NPR reports 21 Airlines Fined For Fixing Passenger, Cargo Fees.
"When the airline industry took a nose dive a decade ago, executives at global carriers scrambled to find a quick fix to avoid financial ruin. What they came up with, according to federal prosecutors, was a massive price-fixing scheme among airlines that artificially inflated passenger and cargo fuel surcharges between 2000 and 2006 to make up for lost profits. The airlines' crimes cost U.S. consumers and businesses — mostly international passengers and cargo shippers — hundreds of millions of dollars, prosecutors say. But the airlines caught by the Justice Department have paid a hefty price in the five years since the government's widespread investigation became public. To date, 19 executives have been charged with wrongdoing — four have gone to prison — and 21 airlines have coughed up more than $1.7 billion in fines in one of the largest criminal antitrust investigations in U.S. history. The court cases reveal a complex web of schemes between mostly international carriers willing to fix fees in lockstep with competitors for flights to and from the United States. Convicted airlines include British Airways, Korean Air, and Air France-KLM. No major U.S. carriers have been charged."
1 comment:
Glad to see the US Justice Department is hard at work saving US Citizens from the most egregious corporate criminals.
Hundreds of millions of dollars in overcharges for international flights and cargo, over six years - please...BFD.
If the Justice Department was really doing it's job, here's how the NPR story would read, with just a few minor edits:
"When the investment banking industry took a nose dive a decade ago, executives at global banks scrambled to find a quick fix to avoid financial ruin. What they came up with, according to federal prosecutors, was a massive fraud among banks that created worthless financial instruments like MBSs, CDSs, and CDOs which artificially inflated house prices between 2000 and 2006. The banks did this to make up for lost profits, after the dot com bubble burst in 2000.
The banks’ crimes cost U.S. taxpayers hundreds of billions, maybe trillions, of dollars, prosecutors say. But the banks caught by the Justice Department have paid a hefty price in the five years since the government's widespread investigation became public.
To date, hundreds of executives have been charged with wrongdoing —four hundred have gone to prison — and 21 banks have coughed up more than $170 billion in fines in one of the largest criminal antitrust investigations in U.S. history. The court cases reveal a complex web of schemes between banks willing to commit massive financial and accounting fraud in lockstep with competitors to ensure no disruption to their profits and annual bonuses.
Convicted banks include Goldman Sachs, Citigroup, Morgan Stanley, Lehman Brothers, Bear Stearns, UBS, and Merrill Lynch among many, plus an insurance company - AIG.
No local or community banks have been charged."
Now that would be news! I can dream can't I?
It's just interesting to see that the Justice Departmentment is more agressive about airlines who overcharge for international tickets and cargo, than they are about prosecuting a massive financial fraud that has cost taxpayers hundreds of billions of dollars, resulted in 8 million lost jobs, and caused millions of families to be displaced due to foreclosures on their homes.
At least with the airlines, even with the price fixing, as a consumer you got to your destination and you received your package.
What exactly did/does Wall Street provide for all the money it sucks out of our economy?
So it goes.
TT
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