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New York Investigates Banks’ Role In Financial Crisis

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http://www.nytimes.com/2011/05/17/business/17bank.html?_r=1&ref=business

The New York attorney general has requested information and documents in recent weeks from three major Wall Street banks about their mortgage securities operations during the credit boom, indicating the existence of a new investigation into practices that contributed to billions in mortgage losses.

Officials in Eric T. Schneiderman’s office have also requested meetings with representatives from Bank of America, Goldman Sachs and Morgan Stanley, according to people briefed on the matter who were not authorized to speak publicly. The inquiry appears to be quite broad, with the attorney general’s requests for information covering many aspects of the banks’ loan pooling operations. They bundled thousands of home loans into securities that were then sold to investors such as pension funds, mutual funds and insurance companies.

It is unclear which parts of the byzantine securitization process Mr. Schneiderman is focusing on. His spokesman said the attorney general would not comment on the investigation, which is in its early stages.

Several civil suits have been filed by federal and state regulators since the financial crisis erupted in 2008, some of which have generated settlements and fines, most prominently a $550 million deal between Goldman Sachs and the Securities and Exchange Commission.

But even more questions have been raised in private lawsuits filed against the banks by investors and others who say they were victimized by questionable securitization practices. 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.

How this will pan out, they will investigate, there will be leaks to the press about illegal behaviour, denials of anything illegal happening, maybe a showpiece police raid to make out no one is above the law (later to be revealed that the banks knew of the raid and fully cooperated), millions of dollars spent, and ultimately no trials (possible a token patsy will be jailed) all that will happen is that a fine will be paid for nothing illegal having happened and that will be the end of it.

Carry on as before.

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http://www.nytimes.com/2011/05/17/business/17bank.html?_r=1&ref=business

How this will pan out, they will investigate, there will be leaks to the press about illegal behaviour, denials of anything illegal happening, maybe a showpiece police raid to make out no one is above the law (later to be revealed that the banks knew of the raid and fully cooperated), millions of dollars spent, and ultimately no trials (possible a token patsy will be jailed) all that will happen is that a fine will be paid for nothing illegal having happened and that will be the end of it.

Carry on as before.

...unless they can find one of the Bank heads is not a US citizen.... :rolleyes:

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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