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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsProsecution of Financial Crisis Fraud Ends With a Whimper
By PETER J. HENNING
One source of great frustration from the financial crisis has been the dearth of cases against individuals over subprime lending practices and the related securitization of bad loans that caused so much financial havoc. To heighten the frustration, I offer Aug. 22, 2016, as the day on which efforts to pursue cases related to subprime mortgages were put to rest with no individuals save perhaps the unfortunate former Goldman Sachs trader Fabrice Tourre held accountable.
On that date, the Securities and Exchange Commission settled its last remaining case against a former Fannie Mae chief executive for securities fraud related to the disclosure of the companys subprime mortgage exposure. The agency accepted a mere token payment that will not even come out of the individuals own pocket.
On the same day, a federal appeals court refused to reconsider its May ruling that Bank of Americas Countrywide mortgage unit and one of its former executives did not commit fraud by failing to disclose to Fannie Mae and Freddie Mac that the subprime loans it was selling to them did not come close to the contractual requirements for such transactions.
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http://www.nytimes.com/2016/08/30/business/dealbook/prosecution-of-financial-crisis-fraud-ends-with-a-whimper.html
KeepItReal
(7,769 posts)Wouldn't want them to actually be impacted personally for perpetrating the fraud...
Jeeze.
ansible
(1,718 posts)The west will never prosecute anyone with money. The rule of law is a joke when you can always buy your way out.
KeepItReal
(7,769 posts)It's the company taking a fraction of their profits to pay a fine.