A problem that I’ve been writing about for several years is the grim reality that the top bankers and Wall Street guys, who were responsible for the financial crisis, have never been out in jail–and jailing these guys is the only way that there is a chance that the same thing won’t happen again. Which brings us to the story of Angelo Mozilo.

Yesterday, the NYTimes’ Gretchen Morgenson wrote a piece about Mozilo:

Mr. Mozilo, the co-founder and former chief executive of Countrywide Financial, has largely escaped accountability for his outsize role in the mortgage crisis. But he may soon face a civil lawsuit from the Justice Department, according to news reports last week.

The possibility of a new case against Mr. Mozilo came almost exactly seven years after the subprime mortgage machine he created and oversaw began to sputter and stall. That process began in earnest on Aug. 16, 2007, when the company disclosed that it was drawing down its entire $11.5 billion revolving credit line. Other lenders had lost confidence in its operations. [emphasis added]

But, there is the problem. A civil suit will only take away some cash out of the guy’s pocket. Sure, it will make him unhappy. But, these guys have to spend time in jail–taking away their freedom is the only thing that gets their attention.

What happened with the use of RICO? The Justice Department spent years coming up with cases that put organized crime figures behind bars simply for using the mail in the furtherance of some illegal activity. Why not do the same here?