Certain practices on the part of banks seem to have contributed to or caused the financial meltdown of 2008 and exacerbated its consequences. These may include fraud in the sale of securities and foreclosing on mortgages, and improperly influencing rating agencies to give high ratings to risky securities.
Several state attorneys general are investigating actions such as these to see whether any of them should lead to criminal prosecution. However, a proposed settlement with the banks may short circuit these investigations and allow wrongdoers to escape accountability in exchange for payments too small to be meaningful to them.
The President should oppose such a settlement and allow the state attorneys general to proceed with their investigations and hold wrongdoers accountable.