isn't ALWAYS campaigning!

[PowerToThePeople]

10. its the only way

Usa,

[Overseas]

12. K&R. I didn't notice that insider trading is now legal.

[libodem]

14. Makes that Martha Stewart jail stint

Seem so far over blown in the face of this horse manure.

[pnwmom]

21. I immediately thought of her, too -- and her alleged $30K transaction.

Makes her targeting look that much more political.

[libodem]

37. Yep

Show trial.

[7wo7rees]

13. Genuine Overload.

I am at the end of what i can listen to or read about. Overwhelming every damned day.

[TheKentuckian]

29. Unending flurries of blows from every direction seemingly daily.

The people that complain about lack of focus are some sanctimonious pricks, the waves of haymakers are impossible to ignore and being consistently at crucial pressure points makes virtually every blow something dangerous to ignore.

[ladjf]

15. Corruption is not only legal in the U.S., it's greatly admired by many citizens. nt

[Enthusiast]

16. K&R! This post deserves hundreds of recommendations!

Wake up, people!

[Spitfire of ATJ]

18. Bet they already had a clandestine futures market set up for this....

Wall Street has become as much of a betting parlor as any casino here in Vegas.

And here I've seen people who push the button for an elevator and then bet actual money over which door opens first.

[shanti]

19. and the rich keep getting richer

it's a small club and we aren't in it.

[Johnny Rash]

20. I wonder if the movie, "Altar-Boys of Wall-Street", is out?

I can't wait to see another 4-hours-movie on "Wall Street"!

[zeemike]

23. Right, like you are going to pay him directly

That is what a stupid criminal does, and stupid criminals are not wanted in the upper levels of crime...you will never find a direct connection between them.

[watoos]

24. My Daughter

has a directors job in finance at a Fortune 50 corporation. She told me several years ago that her company was going to take off. I told her that I was going to buy some of her company's stock. She lost it on me, told me that we would both get in trouble, so I listened to her. The stock was $58.00 a share, today the stock is $128.00 a share, honest people like daughter and me don't stand a chance.

[EEO]

25. The rot just keeps getting worse. At some point we will be forced to take drastic action.

And that point will be an economic meltdown. That's what it will take. Everyone must be brought down to their knees.

[cantbeserious]

31. Collectively, The American People Are Not Desperate Enough - Maybe Some Day

eom

[Rex]

30. The plutocracy never sleeps.

Someday everyone will understand.

[Octafish]

32. What a billionaire makes an hour.

Warren Buffett: He made $12.7 billion this year or ~$37 million per day; ~$1.54 million per hour; or ~$25,694 per minute.

Bill Gates: He earned $11.5 billion this year which works out to be ~$33.3 million per day; $1.38 million per hour; or ~$23,148 per minute.

Sheldon Adelson: The casino mogul earned $11.4 billion this year which means he made ~$33 million per day; ~$1.38 million per hour; or $22,946 per minute.

Jeff Bezos: He made $11.3 billion this year or ~$32.7 million per day; $1.36 million per hour; or ~$22,745 per minute.

Mark Zuckerberg: The Facebook founder made $10.5 billion this year or ~$30.4 million per day; ~$1.27 million per hour; or ~$21,135 per minute.

Masayoshi Son: He made $10.3 billion this year or ~$29.86 billion per day; ~$1.24 million per hour; or $20,732 per minute.

Sergey Brin: He made $9.3 billion this year which works out to be ~$26.9 million per day, $1.12 million per hour; or $18,719 per minute.

Larry Page: He made $9.3 billion this year which works out to be ~$26.9 million per day, $1.12 million per hour; or $18,719 per minute.

Lu Chee Woo: He brought in $8.3 billion this year or ~$24 million per day; ~$1 million per hour; or ~$16,706 per minute.

Carl Icahn: The billionaire investor made $7.2 billion this year, which works out to be ~$20.87 million/day; ~$869,565/hour; or ~$14,492/minute.

SOURCE: http://www.businessinsider.com/what-warren-buffett-makes-per-hour-2013-12

So, a billionaire makes about as much as the average schmuck working three part-time, minimum wage jobs for a year, per minute. Then, they move it offshore.

[JEB]

39. One hour in any one of their shoes and I'd be more than set for life.

Actually at my age I could get by with 5 minutes.

[JDPriestly]

42. K&R. Please post this as a separate thread and send me a private mail notifying me that you

have posted it. This needs to be seen by many DUers.

[WillyT]

34. K & R !!!

[True Blue Door]

36. I take a different view: The law is the law, no matter what the courts say.

Corruption is illegal. A corporation is not a person. Money is not speech. A black person is a whole person, not 3/5 of one.

[raouldukelives]

40. K&R This is just beyond ridiculous.

As if I needed more of a reason to disdain those who blindly support oligarchs.

[JDPriestly]

41. The stock market is a fixed game. The winners win by cheating in many cases.

When the stock market is as high as it is and pension funds are supposedly going broke, there is something very, very wrong.

[DeSwiss]

43. Which is why I keep scratching my head.....

...in wonder at those who believe that this thing can somehow be ''fixed.'' That the corruption can be scraped off like a piece of toast that stayed under the fire too long. A little burnt, but edible. Most not realizing that burnt toast is carcinogenic and will kill you sooner or later.

Now, after all that fruitless toast-scraping, the cancer we've swallowed has metastasized in us and circulates freely throughout the entire body politic. Death is inevitable, as well as being a natural consequence of our lifestyle. It's time to move on and discontinue trying to re-animate this corpse.

- Put the paddles down and let it go. The only one who can save us, is ourselves. And not in this body, we'll have to be reincarnated into something entirely new.



K&R

[blkmusclmachine]

46. 14 Defining Characteristics of Fascism

Corporate Power is Protected

Labor Power is Suppressed

Controlled Mass Media

Rampant Cronyism and Corruption

Obsession with Crime and Punishment

Fraudulent Elections

Obsession with National Security

Supremacy of the Military

Identification of Enemies/Scapegoats as a Unifying Cause

Disdain for the Recognition of Human Rights

Rampant Sexism

Religion and Government are Intertwined

Disdain for Intellectuals and the Arts


http://rense.com/general37/char.htm

[woo me with science]

52. kick