The same week that brought UBS’s admission of wrongdoing in the LIBOR rate-setting scandal ends with a former congressman calling for the prosecution of parties in the financial services community.
Former Democratic Congressman Barney Frank sent a strongly worded letter to U.S. Attorney General Eric Holder suggesting the office should launch more prosecutions of parties in the banking and financial services space.
Frank did not elaborate on what parties should be prosecuted, but wrote in his letter that he noted “several instances recently in which administration officials have proceeded civilly against blatant violators of important financial laws.”
Frank says he understands some of the cases may be harder to prove beyond a reasonable doubt and others may exist where laws are still uncertain. However, it is clear in the letter, Frank is calling for the prosecution of individuals. He does not elaborate on what legal schemes should be pursued. The former Congressman also notes that he feels the administration is avoiding certain prosecutions to ensure stability throughout the financial system and to avoid spreading fear.
“I ask that there be a series of consultations involving law enforcement officials and regulators with the goal of increasing prosecution of culpable individuals as an important step in seeing that the laws that protect the stability and integrity of our financial system are better observed,” Frank wrote in his letter.
