FBI Warns Sequestration Will Hamper All Their Hard-Hitting Wall Street Investigations
Posted: 03/04/2013 4:40 pm EST | Updated: 03/04/2013 5:15 pm EST
WASHINGTON — More than four years after the financial crisis, not a single Wall Street executive has been jailed for playing a role in the creation of the toxic financial products that fueled the real-estate bubble, which were in some cases designed simply to fail.
That track record may make it difficult for the Department of Justice to earn the sympathy of the public as it warns that spending cuts will hamper its ability to investigate Wall Street fraud. The Federal Bureau of Investigations told lawmakers in a recent letter that across-the-board cuts resulting from sequestration “will cause current financial crimes investigations to slow as workload is spread among a reduced workforce. In some instances, such delays could affect the timely interviews of witnesses and collection of evidence.”
Investigations yet unseen may also be harmed. “In some instances, such delays could affect the timely interviews of witnesses and collection of evidence. The capacity to undertake new major investigations will be constrained,” FBI Director Robert Mueller III wrote in the letter, addressed to Sen. Barbara Mikulski (D-Md.), the chair of the Senate Appropriations Committee.