Punitive Damages

ast week Citigroup finally reached a settlement with the U.S. Department of Justice over shoddy mortgage securities transactions in the years immediately before the 2008–2009 financial crisis. The bank agreed to pay $7 billion. That follows a $13 billion settlement paid last year by JPMorgan Chase & Co., and comes just as Bank of America is negotiating a settlement with the Justice Department sure to top $12 billion.

Read More

What Market Panic? Halcyon Days for Silicon Valley

It’s no secret that the media world is disproportionately represented by denizens of the East Coast, which also overlaps with the corridors of politics and finance. For the past years, these circles have been focused on financial crises, the fate of the euro zone, high unemployment, government debt, unbridled political partisanship, nuclear proliferation, and successive waves of market panic.

Read More

The End of Wall Street's Big Payday

On Sept. 15, a 31-year-old UBS trader in London was arrested for fraudulently attempting to hide “rogue” trades that led to at least $2 billion in losses for the Swiss bank. How could a large financial institution, Swiss no less, let its risk controls slip so much that a person in a relatively junior position could lose so much of the bank’s capital?

Read More