Truemors
Sub-prime Wallstreet moneyscam
New Yorks prosecutor has the choice, who goes first to prison of the moneymen. If he waits too long, America's financial credibility has gone. Individual law cases, class action suits from European Wallstreet sub-prime scam victims are on the way.
The pressure for convictions is great but prosecutors have their work cut out
AMERICANS are turning creative as they strive to make sense of the crisis. On October 29th a group of artists will stage a “literal meltdown” by placing a 1,500lb (680kg) ice sculpture of the word “economy” in Manhattan’s Foley Square. The installation will, according to one collaborator, “metaphorically capture the results of unregulated markets.” For many, though, catharsis will come only through another capture: the arrest and courtroom humiliation of the erstwhile Wall Street titans the public holds responsible for the mess.
Sarkozy says for Washington crisis meeting: A new form of capitalism necessary. The criminals of the sub-prime scam have to be brought to justice by the US now. Do you hear that Mr. president Bush, or are you too close to the old boys cheney-oil network ? Or Wallstreet is still drunk as you are saying.
In today’s political climate, the government will feel immense pressure to put a few moneymen in the dock. The FBI alone is probing more than two dozen firms. Market regulators, state attorneys-general and the Department of Justice are also jostling to unearth wrongdoing, sifting through e-mails and seeking whistle-blowers at firms such as Fannie Mae, American International Group and Lehman Brothers, the only Wall Street firm allowed to go bust. At least 17 former Lehman executives, including Dick Fuld, once its boss, are expected to receive grand-jury subpoenas.
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