Prosecution of fraud… cont.

In an earlier post, I wondered what might be the rationale for investigating and, eventually, prosecuting entities that, with government tacit consent and collusion, are clearly at the heart of the current crisis and have obviously not acted in the best interest of society at large. As I had no answers then, I still have no answers today. Except that today we know that no criminal charges will be brought against any AIG executives… ??? …

I would like to say this was a foregone conclusion for it is unrealistic to expect the chief enabler to investigate and prosecute its own gang. AIG now being a ward of the state, it is unrealistic to expect the state to indict itself.

So, is it all a dog-and-pony show? Is it just a way to throw the seething masses a bone? It certainly looks that way. Not that we are surprised of course but it is disconcerting nonetheless and I doubt it will serve to assuage the anger that is mounting at street level.

Here is another take from Naked Capitalism with more detail and more in depth information on indirect though equally suspect relationships as well as a good point I was not aware of concerning “secondary liability”.

http://www.nakedcapitalism.com/2010/05/no-criminal-charges-against-aig-execs.html

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