Abacus Bank Indicted for Mortgage Fraud: Video
June 8 (Bloomberg) -- Last week Manhattan DA Cy Vance filed criminal charges against Abacus Bank and 19 former employees for committing mortgage fraud. Does this mean more prosecutions of other banks for crimes committed prior to the housing crisis will follow? Probably not, according to Bill Black, former regulator and current professor at University of Missouri-Kansas City. Bill tells Bloomberg Law's Lee Pacchia that there is a profound lack of resources in state and federal government to investigate and prosecute banks and employees for mortgage fraud despite substantial evidence of criminal activity. Bill also claims that Treasury Secretary Timothy Geithner has actively discouraged regulators and prosecutors from pursuing large banks for malfeasance and fraud.