Gretchen Morgenson: Untangling The Complex Foreclosure Mess

Gretchen Morgenson, who writes a must-read weekly column in the NY Times business section goes on NPR to discuss the complete mess the banks and mortgage lending agencies have gotten the entire American economy into, through their initial mortgage securitization programs and now with their shady and illegal foreclosure practices.  To underline the severity of this situation, all 50 states have launched criminal investigations into the unsavory foreclosure activities committed by the banks.  Ms. Morgenson, unlike the hacks at the Wall St. Journal's op-ed pages, is an intelligent and informative journalist, who has been at the forefront in explaining the Great recession and the corpulence underlying America's corporate misdeeds.
 
NPR begins with the following introduction:

Since the housing bust two years ago, when millions of homeowners fell behind on their loans, the foreclosure industry has grown into a multibillion-dollar business. To deal with the thousands of defaulted loans needing to be processed, banks relied on thousands of temporary employees who often had little experience and training to handle the foreclosure paperwork.

This resulted in many mistakes being made throughout the foreclosure process. Reports of sloppy documentation — including the questionable notarization of documents, the loss of key paperwork needed to begin foreclosure proceedings and missing paperwork on original mortgages — temporarily halted foreclosure proceedings across much of the country in early October. It also triggered at least five separate federal investigations into the ways mortgage lenders have handled foreclosures.

The entire broadcast can be heard or downloaded here.

The degree of duplicity, fraud, and ineptitude exhibited by the major players in this decade long fiasco, should make everyone who has a stake in the viability of the American economy, to demand that everyone -politicians, corporations, bankers, loan agents, bond rating agencies, economists, and homeowners- all pay a severe penalty for engaging in what is likely the world's largest instance of criminal fraud.  Nothing else is acceptable, because these same devious pick-pockets will only re-emerge emboldened and unleash another wave of catastrophe upon the financial world if left unpunished.

Glaxo Guilty of Selling Tainted and Defective Drugs

GlaxoSmithKline, a British pharmaceutical company, has been forced to pay $750 million (USD) "to settle criminal and civil complaints that the company for years knowingly sold contaminated baby ointment and an ineffective antidepressant."

The case was initiated by a former employee and whistle-blower who sought penalties against the company.  The NY Times elaborates on the nature of the crimes at their Puerto Rico facility:

This was GlaxoSmithKline’s premier manufacturing facility, producing $5.5 billion of product each year. But Ms. Eckard [the whistle-blower] soon discovered that quality control was a mess: the water system was contaminated; the air system allowed for cross-contamination between products; the warehouse was so overcrowded that rented vans were used for storage; the plant could not ensure the sterility of intravenous drugs for cancer; and pills of differing strengths were sometimes mixed in the same bottles.

Instead of heeding FDA warnings about QA/QC inadequacies of the facility and their own internal people's advice, GlaxoSmithKline either ignored and/or dismissed concerns.  Ms. Eckard, who was initially sent to lead "a team of 100 quality experts to fix problems," was stonewalled by management and then dismissed once she began to demand that products be recalled.  She will now earn for her part in the whistle-blower case, "$96 million from the federal government, and she will collect additional millions from states."

The circumstances surrounding this particular case are unlike previous situations. 

Nearly all previous cases against the industry involved illegal marketing. This is the first successful case ever to assert that a drug maker knowingly sold contaminated products.

Whereas in the past, big-pharma was tagged for deceptive marketing and off-label sales tactics, GSK engaged in the willful and knowing dissemination of tainted, ineffectual, and potentially dangerous drugs to the public. This failure of both GSK and the American government to regulate the company is another indictment of the laissez-faire deregulatory approach that highlighted the conservative dogma prevalent in the Bush years.  Furthermore, it decimates any specious arguments that importation of Canadian drugs are a threat to consumers.

Given that the profit sources for big-pharma are waning and that numerous lawsuits have been asserted against big-pharma for misleading patients and "defrauding federal and state governments" the entire health care bills pushed through by both the Bush and Obama administrations reeks of corruption.  These companies are clearly unable to actually provide quality drugs that benefit people. So instead of ramping up their R&D base to find new drugs, they fire scientists and engage in legislative trickery to extend the patent life of their already questionable drug performers and push onto the market products that are ineffective and potentially lethal.  These people are just evil.  Sick and dying people shouldn't have to worry about whether their doctor is in collusion with the drug company to push a useless product upon them.  Patients shouldn't have to worry if FDA "approved" medication is actually effective or instead going to make them more sick or even kill them.

Is this all America is about? Lying, cheating, and using the government to swindle dying people out of their life savings. While congress subsidizes big-pharma, agriculture corporations, the military-industrial state, and bails out the banking industry for the umpteenth time, what are you getting? Maybe you can find it in your bonus that comes in the form of less take home pay, less benefits, less social mobility, more hours working, or more of your taxes going to maintain the lifestyles of corporate lobbyists and the "masters of the universe"-crowd.

Wake up people!

Take the red pill people, and fucking wake up!

***

This blog has previously dissected and listed other areas of fraud and corruption by big-pharma:

• Novartis fined $422 Million
• Big-Pharma, perennial fraud-mongers
• Pfizer on eminant domain and corporate welfare (NY Times)
• The corruption of university bio-medical research (NY Times)

Open Advice to President Obama

Dear Barack,

I know you don't care what I think, with all those high-paid clowns dispensing all that brilliant strategy to you on how to piss-off those loser hippies who funded, supported, and fought for you across America in 2008, but here it is.

You're a bit like Bubba, in that despite all those flowery speeches about hope or being from a place called hope (who can get it straight anymore) you've given over the past few years, we really don't know what you believe.  I mean, the nihilists and brain-dead masses think you're a Marxist Fascist with ties to Kenyan revolutionaries.  I don't know what that means either, other than interpreting it as an odd way to just call you a nigger.  I've never really thought you were the second coming of FDR, but you were a better option than the Queen corporatist Madam Clinton.  People liked what you had to say and what you represented, but back then it mostly was about voting against eight hard and dismal years under the Bush junta.  However, you waffled and instead of steamrolling what remained of the right wing yahoo's and pushing through a progressive and liberal agenda, you coddled and capitulated to their bizarre demands.  Let's recap:

• Did exactly what Bush said he would do in ending the Iraq war; that being leaving 50K troops to babysit the Shia thugocracy in Baghdad.
• Escalated the Afghan war, which everyone has already admitted is lost.
• Caved into special interests in the health care bill, by eliminating the public option and preventing the  importation of drugs from Canada.
• Created a health care bill that would force individuals to purchase lame health care coverage and subsidise the crooked insurance companies.
• Pushed through a special debt committee, filled with right-wing ideologues and hacks demanding that Social Security be privatized under the guise of bi-partisanship.
• Bailed out your friends and big-donor buddies in the banks, but left the rest of the nation submerged with debt and ever-expanding (and now illegal) foreclosures
• Failed to prosecute any of the major players in the Bush junta for war crimes, crimes against humanity, violations of the Constitution, and numerous illegal acts and unethical behavior
• Advanced the post-911 security-surveillance state to new levels
• Advanced the military-industrial complex in the face of mounting debts and limited resources
• Let Israel make a complete mockery of you, Hillary Clinton, Joe Biden, and your entire administration relating to the Palestinian issue
• Allowed the minority blue dog Democrats to dictate the terms of major legislation, so they could retain their congressional seats (which as every poll indicates, they won't)
• Put in charge Ken Salazar as Secretary of the Interior, effectively creating what others have referred to as Bush's 3rd term with respect to governmental regulation and resource management of public assets
• Colluded with BP to lie to the public on the scope and severity of the Gulf of Mexico oil spill.

People who voted for you, in the deluded belief that government could mend it ways, are looking at a moribund economy, a Democratic Party that is incapable of defending themselves against corrupt Republican and Tea Party slander, and a crypto-fascist uprising funded by the same assholes whose jobs and balance sheets you saved from complete Armageddon.  A lot of people said early on that you were playing three-dimensional chess and were way smarter than the rest of the dolts on the Hill.  It's pretty clear that not only don't you have game, but you're really not as bright as those Harvard and Columbia degrees might imply.

So Barack, if you want to do something meaningful, do yourself a favor and grow a couple, because this nonsense you've been pedalling for the past 21-months is getting tired and no one is going to vote for you if you keep selling the same recycled shit that Bush left behind on the White House's going-out of business sale in November 2008.

Fuck-you very much.

The Lifer.

Barry Ritholtz tells consumers to sue the banks

Barry Ritholtz, who blogs at The Big Picture, tells everyone who may have encountered or been harmed by the blatant and unequivocal fraud orchestrated by the banking and mortgage lending industry, to file criminal charges against the relevant parties, demand local AG's pursue litigation, and engage the media/political classes to expose the situation further.

If you have been in any way personally harmed by the illegal actions of any bank, law firm, process server, or loan servicing agency, you MUST file criminal charges.

If your home was broken into by a firm to change the locks illegally, that is breaking and entering, and conspiracy. If the wrong bank filed a foreclosure action, if the wrong house was foreclosed upon, its time to go criminal prosecution route.

Go to the local police department, fill out the requisite forms. Then go to your District Attorney’s Office or County Prosecutor’s office, and ask to speak to someone in charge. Tell them you want to prosecute. You can also contact your state Attorney General about the same. Follow up with written letters, that you send you your local newspaper and the NYT, WSJ, USA Today.

If any local DAs balk — some will know bank execs from the political groups and golf courses — let them know you will keeping a written record of all of this, and you plan to make sure that their opponent in the next election knows all about their bank coddling ways. When they stammer, hammer them about their opponent’s interest in who is and isn’t a bank bitch.

Corporations that get free speech rights also have liability for their own criminal actions. Its way past time we start forcing those responsibilities to have some meaning.

This is not about keeping deadbeats in their homes, as a few idiots and liars have asserted. The corporate sympathizers who are too busy fellating the bank to recognize what is going should be ignored. This is about fundamental property rights and the Rule of Law in the United States — nothing less.

In my previous post, I advocated the identical strategy.  Unless people want to be disenfranchised, abused, and perennially molested by the corporate degenerates on the street and their paid henchmen in congress, then the only recourse left is the courts.

Ralph Nader on the Foreclosure Mess

Ralph Nader, America's pre-eminent consumer advocate, posts an article relating to the current foreclosure mess and the banks wholesale evasion of legal practices arising from the securitization process.

He begins by saying:

This time the big banks and mortgage servicing companies, with their long, one-sided fine print contracts, may have outsmarted themselves. The newspaper headlines and the network television news are blazing news of the erupting fraudulent foreclosure process. This long-overdue coverage is generating public visibility and suddenly hundreds of thousands of foreclosures may be questioned due to what one commentator delicately called “flawed paperwork.”

He then outlines the mortgage-securitization chain through which, "The matrix of interconnected fine print contracts became too routinely robotized."  Meaning, that the banks disregarded specific requirements, such as notarization, to save themselves money and accelerate the repeated sale of these mortgages to investors across the globe.  Nader quotes the Washington Post on this matter:

“mortgages were created, and sold, sliced and diced, packaged and repackaged so quickly that financial firms had neither the time nor the patience to file paperwork in local courthouses as the loans were traded. By using MERS, lenders were able to reassign loans quickly and cheaply but often the chain of ownership was not accompanied by an official paper trail. …These problems contributed to the use of flawed and fraudulent paperwork, including backdated assignments and forged documents.”

The only reason any of this is coming to light is because consumers were willing to challenge the bankers in court and force them to confirm that they were in fact eligible to serve foreclosure upon those persons home.  It is only when people stand up for themselves and challenge institutional corruption and the status quo, will real changes be made to the system.  Voting for these corporate stooges in congress won't help.  Only by hitting the greedheads in their pocket and forcing them to defend themselves in court will the marauding pirates of casino-capitalism be held at bay.

Foreclosure Fraud: Case Example from Florida

Despite protestations from Wall Street bankers and their crooked henchmen in congress, massive criminal fraud has been exposed in the ongoing housing foreclosure fiasco.  Major mortgage dealers, such as GMAC, Bank of America, and Ally Financial Inc. have stopped foreclosure proceedings across the country out of concern of their standing in the situation. As has been apparent for more than a year, much of the fine details surrounding exact ownership of individual homes is either incomplete or missing, given the widespread securitization process.  In order to evade actual laws, the banks simply used third party intermediaries to generate missing documentation and bogus signatures out of thin air.  To us layman that's called fraud.

In the following egregious case, Bank of America foreclosed on a Florida man's home in which the bank didn't even have a mortgage for!  As usual, the bank disregarded the customer's complaints for months until the local press became involved.  Once confronted with their incompetence and potential criminality, they then issued their standard "our mistake" line of bullshit.

If Americans don't demand that every person, banker, and entity involved in this massive fraud scheme are sent to jail and banned from ever working in the industry, then the country is no more a nation of laws than any other third world shit-hole bereft of a transparent system of government and independent judiciary.
 

Lauderdale man's home sold out from under him in foreclosure mistake
September 23, 2010
By Harriet Johnson Brackey, Sun Sentinel
 
When Jason Grodensky bought his modest Fort Lauderdale home in December, he paid cash. But seven months later, he was surprised to learn that Bank of America had foreclosed on the house, even though Grodensky did not have a mortgage.

Grodensky knew nothing about the foreclosure until July, when he learned that the title to his home had been transferred to a government-backed lender. "I feel like I'm hanging in the wind and I'm scared to death," said Grodensky. "How did some attorney put through a foreclosure illegally?"

Bank of America has acknowledged the error and will correct it at its own expense, said spokeswoman Jumana Bauwens.

Grodensky's story and other tales of foreclosure mistakes started popping up recently across South Florida. This week, GMAC Mortgage, one of the nation's largest mortgage servicers and a major mortgage lender, told real estate agents to stop evicting residents and suspend sales of properties that had been taken from homeowners in foreclosure. The company said it might have to "correct" some of its foreclosures, but was not halting those in process.

In Florida courts, which have been swamped with foreclosure cases for several years, mistakes "happen all the time," said foreclosure defense attorney Matt Weidner in St. Petersburg. "It's just not getting reported."

And the legal efforts required to resolve a foreclosure mistake are complicated. "Unwrapping it is like unwrapping Fort Knox," said Carol Asbury, a Fort Lauderdale foreclosure attorney. "It's very difficult."

The process is under increasing scrutiny, as Florida's court system struggles with the mountain of cases that have resulted from the housing crisis.

Grodensky said he spent months trying to figure out what happened but said his questions to Bank of America and to the law firm Florida Default Law Group that handled the foreclosure have not been answered. Florida Default Law Group could not be reached for comment, despite several attempts by phone and e-mail. Grodensky said he has filed a claim with his title insurance company, but that, too, has not resulted in any action.

It wasn't until last week, when Grodensky brought his problem to the attention of the Sun Sentinel, that it began to be resolved.

"It looks like it was a mistake in communication between us and the attorneys handling the foreclosure," said Bauwens.

Krugman on the Limits of American Exceptionalism

Paul Krugman compares America's current mortgage morass, associated with the unfolding home ownership and foreclosure fiasco, to that which was encountered during the Asian financial crisis.

After the Asian financial crisis of 1997-1998, it was often said that a key barrier to recovery was the uncertain state of property rights: so much debt had been run up during the boom, and there had been so many defaults in the bust, that it was no longer clear who owned anything. Plus, these countries lacked clear legal procedures, and in general suffered from insufficient rule of law. All this was said, of course, in a tone of superiority: we Americans had solved such problems.

He also states, America's mortgage crisis dwarfs anything that occurred in Thailand and Indonesia by orders of magnitude. 

The crony-capitalists and casino-players on Wall St. have made a mockery of America's international reputation as a safe and secure center of investment.  Gimmickry, sleight of hand agreements, unequivocal fraud, and legislative and regulatory arbitrage were all employed by the MBA ass-clowns in the banking and mortgage industry to secure profits for themselves without taking into account the long-term risk to either their businesses or the nation.  The end result will be a decade of lost growth for America and given that somewhere within that same period another potentially catastrophic economic collapse may occur, based on historic trends and the belief by many economists that an even larger shock lies in wait given the failure of most governments to adequately address the root causes of the great recession, capitalism as we know it today may collapse.

Afghan Civilian Killings Amongst the Worst Yet

The NY Times has another article on the morass that has unfolded in Afghanistan, involving "a drug-addled Army unit"  that killed Afghan civilians for sport and posed "for pictures with victims and [took] body parts as trophies."

The article outlines the various prosecutions that have arisen from combat related conflict in Iraq and Afghanistan over the past decade.

Some cases gained a measure of notoriety, including a rape and multiple killing in Iraq in 2006 that resulted in lengthy sentences for several soldiers. The Marine Corps, too, has dealt with high-profile cases, like the killing by Marines in 2005 of 24 Iraqis in Haditha — though prosecution efforts in that case largely collapsed.

But a case being heard before a military court at Joint Base Lewis-McChord near Seattle could surpass all that have come before in the two wars.

The case has received little coverage in the broader American press.  Human rights organizations and legal authorities publicly recognize that bringing forward successful prosecution of criminal acts committed by soldiers in conflict zones is difficult due to the often spartan evidence and limited cooperation from civilian populations.

“The large majority of civilian harm in both Iraq and Afghanistan takes place during legitimate military operations,” said Sarah Holewinksi, executive director of the Campaign for Innocent Victims in Conflict. “But because of very poor record keeping on the part of all the warring parties, we really don’t know who has been harmed, how many have been harmed and how they have been harmed.”

In this particular case though, video and photographic evidence created by the perpetrators and their own statements to military investigators strongly support the prosecution's claims. If convicted, it is certain that none of these men will ever see freedom again.

***

Previous blog entries that I've made on this subject are here, here, and here.

Possible Causes of Honeybee Colony Collapse Found

US scientists associated with the US Army and the University of Montana, have ascertained a possible cause for the annual decline in honeybee colonies in the USA.

To contextualize, the phenomenon is not unique to the United States and has been found to be affecting bee populations across the globe for a number of years.   In 2004, apiarists started to discover that large portions of their colonies were either dying or not returning to their hives.  Substantial losses year-over-year both in North America and Europe, have lead to a concerted global effort to ascertain the causative agents behind this situation.  Francis Ratnieks, a biologist at University of Sussex in Brighton, has stated in Wired magazine that there is no single rational at the global level, why bee populations are in decline.  He elaborates that honeybees are "probably dying for all kinds of different reasons from loss of their foraging grounds to increased exposure to global pathogens."  Pesticide usage, monoculture agricultural practices, urban sprawl, and climate change are also a few of the other causes that investigators have looked at to understand why bees are in decline.

The NY Times is reporting that American scientists, utilizing military research tools, have identified a fungus and virus pair that is present in 100% of all colony collapse cases evaluated in their labs.  Their findings suggest that "both the virus and the fungus proliferate in cool, damp weather, and both do their dirty work in the bee gut, suggesting that insect nutrition is somehow compromised."

The article reports on the host-parasite interaction:

“It’s chicken and egg in a sense — we don’t know which came first,” Dr. Bromenshenk said of the virus-fungus combo — nor is it clear, he added, whether one malady weakens the bees enough to be finished off by the second, or whether they somehow compound the other’s destructive power. “They’re co-factors, that’s all we can say at the moment,” he said. “They’re both present in all these collapsed colonies.”

The mechanisms that the fungus-virus pair is utilizing to undermining the bee populations is yet to be determined.

Still unsolved is what makes the bees fly off into the wild yonder at the point of death. One theory, Dr. Bromenshenk said, is that the viral-fungal combination disrupts memory or navigating skills and the bees simply get lost. Another possibility, he said, is a kind of insect insanity.

Further research into this phenomenon is necessary to understand a means of preventing future outbreaks.  However, we also know as in a case study in Britain where changes have been made to enhance the natural environment of bumblebees, such as "putting in pollen and nectar-rich flower margins to fields, growing red clover hay meadows and rotating the grazing of animals on land," that immediate improvements in the health of local bees could be achieved.

Quote of the Day: US Military Spending

[T]oday, with the Soviet Union gone, we account for most of the world's defense spending -- 54 percent in 2009, according to a recent report. That's right: There are 195 countries on planet Earth, and if you added up the military spending of the 194 of them that aren't the United States, you'd still have less than what we are spending.

- Paul Wildeman at the American Prospect on "Our "Hollowed Out" Military"

As is usual, the typical ass-clowns of the military-industrial complex, in this case neo-conservatives and perennial war-mongers Bill Kristol and company are defending the bloated, corrupt, and unsustainable Pentagon and surveillance state budgets.  None of these so-called "conservatives" care anything about fiscal soundness or the long term viability of the nation. 

Republicans continuously bloviate that about the necessity of spending cuts, including medicare and social security, but never discuss how to trim the real beast: war making.  This issue more than any other underlies the hollowness of the entire American conservative movement.  All their major gripes: big-government, intrusive state powers, accountability, preventing government waste and corruption, and the distorting force of foreign interventions and wars, that would be anathema to the explicitly stated wishes of the constitutional framers; are all thrown out the window.  America can be a declining military superpower or it can be a vibrant democracy, but it cannot be both.

(h/t Andrew Sulivan's Daily Dish, "More than half the world's defense spending")

Please Mind the Gap!

The above chart culled from a posting at Kevin Drum's MotherJones blog, illustrates what has been discussed substantially since the inception of the 2008 global financial meltdown, but has not been widely understood amongst the general population.  If growth averages at or below 2% for the remainder of the decade, unemployment will remain nearly twice at which it was during the 1990's and much of the 2000's.  Similar to Japan's continuing economic malaise, America appears to entering a period of turbulence in which as much as 10-years of marginal or no economic growth will occur.

Both Harvard's Ken Rogoff and Yale's Robert Shiller have also discussed the likelihood that neither America nor much of the Industrialized world will return to pre-recessionary growth levels within the short term.  Based on Rogoff and Carmen Reinhart's 2009 research on economic crisis's over the past 800-years, they state that a "slow, protracted recovery with sustained high unemployment is the norm in the aftermath of a deep financial crisis."  Given the weak stimulus package introduced by the Obama administration and the ascent of austerity economics amongst many European nations, there is no reasonable chance that on either side of the Atlantic unemployment will reside, economic output will markedly increase, or that the fiscal situation will improve by 2012.

Shiller notes that in Rogoff and Reinhart's examination, the following rates are derivable:

median annual growth rates of real per capita GDP for advanced countries were one percentage point lower in the decade following a crisis, while median unemployment rates were five percentage points higher.

With the introduction of further uncertainty, whether through China's economy crashing or other yet to be determined causes, the world is faced with grim economic prospects for the foreseeable future.

Elizabeth Warren Lays Down Some Principles

Felix Salmon reports that Elizabeth Warren is off and running with the new Consumer Financial Protection Bureau (CFPB), by laying down regulatory principles, rather than conventional "thou shall not" rules of operation.  In his post, he expands on the difference in her approach to regulating versus the conventional approach used by the banks and their slimy lobbyists within the DC Beltway:

The fact is that it makes perfect sense for a consumer-protection bureau to regulate from the point of view of the consumer, rather than from the point of view of bank managers. Warren’s simple questions are good ones, and they’re hard to capture with rules. If banks provide valuable products to consumers, then consumers will value them. If, on the other hand, banks create products which are designed to prey on human foibles, then consumers will come to believe, in Warren’s words, that “dealing with banks is like handling snakes – do it long enough and you’ll get bit.”

If Warren can continue making in roads by challenging the financial industry in cleaning up their act and creating a long-lasting framework to the benefit of consumers, the Democrats may have a real contender for delivering the "Change" that Obama himself has failed to deliver.

Another Poisoned Prescription: Novartis Fined $422 Million for Fraud

Another year and another multi-million dollar fine and settlement from another Big Pharma corporation.  Novartis, which is headquartered in Switzerland, has agreed to pay $422.5 million, in order to settle criminal and civil investigations arising from the marketing of the antiseizure medicine Trileptal and five other drugs. 

The NY Times summarizes the billion dollar payouts that Big Pharma has agreed to in regards to criminal investigations conducted over the past decade:

Novartis joins a growing list of pharmaceutical companies that have settled government investigations into health care fraud in the last few years, including Pfizer, which paid $2.3 billion; Eli Lilly, $1.4 billion; Allergan, $600 million; AstraZeneca, $520 million; Bristol-Myers Squibb, $515 million; and Forest Laboratories, $313 million. Pfizer, Lilly, Allergan and Forest pleaded guilty to crimes in the cases.

Earlier this year I outlined in a previous blog entry the business practices and criminal endeavours pursued by Big Pharma and the medical community on an annual basis against consumers.  The above settlement list validates the fact that when the world's largest corporations are found engaging in criminal activities, little more than nuisance fines are levied against these multi-national predators.  The profits elicited from pushing either unproven or detrimental pharmaceuticals, via morally compromised physicians, far outweighs any financial fine that the US government is prepared to impose.

Andy Wyss, president of Novartis Pharmaceuticals, said that Novaritis would “continue its commitment to high standards of ethical business conduct and regulatory compliance in the sale and marketing of our products.”  For industry watchers, the current press release is a familiar issuance from the fraud-mongers in the pharmaceutical industry.

Erik Gordon, an assistant professor at the University of Michigan school of business who follows the drug industry, said it was “easy to stifle a chuckle” when the company announced a guilty plea and, in the same news release, promised to continue ethical conduct.

Prosecutors said top management at Novartis had approved illegal marketing from July 2000 to June 2004. No individual, however, was named or charged.

Given the unscrupulous and illegal behavior of these companies, it is only further telling that both Republicans and Democrats fall over themselves to placate and support these corporate criminals.  Instead of allowing Americans to purchase drugs from Canadian manufacturers, the spineless Obama administration blocked Americans from cross-border shopping and individual state governments from engaging in bulk purchases to reduce costs.  If the US Department of Justice was sincerely interested in preventing these recalcitrant criminals, whether in Big Pharma or Wall St., from repeating their actions, hundreds of corporate managers and board members would be forced to defend their actions in court.  Once the cost-benefit equation is shifted, only then will these miserable crony-capitalists be effectively dealt with.