Between the Raj Rajaratnam verdict, which left the itch to see the "bandits" of the financial crisis on trial unscratched, and the premiere of Too Big to Fail, there's a newfound urgency in the air over getting a criminal conviction for the mortgage crisis that led to the financial meltdown. And New York Attorney General Eric Schneiderman is making a bid to be the one to make it happen.
In addition to investigating Goldman Sachs, Morgan Stanley, and Bank of America, Schneiderman is expanding his probe into mortgage-securities fraud to include JPMorgan Chase, UBS, and Deutsche Bank AG, as well as four bond issuers. Schneiderman is investigating claims paid out during and after the economic crisis, information related to litigation or settlements with the banks, as well as mortgage practices and the packaging and sale of loans to investors. Your move, Preet.
JPMorgan, UBS, Deutsche Bank to Face N.Y. Probe [Bloomberg]
Prosecutors Faulted on Failure to Charge ‘Bandits’ in U.S. Market Collapse [Bloomberg]
Earlier: New York Attorney General Decides the Time Is Nigh to Investigate Mortgage Security Fraud