Cramer: Lehman Case 'Is a Travesty of Justice'
Imagine you go into a auto showroom for a BMW 750. You are a regular customer. You want to buy one. The salesperson tells you "listen, that car's not as good as you think. In fact it might be a lemon.We're dumping them on people who aren't good clients and warning our good ones."
Imagine I have you on tape saying that to me.
Now, the next customer is some buffoon who believes that the 750's a good car. He comes in and the dealer's salesperson says "none better, top-rated. Probably have to pay a premium to sticker and it is worth it."
It is entirely possible that someone from BMW is willing to say that's perfectly legal. It is entirely possible that it might actually be legal. But I bet an enterprising U.S. Justice Department lawyer might decide, "you know what, I think that stinks, I think they committed fraud, the statute gives me wide latitude and I am going to go after them."
Do you think that someone could stop that prosecutor? Do you want to stop him?
Let me play with an open hand. I graduated from Harvard Law in 1984 and immediately passed the bar and became a lawyer before going on to Goldman Sachs(GS) . I mention it only because the people who are now running these Justice Department Districts or the people who are defending against these prosecutors all know how selective and how enterprising some prosecutors are than others.
Some would say, "OK, Dick Fuld and Angelo Mozillo have to be guilty of something, Let's get them." Others would say, "wow, I wish we had a better case. We don't have a lot on them let's just give up cause we don't have a smoking gun."
And they get away with it.
That's how it happens. You have to trust me, as an insider that is how it happens.
No, I am not asking for a "Get Hoffa" squad like Bobby Kennedy set up in the Justice Department in the 1960s. But a major financial crimes unit like President Bush created to nail the Enron people would certainly be desirable.