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And that you know he had this Sunday marks five years the day that investment bank Lehman Brothers filed for bankruptcy and that collapse of that one bank triggered a crucial moment.
And the global financial meltdown and very tenuous moments at that.
About whether or not our banking system and would survive.
Five years later many questions about whether or not we're safer.
And if we truly got to the bottom of the cause and the culprits remain the attorney general.
Says he plans to announce some new cases connected to the financial crisis in the coming months the question.
Is it too little too late at this price point -- TC is former federal prosecutor and Robert time is the former assistant regional director.
The US Securities and Exchange Commission in New York City great to have you both Robert what about that because your expertise in SEC is it too little too late now to bring charges.
Well I think so now we're looking at five years after the financial crisis and that thing that jumps out at me.
Is that there has been no real criminal cases brought against any of the senior level banking executives.
At the companies that were responsible for the crisis even though there's been a lot of evidence of fraud in connection with the financial products that were offered.
Terms of mortgage origination selling these types of products to investors.
So it's really I think the big question mark as to why more criminal cases have not been brought -- -- senior executives.
That's really the only thing that seems to deter the serious wrongdoing.
Fred what it let's talk a little bit about responsibility because at this point looking back it's easy and we we hear the conversation about the big banks being.
Being the problem.
But in the midst of the crisis there was this realization that everyone had a role.
It wasn't just the big banks it was consumers -- to get too much credit and knew they couldn't pay or lied on the application.
And there is the government that wasn't enforcing laws are already in place or creating new lines to keep us safer so.
What if we were to charge more people criminally.
-- are they just too many people to blame.
Well the first of all couple things that you're absolutely right -- was kind of a perfect storm that resulted in this this crisis through this meltdown.
And in what I've done white collar cases like prosecute people and and our justice system the way it works is.
It's not like captain Smith who went down with the Titanic because he happened to be captain that day.
In order to criminally prosecuted upper level executive you have to have direct evidence or content something of -- -- evidence.
That he would -- was knowingly involved or knew about what was going on -- other Foster or encourage it I mean look at this whole thing with Stephen -- NS AC capital defensive tried and tried to try and have yet to indict him personally for a guy whose fingers clearly on the pulse so.
He -- your question is the reason you haven't seen big Thanksgiving -- upper level people getting indicted because.
There hasn't really been evidence directly tying them to it was to the criminal activity and just because.
Five years is gone doesn't mean that criminal charges can't be Bear Bryant -- -- -- a conspiracy.
You let that let pass it Robert little bit about that he worked on the inside Robert about connecting those dots and friend that the top office to the trader on the floor.
Is it -- too challenging to connect the dots and at this point.
It is there really.
A positive side.
To going after -- -- in these CEOs that are now no longer in those positions anymore.
Well I think with the passage of time that raises a lot of questions but certainly.
There are challenges in the Department of Justice has said repeatedly that they're gonna follow the evidence in the evidence in their view just was not -- to charge the senior executives.
But when you look at the private litigation the class action litigation.
And even the bankruptcy Examiner's report in the Lehman Brothers bankruptcy.
You do see quite a bit of evidence of senior people at least becoming involved.
And we don't know at this point what the Department of Justice has uncovered in terms of interviews -- documents.
But I think it means a lot of people really wondering whether.
He regulators are being aggressive enough and whether our markets are being honest enough because these successful workings of the financial markets are very important companies to thrive and to hire people and it affects everybody.
Apparently we have another person on the panel whoever's on that loudspeaker and one of the -- -- half -- you guys we're hearing is prepared you.
It isn't your fault credit belies your -- that you're always the troublemaker and all of the fact.
But talk -- -- -- -- -- -- Is that we really enjoy having on the program is not just action at the awful bad credit it based center went straight when he went.
What Robert has to say then.
What is that what is really the path toward an -- as far as looking to make this system more secure for all of us which we would hope would be the points.
Is this where we should invest the time and energy.
Well -- I think it should be kind of a multifaceted approach -- and I I think going forward for a lot of different reasons.
I think the market's gonna correct itself people -- -- a bundle up toxic paper.
And trying to sell off is bonds people -- up.
Purchasers are not as motivated to do that because -- Other returns an investment.
These accrediting agencies are gonna make the mistakes -- they made.
I also think you have increased government regulation and listen -- -- Roberts and I worked with the SEC denies a prosecutor -- -- without end and they would come to us and say look you need we need to follow this evidence.
And we weren't and aren't Justice Department isn't being bashful here I mean how many cases have -- filed against JPMorgan analyst six months so.
If the evidence is -- to justice the probable go there and I think it's a combination of regulatory action by the SEC.
Criminal action by the Justice Department and market forces and -- change -- -- will will avoid a crisis in the future.
-- let's see what is the -- talk a little bit more about that next hour with Charlie Gasparino that the new shadow banking industry it seems have emerged in the last couple years.
Robert Fred look -- to have you both back thank you so plasticky.
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