The government couldn't prosecute anyone because the governments hands where dirty.
The Government caused the need for bailouts by putting quotas on banks to make bad loans under the Community Reinvestment act. Then Clinton force large banks to buy the bad loans by expanded the quotas to large Banks through the Gramm-Leach-Bliley Act.
On signing the Gramm-Leach-Bliley Act, President Clinton said that it, "establishes the principles that, as we expand the powers of banks, we will expand the reach of the [Community Reinvestment] Act".[63]
http://en.wikipedia.org/wiki/...
The libor scandle and how obama's government never prosecuted anyone from the big banks even before libor. Read below.....
mal
2012/07/29 13:57:00
What say you america. http://www.usnews.com/opinion/blogs/economic-intelligence/201...
Top Opinion
-
Kiosk Kid 2012/07/29 14:07:30
The Government caused the need for bailouts by putting quotas on banks to make bad loans under the Community Reinvestment act. Then Clinton force large banks to buy the bad loans by expanded the quotas to large Banks through the Gramm-Leach-Bliley Act.
On signing the Gramm-Leach-Bliley Act, President Clinton said that it, "establishes the principles that, as we expand the powers of banks, we will expand the reach of the [Community Reinvestment] Act".[63]
http://en.wikipedia.org/wiki/...
Even the people that didn't have quotas would use the laws. They would just say I was following the intent of the law.
Trying to prosecute would be a major embarrassment for government. It is also the reason the government had to pass TARP.