The 60 Minutes broadcast on Sunday had a segment that pointed to the lack of prosecution of bankers who quite obviously broke the law and almost brought down the entire world financial system. Both Citi and Countrywide were featured.
60 Minutes Steve Kroft keeps asking why there have been no prosecutions in cases where fraud has clearly occurred. The segment is worth a look, and I have to say that the answers given were not really satisfactory. Kroft used two “insiders” to highlight not only the systemic corruption occurring, but also the very important “testimony” that the top brass at both firms were given real warnings about it and failed to act.
The United States burned trillions in wealth, but many people walked off the field of carnage with millions of dollars reaped as a direct result of fraudulent activity. Not only are they not prosecuted, but they have been, in large part, allowed to keep the ill-gotten gains.
Kudos to 60 Minutes for a great report. I wonder why they did not focus in on the Community Reinvestment Act as a reason for the financial collapse? Maybe the systemic fraud committed by banking companies throughout the United States was forced upon them by the passage of the Community Reinvestment Act? I jest of course but for those who have taken the position that the entire crisis was caused by some loans made to poor folk please watch this 60 Minute segment.