Both the US Justice Department and state authorities are now mulling a strategy to introduce securitization for auto loans to dismiss the probability of fraud, according to Acting Deputy Attorney General Sally Quillian Yates.
The drive is part of a larger effort to secure possible emerging business sectors prone to abuse, with the second most important department official, in a speech to state attorneys general in Washington saying prosecutors are now investigating the auto lending industry to kill in their infancy any possibility of abuse before it has a general impact on the overall marketplace. “We shouldn’t wait until there is a crisis to pay attention,” commented Yates. “We can and should use our experience investigating mortgage-backed securities to be on the lookout for, and head off any potential threat.” The department official also addressed criticism that the department has imposed multi-billion-dollar penalties to banks but failed to charge individual executives – saying the Justice Department was currently reexamining its approach to complex white-collar cases to surpass obstacles to prosecuting high-ranking officials.
One such case would be the pending investigations across the auto parts supplying industry, which also span outside US territory. The US Department of Justice has reigned down on numerous companies that were accused of price fixing, collusion and conspiracy to exert monopolistic control – with numerous parts makers agreeing to pay fines to end the investigations and executives charged with prison sentences.
Via Automotive News