Following Wells Fargo executives’ defense of their company before a Senate committee yesterday Gerald Epstein, economics, says banks are continuing to engage in misconduct and fraudulent behavior because of the government’s response. “The level of fraud has not been dealt with largely because the government hasn’t pursued those that are primarily responsible for criminal action,” says Epstein, who notes that bank executives were jailed in the savings and loan scandal in the 1990s. “But it doesn’t have the same deterrent effect because even though the fines seem quite large … it really doesn’t put that big a dent in the profit of the banks, it puts almost no dent in the bonuses and salary of those who are responsible for this.” (Christian Science Monitor, 9/20/16)
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