Why was no one prosecuted for contributing to the financial crisis?
Posted by freedomforall 9 years, 1 month ago to Business
Excerpt:
The FCIC was set up to investigate the causes of the financial crisis. The commission didn’t have either the authority or the resources to do a criminal investigation. But as the documents show, a number of matters—involving Goldman Sachs, AIG, Merrill Lynch, Citigroup and Fannie Mae—were referred to the Attorney General. No criminal prosecutions arose from any of those. (In Citigroup’s case, the SEC settled with the company and two executives in the fall of 2010 for a paltry sum. The Commission drily noted, “The SEC’s civil settlement ignores the executives running the company and Board members responsible for overseeing it. Indeed, by naming only the CFO and the head of investor relations, the SEC appears to pin blame on those who speak a company’s line, rather than those responsible for writing it.”)
The FCIC was set up to investigate the causes of the financial crisis. The commission didn’t have either the authority or the resources to do a criminal investigation. But as the documents show, a number of matters—involving Goldman Sachs, AIG, Merrill Lynch, Citigroup and Fannie Mae—were referred to the Attorney General. No criminal prosecutions arose from any of those. (In Citigroup’s case, the SEC settled with the company and two executives in the fall of 2010 for a paltry sum. The Commission drily noted, “The SEC’s civil settlement ignores the executives running the company and Board members responsible for overseeing it. Indeed, by naming only the CFO and the head of investor relations, the SEC appears to pin blame on those who speak a company’s line, rather than those responsible for writing it.”)
