American Banker-
Lawsuits against banks are flying, the presidential candidates are promising action – yet none of it will solve the lingering financial mess.
So says Neil Barofsky, the former special inspector general for the Troubled Asset Relief Program. He was as critical as ever of policymakers and financial firms, and called for more independent regulation in a talk at the Museum of American Finance in New York on Thursday evening.
The recent wave of lawsuits by the government against Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC) and other banks over their practices in the run-up to the mortgage meltdown will have a negligible impact, he predicted. But the allegations, if true, point to an enduring pattern of conduct, he says.