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Blog of Mass Destruction

The Privileged & Entitled Bigs

By The Reverend Published: April 21, 2010

A corporation is just like an individual citizen...except, of course, when it's not....

Charles Schwab has agreed to settle a federal class-action suit related to its Schwab YieldPlus fund for $200 million. Last week, Schwab said that plaintiffs were asking for up to $890 million in damages.

The preliminary settlement "was favorable to Schwab," says Richard Repetto, an analyst with Sandler O'Neill + Partners. "It's a pretty good deal for them."
The ultra-short-term bond fund, marketed as an alternative to money market funds, surprised investors when it suffered losses on mortgage-related securities.
Plaintiffs in the federal case alleged that Schwab misrepresented facts in the YieldPlus prospectus.

Misrepresented facts and......

A judge last month said it violated U.S. law in failing to get shareholder approval before putting half the fund's assets into uninsured mortgage-backed securities.

The $200 million settlement, according to a Charles Schwab analyst....

"The removal of this overhang is clearly a nice positive for the stock, as the settlement is meaningfully smaller than the worst case scenario and it eliminates the risk of further management distraction," Collins Stewart analyst William Tanona wrote in a note to clients.

Much was said recently about irresponsible coal mine owners who put their workers at risk by gaming the safety inspection process. Paying fines for violations and gumming up the process with appeals are simply the costs of doing business for irresponsible coal mine owners.

Coal mine the Banksters. They're irresponsible and unaccountable...just like some of you are.

In the recent Citizens United case when the activist Roberts Court ruled that no limits could be placed on how much money corporations could spend influencing little people were reminded by the activists that corporations and individuals are equal before the law. The free speech of an individual is guaranteed in the Constitution.....a corporation is the same as an individual when it comes to free speech, according to 5 Supremes....ipso limits can be placed on a corporation's "free speech."

Add to that braintwister previous rulings equating free speech with money.....and corporations, who are just like each and every individual citizen....are now fully free to not just influence, but control, our election process.

Individual citizens have the legal right to vote....individual citizens have the legal right to hold elected office. But what about corporations? Do corporations have the legal right to vote or hold elected office. Of course not.

Not exactly the same, right? I mean, if the free speech of citizens is the same as the free speech of corporations.....why can't corporations vote? Isn't voting a form of free speech? Why can't corporations hold elected office? Why can't we have a President Goldman Sachs? Aren't the rights of corporations being violated by excluding candidate FedEx or candidate Caterpillar?

Total foolishness.

Worse yet is the fact that corporations are not treated equally under the law compared to individuals. If an individual defrauds, embezzles, scams, schemes, tricks,...or just plain from others, that individual will be charged with a crime and sentenced. If a corporation does so.....the corporation writes a check and denies any wrongdoing in the matter.

How is that equal?

Last year, I blogged about the pharmaceutical corporation Pfizer....who simply wrote a big check when they were caught in an egregious conspiracy case to defraud. An individual who did the same thing as Pfizer did would still be in prison.

Instead of loudly braying about imaginary "freedoms" being taken away from citizens....Tea Partyers should be protesting the fact that Big Corporations have been granted extra privileges by Congress and the Supreme Court. Big Corporations are not only entitled to defraud, cheat, scheme, scam...and steal....but when they get caught doing so....they, and they alone, are privileged to write a get-out-of-jail-free check...WHILE SIMULTANEOUSLY....writing a huge check to control our election process and outcome.

Helluva country.



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