“I don’t believe we should prosecute businessmen who made legitimate business decisions in a competitive environment (“Executives at RBS, J.P. Morgan Probed,” Money & Investing, Nov. 18). The 2008 financial crisis was due to a government-mandated reduction in underwriting standards of residential mortgages, which led to a real-estate bubble…

…The reduced underwriting standards were pervasive in the government agencies and private sector. Over the years, higher-risk mortgages were packaged with lower-risk loans, and the resultant mortgage-backed-securities packages were sold to sophisticated institutional investors who knew or should have known the risks. Prosecutions of private-sector financial institutions are setting an unacceptable precedent of government overreach and limitation of freedoms with deleterious effect on the economy. A way to check abuse of government power by prosecutors is to hold them criminally and civilly responsible for their actions, much as they are holding private-sector actors responsible for their actions, if abuse of their powers is proved.”, John Gilsenan, South Windsor, Conn., “The Feds Need Real Accountability for Excess: A way to check abuse of government power by prosecutors is to hold them criminally and civilly responsible for their actions.”, The Wall Street Journal Opinion Letters, November 25, 2015

Posted on December 1, 2015, in Postings. Bookmark the permalink. Leave a comment.

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