NY AG sues major banks for fraud

[Peter1469]

http://www.ag.ny.gov/media_center/2012/feb/feb03a_12.html

This is very good news. The New York AG is suing several major large banks for mortgage fraud related to their use of the MERS System and other fraudulent practices, which likely include robo-signing and filling fraudulent documents in court.

Hopefully other states will do the same.

[Conley]

That is great news. Since the Federal Government has ignored the issue it is good to see someone pursue the fraud that was committed.

Months ago I read of work by multiple states to secure a settlement with the banks in exchange for not initiating legal proceedings, but it doesn't seem it ever came to pass. It is disturbing to see those who made millions on the fraud like Angelo Mozillo of Countrywide pay a fraction of their earnings in a fine and walk away pocketing the rest (even though Mozillo's fine was the largest ever it still pales in comparison).

[Mister D]

Filing fraudulent documents? Dayum...you'd think the states would feel obligated to pursue something like that.

[Mister D]

I mean I could get a hefty fine for forgetting to carry my Driver's License.

[Conley]

I mean I could get a hefty fine for forgetting to carry my Driver's License.

Exactly. It's stunning to me that so many people are willing to give them a pass on this.

[Peter1469]

After the S&L crisis in the 1980s, 1000 bankers went to jail..., now the government is covering up for them. That shows how powerful corporations (including banks) have become in America.

[Mister D]

That's a pretty disturbing way to put it.

[Mister D]

Exactly. It's stunning to me that so many people are willing to give them a pass on this.

I suppose Peter's right. It's a reflection of their increased power. :undecided:

[Conley]

Disturbing but true...in just a couple of decades we've gone from investigations like the S&L to essentially not even investigating.

[Mister D]

Which points to cooperation or at least complicity.

[Elibe]

the thing is now the government doesn't have the money or the lawyers to go after these guys

they've gotten too big

[Mister D]

Hopefully NY is successful in these efforts. If they are it may encourage other states to follow suit (no pun intended).