David Graeber Quote

I once attended a conference on the crises in the banking system where I was able to have a brief, informal chat with an economist for one of the Bretton Woods institutions (probably best I not say which). I asked him why everyone was still waiting for even one bank official to be brought to trial for any act of fraud leading up to the crash of 2008.OFFICIAL: Well, you have to understand the approach taken by U.S. prosecutors to financial fraud is always to negotiate a settlement. They don't want to have to go to trial. The upshot is always that the financial institution has to pay a fine, sometimes in the hundreds of millions, but they don't actually admit to any criminal liability. Their lawyers simply say they are not going to contest the charge, but if they pay, they havent't technically been found guilty of anything.ME: So you're saying if the government discovers that Goldman Sachs, for instance, or Bank of America, has committed fraud, they effectively just charge them a penalty fee.OFFICIAL: That's right.ME: So in that case… okay, I guess the real question is this: has there ever been a case where the amount the firm had to pay was more than the amount of money they made from the fraud itself?OFFICIAL: Oh no, not to my knowledge. Usually it's substantially less.ME: So what are we talking here, 50 percent?OFFICIAL: I'd say more like 20 to 30 percent on average. But it varies considerably case by case.ME: Which means… correct me if I'm wrong, but doesn't that effectively mean the government is saying, you can commit all the fraud you like, but if we catch you, you're going to have to give us our cut?OFFICIAL: Well, obviously I can't put it that way myself as long as I have this job… (p. 25-26)

David Graeber

I once attended a conference on the crises in the banking system where I was able to have a brief, informal chat with an economist for one of the Bretton Woods institutions (probably best I not say which). I asked him why everyone was still waiting for even one bank official to be brought to trial for any act of fraud leading up to the crash of 2008.OFFICIAL: Well, you have to understand the approach taken by U.S. prosecutors to financial fraud is always to negotiate a settlement. They don't want to have to go to trial. The upshot is always that the financial institution has to pay a fine, sometimes in the hundreds of millions, but they don't actually admit to any criminal liability. Their lawyers simply say they are not going to contest the charge, but if they pay, they havent't technically been found guilty of anything.ME: So you're saying if the government discovers that Goldman Sachs, for instance, or Bank of America, has committed fraud, they effectively just charge them a penalty fee.OFFICIAL: That's right.ME: So in that case… okay, I guess the real question is this: has there ever been a case where the amount the firm had to pay was more than the amount of money they made from the fraud itself?OFFICIAL: Oh no, not to my knowledge. Usually it's substantially less.ME: So what are we talking here, 50 percent?OFFICIAL: I'd say more like 20 to 30 percent on average. But it varies considerably case by case.ME: Which means… correct me if I'm wrong, but doesn't that effectively mean the government is saying, you can commit all the fraud you like, but if we catch you, you're going to have to give us our cut?OFFICIAL: Well, obviously I can't put it that way myself as long as I have this job… (p. 25-26)

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About David Graeber

David Rolfe Graeber (; February 12, 1961 – September 2, 2020) was an American and British anthropologist, left-wing and anarchist social and political activist. His influential work in social and economic anthropology, particularly his books "Debt: The First 5,000 Years" (2011), "The Utopia of Rules" (2015) and "Bullshit Jobs" (2018), and his leading role in the Occupy movement, earned him recognition as one of the foremost anthropologists and left-wing thinkers of his time.
Born in New York to a working-class family, Graeber studied at Purchase College and the University of Chicago, where he conducted ethnographic research in Madagascar under Marshall Sahlins and obtained his doctorate in 1996. He was an assistant professor at Yale University from 1998 to 2005, when the university controversially decided not to renew his contract. Unable to secure another position in the United States, Graeber entered an "academic exile" in England, where he was a lecturer and reader at Goldsmiths' College from 2008 to 2013, and a professor at the London School of Economics from 2013.
In his early scholarship, Graeber specialized in theories of value (Toward an Anthropological Theory of Value, 2002), social hierarchy and political power (Fragments of an Anarchist Anthropology, 2004, Possibilities, 2007, On Kings, 2017), and the ethnography of Madagascar (Lost People, 2007). In the 2010s he turned to historical anthropology, producing his best-known book, Debt: The First 5000 Years (2011), an exploration of the historical relationship between debt and social institutions, as well as a series of essays on the origins of social inequality in prehistory. In parallel, he developed critiques of bureaucracy and managerialism in contemporary capitalism, published in The Utopia of Rules (2015) and Bullshit Jobs (2018). He coined the concept of bullshit jobs in a 2013 essay that explored the proliferation of "paid employment that is so completely pointless, unnecessary, or pernicious that even the employee cannot justify its existence".
Although exposed to radical left politics from a young age, Graeber's direct involvement in activism began with the global justice movement of the 1990s. He attended protests against the 3rd Summit of the Americas in Quebec City in 2001 and the World Economic Forum in New York in 2002, and later wrote an ethnography of the movement, Direct Action (2009). In 2011, he became well known as one of the leading figures of Occupy Wall Street and is credited with coining the slogan "We are the 99%". His later activism included interventions in support of the Rojava revolution in Syria, the British Labour Party under Jeremy Corbyn and Extinction Rebellion.