The Financial Crisis Inquiry Commission (FCIC) revealed that no one of the most prominent bank executives was found guilty and imprisoned after the 2008 financial meltdown.
The commission referred evidence of potential violations of law to the US Department of Justice. However, no one of the financial tycoons was sent to prison except for the Icelandic bankers. Check out the most significant cases in our photo gallery.
Six years ago, the Securities and Exchange Commission imposed a $75 million fine on Citigroup Inc. for misleading investors about the company's exposure to subprime mortgage assets worth $55 billion. Three years earlier, Citigroup's chief financial officer and the head of investor relations published a report showing that subprime exposure in their investment banking unit was $13 billion or less even though they knew the actual figure.
Executives of Merrill Lynch also violated federal securities laws. Former chief executive officer Stanley O'Neal and chief financial officer Jeffrey Edwards were making misleading representations to investors about the company's mortgage-related securities. According to the FCIC, they also made misstatements on earnings calls 9 years ago.
The US Department of Justice decided not to charge executive of derivatives unit at AIG, Joseph Cassano. Because of his scams with mortgage-backed securities, the company appeared on the brink of bankruptcy. Prosecutors did not press charges because evidence showed that Cassano had disclosed certain accounting adjustments to AIG chief Martin Sullivan and finance chief Steven Bensinger.
It's been a long time but the Department of Justice is still investigating UBS. Almost ten years ago, the bank told investors that some number of mortgages did not meet underwriting criteria. According to the FCIC, there was a substantial number of subprime loans, but the company disclosed very few of them. The US prosecutors could bring a case against UBS later this year.
Iceland suffered the most severe damage following the 2008 financial crisis. However, those bank chiefs responsible for the crash were punished in this country. Kaupthing Bank was the major private bank in Iceland. Eight years ago, bank's chief executive officer Hreidar Mar Sigurdsson and its chairman Sigurdur Einarsson announced that a member of Qatar's royal family had acquired a 5.1 percent stake in Kaupthing Bank. Late 2008, Kaupthing went bankrupt. At present, Sigurdsson and Einarsson are serving their sentence in Kviabryggja Prison. According to data compiled by Bloomberg, 26 Icelandic financiers were convicted in connection to the crisis.
For nearly a century, the US-based weekly periodical Time has closed out the year by selecting the person who has had the most significant impact on the global stage—not necessarily a positive one. This year, the magazine's cover features Donald Trump, who recently won the US presidential election. Let's find out who else was honored by Time and in which nimonations.
Following his election victory, Donald Trump, a billionaire himself, once again decided to include prominent magnates in his administration, as he did during his first presidential term. As a result, Trump's current cabinet features seven billionaires, making it one of the wealthiest in US history. Let's find out who these billionaires are and the roles they have been assigned.
Not long ago, the United States held a presidential election, where Donald Trump emerged victorious. Today, he is recognized as the wealthiest American leader in the country's history. Let's take a closer look at other former US presidents who also achieved significant financial success.
