Criminal Charges Against Banks Risk Sparking ‘Nuclear Winter’

crime and punishment

“Companies, especially financial institutions, will do almost anything to avoid a tough enforcement action and therefore have a natural and powerful incentive to make prosecutors believe that death or dire consequences await. I have heard assertions made with great force and passion that if we take any criminal action, the skies will darken; the oceans will rise; nuclear winter will be upon us; and the world as we know it will end.”


Criminal Charges Against Banks Risk Sparking Crisis

As U.S. Justice Department prosecutors angle to bring the first criminal charges against global banks since the financial crisis, they’ll have to stare down warnings of uncontainable collateral damage.

Stung by lawmakers’ criticism that multi-billion-dollar settlements have done too little to punish Wall Street in the wake of the financial crisis, prosecutors are considering indictments in probes of Credit Suisse Group AG (CSGN) and BNP Paribas SA (BNP), a person familiar with the matter said. Even after talking with financial regulators about ways to mitigate damage — such as ensuring banks keep charters — prosecutors might not fully understand consequences for the market, according to industry lawyers and bankers who are following the case.

Bank clients — including trustees, fiduciaries and pension funds — could be forced to cut ties with a financial institution labeled a criminal enterprise, the lawyers and bankers said, asking not to be named because they weren’t authorized to talk publicly. Counterparties also might think twice before entering into billion-dollar transactions with such firms. Damaging a bank’s business could lead to broader fallout across the financial industry, just as Lehman Brothers Holdings Inc.’s collapse in 2008 prompted investors to withdraw from other firms on concern its exit would set off a wave of losses.

Criminal action would have to be handled so that any review of a bank’s charter wouldn’t spook customers or revoke a firm’s license, said Gil Schwartz, a partner at Schwartz & Ballen LLP and a former Federal Reserve lawyer.

“The mere threat of requiring a hearing could cause customers to lose confidence in the institution and could cause a run on the bank,” Schwartz said.

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9 Responses to “Criminal Charges Against Banks Risk Sparking ‘Nuclear Winter’”
  1. Ray Shelton says:

    Should Mr Arkley, his board of directors and their main attorney from SN Servicing be put in prison for knowingly using forged deeds and mortgage documents in our federal courts and states courts? Have they violated Rico laws on many issues? Has Mr Arkley and SN Servicing collected billions from fake or forged deeds and mortgage document from unaware homeowners all across the country? Have many banks like US Bank dumped everything into the hands of the pit bull type servicer like SN servicing to avoid culpability and to hold on to whats left of their banks reputation? Do you know for sure that your deed and or mortgage is really what you signed? Go to your county clerk and look over your documents very very closely. The instruments that may have been used to forge your signature on deeds and mortgages are almost perfect. If you are sure they are fake and or forged, Send a letter to SN Servicing put them on notice of what you found, then file a complaint with your states attorney general, and also file an additional complaint with the Florida States Attorney General Pam Bondi ASAP. Also file a complaint with the FBI and your local law enforcement. Every legitimate complaint against Robin P. Arkley made to the right agency helps in the fight against these men who allow what is taking place all across this nation.

  2. Diana Stilson says:

    How do we find out how to press charges against our lender, for tricking us into believing we were being modified, our home had 700.000$ in equity, when they deliberately deceived us and foreclosed and stoled our dream home that we built ourselves out of our own pocket. The loan was on the land.

    • BOBBI SWANN says:

      Diana – Not sure what state you are in but I do hope that you hired an attorney on your case, especially if you had that much equity in your home to defend it!However, when you took out a mortgage that encompasses the land AND any improvements on that land. When you built your home with the mortgage still existing, you also placed your home under that debt as well. Therefore, it was not just on the land. The land, in comparison to the cost of building the home, would have been relatively small. Curious, why did you do a modification? If I had paid that much cash out of my pocket to build my home you best believe I’d be fighting all the way to hell and back. Pressing charges if not the way to go. You will need to file suit against your lender in court. Best if you have really good and decent attorney to assist you. For whatever state you are in I am sure that there are plenty on this site who can recommend an attorney in your locale.

  3. Ray Shelton says:

    Dear Elizabeth Warren, Senators and Congressmen
    American home owners need protection from companies like US Bank and SN servicing and their third parties. It is clear that Fines, the OCC, or law enforcement are unable to stop the forgeries and falsified document being submitted to our courts by US Bank. For some reason judges will not go against the banks bad behavior.
    We can end this mess now by…Establishing a national law that simply says that no family / homeowner can have their home taken and no Family can be evicted from their home until the home owner gets the final price that the bank or servicing company actually paid for the property which is normally very low. Or homeowners must be offered what the home was legitimately auctioned for. Home owner should always have the last right of refusal no matter when a sale or an auction takes place. No Family should ever be evicted because the economy failed them. Where is our president where are our leaders, why haven’t the board of directors of these bank and servicing companies gone to prison?
    Set up rules to guarantee funding for the buy back by the homeowner at rates that are mandated to help the home owner. Why should overseas companies and corporation buy our homes? Why should overseas companies taking in some cases a fortune in equity or deposits. Nothing in our country has ever had such an horrible impact on the well being of American families. Stop putting families on the street. Please fight for American Families. Ray Shelton

  4. Ray Shelton says:

    Ray Shelton May 19, 2014 at 7:49 pm
    If you are being foreclosed on By US Bank and or SN Servicing ( Please No Other banks or services please) Please check the signatures on your deed in your county clerks office, if you are sure that forgery or falsification of your documents has taken place then call me ASAP we are going after anyone who has wrong us by forgery and or uttering forgery under the RICO ACT. This is happening now 2014 Please join us. call 352 274 8467 Ray Shelton
    #1. Did A Serious Crime of forgery and Uttering forgery take place by US Bank and their attorneys against you ?
    #2. The OCCs Cease and desist order signed by US Bank and its Board of directors specifically says that US Bank and its third parties ( Servicer’s and attorneys) will stop this kind of criminal activity immediately and make restitution, but they have only escalated their activities of illegally taking homes in Florida via Forgery and falsifying documents etc.:

    MEDIA STORY LINE. A Well known highly respected Florida Notary and his wife who witness the signing of a deed and mortgage have come forward and signed a statement sworn under oath that the signatures on a deed and mortgage were originally signed in Royal Blue. They even went to the Marion County Clerk of the Court and had another notary witness the fact that they viewed the recorded deed and mortgage that was submitted by US Bank and then witnessed that the documents were not sign in Royal Blue. But in fact were signed in Black. It is clear by any reasonable person or most important by Law Enforcement and our Judges, that after US Bank claimed a lost note status for a couple of years, they had no choice but to forge the deed and note in order to have standing in court.
    The Shelton family is being illegally foreclosed on by US Bank who has already paid out multi million dollar fines, but no one has gone to jail. Who is actually committing these crimes? Was it DocX or LPS or is it their attorneys? This needs to be discovered and prosecuted by the Feds because it is a very serious issue that is costing the American public billions of dollars in loses. It apparently doesn’t matter to US bank that the homeowner is right or wrong because no normal family can stand up to the money that is used to win by attrition against a homeowner. Who will protect the public and stop the destruction of hundred of thousands of families lives all across this nation?
    This is also very wrong because Us Bank and their attorneys may be undermining the integrity of our entire Justice system and the American way of life as it is known today. Will it end up that it is ok to forge our most treasured document without any prosecution by our government? This is becoming a crime wave that is unparalleled in history and America must stop it. Have Multiple interstate crimes been committed multiple times By US Bank and their attorneys ? Should these issues be considered within the Rico Crimes Laws. US Bank has not stopped their behavior, are the fines way to low and they just don’t care because the numbers prove that they can still make huge profits by continuing on the same path? Where is Law Enforcement? Where is Eric Holder? Where is OBAMA???
    The Shelton Family didn’t discover the facts about the forgeries until they had already lost in every court even the appeals court. Now that they found out and have proof of forgery shouldn’t all the other ruling be null and void? The Shelton’s are filing a Civil Criminal Lawsuit against the attorneys Andrew Braaksma and Paul McKenna and another Civil Rico law suite against US Bank and SN servicing.
    The Shelton’s have filed a bar complaint with the Florida bar against Andrew Braaksma out of Miami and his partner Paul Mckenna for Uttering Forgery and other reasons to be announced. They have also filed a complaint with the FBI and with the Florida Attorney General. They will soon ask the Office of State wide prosecution to take the case. There will also be some press conferences set up to expose the Miami Attorneys and US Bank. Shouldn’t this case be moved up to the Federal courts and demand relief and for the prosecution of the Miami Attorneys and US Bank? To join us please call 352 274 8467 Ray Shelton

  5. ldynps says:

    A Cold Winter couldn’t happen to a better bunch of criminals!! We homeowners are armed with heavy coats, gloves and boots to walk all over your lies and deceit…If the Justice Department finally found the balls to do the right thing, let it SNOW, let it Snow…LET IT SNOW!

  6. lms53 says:

    agree with Bobbi and banks don’t need to cross state lines.

  7. neidermeyer says:

    We don’t care about the 0.01%ers that run the banks ,, “nuclear winter” ,, that pretty much describes the economy as imposed on the rest of us for the last 6 years…

  8. Bobbi Swann says:

    I especially like this line: “The mere threat of requiring a hearing could cause customers to lose confidence in the institution and could cause a run on the bank,” Schwartz said.

    Why you ask? Because for the most part, the money really isn’t there. The draw would come from the US Treasury…….and they don’t have ‘real’ money either! To bring these monsters down it has to be dismantled by pieces. I agree that a run on a mega bank with having the Treasury to fund it (they just print more money) will cause a reaction to the action. More than likely with printing more money (as they really don’t have it) could cause more inflation in the economy. It should be done just it was done back in the 80’s during the S&L crisis where the gov’t took them over and sold the assets piece by piece. Mergers only create more TBTF. What we really need is to bring back the Glass-Steagall Act.

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