“Today’s legal action by New York Attorney General Eric Schneiderman alleging fraud at Bear Stearns is an important step forward in holding financial wrongdoers accountable and in deterring future wrongdoing.
As the lawsuit indicates, the official report of the Financial Crisis Inquiry Commission contained detailed evidence on the improper conduct of Wall Street in the purchasing, packaging, and selling of mortgage securities, and specifically on the due diligence and disclosure practices of major financial institutions. The Commission’s report stated that the failure to disclose critical information to investors raised serious questions regarding violations of securities laws.
I applaud Attorney General Schneiderman, and the Residential Mortgage-Backed Securities Working Group established by President Obama earlier this year, for continuing to pursue this important investigation and for seeking redress for fraudulent practices that have so badly damaged our nation’s economy, communities, and families.”
Phil Angelides 