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Judge endorses US use of fraud law against Bank of America

Judge endorses US use of fraud law against Bank of America

A federal judge has endorsed a broad interpretation of a savings-and-loan era law that the U.S. Justice Department is trying to use in cases against Wall Street banks.

U.S. District Judge Jed Rakoff in Manhattan said Monday that a “straightforward application of the plain words” of the Financial Institutional Reform, Recovery and Enforcement Act (FIRREA) allowed the interpretation sought by the government.

The law has a low burden of proof, strong subpoena power and a 10-year statute of limitations, twice as long as the typical limit for fraud cases.

One response to “Judge endorses US use of fraud law against Bank of America

  1. Reblogged this on Deadly Clear and commented:
    Don’t you just love Judge Rakoff?! Maybe he should run for President.

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