Matt Taibbi: The SuperRich in America Have Become 'Untouchables' Who Don't Go to Prison
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AMY GOODMAN: Earlier this month, attorney James Kidney, who was retiring from the Securities and Exchange Commission, gave a widely reported speech at his retirement party. He said that his bosses were too, quote, "tentative and fearful" to hold Wall Street accountable for the 2008 economic meltdown. Kidney, who joined the SEC in 1986, had tried and failed to bring charges against more executives in the agency’s 2010 case against Goldman Sachs. He said the SEC has become, quote, "an agency that polices the broken windows on the street level and rarely goes to the penthouse floors. ... Tough enforcement, risky enforcement, is subject to extensive negotiation and weakening," he said.
Well, for more, we turn to our guest, Matt Taibbi, award-winning journalist, formerly with Rolling Stone magazine, now with First Look Media. His new book is called The Divide: American Injustice in the Age of the Wealth Gap.
Matt, we welcome you back to Democracy Now! It’s a remarkable, important, certainly needed book in this day and age. Talk about the thesis. What is the divide?
MATT TAIBBI: Well, this book grew out of my experience covering Wall Street. I’ve obviously been doing it since the crash in 2008. And over and over again, I would cover these very complex and often very socially destructive capers committed by white-collar criminals. And the punchline to all of the stories were basically the same: Nobody would get indicted; nobody went to jail. And after a while, I started to become interested specifically in that phenomenon. Why was there no enforcement of any of this? And around the time of the Occupy protest, I decided to write this book, and then I shifted my focus to try to learn a lot more for myself about who does go to jail in this country, because I thought you really can’t make this comparison accurately until you learn about both sides of the equation, because it’s actually much more grotesque to consider the non-enforcement of white-collar criminals when you do consider how incredibly aggressive law enforcement is with regard to everybody else.
AARON MATÉ: Now, you spent time with the—with the poor and vulnerable and people of color, who have been targeted by this system. There was one case of a man in New York, who lives in Bed-Stuy, standing outside of his home who was arrested. Can you take it from there?
MATT TAIBBI: Yeah, sure. I was in a law office in Brooklyn, and I was actually waiting to speak to a lawyer about another case, when I met this 35-year-old African-American man, a bus driver. And I asked him what he was there for, and he told me that he had been arrested for, quote-unquote, "obstructing pedestrian traffic." And I thought he was kidding. You know, I didn’t know what that meant. And I asked him to show me his summons, and he pulled out a little—little piece of pink paper, and there it was. It was written, you know, "obstructing pedestrian traffic," which it turns out it meant that he was standing in front of his own house at 1:00 in the morning, and the police just didn’t like the way he looked and arrested him.
And this is part of the disorderly conduct statute here in New York, but this is one of these offenses that people get roped in for. It’s part of what a city councilman in another city called an "epidemic of false arrests," basically these new stats-based police strategies. The whole idea is to rope in as many people as you can, see how many of them have guns or warrants, and then basically throw back the innocent ones. But the problem is they don’t throw back everybody. They end up sweeping up a lot of innocent people and charging them with really pointless crimes.