The Untouchables (full documentary) | FRONTLINE

The documentary investigates why no Wall Street executives were prosecuted for fraud following the financial crisis. Despite evidence of misconduct and a public outcry, the Justice Department did not indict any senior figures. Former Justice officials suggest a lack of effort and fear of losing high-profile cases contributed to this outcome.

In 2009, amid economic ruin and job losses, there was an expectation of prosecutions for financial misconduct. Yet, no senior Wall Street executives were arrested. The Justice Department cited the difficulty in proving criminal intent as a major obstacle. Critics argue that greed and misconduct should have led to more aggressive investigations.

Mortgage originators like Countrywide played a key role in the crisis by approving risky loans. However, the Justice Department mainly targeted small players rather than the big banks. The large financial institutions like Countrywide and Bear Stearns lowered lending standards to meet Wall Street's demands, leading to massive fraud.

Investigators needed insiders willing to expose the fraud within banks but had difficulty obtaining concrete evidence. Due diligence underwriters were pressured to approve faulty loans without questioning them. Fraud was rampant, yet legal action against Wall Street figures remained elusive.

Richard Bowen, a former Citigroup executive, warned his superiors about risky loan practices, but his pleas were ignored. The banking system eventually collapsed, leading to significant economic turmoil. Wall Street figures largely avoided prosecution, failing to hold anyone accountable for the crisis.

Senator Ted Kaufman and others called for increased funding and resources to investigate financial crimes. However, efforts were stymied by the lack of FBI resources and political will. Despite legal reforms, meaningful prosecutions of senior Wall Street figures were still lacking years after the crisis.

The Justice Department struggled to secure convictions in financial crisis-related cases, such as the acquittal of Bear Stearns hedge fund managers. Many believe political and legal hesitance prevented a more forceful pursuit of Wall Street executives, resulting in little accountability.

Attorney General Eric Schneiderman's civil suit against Bear Stearns successor JP Morgan Chase marked a significant legal challenge, yet no individuals were criminally charged. The suit highlighted the widespread fraud in mortgage securities, but the fundamental accountability concerns were largely unaddressed.

Despite new regulations, private litigation drove legal challenges against Wall Street more than government efforts. Government entities often lagged behind in addressing fraud, relying on private suits for legal foundations. This lack of prompt response exacerbated public distrust in financial oversight.