One Man Wrecking Crew

October 31st, 2013 8:32 am | by John Jansen |

Attached is a link to an article at Dealbook about a Department of Justice attorney,Leon Weidmann, who has acted as a one man wrecking crew in his search to punish big banks for their role in the financial crisis. Mr Weidmann has employed Firrea (sounds like someone from Brooklyn pronouncing furrier) which is an acronym for Financial Institutions Reform, Recovery and Enforcement Act of 1989. The article notes that law passed as a result of the Savings and Loan crisis of the 1980s. The article recounts that the law has a lower burden of proof and some think that the DOJ has been very liberal in its use of this tool. Someone compared application of the law to the most recent crisis as similar to the expansive use of New York State law by disgraced former Governor Spitzer when he was the Sherriff of Wall Street. I thought it was an interesting read.

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