Archive for November 2015

Department of Justice May Seek Criminal Charges Against RBS, Chase Execs

November 19, 2015

Dollar Bills

Charging the people responsible for the banking debacle is a very good idea but it would seem that that can’t happen. The Department of Justice has delayed just long enough that the Statute of Limitations is in effect. According to Seth P. Chazin – Attorney:

Major fraud against the United States has certain conditions for the statute of limitations. The charge of major fraud against the US is established by 18 USC 1031 and must involve at a minimum 1,000,000. A person guilty of an offense where he knowingly defrauds the federal government in any grant, contract, loan, federal assistance, etc. is subject to 10 years in federal prison. The statute of limitations for major fraud against the United States is 7 years from the date that the crime was committed.

For a more detailed look at this subject – please read the article below.

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The U.S. may be following through on promise made a few months ago to target individual executives from the Royal Bank Scotland (RBS) and JPMorgan Chase for their alleged criminal role in financial crisis.

In September, the Department of Justice (DOJ) issued a memo to all U.S. state attorneys general stating that it will pursue the prosecution of individuals whose actions brought on the Great Recession of seven years ago.

Deputy attorney general Sally Q. Yates stated in the memo that, “One of the most effective ways to combat corporate misconduct is by seeking accountability from the individuals who perpetuated the wrongdoing. Such accountability is important for several reasons: it deters future illegal activity, it incentivizes changes in corporate behavior, it ensures that the proper parties are held responsible for their actions, and it promotes the public’s confidence in our justice system.”

The DOJ is reportedly standing by its word and pursuing criminal cases against executives at these two banking institutions for allegedly selling flawed mortgage securities after being warned by associates of their wrongdoings.

The Wall Street Journal (WSJ) reported Tuesday that government officials are placing the case that bankers “ignored warnings from associates that they were packaging too many shaky mortgages into investment offerings and are weighing whether they can prove that constituted fraud,” the WSJ noted that people familiar with the criminal probe said.

A $2.2 billion deal in which RBS repackaged home mortgages into bonds back in 2007 is being scrutinized by prosecutors, the Wall Street Journal reported. The SEC noted in a 2013 settlement with RBS that the lead banker on that transaction (whom it didn’t name) was trying to push the deal despite concerns of the bank’s diligence department. Prosecutors are focusing on two individuals at JPMorgan who worked on a different residential mortgage-backed securities transaction.

To read the complete article – please use the link below.

Criminal Charges Against RBS, Chase Execs