Fiduciary Responsibility

Key executives of banks, insurance, and other financial companies carry a burden of fiduciary responsibility. This is both legally and morally binding.

In the wild Republican go-go era of deregulation many of these large companies issued a type of insurance to other financial companies. To get around having to hold any money in reserve for any possible future claims resulting from this insurance, this was not referred to as insurance, rather it was called a “credit default swap.”

This act of insuring a large financial transaction without having any assets to back up the insurance was grossly irresponsible. That is the nicest phrase I can use to describe it. Reckless and fraudulent is closer to reality.

There are plenty of laws on the books demanding that people who are holding other people’s money engage in proper fiduciary responsibility. This is especially true when that money is set aside as part of the assets of a tax qualified pension plan.

So these rich, Republican white collar crooks can be brought to justice if there is the will. But if instead society would prefer to continue to keep poor black people in jail for having a small amount of marijuana in their possession, then that is possible too.
-
-
-
-
-
-
-
-
-
-