The SEC has decided to scold Lehman Brothers executives instead of bringing fraud or even civil charges.
U.S. Securities and Exchange Commission investigators may issue a public rebuke of Lehman Brothers Holdings Inc. and its former executives instead of suing them for actions that led to the firm’s 2008 failure
It's even more ridiculous. The SEC may, implying may not issue a report on the Lehman Brothers investigation:
The commission would have to vote on whether to issue a report and it’s still possible that the SEC may decide to bring legal claims in court, the people said. The 21(a) reports, which lay out allegations of misconduct without imposing penalties, have only been issued six times in the past decade.
To date no criminal charges have been brought against the the large financial institutions or their executives who are responsible for the financial crisis. Only New York City has issued a subpoena on Goldman Sachs and started a criminal investigation. In the video segment below, Elliot Spitzer and Matt Taibbi below spell out the lack of justice.
Earlier, Bloomberg pointed out the Federal Reserve gave loans as low as 0.01% to foreign banks. This was basically a subsidy to foreign banks.
Credit Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Royal Bank of Scotland Group Plc (RBS) each borrowed at least $30 billion in 2008 from a Federal Reserve emergency lending program whose details weren’t revealed to shareholders, members of Congress or the public.
The $80 billion initiative, called single-tranche open- market operations, or ST OMO, made 28-day loans from March through December 2008, a period in which confidence in global credit markets collapsed after the Sept. 15 bankruptcy of Lehman Brothers Holdings Inc.
Units of 20 banks were required to bid at auctions for the cash. They paid interest rates as low as 0.01 percent that December, when the Fed’s main lending facility charged 0.5 percent.
Finally, we have a ahem,
lame hard hitting segment on high frequency flash trading. We have super computers, probability, routing algorithms and co-location services being the money makers on Wall Street instead of strong companies that are making great products and profits. 70% of trades are high frequency trades.
With such an ongoing disaster and nothing happened to change things, it's no surprise we would see this, a segment warning we are the verge of a Great, Great Depression. Minimum we will muddle.