Will the NY Attorney General Bring Doomsday Charges Against Wall Street?

Will the NY Attorney General Bring Doomsday Charges Against Wall Street? If So, How Long Will He Survive?

Michael Collins



Gretchen Morgenson of the New York Times just published one of the few feel good stories in months following the 2008 financial crisis. She describes a possible day of reckoning for the perpetrators of the 2008 crisis and much of the pain that has followed. ...

Morgenson indicated where the attorney general might be heading - securitization fraud:

"Some litigants have contended, for example, that the banks dumped loans they knew to be troubled into securities and then misled investors about the quality of those underlying mortgages when selling the investments."

"The possibility has also been raised that the banks did not disclose to mortgage insurers the risks in the instruments they were agreeing to insure against default." New York Times, May 16

...
Nexus between Cuomo 2009 Charges against Bank of America, Schneiderman's Investigation, and the Senate Report on "Wall Street and the Financial Crisis"

On February 4, 2009, then New York Attorney General Andrew Cuomo filed a complaint against the Bank of America, Kenneth D. Lewis, and Joseph L. Price.

"The bank and the two named executives are charged with failing to inform the bank's board of directors and shareholders of the major red ink on Merrill Lynch's books prior to the merger. CEO Lewis, CFO Price, and other BofA officers and professionals chose to hide $16 billion of Merrill Lynch known pre tax losses prior to board approval. That's fraud, plain and simple." Michael Collins, Economic Populist, February 8, 2009

If wishes were horses…

If wishes were horses, we'd all take a ride. Spitzer's investigations blew up after a personal scandal. Cuomo's gubernatorial campaign interrupted his Bank of America case of 2009. ... But you never know. Success is often a matter of timing. This attorney general is certainly attacking Wall Street and the big banks at the right time.


Link: http://economicpopulist.org/content/will-ny-attorney-general-bring-doomsday-charges-against-wall-street-if-so-how-long-will-he-s