In Corporate Crimes, Individual Accountability Is Elusive

20stewart-web-articleLargeBrandon L. Garrett is a specialist in corporate prosecution at the University of Virginia law school and author of the recent book “Too Big to Jail.”  By Khue Bui for The New York Times

“We have never hesitated to investigate and prosecute any individual, institution or organization that attempted to exploit our markets and take advantage of the American people,” Attorney General Eric H. Holder Jr. proclaimed this month when the Justice Department announced that Standard & Poor’s, the ratings agency, had agreed to pay $1.375 billion to settle civil charges that it inflated ratings on mortgage-backed securities at the heart of the financial crisis. Continue reading

Criminal Action Is Expected for JPMorgan in Madoff Case

New York Times posted by JESSICA SILVER-GREENBERG AND BEN PROTESS

Madoff JPMorganJPMorgan Chase and federal authorities are nearing settlements over the bank’s ties to Bernard L. Madoff, striking tentative deals that would involve roughly $2 billion in penalties and a rare criminal action. The government will use a sizable portion of the money to compensate Mr. Madoff’s victims.

The settlements, which are coming together on the anniversary of Mr. Madoff’s arrest at his Manhattan penthouse five years ago on Wednesday, would fault the bank for turning a blind eye to his huge Ponzi scheme, according to people briefed on the case who were not authorized to speak publicly. Continue reading