Bear Stearns Lawsuit Paves Way for More Accountability


Center for Responsible Lending
October 2, 2012

Statement of CRL President Mike Calhoun about the complaint filed yesterday by the Residential Mortgage-backed Securities Working Group, a task force that was formed in January by the Justice Department:

 

“The complaint filed against Bear Stearns, now owned by JPMorgan Chase, is a welcome step in an ongoing investigation of Wall Street investment banking activities leading up to the financial crisis. This is the first action taken by this federal task force to bring accountability and relief to homeowners and others who have suffered the devastating consequences of uprooted families, defrauded investors and a crippled economy.

This lawsuit confirms that the states’ attorneys general settlement back in January was the beginning, not the end, of holding accountable those that played such a prominent role in the financial crisis. These lawsuits are an important tool in an expanded toolbox for those responsible for policing the financial marketplace – a toolbox that now includes this task force, the Consumer Financial Protection Bureau and clearer, consumer-oriented rules of the road.”

For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.

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About the Center for Responsible Lending

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.