Extra: Subprime Fraud of Tricolor Leads to SDNY Indictments Amid Questions About Banks - more here, on JPMC & Fifth Third & subpoena
More bank analysis on X for Subscribers here and below the paywall / Subscribe (support) line here
Subprime Fraud of Tricolor Leads to SDNY Indictments Amid Questions About Banks
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 17 – Early on December 17 the SDNY US Attorney’s Office announced the unsealing of an Indictment charging DANIEL CHU, the founder and former CEO of Tricolor Holdings LLC, with orchestrating a years-long financial crimes enterprise that defrauded multiple banks and other private credit providers - and an 8:30 am press conference.
Inner City Press raced and went, asked two questions and live tweeted, here
Clayton: Systematic fraud that reaches the C-Suite will not be tolerated. We will meet C-Suite cooperation with open arms. But tacit C-Suite approval of crime will be met with the full array of our prosecutorial resources.
[Then much praise of the FDIC. But wait: aren’t they deregulating these banks?]
FBI Assistant Director in Charge Christopher G. Raia, after joking about recent shoulder surgery so not asking him questions: The CFO has pled guilty and Chu has been arrested... We will protect the integrity of the credit markets... Thank you to the FDIC OIG and FBI Dallas and Miami field offices. Have a safe holiday season
Inner City Press asked if the deregulation of banks - JPM Chase, Fifth Third - isn’t making this type of fraud easier to pull off. Clayton: Supervision would not have stopped this fraud.
Off topic Inner City Press asked Jay Clayton if his office is monitoring the Luigi Mangione suppression hearing in state court. He: Not appropriate to answer
Indictment on Patreon here
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