WASHINGTON: America has waited a decade for an aggressive government crackdown on white-collar crime. Now, just before the election, and in the middle of a bull market, it has arrived, Axios’ Felix Salmon writes.
Why it matters: When times are good, investors become more trusting and more greedy. That makes them more likely to put their money into fraudulent or criminal enterprises.
When markets surge, investors lower their guard. So after a decade-long bull market, there is no shortage of those frauds to prosecute.
Just this week, we’ve seen headlines about multi-billion dollar fines for Goldman Sachs and Purdue Pharma; the unveiling of a major antitrust case against Google; venture capitalist Elliott Broidy pleading guilty to accepting millions of fraudulently-obtained dollars; an allegation that software magnate Bob Brockman criminally evaded taxes on some $2 billion of income; and an admission of tax fraud by Robert Smith, the founder and CEO of Vista Equity Partners.