Preet Bharara Quotes
In some respects, inside information is a form of financial steroid. It is unfair: it is offensive; it is unlawful; and it puts a black mark on the entire enterprise.
Bharara, Preet. "Remarks at the New York City Bar Association." New York City Bar Association, 20 Oct. 2010, New York.
While not every person in the stock market was dishonest, a large number were, and the system itself was inherently unfair and disadvantaged the average investor. Despite the many reforms attempted over the years, as the 2008 meltdown proved, the same problem was still with us. Capone was essentially right then and even today.
The States sold bonds to finance the Revolutionary War. Some states had better prospects for redeeming their bonds than others. Georgia, South Carolina and North Carolina in particular had poorer prospects than most and their bonds were selling at about 25 cents on the dollar. Alexander Hamilton, then the Secretary of the Treasury, wanted the new Federal government to assume the state’s war debt and pay off the bonds. He made his proposal for how he would accomplish this on January 14, 1790. He delivered his report and proposal to Congress “Report on the Public Credit”. As soon as Hamilton’s proposal was read in Congress, sophisticated speculators set off for the Southern States to buy up as many bonds as they could before the owners found out that a Federal bail-out was under serious consideration. They could easily double, triple or even quadruple their money. To Jackson this was gross immorality. Other representatives had a different point of view. See {619928} & {619939}.
The then attorney general had begun a series of investigation which discovered that most of the major Wall Street brokerage houses were engaged in systematic frauds to cheat small investors. One dramatic fraud he uncovered was that the research expert analysts of major firms would recommend the stock of businesses that their firm was doing investment banking for even when they knew that the companies were not doing well or were even in deep financial trouble. See {627544}.
Preetinder Singh Bharara is an American lawyer, author, and former federal prosecutor who served as the United States Attorney for the Southern District of New York from 2009 to 2017. He served as an Assistant U.S. Attorney for five years prior to leading the Southern District. According to The New York Times, Bharara was one of the "nation's most aggressive and outspoken prosecutors of public corruption and Wall Street crime" during his tenure.
