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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note