Originally devised to help finance public interest projects the corporate form of organization has become an excellent way for powerful interests to externalize their costs onto society while snatching tax benefits. In fact, over one-third of the nation’s highest-paid CEOs from the last twenty years led companies that were subsidized by American taxpayers. Another fact that blows away the meritocracy argument.
And while many of those CEOs are banksters, one bank executive that received favor from taxpayers took it to a painfully ironic level.
In November 2008, during the depths of the financial crisis, Darryl Layne Woods, a bank executive in Missouri, applied to the United States Treasury for bailout money. His bank received $1 million. Just days later, Mr. Woods used $381,000 of that money to buy a waterfront condominium in Fort Myers, Fla.
On Tuesday, Mr. Woods, the former chairman of Mainstreet Bank in Ashland, Mo., pleaded guilty to criminal charges in Federal District Court in Jefferson City, Mo.
Yes, a financial crisis caused by bankster fraud in the housing market leads to a massive and largley unregulated bailout program by the government, which a banker fraudulently taps into to buy a home in mortgage meltdown ravaged Florida. Any questions?
Under the terms of his plea agreement, Mr. Woods must desist from any further involvement in banking. Under federal law, he is subject to a sentence of up to a year in prison
That’s the punishment? No more banking and at the most a year? Must have used some of that TARP money to hire a killer lawyer. I guess he has to stop banking because he wasn’t smart enough to hold the entire economy hostage to get out of trouble like the bigger banksters on Wall Street who even swiped bonuses from the taxpayers.
While all the big fish have gotten away at least the dumber little fish will get a slap on the wrist. Maybe Mr. Woods can use whatever meager prison time he ultimately receives to study more lucrative financial schemes so when he comes out he can turn pro and make his way to New York City.