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If the summaries were false or misleading, the bank may be liable for any loss occurred , as for the bankers this may be characterised as securities fraud. So t
by cm2187 7y ago
If the summaries were false or misleading, the bank may be liable for any loss occurred , as for the bankers this may be characterised as securities fraud. So the incentives are for the summaries to be accurate.
- toomuchtodo 7y agoIt should be noted that only one person was incarcerated from the fraud that occurred leading up to the 2008 GFC.
- cm2187 7y agoI am aware of lot of losses that went back to the originating bank because of inaccurate marketing material.
- toomuchtodo 7y agoYeah, no disagreement that putbacks occurred, but those perpetrating the fraud aren't being held personally responsible. It's a slap on the wrist for the bank, cost of doing business. Call me when they're doing perp walks and handing out Maddof length sentences. Those are incentives to not violate securities law.