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This case is specifically addressing some of things we have talked about including incentives for banks to make as many loans as possible because they are not on the hook for losses due to insurance or because the debt is resold as asset backed securities.
I think this is a good sign but I wonder why we have not taken similar action against domestic companies. What do you guys think? Do you think we have a chance to win this case?
I don't think it would really work if we attacked domestic companies. We bailed out the US companies so I think why would we sue them after we just bailed them out? We would end up spending money on a trial to get our own money back but chances are we wouldn't take the money even if there was a win in this hypothetical case. It is just too much hassles I am sure and we will never have court cases.
ReplyDeleteI don't think this would work at all domestically, we bailed these banks out for a reason. As we talked about in class, they are too big and too inter-connected that we were forced to bail them out because we as a country depend on them. Although we spent a lot of money bailing these banks out, the costs that it would have on the entire economy (and every individual) had we not bailed them out are significantly greater. Trying to go back now and sue them, to me, sounds like a big waste of money because I don't think we would win this case.
ReplyDeleteAlso, I think this goes along with what Hannah said to us in class the other day. Accusing other countries of something bad or illegal is a lot easier than accusing ourselves or particular domestic companies of doing something bad or illegal. It's a lot easier to point a finger at someone else. And considering that the government already helped out the banks, it'd look pretty flip floppy to turn around and sue them now, not to mention that many of the old Wall Street executives are in the government, so even if this were something the government was interested in doing, it would be really hard to take action.
ReplyDeleteI agree with the rest of the comments, it would be extremely difficult if not impossible to attack the domestic companies. It would be a misappropriation of money and resources to try to go back and take legal action against these big banks. Also, since many of the former CEO's and Board Members are a part of our government I think it would be a fruitless process. I found this article interesting for a different reason. The charges against Deutsche Bank could prove to be uncomfortable for Rob Khuzami, the Securities and Exchange Commission’s director of enforcement, who was Deutsche Bank's general counsel for the Americas prior to joining the SEC. I am losing faith in the SEC as they have failed with Lehman Brothers, Fannie Mae, ENRON, and numerous other corporations, banks and etc.
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