Tuesday, April 19, 2011

Will anyone go to jail for the financial crisis?

Bloomberg BusinessWeek had this quote at the end of a longish story on Goldman Sachs:
In a filing on March 1, Goldman Sachs estimated its “reasonably possible” losses from legal claims could reach $3.4 billion as the firm faces suits related to its activities before, during and after the financial crisis.
Last week, Senator Carl M. Levin, the Michigan Democrat who leads the Permanent Subcommittee on Investigations, issued a report based on two years of investigation into the financial crisis and accused Goldman Sachs of misleading clients and Congress. Goldman Sachs has denied that it misled anyone.
There could be Senate hearings on the issue, but unlikely anyone will go to jail.  We shall see.

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