Cuomo files fraud charges againt Bank of America
I meant to write about this a few days ago, but got distracted. If the Democrats are serious about reversing what seems to be a negative national trend they need to ensure that Wall street doesn’t act above the rules - either the rule of law or the rule of common sense.
So, imagine the smile on my face when Andrew Cuomo charged Bank of America Chief Executive Ken Lewis and Chief Financial Officer Joseph Price a few days ago. (Via Washington Post)
New York Attorney General Andrew M. Cuomo filed fraud charges Thursday against Bank of America and two of its former top executives, alleging that they lied not only to investors but also to government officials who were orchestrating a massive bailout of the bank in the final months of 2008.
…
The lawsuit alleges that the deception was part of a successful effort to trick the officials into providing an additional infusion of bailout money.
I found this graph especially damning,
Bank of America first settled SEC allegations by agreeing to pay $33 million last summer. But a federal judge rejected the settlement, saying it left too many questions unanswered, punished the very shareholders who were injured and let top executives off the hook.
The SEC announced Thursday that the bank has now agreed to pay $150 million to settle the charges and make a host of changes in how the company is run. The agency said it would come up with a plan to ensure that the money goes to injured investors. A judge must still sign off on the agreement.
Quite the difference between 33 million and 150 million, huh?
FDL has a nice summary as well.
Go get ‘em Cuomo.
Related posts:
Here’s the backstory on Cuomo’s self-serving action against B of A.
Source
you mean someone’s facebook opinion. So it all goes back to HUD eh? great.
Not just “someone of facebook”, a graduate of Princeton, Notre Dame Law School and a former New Jersey Superior Court judge. He is also factually correct.
Bush graduated Yale - what is your point? HUD is responsible. Nay
“Andrew Cuomo himself is personally responsible for much of the current recession…”
All that is missing is blaming Bill Clinton.
Oh, I get it. If the facts point to a liberal/progressive that you support, then the facts don’t matter. Thanks for clearing that up.
I never said Cuomo was the sole source of our crashing economy, but he did put forth policies that contributed. Cuomo’s actions can not be neatly summarized as removing regulations, an active effort was made to pressure banks to make sub prime mortgage loans. Cuomo played a key role. As the Village Voice states:
No Mike - you cut and pasted the facebook quote from the Princeton and Notre Dame Judge who say/nay used the phrase personally responsible.
There were multiple causes to the recession. I suppose lack of regulation was one of them huh.
Of course more than one person shares the blame, that does not absolve Cuomo. And, NO, lack of regulations had nothing to do with it, bad regulations were the cause. The more gov’t regulates, the worse things get.
So when Cuomo loosened the regulations that is bad? The more government the worse it is? yeah that gun to all those lending institutions heads made them risker loans (post Cuomo @ HUD) Yeah that must be it.
Oh, the Princeton Notre Dame educated Judge is a Fox talking head.
He is an expert on the law and the Constitution. Fox has him relegated mainly to their website, he is a bit too libertarian for the mainstream neocons at Fox. Much like John Stossel is on the Fox Business Network. However, because Judge Napolitano is on Fox, I have scrutinized his writing and shows very closely before determining that he is a highly principled individual. You’ll never find me praising O’Reilly, Hannity or much of the other ilk on Fox.
No Mike - Cuomo deregulated (raising lending caps) which didn’t help and other companies then exploited to create a bubble. Andrew Cuomo as the single source? Kinda like Drew Brees’ mother getting ALL the credit from the Saints superbowl win.
Blaming Cuomo fits a particular narrative. Sort of like how removal of existing regulation (remember Cuomo lifted lending restrictions) doesn’t get mention but Cuomo as a person does. Or are you saying that regulation is good now.
This Village Voice article is pretty good -
http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/1
Cuomo may have given “birth” by removing some regulation but there certainly are other causes of the recession.