https://pjmedia.com/spengler/2012/07/16/the-fine-line-between-incompetence-and-criminality/feed/PJ Media is a leading news site covering culture, politics, faith, homeland security, and more. Our reporters and columnists provide original, in-depth analysis from a variety of perspectives.en-usWed, 10 Jun 2026 03:44:19 -0400<![CDATA[Nothing is more important to the functioning of a free market than commercial banks with a degree of flexibility in taking risk. If banks had foreclosed on every home mortgage that missed a couple of payments after the 2008 crisis, we would be in a Great Depression. The same is true if banks called in the loans of every corporate borrower who violated a covenant. Mark Twain defined a gold mine as a hole in the ground with a bunch of liars standing around it, and in tough times, bank balance sheets are a tissue of white lies &#8212; otherwise known as giving borrowers the benefit of the doubt. What if banks cross the line into actual criminal behavior, though? On top of the LIBOR scandal, we have a new report from the New York Times claiming that big investment banks gave an illegal advance look at research reports to their biggest hedge fund clients.]]>Mon, 16 Jul 2012 06:32:48 -0400<![CDATA[David P. Goldman]]>https://pjmedia.com/david-p-goldman/2012/07/16/the-fine-line-between-incompetence-and-criminality-n130943