From: Huffington Post
WASHINGTON -- More than four years after the financial
crisis, not a single Wall Street executive has been jailed
for playing a role in the creation of the toxic financial
products that fueled the real-estate bubble, which were in
some cases designed simply to fail.
That track record may make it difficult for the
Department of Justice to earn the sympathy of the public
as it warns that spending cuts will hamper its ability to
investigate Wall Street fraud. The Federal Bureau of
Investigations told lawmakers in a recent letter that
across-the-board cuts resulting from sequestration "will
cause current financial crimes investigations to slow as
workload is spread among a reduced workforce. In some
instances, such delays could affect the timely interviews
of witnesses and collection of evidence."
Investigations yet unseen may also be harmed. "In some
instances, such delays could affect the timely interviews
of witnesses and collection of evidence. The capacity to
undertake new major investigations will be constrained,"
FBI Director Robert Mueller III wrote in the letter,
addressed to Sen. Barbara Mikulski (D-Md.), the chair of
the Senate Appropriations Committee.
The warning closed with the type of reasoning that
critics of the lack of investigations would readily
support. "Left unchecked, fraud and malfeasance in the
financial, securities, and related industries could hurt
the integrity of U.S. markets," Mueller offered. "In
addition, the public will perceive the FBI as less capable
of aggressively and actively investigating financial fraud
and public corruption, which would undercut the deterrence
that comes from strong enforcement."
During President Barack Obama's 2012 State of the
Union address, he announced the formation of a task force
to investigate Wall Street in a meaningful way. He decided
not to mention the unit, which had
little to show for itself, in his address a year later.
Former Rep. Brad Miller (D-N.C.), a Wall Street critic
who was passed over to lead that unit, was unpersuaded by
the DOJ complaint. "Are they worried that because of
sequestration the FBI will interview critical witnesses
three years after the statute of limitations has expired
instead of just one year? Financial fraud investigations
were already under a 'do not resuscitate' order and
unresponsive to deep stimulation," Miller told HuffPost.
"It's hard for me to worry that DOJ will now be less
'aggressive.'"
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