Citigroup settles stinky mortgages suit for $7 Billion

[Deacon923]

http://dealbook.nytimes.com/2014/07/14/citigroup-and-u-s-reach-7-billion-mortgage-settlement/

The Justice Department, however, rejected that argument, emphasizing instead what it saw as Citigroup’s level of culpability based on emails and other evidence it had uncovered.

“Despite the fact that Citigroup learned of serious and widespread defects among the increasingly risky loans they were securitizing, the bank and its employees concealed these defects, ’’ Mr. Holder said.

He said the settlement on Monday did not absolve “Citigroup or its individual employees” from facing future criminal charges.

Won't hold my breath on that last part.

BofA is next.

 

[RJKarl]

Yep, I agree. One of the worst things Obama has failed at is holding Wall Street responsible . There should be dozens, if not hundreds of bankers and brokers in jail doing major time right now. The banks who did it should have been broken up and banned from doing any securities forever.

 

[Biff Tannen]

The banks who did it should have been broken up and banned from doing any securities forever.

#howtofixtheeconomy

 

[WakeandBake]

Yep, I agree. One of the worst things Obama has failed at is holding Wall Street responsible . There should be dozens, if not hundreds of bankers and brokers in jail doing major time right now. The banks who did it should have been broken up and banned from doing any securities forever.

agreed

 

[94Deac]

Now armed drones buzzing Wall Street might be something...

 

[Liquid Karma]

Yep, I agree. One of the worst things Obama has failed at is holding Wall Street responsible . There should be dozens, if not hundreds of bankers and brokers in jail doing major time right now. The banks who did it should have been broken up and banned from doing any securities forever.

What law was broken such that so many people should be in jail?

 

[ONW]

I'm not a lawyer, so I don't know who and what could be prosecuted to letter of the law, but fraud, improperly executed and documented mortgages/loans/financing, etc., insider trading, false accounting, misrepresenting underlying asset value, back dating financial documents, SEC disclosure rules, improper accounting. Again, I'm not a lawyer but something in that realm has to be against some law somewhere right LK? Honestly asking btw.