Obama Is on the Brink of a Settlement With the Big Banks—and Progressives Are Furious

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124. Treestar, which approach seems prudent to you?

The Attorneys General should combine their resources and fully investigate mortgages, mortgage backed securities and foreclosures.

or

Forgo investigation and simply settle with the banks.

I certainly know which is easier, but which approach is better for the country?

Mortgage backed securities are complicated and if the federal government were to prosecute crimes involving those securities, it would have to prove intent to defraud.

State law though only requires proof of fraud, not intent, so securities fraud is easier for states to prove than the federal government.

Thankfully, the securities were created in two states, New York and Delaware and both of those AG’s are interested in investigating. If those AG’s are willing and able to do their jobs along with a number of other AG’s, why should others simply settle without knowing the extent of criminal activity?

All crime, even complicated financial crime should be investigated and prosecuted, otherwise sophisticated criminals would always remain free to defraud consumers and investors.