Inside the End of the U.S. Bid to Punish Lehman Executives

Don’t you wonder if maybe now that there are lawsuits like PHOENIX indicating the securitized trusts are actually empty and assignments were never made, if that might be enough reason for the SEC to take action? We’ve seen Lehman loans that were not assigned and Aurora hiding trust information – gotta wonder how management could not know the trusts are empty. We can hope Mr. Barofsky has been looking into this too.

Justice League

Inside the End of the U.S. Bid to Punish Lehman Executives

At a closed-door meeting in early 2011, Wall Street regulators were close to throwing in the towel on their biggest case.

The Securities and Exchange Commission’s eight-member Lehman Brothers team, having hit one dead end after another over the previous two years, concluded that suing the bank’s executives would be legally unjustified. The group, noting that prosecutors and F.B.I. agents had already walked away from a parallel criminal case, reached unanimous agreement to close its most prominent investigation stemming from the financial crisis, according to officials who attended the meeting, which has not been reported previously.

But Mary L. Schapiro, the S.E.C. chairwoman, disagreed. She pushed George S. Canellos, who supervised the Lehman investigation as head of the S.E.C.’s New York office, to explain how executives who presided over the biggest bankruptcy in United States history could…

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