Neil Barofsky on the ongoing bailout of Wall Street and the lack of criminal prosecution
Welcome to Capital Account. The legacy of the financial crisis and the response from the government is still making headlines. It’s a legacy of taxpayers footing the bill, and Wall Street paying almost nothing for its crimes. Today, the SEC charged Wells Fargo's brokerage firm, as well as the Vice President of the company, with selling investments tied to mortgage-backed securities without fully understanding their complexity, or disclosing risks to investors. Wells Fargo agreed to settle the charges, but the settlement is a slap on the wrists: A fine of $6.5 million, no admission of guilt and a 6-month suspension of the Vice President. We talk to Neil Barofsky, the man who helped prosecute the CEO and President of Refco, and the watchdog for TARP – the government-sponsored bailout of Wall Street.