Chanos: Prosecute Bank Execs
James Chanos, a well-known short seller and hedge fund manager, said banks knowingly booked inflated earnings when selling the financial products that led to their downfall and the government bailout. The earnings wound up in bonus pools and banker’s pockets.
“It’s the heart of one of the greatest heists of all time,” he said, without naming specific banks. Their executives probably won’t be prosecuted because explaining how investment banks created and sold collateralized debt obligations and other structured financial products would test a jury’s attention span. “The jury’s eyes would glaze over.”
http://www.forbes.com/2009/05/07/bank-earnings-chanos-markets-equity-wall-street.html
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May 11, 2009 9:34 am No Comments
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