Rep. Waters Takes Aim at Financial Regulators
Representative Maxine Waters (D-CA), ranking member of House Financial Services Committee, expressed outrage over the lack of individual accountability for the financial crisis in op-ed in American Banker this week. Her comments underscore the dearth of prosecutions against responsible individuals and consequently the lack of deterrents for the risk-taking trader. Waters makes a harsh claim that we will not see a behavior change away from fraudulent activities until the “trader sees his colleague being led out of the office in handcuffs; when his supervisor loses his job, license, and lifestyle; and when the CEO has to stand in a courtroom and hear a verdict of guilty.”
Waters also points out the failure of the recent Department of Justice (DOJ) inquiry, launched in February, intended to bring any lingering cases against individuals who contributed to the 2007 financial crisis. However, instead of prosecuting individuals responsible for perpetrating fraud, the DOJ swung in the other direction announcing in their response to the examination that five major banks had agreed to plead guilty to felony fraud charges.