One of the interviewees is Daniel Alpert, a manager of an investment firm, and the other is Robert Gnaizda, an attorney. Both men have views on why no prosecutions are being (or will be) conducted by the Justice Department.
You may not necessarily agree with their views, but they present their reasons why there will not be any prosecutions. I leave you, dear readers, to identify for yourselves any deceptions, misperceptions, subterfuge, jiggery-pokery and window dressings that may have contributed to the lack of justice.
The following is a summary of what each man said.
Alpert said that the cases against banks were complicated and that, anyway, the fraud was committed against the banks' shareholders and bond holders. He insisted the cases were too complex and tough to prosecute. He mentions the revolving door between the financiers and the government and regulatory positions. He things the Justice Department is doing its duty. Prosecutors do not like to take on cases they can't win. Criminal prosecutions would make financial recovery difficult.
He says the problem of the crisis is how little senior executives knew about what their companies were doing; therefore, it cannot be proven that executives were lying. He refused to name any names of the guilty even though he implied that there was a lot of guilt and that every major institution, except JP Morgan, was guilty.
He said the reluctance to create greater oversight is misplaced, but the financial system remains tenuous. If all assets of the banks were marked to market right now, they would be insolvent. Banks should be able to withstand financial crashes but cannot.
He thinks that Obama cannot bring the banks to heel. Finally he said, no one in government is willing to let any bank fail, not now or in the future.
Gnaizda had a different take on what should be done regarding the bank fraud. He thinks that top executives should be prosecuted. He started by naming Countrywide executive, Angelo Mozilo. He said what is missing are whistle blowers to talk to the justice system in order to bring about criminal prosecutions of all those involved in the Countrywide fraud.
Gnaizda also said that he would like to have all the leaders at Lehman, Bear Sterns, and other banks prosecuted. According to him, Mozilo's crime was greater than Madoff's. Because a prosecutor needs co-operating witnesses and because the Department of Justice did not talk to such witnesses, no one will be prosecuted.
He thought that effective regulations are necessary. He stated that Paulson would have done a better job at Treasury and would have prosecuted wrongdoers and would have helped more homeowners.
In the end, President Obama is to blame for the lack of prosecutions. He said Obama would never prosecute the wrong doers because of his fear of the banking system.
Hear the two interview here