by Matt Taibbi
At this writing, the third quarter of 2013 is wrapping up. The commission is right on schedule, blasting 44 companies this quarter. This year the dead Asian-firm flavors of the day have names like Duoyuan Printing and China Intelligent Lighting and Electronics, while in 2012 it was China Agritech and Paradise Tan.
Despite the absurdity of these “triumphs,” the SEC nonetheless bragged about its sheer numbers when its enforcement chief, the former Deutsche Bank general counsel Robert Khuzami, left office following Barack Obama’s reelection leading into the winter of 2012. “In addition to the all-time record number of 735 SEC enforcement actions in FY 2011,” the SEC noted in a press release, “Mr. Khuzami led the Division to record results in a number of specific enforcement areas.”
*2 White is like the Zelig of the white-collar nonprosecution era. Her name seems to pop up in case after important case involving big-time targets that the government ultimately decided not to prosecute. Most notably, White led a successful presentation to Justice Department officials about why it should not press a case against a trio of executives from AIG Financial Products, the unit whose exploding half-trillion-dollar portfolio of toxic credit default swaps led to the collapse of AIG and the federal bailout of same and, according to some, triggered the crash of 2008. White represented Tom Athan, deputy to Joe Cassano, the infamous head of AIGFP, who along with Angelo Mozilo is one of the most conspicuous nontargets of this era. After White’s presentation, the DOJ dropped its investigation of AIGFP.
The Divide is a book I couldn’t have written without the help of a great many people, many of whom I can’t even name in this space. First and foremost I must thank my editor at Spiegel & Grau, Christopher Jackson, as well as publishers Cindy Spiegel and Julie Grau, who once again all took a leap of faith with an evolving book project. Molly Crabapple I want to thank for her intense interest in the subject—we always wanted to work together and I’m thrilled this could be the vehicle. The two of us also want to thank Lydia Wills, who represents us both, for helping make this possible.
Andrew Brown, the Man Who Couldn’t Stand Up, is someone to whom I want to give heartfelt thanks, both for the patience he showed as he walked me through his life story and for the friendship he showed later on, counseling me as a fellow father through the birth of my son. Andrew, thank you, and you’re right, this experience is everything you told me it would be.
A number of lawyers helped me through some very complex material. Leo Glickman was a great help in walking me through the New York City court system, as were Josh Saunders, Kasia Donohue, Roy Wasserman, Jane Fox, and others. Joni Halpern was a huge help in helping me navigate the California welfare system, while Arturo Corso, down in Georgia, helped me throughout with the federal immigration laws. Michael Bowe of Kasowitz Benson met me at an Irish pub one day, and the next thing I knew I was spending years researching the Fairfax case, probably much to his chagrin—thank you, Michael, for taking so much time. Former Lehman lawyer and whistleblower Oliver Budde, who I hope is reincarnated as attorney general with unlimited powers, has been a great resource for me on a number of topics, Lehman-related and not. Finally, I owe great thanks to Neil Barofsky, the former TARP inspector, and to his former deputy, Kevin Puvalowski, who both helped me throughout my research on a variety of subjects.
Some of the people to whom I owe the most I can’t name by name. Natividad Felix was able to speak in her own name, but many others were not, a reflection of how difficult the subject of fairness in law enforcement is to talk about, particularly for undocumented immigrants and people on public assistance. Ochion Jewell I want to thank for being brave enough to talk about a difficult experience, as were Michael McMichael and Anthony Odom.
There are many others I should mention whose names don’t appear in the book. Old friend Joel Barkin nudged me in the direction of this subject over drinks and wings in Maplewood, New Jersey, years ago. And Eric Salzman, whose misfortune it is to have been the person who taught me what little I know about the financial services industry, helped me as he always has with some of the more complicated portions of this book.
Lastly, I want to thank my wife, Jeanne, for her patience and love throughout this time, and to my son, Max, who was born the day the manuscript was due. Because of you both, I’ll always remember this time with special fondness.
ABOUT THE AUTHOR
MATT TAIBBI has been a contributing editor for Rolling Stone and is the author of five previous books, including the New York Times bestsellers The Great Derangement and Griftopia. He lives in New Jersey.
@mtaibbi
BY MATT TAIBBI
The Divide: American Injustice in the Age of the Wealth Gap
Griftopia: A Story of Bankers, Politicians, and the Most Audacious Power Grab in American History
The Great Derangement: A Terrifying True Story of War, Politics, and Religion
Smells Like Dead Elephants: Dispatches from a Rotting Empire
Spanking the Donkey: Dispatches from the Dumb Season
WITH MARK AMES
The Exile: Sex, Drugs, and Libel in the New Russia