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."