“In December
2011, the S.E.C. publicized its civil securities fraud charges against top
executives from Fannie Mae and Freddie Mac for understating their exposure to
subprime mortgages, which resulted in the government taking them over.”[1]
Robert Khuzami, then the head of the S.E.C.’s enforcement division, said at the
time that “all individuals, regardless of their rank or position, will be held
accountable for perpetuating half-truths or misrepresentations about matters
materially important to the interest of our country’s investors.”[2]
Pursuing even senior ranks has the air of fairness economically as well as in
terms of the dictum, no one is above the
law. So much for words; how about the accompanying deeds?
The full essay is at "Essays on the Financial Crisis."
[1] Peter Henning, “Prosecution of Financial Crisis Fraud Ends
With a Whimper,” The New York Times, August 29, 2016.
[2] Ibid.
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