Kroft: Why have no banking executives been prosecuted?

By: 60 Minutes Overtime Staff
Topics: Correspondent Candids

In the summer of 2007, Steve Kroft and his producer Frank Devine began reporting on something called "subprime lending." Little did they know, they'd be following that story through five years of global economic tumult.

Their early reporting on the housing bubble in 2007 gave them the background and contacts they needed when the economy imploded in September of 2008, and during the next several years, they produced a series of extraordinary reports on the economic collapse.

"It was the scariest time in my lifetime," says Kroft. "I honestly thought we were headed for another Great Depression."

Kroft remembers thinking, at the time, that heads would roll on Wall Street, most likely resulting in prosecutions and jail time for high-level banking executives.

As we all know, that never happened.

So, Kroft followed up with several stories on accountability, trying to answer a simple question: why have no high-level banking executives been prosecuted? He and producers James Jacoby and Michael Karzis have looked at three cases: Countrywide, Citigroup, and, Lehman Brothers.

Steve Kroft says he never intended this to be a "series." He was simply covering the crisis as it unfolded. But in retrospect, we see these six 60 Minutes stories, produced over five years as an accidental series of sorts, assembled year-by-year in an effort to understand some of the most dramatic, complex events of our time.

To watch all six stories in Kroft's five years of coverage of the economic collapse, click here.

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by dlabitterman August 28, 2012 6:34 PM EDT: I am a victim of this crisis caused by the banks and supported by our government. I lost my job of 19 years in the auto industry, in turn I lost my house due to lack of support from the banks to work with me. The loan modification was for no one but the banks. I know of no one who has been helped by this joke of an attempt to look good in thier own eyes. I am now on the verge of losing my house agian for using my retirement money and buying a house cash out, to ensure I had a roof over my head. I am not able to pay the taxes and penalties due, and I do not qualify for hard ship, not old enough, sick enough, or poor enough. When does this stop, and why is there not more being done to take care of the honest americans who tried to do it right? Why is there not more reporting and accountability being done on this issue. I know I am not alone, but it sure does feel that way. When will the middle class american, who pays the most stand up united and say enough is enough?; Reply to this comment


by Tourism20 August 26, 2012 2:13 PM EDT: Keep up with the good work! If we want a democracy we are all going to have to start participating. I knew in 2006 something bad would happen but everyone told me I was crazy. All of the banks executive boards should just be in jail. They committed legal fraud. The house appraisals were fraud. Banks should have been left to go under. They made the fraud so complex and their trails are so convoluted to cover up for their illegal activities so that they wouldn't face consequences..

The other sad part is that many fellow Americas look down and snub their noses at those in trouble. Blaming them for being the victims. Calling them irresponsible and other names. When you neighbor loses their house it affects your property value for at least a year. You do need to help you neighbors and have some compassion. You might need a hand yourself some day.; Reply to this comment


by MacPClinuxMIniMain August 25, 2012 11:42 AM EDT: Americans are too busy servicing their various entertainment addictions to pay attention to something as dry as impeding financial collapse, even if it means that our federal government is in bed with the wealthy corporations that fund their re-election campaigns.; Reply to this comment


by patwells1 August 24, 2012 4:40 PM EDT: Steve Croft is having a natural reaction of just giving up ... this is understandable because the American people do not care about the financial discussion.

The American people do care about social issues like gay marriage, abortion, Obama's birthplace, rape definitions, etc. My state legislator reported the highest level of interest by the public was with regard to issue of building a football stadium for our professional football team.

The French, a couple of years ago, characterized America as a "big dumb puppy." Given the average American's lack of interest or knowledge of accounting, law, economics, or history, it is no wonder that Steve is discouraged.

I would recommend for Steve to do a series like Jay Leno used to do where average people are asked questions about civic matters ("Jaywalking"). I think the heart of the problem is the "dumb puppy" syndrom in America. Unfortunately, we rely on the "dumb puppies" to participate in the democracy.; Reply to this comment


by kanrinen August 24, 2012 8:48 AM EDT: The financial crisis was basically caused by a widespread lack of regulation of various financial products and dealings. It's hard to blame a few individuals when so many people were doing bad things that were mostly legal. I wonder how much badly needed regulation has been put in place since the crisis.; Reply to this comment


by cdr584 August 23, 2012 4:34 PM EDT: I feel your pain Steve. Please don't give up because people like you represent how so many of us also feel, but feel helpless to do anything about it.; Reply to this comment


by nfission August 23, 2012 12:07 PM EDT: The banksters and corporations own everybody, they will never be held accountable, they are our dictators. America is under a dictatorship held by the 1%. Corruption and greed is their god. They control our every move, hence, cameras on every street corner to make sure no one takes them down. They are watching you!; Reply to this comment


by 1surfing August 23, 2012 11:59 AM EDT: Unbridled greed on a scale that is incomprehensible. After carefully dismantling the very legislation (Glass-Steagall Act) that would have prevented this, & the hard learned lessons from the Great Depression, the flood gates of avarice had been opened. Alan Greenspan's embracing of Ayn Rand's Laissez-Faire capitalism, that free markets could regulate themselves, which he later admitted was flawed. And some of the Captains of Wall Street who got us in this mess, are now running the show in Washington. Our elected representatives have been bought & sold, lack the will & desire to prosecute.; Reply to this comment


by Entitlementnation August 20, 2012 8:07 AM EDT: Why hasn't Barney Frank been prosecuted for raping a congressional page? Why hasn't Barney Frank been charged in his efforts to mandate banks to give ridiculous loans to people who have no means and pay no taxes?; Reply to this comment


by honest_pols August 20, 2012 6:55 AM EDT: THE PROTECTED, SWINDLING, ELITIST WALL ST BANKERS MUST BE PROSECUTED

The ongoing corrupt, 'rotten-to-the-core' system, has got to go.

If our unproductive Wall St banksters and corporate financier/parasites are not brought to justice, then we can EXPECT more and more disrespect for our laws, until we reach the point of total breakdown, with more and more victims taking the law into their own hands!; Reply to this comment

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