It’s about time….
If you’ve ever wondered why more (any) senior executives weren’t held responsible for their companies’ conduct during the financial crisis, you’re not alone.
Representative Bill Pascrell, D-NJ, feels the same way and he wants answers.
Pascrell, who serves on the House Ways and Means Committee, sent a letter Tuesday toFederal Bureau of Investigations Director James Comey, calling on the FBI to release the details on its financial crisis investigations.
In the aftermath of the financial crisis, dozens of companies have paid out billionsupon billions in fines for various acts of malfeasance during the financial crisis, but to this point, many of the executives who lead those companies have escaped punishment, including Angelo Mozilo, the founder of Countrywide.
Earlier this year, the Department of Justice abandoned its attempt to sue Mozilo for his company’s actions.
Countrywide originated more mortgages in this country from 2004 to 2007 than any other lender. During that time, Countrywide closed so many subprime mortgages it remained a top-5 producer for that home loan product. The same goes for other loans, such as Alt-A.
One of Countrywide’s executives was actually fined for her actions during the crisis, but that fine was recently overturned.
In May, the Second Circuit overturned a $1.27 billion penalty against Bank of America in a fraud case over defective mortgages sold by Countrywide in the run-up to the housing crisis.