The big indictment against SAC Capital Advisors on
Thursday offers up another jarring reminder that while the Justice
Department continues its old habit of pursuing insider-trading cases, it
has let the biggest financial scam in history pass it by without a
single conviction of a Wall Street executive. Indeed, the government's
entire hope for nailing any Wall Street culprits related to the subprime
securitization scandal now depends on one tiny, wriggling fish in
another New York courtroom: Fabrice Tourre.
Tourre, of course, is the mid-level Goldman Sachs trader on civil trial
over charges that he misled an investment company in a complex
securitization deal. But even there the best hope in the civil case is
that little Fab will be banned from the securities business and fined.
No jail time. And it's a weak case at best: All Goldman and Fab did was
out-trade a dumber firm. That's what one does on Wall Street: Dishonor
among thieves is the name of the game.
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