Last night Bloomberg reported that Bank of America was dismissed from a lawsuit filed by the Maine State Retirement System against Countrywide and Bank of America for selling the system mortgage-backed securities that, as we all know now, were shit.
The federal court judge agreed with B of A “that Countrywide remained a separate, wholly owned subsidiary of the bank and that, as a parent company, it can’t be held liable for the mortgage lender’s alleged wrongdoing.”
As our public services continue to deteriorate and public service unions are stripped of collective bargaining rights, banks will not be held accountable because of a mish-mosh of of legal rulings that give corporations personhood on one hand and immunity on another.
The court may have ruled correctly given laws that protect rich assholes, but had the case been a criminal conspiracy prosecution the absurdity of the ruling is self apparent.
Think of it this way: Johnny “Sac” (the New York boss) convinces Tony Soprano (the New Jersey boss) to whack Rusty Millio in Season 6. Johnny and Tony are both charged with murder, but the charges are dropped against Johnny, as a matter of law, because the New Jersey outfit is a separate, wholly owned crime family and Johnny can’t be held liable for Tony’s crime.
Take out your wallet and get ready to fork over some more dough.