BofA CEO, ex-CEO must face mortgage disclosures lawsuit
(Reuters) – A federal judge has revived a securities fraud lawsuit accusing Bank of America Corp Chief Executive Brian Moynihan, his predecessor Kenneth Lewis, and others of misleading shareholders about the risk the bank might have to buy back large amounts of soured mortgages.
U.S. District Judge William Pauley in Manhattan in July had dismissed various claims against the executives by shareholders led by the Pennsylvania Public School Employees’ Retirement System, while letting their case against the second-largest U.S. bank proceed.
But Pauley said the new allegations in an amended lawsuit “plausibly establish fraudulent conduct and a culpable state of mind as to all executive defendants” for allegedly concealing the buyback potential when certifying the bank’s financials.
He also said Moynihan could be liable for statements that were inconsistent with a May 13, 2010, letter sent on his behalf to the Financial Crisis Inquiry Commission regarding the bank’s securitization practices.
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I absolutely agree with Kathryn. I hope and pray Brian Moynihan,Lewis and ALL the TOO BIG TO FAIL will all go to JAIL for their wrongdoings. The OCC is no better either. I, for one, brought a lot of information to te OCC only to have them shut the door on my inquiries. This will all lead to civil unrest in the near future as people are fed up with the crimes going unpunished. Personally, I have pulled ALL my accounts from the BIG BANKS and deal with the small local banks whom we can trust to uphold the law.
All the too big to fail or jail banks’ CEO and top level management were aware of the entire scheme and were instrumental in the process and coverups. An individual or small business owner could never in a cazillion years get away with breaking the law as these criminals have while laughing in the face of the rest of us and our government. If there are not going to be any real regulations to banking and cheat street then jail with no bail for all of them might make others want to stick to honest banking and finance. Make an example out of the most well known if you want to gain some trust back of the average americans out here watching. Exempting these people from having to follow and adhere to the same laws and honest business ethics by referring to blatant outright criminal activity as “mismanagement” and any other understated description other than unlawful, will just encourage society as a whole to set aside obeying laws because they are being shown how profitable it can be. More and more of society is losing its moral compass. History shows us that this will lead to more chaos and unrest and will eventually lead to the end.