Partner Lawrence Remmel Speaks To New York Times About Mortgage Crisis Residuals at Bank of America and Citi
Partner Lawrence Remmel, Chair of Pryor Cashman’s Banking and Finance Group, was interviewed by The New York Times for its article “Mortgage Crisis Lingers On At Citi and Bank of America,” discussing the persistent financial crisis and legal battles that continue to plague Citigroup and Bank of America as a result of the nation’s mortgage crisis.
The two banks recently disclosed that substantial legal costs undercut their fourth-quarter earnings. The expenses, the banks said, stemmed from huge settlements involving their mortgage businesses. While the settlements provided some relief, Bank of America and Citi continue to face a torrent of legal claims from federal authorities and private lawsuits.
According to Remmel, “The 2008 collapse was not the flu – it was a major debilitating disease.” “It takes time rebuilding your strength,” he told The New York Times, and it is “unpredictable when some of the institutions will fully recover.”
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