Corruption In America
In the United States today, it is not just the economy that is crumbling. The entire fabric of society is coming apart as well. Literally almost wherever you look you can find rampant corruption in America. Our federal government is corrupt, our state and local governments are corrupt, our corporations are corrupt and unfortunately average Americans seem to become more corrupt all the time. As corruption becomes widespread in America, trust is breaking down. It is very difficult to know who to trust these days. But a society cannot function without trust. So what are we going to do when all the trust is gone?
The SEC announced today that JPMorgan has come to an agreement to pay out 153 million dollars to settle charges related to the sale of a controversial collateralized debt obligation back in 2007. It turns out that a hedge fund that helped pick the underlying assets for the CDO also bet very heavily that it would fail. JPMorgan marketed the CDO as a good investment when they knew that it was garbage.
Robert Khuzami, the SEC’s top enforcement officer, summed up the charges against JPMorgan this way….
“J.P Morgan marketed highly-complex CDO investments to investors with promises that the mortgage assets underlying the CDO would be selected by an independent manager looking out for investor interests”