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Justice Dept. to Use the G Word with Big Banks?

Until now, the prosecution model for big banks involved in the financial crisis and subsequent scandals has been to settle for large sums with no admission of guilt, but that strategy may be changing. According to an article in The New York Times, the Justice Department is now seeking some guilty pleas from defendants.

But this may not be as large of a cultural change as it seems:

[C]ritics question whether the new strategy amounts to a symbolic reprimand rather than a sweeping rebuke. So far, the Justice Department has extracted guilty pleas only from remote subsidiaries of big foreign banks, a move that has inflicted reputational damage but little else.

Read more at The New York Times.

By: Andre Francisco
Online Producer, POGO

andre francisco Andre Francisco is the Online Producer for the Project On Government Oversight.

Topics: Financial Sector

Related Content: Financial Oversight

Authors: Andre Francisco

Submitted by Syl at: February 20, 2013
Each time I read POGO reports, I become disgusted. I do want to be in the know, but can't stomach the truth!
Submitted by jo jo at: February 19, 2013
does anyone know that in Truth in Lending the originating loan company was supposed to alert the homeowner when the loan was flipped? in legal terms a financial product like a mortgage is a non negotiable financial instrument contractual agreement under the Uniform commercial code. the minute that home mortgage became a toxic derivative /or a security it morphed into a negotiable security under the UCC and the financial institution was to alert thru the law promulgated by truth in Lending and RESPA. None of this was done. The DOJ needs to enforce the law -- give the homes back and give the 55 trillion back too

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