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Still searching for a Wall Street scalp
(Reuters) - The American public wants to see bankers' heads on spikes for triggering a global financial crisis, but so far prosecutors and regulators have come up empty.
Federal and state authorities are struggling to hold banks accountable, but cases have proven to be extremely complicated and hard to win, if they get brought at all.
In recent days, investigators and prosecutors have renewed their efforts, focusing their attention on complicated repackaged debt known as collateralized debt obligations.
Criminal charges are contemplated. But winning these cases won't be easy, in part because it will be difficult to prove criminal intent to defraud or deceive.
"A financial meltdown is not a crime," said David Siegal, a former federal prosecutor in New York.
Nor is being stupid or greedy.
The government's only criminal case against Wall Street executives linked to the crisis -- two former Bear Stearns hedge fund managers accused of lying to investors -- ended with an acquittal last November.
A criminal investigation of the former American International Group (AIG.N) executives who helped the insurer take on exposure to toxic subprime securities is said to be petering out, people familiar with the matter said. And it's not clear whether a criminal inquiry into the collapse of Lehman Brothers will prove any more fruitful.
Read full story
Still searching for a Wall Street scalp | Reuters
(Reuters) - The American public wants to see bankers' heads on spikes for triggering a global financial crisis, but so far prosecutors and regulators have come up empty.
Federal and state authorities are struggling to hold banks accountable, but cases have proven to be extremely complicated and hard to win, if they get brought at all.
In recent days, investigators and prosecutors have renewed their efforts, focusing their attention on complicated repackaged debt known as collateralized debt obligations.
Criminal charges are contemplated. But winning these cases won't be easy, in part because it will be difficult to prove criminal intent to defraud or deceive.
"A financial meltdown is not a crime," said David Siegal, a former federal prosecutor in New York.
Nor is being stupid or greedy.
The government's only criminal case against Wall Street executives linked to the crisis -- two former Bear Stearns hedge fund managers accused of lying to investors -- ended with an acquittal last November.
A criminal investigation of the former American International Group (AIG.N) executives who helped the insurer take on exposure to toxic subprime securities is said to be petering out, people familiar with the matter said. And it's not clear whether a criminal inquiry into the collapse of Lehman Brothers will prove any more fruitful.
Read full story
Still searching for a Wall Street scalp | Reuters
