“We will not shrink from litigating as long as we must to fulfill our law enforcement mandate,” Associate Attorney General Tony West said in a speech. “I would not be surprised if we were to see additional [residential mortgage-backed securities] lawsuits in the future….”
Mr. West said the Justice Department doesn’t intend to settle mortgage-backed securities cases when it begins investigating them. The only way for a bank to avoid going to court, he said, by paying penalties that match the level of misconduct, offering robust relief for consumers and agreeing to a statement of facts describing what it did wrong.
Top Justice Official Tells Banks Lawsuits May Be Coming [WSJ MoneyBeat blog]