Banks may have to contend with a new foe: state attorneys general who seem to be more willing these days to take on the big power banks. Ohio's attorney general, Richard Cordray, epitomizes this group. "There's a belief here that Wall Street is a fixed casino and it's back in business, and we're left holding the bag. It's important for us to show we'll go after a company that does wrong," he told the New York Times. Last week, he filed a suit against GMAC Mortgage, rapping it for filing fraudulent affidavits in foreclosure cases.
Other banks may also be in the crosshairs. Cordray's already sued investment banks, rating agencies, sub-prime lenders and others, winning some big awards: $475 million from Merrill Lynch, $400 million from Marsh & McLennan and $725 million from the AIG.
Other state AGs seem to be jumping into the fray, including Martha Coakley of Massachusetts, Lisa Madigan of Illinois, Tom Miller of Iowa and Roy Cooper of North Carolina. More than two-thirds of all state AGs are planning some action on foreclosures.
In many ways, actions against big financial companies are a source of revenue for some cash-strapped states, and they can burnish the reputation of AGs, who tend to be politically minded. Certainly, it speaks to the mood of the country beyond Wall Street.
For more:
- here's the article
Related Articles:
The next sheriff of Wall Street
Morgan Stanley pays for New Century sins
New York attorney general looks at credit rating agencies
CT attorney general to reform hedge fund
No comments:
Post a Comment