Why were no Wall Street executives jailed?

Lack of accountability due to government inaction and FBI criticism.

What role did big banks play in the financial crisis?

Big banks packaged risky home loans into securities.

Senator Kaufman advocated for holding financial fraudsters accountable.

Misconduct by banks and due diligence companies in mortgage underwriting.

Lack of whistleblowers, strong evidence, and cautious prosecutors.

Lack of accountability for Wall Street executives in the aftermath of the financial crisis, with no criminal charges filed despite evidence of fraudulent practices and potential criminal conduct.
Senator Kaufman's relentless advocacy for holding financial fraud perpetrators accountable, highlighting the importance of deterrence through criminal prosecutions, despite challenges faced by the Justice Department in pursuing Wall Street prosecutions.

Why were no Wall Street executives jailed?
Lack of accountability due to government inaction and FBI criticism.
What role did big banks play in the financial crisis?
Big banks packaged risky home loans into securities.
Who is Senator Kaufman?
Senator Kaufman advocated for holding financial fraudsters accountable.
What did the Fraud Enforcement and Recovery Act reveal?
Misconduct by banks and due diligence companies in mortgage underwriting.
Why did the Justice Department face challenges in prosecuting financial crimes?
Lack of whistleblowers, strong evidence, and cautious prosecutors.

00:00

Financial crisis linked to fraud and potential criminal conduct, but no individuals held accountable.
Frontline investigates why no Wall Street executives faced jail time.
FBI criticized for not aiming high enough in pursuing justice.
Government's failure to prioritize prosecuting Wall Street executives questioned.
Despite the financial crisis's severity, no senior Wall Street executives arrested.
Chief of the criminal division of justice, Lanny Brewer, states greed isn't necessarily criminal.
Lack of effort by the Justice Department in prosecuting major players highlighted.
Big banks' role in packaging home loans into securities and selling them globally detailed.
Mortgage originators' lax lending standards driven by Wall Street's influence.
Due diligence underwriters' experiences reveal negligence in assessing loan portfolios.

18:30

Senator Kaufman, a co-sponsor of a bill, expressed his intention to leave office and not run for re-election.
Appointed to replace Senator Joe Biden, Kaufman took no campaign money and was not influenced by lobbyists.
Kaufman advocated for holding those responsible for financial fraud accountable by sending them to jail.
In early 2009, Kaufman joined the Senate Judiciary Committee to discuss strengthening the FBI and Justice Department's financial crimes units.
The government was ill-prepared to investigate Wall Street, with a significant reduction in FBI agents dedicated to financial crimes.
Kaufman introduced a bill post the 2008 financial crisis, aiming to respond to financial crimes as done in the past.
Kaufman emphasized the importance of punishing financial crimes to deter future misconduct.
Despite skepticism from Wall Street, Kaufman pushed for holding bankers accountable for their actions.
The Justice Department faced challenges in prosecuting financial crimes, with a lack of whistleblowers and strong evidence.
A commission established under Kaufman's Fraud Enforcement and Recovery Act delved into mortgage underwriting practices, revealing misconduct by banks and due diligence companies.

33:59

Discussions were held regarding the possibility of criminal prosecution in the Justice Department's Criminal Division.
Former prosecutors under Lanny Brewer in the Criminal Division believed Brewer was overly cautious about prosecuting Wall Street.
Sources reported no investigations, subpoenas, or wiretaps related to Wall Street financial crimes.
Convictions were mentioned, including Raj Rajaratnam for insider trading, but not directly linked to the financial crisis.
Senator Kaufman held oversight hearings to question Brewer, Perkins, and Kazami about the lack of Wall Street prosecutions.
A freelance journalist, Terry Buell, discovered evidence of fraud at Bear Stearns through interviews with insiders.
Patterson Belknap law firm filed a lawsuit against Bear Stearns and JP Morgan Chase for fraudulent mortgage practices.
Due diligence supervisors and underwriters, like Tom Leonard, revealed fraudulent practices within the mortgage industry.
New York Attorney General Schneiderman filed a civil suit against Wall Street banks for fraudulent mortgage practices.
Justice Department's delay in pursuing criminal cases against Wall Street executives was criticized by whistleblowers and journalists.

50:38

Despite the significant penalties imposed on financial institutions for misconduct during the financial crisis, no senior Wall Street executive has faced criminal charges from the Department of Justice, leaving many individuals relieved but raising concerns about the lack of accountability in the industry.