Geithner Says Wall Street Prosecutions Coming
As protests against Wall Street malfeasance spread, Treasury Secretary Timothy Geithner said Americans should be prepared for a new round of “dramatic enforcement actions.”
The statement came Friday on CNBC after Geithner was asked about the Occupy Wall Street movement. Geithner said he understood the frustrations fueling the movement and pointed to the challenges the Obama administration has faced in getting Congress to act on Wall Street Reform.
“We moved very quickly to put in place a much stronger set of rules of the game across the financial sector. Now, we’re now facing a lot of resistance to those rules, but we’re going to make sure that we deliver the promise of those reforms, which is a much tougher set of rules across the system against risk-taking and much stronger protections for consumers,” he said.
Geithner’s promise of a new round of “enforcement actions” comes on the heels of the Raj Rajaratnam 11 year prison sentence for insider trading, the strictest sentence ever for that crime and after an initial round of historic SEC settlements with big banks over claims they misled investors when pushing bundled subprime mortgage investments.
So yes, Geithner is right that they’ve taken action. But we all know it’s not enough. Between the foreclosure fraud crisis and the other fallout from the consumer debt bubble there is room for a few criminal charges. American’s want someone to take responsibility, and they don’t feel like that’s happened yet.
Photo from world economic forum via flickr.