It’s about five years since the 2008 melt-down and Washington is still prosecuting and bringing new charges against banks for their roles in mortgage-backed securities. The Banks need to make a Big Political Bargain and call the Federal dogs off. Fines are in the hundreds of millions. Costs of litigation and senior level distraction are in the tens of millions. The banks need to staunch this flow and look to the future.
The government needs to realize the banking sector is the aircraft carrier of the economy. Must be protected at all costs. So stop with the lawsuits regardless of ideological justification.
Obama has three more years. Republicans can’t win the White House without better Latino support in three years. Three years plus of litigation can be a long time.
So make a deal banks. This has to be business and not personal. Someone needs to be able to have the right lunch with Senator Elizabeth Warren and lay the ground work for the next ten years. Not fight rear guard actions because of the past ten years.
George Gutowski writes from a Caveat Emptor Perspective.