New Wave of Regulation
March 13, 2009 Leave a comment
As expected, plaintiff attorneys and prosecutors are gearing up for a flood of cases related to the roots of the current economic crisis – financial fraud. However, an article in yesterday’s New York Times suggests that the attorneys may have a tough time winning the cases.
The herdlike behavior suggested that bankers were competing for business using widely shared assumptions, rather than trying to get away with a crime. It would be hard to prove that anyone broke the rules, these lawyers said, since regulations in the riskiest parts of the mortgage industry were so lax.
While the attorneys may have a difficult time, regulators will not have any problem tightening the rules. Is your company prepared for the new wave of regulation? Visit www.WheelhouseAdvisors.com to learn how we can help you prepare.