Inside Job – Where are they now?

[This is a post from Brent Burns, a PhD student in the Environmental and Energy Policy program here at Tech. This was an assignment for our Ecological Economics course.]

After seeing Inside Job, a documentary detailing the global financial crisis of 2008 through research and extensive interviews with financiers, politicians, journalists, and academics, I was curious to see how the accused perpetrators (banks, economist, etc.) are doing today as we approach 2014, so I did a Google search on “2008 financial meltdown where are they now” and found some good, yet concerning, updates.

In September of 2013, Allison Fitzgerald from The Center for Public Integrity published Ex-Wall Street chieftains living large in post-meltdown world, detailing the current luxurious lifestyles of five of the worst Wall Street offenders partially responsible for the 2008 meltdown.  The article discusses leaders from Lehman Brothers, Bear Stearns, Goldman Sachs, JPMorgan Chase, and Merrill Lynch, describing how each of the leaders made off with hundreds of millions of dollars, as the majority of the nation’s middle class lost their life savings and homes.

Brayden Goyette, from ProPublica, wrote another good article in October 2011, Cheat Sheet: What’s Happened to the Big Players in the Financial Crisis, describing some of the political and government figures involved in the crisis.  For example, Larry Summers went on to serve as Treasury Secretary and was almost nominated to serve as head the Federal Reserve for President Obama.  The Guardian’s Rupert Neate provides one of the best summaries with his August 2012, Financial crisis: 25 people at the heart of the meltdown – where are they now?. This article reviews the bankers, politicians, and others involved in the crisis and their current lifestyle (as of 2012).  Judging by the S&P 500 index (a leading indicator of investment returns) for the companies headed by the individuals referenced in the article, the year 2012 was a good one: the index has increased 27.42%.  However, the gains experienced by these companies has not translated into good times for all. To illustrate, Dave Gilson and Carolyn Perot’s 2011 article, It’s the Inequality, Stupid graphically displays the inequality growth in the United States over the past 30 years.  The recent stock market gains have only increased the gap and rewarded those who helped cause the 2008 crisis.

After reviewing what has happened to those responsible for the financial collapse of 2008 and how they were financially rewarded for their poor (and some would argue, criminal) performance, the prospects of a sustainable economy are very dismal.  There has not been any deterrent to the behavior which led to the 2008 meltdown.  Without any criminal prosecution, it’s only a matter of time before the next financial crisis happens.  In January 2011, Glenn Greenwald from the Guardian wrote The Real Story of How ‘Untouchable’ Wall Street Execs Avoided Prosecution. In summary, the Department of Justice and the Obama administration never even tried to prosecute, which is a failure of justice.  Right now, banking and political leaders are leveraging new loop holes to maximize the profits of few at the expense of the many, without fear of any personal consequences.


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