​​​​​Baserman  Law

Below is a section of Mark Baserman Jr's 2011 article

regarding White Collar Crime:

BACKGROUND AND FALLOUT OF THE 2008 CRASH
The financial meltdown of the late 2000’s was caused by a complex interplay of valuation and liquidity problems, and triggered by the bankruptcy of Lehman Brothers on September 15, 2008.[1] This created what many economists consider the deepest financial downturn since the Great Depression. It resulted in the insolvency of large financial institutions like AIG (American International Group), and international stock-market declines.  Across America in 2008 the inflated housing sector collapsed, resulting in an epidemic of foreclosures and an overhang of inventory which markets could not liquidate. Ultimately keystone manufacturing institutions like Chrysler and General Motors were rendered bankrupt, resulting in a sharp decline of consumer confidence and a prolonged decline in consumer demand.  In September of 2008, the Federal Government responded with the emergency passage of the Troubled Asset Relief Program (TARP), which purchased preferred stock and backed the assets of imperiled international banks.[2]  The Federal Reserve also responded with an unprecedented monetary infusion, lowering the prime rate to zero, initiating multiple rounds of quantitative easing, and capitalizing troubled institutions to an extent which the public is not privy.[3]

While many causes for the financial crisis have been suggested, with varying weight assigned by experts, the United States Senate issuing the Levin–Coburn Report found "that the crisis was not a natural disaster, but the result of high risk, complex financial products; undisclosed conflicts of interest; and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street."[4]

Critics argue both investors and credit rating agencies failed to accurately assess the risks of default attached to mortgage-related financial instruments, and western governments failed to update their regulatory structures to align with 21st century problems.  Also cited is the  repeal of the Glass–Steagall Act of 1933 by the Gramm-Leach-Bliley Act in 1999,[5] that removed the prior barrier between Wall Street investment banks and typical depository banks, resulting in a dangerous intermingling of assets and the growth of institutions to “too big to fail” status.  Although, this indictment of Gramm-Leach-Bliley has been disputed by the conservative CATO institute.[6]   In response to the financial crisis of 2008, regulatory solutions have been implemented, but some believe more is needed.
[1] http://www.usatoday.com/money/markets/2009-09-10-lehman-triggers-financial-chaos_N.htm
[2] Emergency Economic Stabilization Act of 2008, 122 Stat. 3765 (2008).
[3] http://theweek.com/article/index/221883/the-federal-reserves-breathtaking-77-trillion-bank-bailout
[4] http://hsgac.senate.gov/public/_files/Financial_Crisis/FinancialCrisisReport.pdf
[5] Gramm-Leach-Bliley Financial Modernization Act, 113 STAT. 1338 sec. 101 (1999).
[6] http://www.cato.org/pubs/policy_report/v31n4/cpr31n4.pdf