- Bill Black: Which Aspect of the FDIC’s Litigation Failures is the Most Embarrassing and Damaging?
The article contains four key facts we did not know about the FDIC’s leadership and its litigation director. ...The first fact is that the banks and bank officers can now cut deals with the FDIC designed to keep their settlements secret.....The second key fact that we learned from the article is that the size of the settlements, for some of the most culpable fraudulent mortgage lenders, is so embarrassingly low that the FDIC’s litigators and investigators have proven to be an embarrassing failure....The third fact that emerges is that the FDIC’s real purpose in entering into these settlements crafted to try to keep the public from learning about them is not to secure a higher settlement but to protect the FDIC leadership from embarrassment for their failures of nerve, competence....The fourth fact that emerges is that the FDIC does not understand how a banking regulator and its litigators must deal with control fraud.
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3 months ago