The attorney general’s accusations, detailed in a 90-page complaint, focus on two decisions that bank executives made in December 2008, as Merrill Lynch suffered growing losses. The complaint was filed under the Martin Act, a New York state law that gives the attorney general broad latitude to pursue financial wrongdoing.
“Throughout this episode, the conduct of Bank of America, through its top management, wasmotivated by self-interest, greed, hubris, and a palpable sense that the normal rules of fair play did not apply to them,” Mr. Cuomo said. “Bank of America’s management thought of itself as too big to play by the rules and, just as disturbingly, too big to tell the truth.”
Well Mr. Cuomo, you could say that about all the big boyz in your district and state. How about all those "RMBS" and "CDOs" and "CDO^s" and other similar instruments that were comprised of residential mortgages with no disclosure that The FBI, HUD and private credit analysts had been warning for YEARS about rampant fraud in the underlying loans?
I applaud this as a first step but until and unless this is expanded to include all those securities created with bought-and-paid-for ratings - and zero disclosure of facts either known or "should have been known if you bothered to look" to investors this will remain only "a good start."
C'mon Mr. Cuomo, make us all proud and go after the root of The Bezzle.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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