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Justice Department To Wall Street: Be Afraid, Motherf*ckers! Be Very Afraid

The next generation of Dick Fulds might wanna start quaking in their boots.
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The Department of Justice knows you're used to loosey goosey, vis-à-vis individuals being held responsible for white collar crimes, but Loretta Lynch apparently runs a much tighter ship.

Stung by years of criticism that it has coddled Wall Street criminals, the Justice Department issued new policies on Wednesday that prioritize the prosecution of individual employees — not just their companies — and put pressure on corporations to turn over evidence against their executives. The new rules, issued in a memo to federal prosecutors nationwide, are the first major policy announcement by Attorney General Loretta E. Lynch since she took office in April. The memo is a tacit acknowledgment of criticism that despite securing record fines from major corporations, the Justice Department under President Obama has punished few executives involved in the housing crisis, the financial meltdown and corporate scandals.

And if you're thinking you can just toss a couplea first year analysts under the bus for, say, leaving an investment bank for dead, think again!

It is also unknown whether the rules will encourage companies to turn in their executives, but Sally Q. Yates, the deputy attorney general, said the Justice Department would not allow companies to foist the blame onto low-level officials. “We’re not going to be accepting a company’s cooperation when they just offer up the vice president in charge of going to jail,” she said.

Justice Department Sets Sights on Wall Street Executives [Dealbook]


Probably what keeping this promise is going to take.

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