Thief Whose Crime Improves the System?

Fairfax Financial Holdings Ltd.

Is the story here an example of a thief whose exposure may improve the system? The benefit of exposure of how it was done and made possible greater than the damage done by the thief?

Only if the lesson is learned.

When risk of loss is wrongly manipulated for gain what is more elegant than leveraging the loss to make it hurt far beyond the gain. It only works if the pain of loss bet on risk is administered. Who does the administering?

Isn't RICO leveraged punishment?

http://www.renebol.com/?p=13 extracted quote:

"Given Fairfax’s cds portfolio, it is difficult to imagine a scenario where Fairfax did not understand and try to profit from the corruption in the system. By taking cds positions against MBIA, Ambac, Radian, AIG, etc., Fairfax knew that eventually the evidence against the bond insurers would be so overwhelming that the credit agencies would have to make the downgrades and in turn trigger Fairfax’s windfall. The real exposure in the system was not reflected in the institutions that were suppose to protect investors. Fairfax didn’t so much make a strategic trade that paid off when their vision of the future became reality, as they made a trade against the corruption in the system that paid off when the obsfucation could no longer be tolerated. Smart business or profiting from the corruption of others?"

more quote:

"Fairfax might yet turn out to be a force for good. If its lawsuit against the hedge funds can expose the prevalence of corruption on Wall Street, then the court findings might lead to improved SEC regulations and enforcement. However, what is really needed is a paradigm shift that demands government take on a larger role in our lives. From finance to energy, the environment, climate change, and the Millienium Development Goals, our challenges have to be met by forward thinking governments and people willing to sacrifice profits for ethics."

Give Fairfax the "Economic Equivalent" Of the Bush "Freedom Medal". Tell them "heck of a job Fairfax" Then confiscate everything.