As New Panel Probes Financial Crisis, Why Is Perp Walk Seldom Seen?
As the chairman of a new congressional committee today promised a no-holds-barred investigation into the causes of last year’s sudden financial crisis, some observers are saying it’s about time.
Despite announcements of amped-up investigations of the widespread mortgage fraud and dubious investment products that are blamed for precipitating a global economic collapse, few high-profile cases have so far been pursued.
So far, the only such criminal case involves two former Bear Stearns hedge fund managers whose securities fraud trials are imminent, reports Fortune. On the civil side, the most noteworthy case is another securities fraud case against Angelo Mozilo, the former CEO of mortgage lender Countrywide, and two executives.
“The perp walk has been remarkably absent during this crisis,” says professor Steven Ramirez of Loyola University Chicago School of Law. “I don’t think it’s because of a lack of criminal activity.”
The Financial Crisis Inquiry Commission, which held its first public meeting today. It has set up a hotline for whistle-blowers and is supposed to deliver a final report to Congress by the end of next year, explains the Associated Press.
