Money talks, so the saying goes. That seems to be a common turn of phrase being used by pundits in the wake of this week's legal activities related to alleged big bank fraud and the marketing of shoddy mortgage-backed securities ahead of our nation's financial crisis.
As San Diego readers of this blog are likely aware, a federal court jury last week found one former Goldman Sachs executive guilty on six of seven counts of securities fraud in connection with the MBS scandal. Included in that array was one finding that the official, Fabrice Tourre, aided and abetted Goldman Sachs.
The big question many are asking now is, was that the last hurrah?
A lot of the experts say they think it is. They note that the case against Tourre was a civil one and was pressed by the Securities and Exchange Commission, not the Department of Justice. And while they do acknowledge that the Obama administration is suing Bank of America for allegedly defrauding investors through an $850 million MBS deal, they say the money at stake isn't likely to cause any harm if the suit is successful.
Additionally, some observers say the suits represent something of a last-ditch effort. The statute of limitations for taking action is about to hit for a lot of these cases, so there's a flurry of activity; activity that will eventually wane.
Many ask, why haven't any criminal charges been brought against any of the executives who were behind the alleged fraud? To that, they answer: Money talks. As one expert puts it, the greatest investments the banks have made in recent years have been in the campaigns of members of Congress. And she says they've been paying off.
In the big scheme of the financial scandal, it's easy to lose sight of the fact that individuals have suffered significant losses. Proving negligence can be difficult, but it can be done with the help of an experienced attorney dedicated to protecting the rights of fraud victims.
Source: Finance.Yahoo.com, "Wall Street Banks Have Still Never Been Held Accountable, Says Tavakoli," Lauren Lyster, Aug. 8, 2013