Banks are not past the days of mortgage fraud cases, according to an article in Reuters. Eric Schneiderman, the New York attorney general, said he plans to bring more fraud cases against the world’s biggest banks for selling shoddy mortgage-backed securities before the financial crisis.
“Obviously there were many more institutions involved,” Schneiderman said in an interview this week. “So there will be more cases.”
The attorney general said that group remains “very active,” while declining to discuss whether he is in settlement talks with Morgan Stanley, the bank that sources say is next in line for a settlement. A spokesman for Morgan Stanley also declined to comment.
Just two months ago, Mega bank JPMorgan Chase (JPM) signed an agreement with government agencies, including Schneiderman’s office, to end all existing legacy mortgage-backed securities issues for $13 billion.