The Department of Justice on Aug. 6 filed suit against Bank of America accusing the mega-bank of “reckless and fraudulent” behavior during the housing bubble and crash.
According to the announcement released that day, “Bank of America’s reckless and fraudulent origination and securitization practices in the lead-up to the financial crisis caused significant losses to investors,” said U.S. Attorney for the Western District of North Carolina, Anne M. Tompkins.
That not a single fraudster has yet gone to jail over the biggest financial fraud in US history, is itself a crime.
I blogged about it today at
Housing market scandal continues to reverberate
But, this suit, too, is a civil action that may result in a slap on the wrist in the form of a fine. No one is facing criminal charges.
The DOJ is touting is work in pursuing those at fault, but no criminal charges have been filed against anyone involved.
Bank of America inherited a giant mess when it took over Countrywide Financial, the biggest mortgage originator during the bubble … and a criminal enterprise led by Angelo Mozilo.
Mozilo, who made millions from his “no-questions-asked” mortgages, was let off with a paltry fine that amounted to pocket change.
When are the criminal charges coming?
It’s about time the DOJ filed criminal charges against the individuals responsible for the biggest financial meltdown since the Great Depression.