Advertisement
Headlines
ForexTV NewsDesk | December 19 2011 4:27 EST
ForexTV.com (New York) by Dylan Tulic
A partnership will enable federal officials to cooperate with officials from New York in investigating the mortgage securitization practices of large financial institutions that resulted in the credit crisis of 2008.
The agreement was reached between New York Attorney General Eric Schneiderman and the Federal Housing Finance Agency, which oversees troubled mortgage giants Fannie Mae and Freddie Mac, to share documents and findings related to the investigation of the mortgage bubble.
The partnership could make it easier to bring fraud charges against Wall Street firms that securitized mortgages that eventually proved worthless. A key component of the partnership is the Martin Act, a legal tool available to Schneiderman that has been extensively used in the past to prosecute financial matters. Under the act, authorities can bring a case needing only to show that fraud was committed, not that it was intentionally committed. Federal laws require intent to be shown for a prosecution to be successful.
Schneiderman has been a leading outspoken critic of the securitization practices used by financial institutions leading to the crisis. He had previously derided a proposed 50-state, $25 billion settlement that would end mortgage probes across the country as an inadequate solution because it would not hold lenders accountable for their actions.
Forex research by ForexTV.com
Company : ForexTV.com
Website : http://www.forextv.com
About :
The ForexTV NewsDesk is about money, passion and life. Focusing on social side of the trader's life, we recognize that traders are a diverse and dynamic group of individuals. The very act of trading involves risk, fear, determination and desire. Our news coverage endeavors to match that passion.
At the heart of our NewsDesk reports are stories about technology, science, politics and companies delivered with attitude and verve.