Yesterday, we posted about the government's fraud suit against Bank of America. Today's Washington Post has this coverage, which quotes a former regulator who says that the suit is not big enough to deter future fraudulent conduct and who ties deterrence to the threat of jail time for bank executives:
“This is an act of tiny margins relative to the size of the
organizations and relative to the fraud committed,” said William K.
Black, a former bank regulator who teaches economics and law at the
University of Missouri. “Prosecutors can’t argue that these cases will
serve as a deterrence when there have been no criminal indictments of
senior executives.”
