Wednesday, August 29, 2012

Who is being prosecuted?

Citicorp shelled out $590,000,000 to settle a class-action lawsuit brought by shareholders who contended that they had been misled about the bank’s exposure to subprime mortgage debt on the eve of the financial crisis.  Last year the bank paid $360,000,000 to resolve civil mortgage securities cases brought by federal regulators.  In 2010 the bank paid $75,000,000 to settle a SEC complaint that the bank made misleading public statements about the extent of its subprime exposure.  How much will it be next year?

These crimes were not committed by a computer.  Why is no one being charged?

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