IPFS News Link • Courtroom and Trials
Too Orange To Jail?
• Zero HedgeU.S. prosecutors have abandoned their case against Angelo Mozilo, the over-tanned character at the center of the risky subprime mortgages that fueled the financial crisis, after a two-year quest to bring a civil suit against him.
As Bloomberg reports, The Justice Department has decided not to sue Mozilo, according to people familiar with the matter, ending a decade-long hunt for someone, anyone to jail over what happened.
As Bloomberg reports,
In 2014, the Justice Department began trying to build a civil case against Mozilo, using the same anti-fraud laws it had employed to extract more than $37 billion from Wall Street banks. The Financial Institutions Reform, Recovery and Enforcement Act, known as Firrea, gave the department a low threshold for bringing civil suits and a long period to bring cases.
The Justice Department used Firrea to reach a $17 billion settlement with Bank of Bank of America over how Countrywide and Merrill Lynch & Co. -- which Bank of America bought in 2009 -- marketed mortgage-backed bonds to investors in the run-up to the financial crisis.