While the U.S. has at last gotten around to maybe kinda sorta prosecuting a few banks for their crisis-era misdeeds, you cannot throw a bank in jail. And no U.S. bankers have been thrown in jail for doing things that, cumulatively, contributed to a situation that led to the expenditure of $1 trillion taxpayer dollars, give or take.
The Germans have chosen a different strategy: They are going to try to put an entire bank's board of directors in jail. Or at least fine the crap out of them.
The commercial crime court opened proceedings against seven current and former board members, the regional court in the southern city Stuttgart, where LBBW is based, said in a statement on Thursday.
The court decided to take on the case based on the prosecutor's charges of accounting fraud against former LBBW Chief Executive Siegfried Jaschinski and six other managers, who sat on LBBW's board from 2006-2008….
The LBBW managers charged in Stuttgart could face up to three years in jail, although sources familiar with the situation said the most likely outcome was fines.