Here's another group of bank officials who won't be going to jail for contributing to the meltdown.
Citigroup executives involved in the issuance of residential mortgage-backed securities at the center of the 2008 financial crisis will not be facing criminal charges for selling toxic bonds, U.S. authorities have determined.
"Citigroup knowingly and purposefully purchased and securitized loans that did not meet representation and warranties or in many cases were outright fraudulent loans," but there is "not enough compelling evidence" to pursue charges against executives and other employees, the inspector general's office of the Federal Housing Finance Agency said in the final report on its investigation into Citi's RMBS sales between 2006 and 2007.
The report is dated Nov. 2 but recently became public as a result of an open-records request by Reuters. This is the first case of authorities publicly acknowledging that executives of a major bank involved in the financial crisis would dodge criminal charges for their involvement, according to a Reuters story Friday on the report.
The report did not reveal the names of executives who were investigated, nor did it elaborate on why they could not be prosecuted.
A $7 billion settlement in July 2014 resolved state and federal civil claims against the company related to the packaging and selling of mortgage bonds before 2009. However, the Justice Department had requested a review to determine if anyone connected with the companies involved in any of the RMBS settlements could be held personally responsible.
About 50 subpoenas were issued to Citigroup, trustees, servicers, due diligence providers and their employees as part of the civil probe, and government investigators reviewed nearly 25 million documents, the report said. Interviews were conducted with current and prior Citi employees and executives, according to the report.