Study Shows Corruption on Wall Street Growing by the Day - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Study Shows Corruption on Wall Street Growing by the Day

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Enron, Bernie Madoff, the collapse of 2008 - corruption was at the center of all those tragic stories.

After that economic collapse of 2008, Wall Street underwent some of the biggest changes this country's seen since the Great Depression to counteract greed and corruption.

However, a new study shows corruption on Wall Street hasn't gone away. In fact, it's becoming a bigger problem by the day.

According to a U.S. financial services industry survey conducted by Labaton Sucharow of 250 industry insiders, from dozens of financial companies, 23% said, "They had observed or had firsthand knowledge of wrongdoing in the workplace."

Nearly 25% of financial services employees said they would engage in insider trading. That is a 9 percentage point increase over the previous year's survey.

I asked John Luers, a former stock trader for Wall Street, on my weekend show Face the State, if he is surprised by the latest numbers.

"No, these numbers don't surprise me at all. It's getting worse on Wall Street. For a couple years after the 2008 collapse it got better, but that was just because of Dodd-Frank."

He's referring to the Dodd-Frank Wall Street Reform and Protection Act, passed in 2010. It created comprehensive regulation of financial markets. Dodd-Frank also consolidated financial regulatory agencies and created a new oversight council to evaluate systemic risk, among other things.

Regulation is nothing new to Wall Street, though. The Securities and Exchange Commission was formed in 1934, but Luers said they shouldn't be trusted.

"The SEC was originally constructed by big firms, like JP Morgan and those investment bankers to monitor them," said Luers. "It's really just there so the American people kind of have this warm and fuzzy feeling that there's somebody out there looking out for them, but it's their game and they let us play it."

Another issue Luers said is continual pressure to produce on Wall Street.

Even if you are an honest person, sometimes the message is do whatever it takes or lose your job.

"Someone else will have your job day after tomorrow," said Luers. "It's always on the table, it's all about the numbers. If some people can't perform, well, you know."

You can watch my entire interview with Luers on this weekend's Face the State. The show airs Saturday at 4:30am and Sunday at 6:30am.

Written by Chris Ciarlo

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