Approach To Criminally Prosecuting Players In Subprime Scandal; Go After The 'Low-Hanging Fruit' - Leave The Big Guys Alone

A recent story on the PBS TV program Need To Know probes into the state of criminal prosecutions of those involved in the the subprime mortgage fraud scandal, and questions why the "big fish" on Wall Street appear to be swimming away scott free, while the government seems content to go after the "little fish."

Interviewed for the story in New York Times columnists Joe Nocera (he caught some people's attention earlier this year with his column, Biggest Fish Face Little Risk Of Being Caught) and Louise Story (she chimed in with her recent article, A.I.G. to Sue 2 Firms to Recover Some Losses), who gives their observations based on their earlier reporting .

Nocera describes for Need To Know the story of Charlie Engle and the effort the government sank into bagging him for lying on a liar loan, while allowing the likes of Angelo Mozilo (Countrywide) and others with the resources, good lawyers, and willingness to put up a fight to skate free. This story was the subject of a March, 2011 column, In Prison for Taking a Liar Loan.

Story points out that during the savings and loan crisis of the 1980's, government regulators referred criminal cases to the Justice Department on average ov 1700+ per year, while during the current fiasco, they have only referred on average of about 70 per year.

For the Need To Know story (approx. 24 minutes), see Big Fish - Little Fish.