I think prosecutors would rather fine the banks tens of billions of dollars rather than throw people into jail.
For instance, the JPM $13 billion settlement (summarized):
- $2 billion to the Justice Department, which will then deposit the money into a fund at the United States Treasury.
- $7 billion, will flow to a range of government authorities, some more obscure than others
- JPMorgan agreed to make a “lump sum payment” of $4 billion “payable to Freddie Mac and Fannie Mae, divided between them,”
- The National Credit Union Administration, the federal agency that regulates credit unions, said it would collect a $1.4 billion share of the $7 billion pie “for losses incurred by corporate credit unions as a result of the purchases of the faulty securities.”
- $515 million goes to FDIC
- $613 million to NY Attorney General (expand homeowner assistance programs)
For instance, the JPM $13 billion settlement (summarized):
- $2 billion to the Justice Department, which will then deposit the money into a fund at the United States Treasury.
- $7 billion, will flow to a range of government authorities, some more obscure than others
- JPMorgan agreed to make a “lump sum payment” of $4 billion “payable to Freddie Mac and Fannie Mae, divided between them,”
- The National Credit Union Administration, the federal agency that regulates credit unions, said it would collect a $1.4 billion share of the $7 billion pie “for losses incurred by corporate credit unions as a result of the purchases of the faulty securities.”
- $515 million goes to FDIC
- $613 million to NY Attorney General (expand homeowner assistance programs)
etc, etc, etc...
[0] http://dealbook.nytimes.com/2013/11/20/where-does-jpmorgans-...