Taibbi and Naked Capitalism weigh in on the looting of Jefferson County in Alabama by investment banks, replete with bribery and other sleazy doings. No prosecutions against the banksters as yet, either.
Control fraud, with looting as the objective, occurs when the CEO manipulates accounting rules to make the company he runs wildly profitable. These manipulations usually involve the creation of intangible and very difficult to understand assets (think derivatives), that can be valued very highly but be in reality worthless. This complexity makes unwinding the fraud from the outside almost impossible.
“We are in a cabal… five or six players … own the regulatory apparatus. Everybody is afraid to regulate them” say a Chief Investment Officer who manages $2 billion