Now Traders Get to Tell the Jury: Look, We're All Lying
- Retrial, new cases promise to illuminate debt-market practices
- Lawyers can show bond-market fibs common, appellate court says
The United States District Court Southern District of New York.
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The U.S. government is moving ahead with more than a dozen criminal and civil cases it has been preparing against bond traders, characterizing a loss in an appeals court on Tuesday as a broader affirmation of its pursuit of fraud.
Pending cases that the government now plans to proceed with will probably generate new details about the inner workings of the market for securities backed by mortgages, commercial loans and other assets -- where trillions of dollars of debt is typically traded by phone, with little regulation and scant pricing data.