1
00:00:00,040 --> 00:00:02,240
Speaker 1: And now it's time for our daily Bloomberg Law Brief,

2
00:00:02,360 --> 00:00:05,400
Speaker 1: exploring legal issues in the news and Today, Bloomberg Law

3
00:00:05,440 --> 00:00:09,119
Speaker 1: host Jim Grasso discusses why Deutsche Bank and Credit Swiss

4
00:00:09,160 --> 00:00:12,800
Speaker 1: settled Justice Department lawsuits and Barclay's decided to fight the U.

5
00:00:12,880 --> 00:00:15,600
Speaker 1: S Government in court. She speaks with John Coffee, a

6
00:00:15,720 --> 00:00:19,200
Speaker 1: securities law professor at Columbia University, and Peter Henning, a

7
00:00:19,280 --> 00:00:23,439
Speaker 1: professor at Wayne State University Law School. John how rare

8
00:00:23,600 --> 00:00:26,319
Speaker 1: is it for one of the big banks to risk

9
00:00:26,520 --> 00:00:30,520
Speaker 1: drawn out litigation rather than settling, Well, that is very

10
00:00:30,640 --> 00:00:33,120
Speaker 1: rare because large banks don't want to be in a

11
00:00:33,159 --> 00:00:36,680
Speaker 1: position or having the government of the largest financial country

12
00:00:36,680 --> 00:00:39,600
Speaker 1: in the world suing them. On the other hand, they

13
00:00:39,640 --> 00:00:41,760
Speaker 1: may have reached a decision that it's in their own

14
00:00:41,760 --> 00:00:44,680
Speaker 1: self interest to wait for Mr Trump to come into

15
00:00:44,760 --> 00:00:48,640
Speaker 1: office in the belief that Mr Trump's administration will either

16
00:00:48,760 --> 00:00:51,360
Speaker 1: give up on the suit, abandon it, or settle it

17
00:00:51,479 --> 00:00:54,520
Speaker 1: very cheaply. And that's where we see different banks reaching

18
00:00:54,640 --> 00:00:58,880
Speaker 1: very different decisions. Peter Barkley's denies the charges. Is there

19
00:00:58,920 --> 00:01:03,480
Speaker 1: anything different print about the case against Barkley's than the

20
00:01:03,560 --> 00:01:06,720
Speaker 1: case from the other banks it's hard to see any

21
00:01:06,840 --> 00:01:12,119
Speaker 1: real difference between them. The Justice Department is using fire Rhea,

22
00:01:12,319 --> 00:01:16,800
Speaker 1: the the law that comes out of the SNL crisis

23
00:01:16,800 --> 00:01:20,760
Speaker 1: in the late nineteen eighties that is built around claims

24
00:01:20,800 --> 00:01:24,080
Speaker 1: of mail and wire fraud, to then try to show

25
00:01:24,160 --> 00:01:30,280
Speaker 1: that these different banks put together essentially toxic residential mortgage

26
00:01:30,280 --> 00:01:34,320
Speaker 1: back securities and sold them. So I don't see much

27
00:01:34,360 --> 00:01:37,720
Speaker 1: of a difference, although you know, each case has its

28
00:01:37,760 --> 00:01:40,560
Speaker 1: own little quirks, and in this one you had some

29
00:01:40,680 --> 00:01:44,720
Speaker 1: funny little emails, but the overall theory is the same.

30
00:01:45,080 --> 00:01:51,080
Speaker 1: And what's your thought about trumping president and whether Barkley's

31
00:01:51,120 --> 00:01:54,080
Speaker 1: thinks that they can get a better deal with the

32
00:01:54,080 --> 00:01:58,560
Speaker 1: Trump administration. I think that's a pretty expensive roll of

33
00:01:58,600 --> 00:02:02,400
Speaker 1: the dice. I don't see Jeff Sessions, who's going to

34
00:02:02,440 --> 00:02:05,440
Speaker 1: be coming in at least expected to come in as

35
00:02:05,480 --> 00:02:10,040
Speaker 1: the Attorney general, uh, taking a more favorable view of banks,

36
00:02:10,240 --> 00:02:14,079
Speaker 1: and especially a foreign bank that's accused of wrongdoing. And

37
00:02:14,120 --> 00:02:17,160
Speaker 1: of course, you know, one of the populist themes, if

38
00:02:17,200 --> 00:02:20,720
Speaker 1: you will, from this past election was we don't want

39
00:02:20,800 --> 00:02:26,080
Speaker 1: banks taking advantage of customers. So well, the claim of

40
00:02:26,280 --> 00:02:30,800
Speaker 1: for less regulation is one thing. This is really about enforcement.

41
00:02:30,880 --> 00:02:34,119
Speaker 1: I think that's a little different agenda. So if they

42
00:02:34,120 --> 00:02:39,119
Speaker 1: are banking on President Trump, then potential Attorney General Sessions

43
00:02:39,160 --> 00:02:42,760
Speaker 1: going easy, You wonder how good a bet that is.

44
00:02:43,520 --> 00:02:46,880
Speaker 1: As Peter Henning, a professor Edwayne State University Law School,

45
00:02:46,919 --> 00:02:50,640
Speaker 1: and John Coffee, a securities law professor at Columbia University,

46
00:02:50,880 --> 00:02:53,399
Speaker 1: speaking with Bloomberg Law host doom Grasso, you can listen

47
00:02:53,440 --> 00:02:56,320
Speaker 1: to Bloomberg Law weekdays at one pm Wall Street Time

48
00:02:56,760 --> 00:03:00,000
Speaker 1: here on Bloomberg Radio. Among the top legal stories from

49
00:03:00,000 --> 00:03:03,399
Speaker 1: Boomberg Law. Former California Lieutenant Governor Ed Reinekey has died

50
00:03:03,440 --> 00:03:05,720
Speaker 1: at the age of ninety two. He served as next

51
00:03:05,760 --> 00:03:08,640
Speaker 1: in command to then Governor Ronald Reagan and was running

52
00:03:08,680 --> 00:03:10,840
Speaker 1: to succeed him when he was caught up in the

53
00:03:10,840 --> 00:03:14,680
Speaker 1: Watergate investigation. Ronicky, a former congressman, was indicted for lying

54
00:03:14,680 --> 00:03:17,200
Speaker 1: about a nineteen seventy two phone call with John Mitchell,

55
00:03:17,440 --> 00:03:20,040
Speaker 1: President Richard Nixon's attorney general and a key figure in

56
00:03:20,040 --> 00:03:23,240
Speaker 1: the scandal. The conviction was later overturned on a technicality.

57
00:03:23,520 --> 00:03:26,680
Speaker 1: Reagan stood by his protege, seeking donors to pay Ronicky's

58
00:03:26,760 --> 00:03:29,839
Speaker 1: legal bills. Reagan called his friend a victim of circumstances

59
00:03:30,160 --> 00:03:33,919
Speaker 1: and Watergate. Haliburton has agreed to settle a fourteen year

60
00:03:33,960 --> 00:03:37,640
Speaker 1: old securities lawsuit for one hundred million dollars. Investors had

61
00:03:37,680 --> 00:03:41,640
Speaker 1: sued the company over accounting for construction projects and Haliburton's

62
00:03:41,640 --> 00:03:45,200
Speaker 1: disclosures relating to asbestos liability. The case had gone to

63
00:03:45,240 --> 00:03:48,360
Speaker 1: the U. S. Supreme Court twice. And that's this morning's

64
00:03:48,360 --> 00:03:50,720
Speaker 1: Bloomberg Law Brief. You can find more legal news at

65
00:03:50,760 --> 00:03:54,440
Speaker 1: Bloomberg Law dot com and Bloomberg BNA dot com. Attorneys

66
00:03:54,480 --> 00:03:57,320
Speaker 1: who find exceptional legal research and business development tools there

67
00:03:57,360 --> 00:04:00,320
Speaker 1: as well. Visit Bloomberg Law dot com and bloom b

68
00:04:00,720 --> 00:04:02,840
Speaker 1: n A dot com for more information