As numerous experts have pointed out for years, failing to prosecute financial fraud is extending our economic crisis.
This continues to be a key, ongoing story.
For example, the Telegraph reports today:
The EU’s financial watchdog has systemically “sabotaged” investigations and caved into intimidation from countries including France and Italy to cover up fraud, according to a senior official.
And Bloomberg noted on Monday:
The U.S. Securities and Exchange Commissionâ€™s internal watchdog is reviewing an allegation that Robert Khuzami, the agencyâ€™s top enforcement official, gave preferential treatment to Citigroup Inc. executives in the agencyâ€™s $75 million settlement with the firm in July.
Inspector General H. David Kotz opened the probe after a request from U.S. Senator Charles Grassley, an Iowa Republican, who forwarded an unsigned letter making the allegation. Khuzami told his staff to soften claims against two executives after conferring with a lawyer representing the bank, according to the letterâ€¦.
According to the letter, the SECâ€™s staff was prepared to file fraud claims against both individuals. Khuzami ordered his staff to drop the claims after holding a â€œsecret conversation, without telling the staff, with a prominent defense lawyer who is a good friendâ€ of his and â€œwho was counsel for the company, not the individuals affected,â€ according to a copy of the letter reviewed by Bloomberg News.
I will keep hammering on this until people get it: The economy will not recover unless fraud is prosecuted.