Bruce Krasting

SEC vs. Mozilo: Show Trial?

The comments here and on other pages where this blog was posted confirm to me that a good percentage of the public wants to 'stone' some of the bankers that brought us this mess. I understand. I am mad too. My concern is that this goes too far.

We gave the 'risk takers' too much power (money) they took too much risk, we are all paying a price as a result.

But shooting the risk takers is going to back fire. Without risk takers
we will have no growth and little prosperity.

My view is that the SEC should have settled with Mozilo. He would have paid a big fine (100mm) and would have consented to being barred as a corporate officer. My guess is that it will not be so easy to convict the Moz. He could walk away scott free. That would be the worst outcome.