Chanos Says Feds Should Have Thrown Book At Bankers

Dec 7 2011 | 11:45am ET

Jim Chanos, founder of the $6 billion hedge fund Kynikos Associates, thinks the feds should have gone after Wall Street bankers with the same enthusiasm they showed for prosecuting Enron executives.

The renowned short seller made the remarks on day two of the Reuters 2012 Investment Outlook Summit in New York.

Chanos said that by accepting big bonuses for selling what turned out to be worthless mortgage-backed securities some bankers effectively “looted” their companies, reports Reuters.

"I strongly believe that there should have been, and should be, prosecutions for what happen happened in '08," he said.

A supporter of President Barack Obama, Chanos also wondered why so many of his peers are critical of the president:

"I keep asking my hedge fund compatriots, 'How bad has your life under Obama really been?'"


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

The profitable power of confluence

The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.