![]() Vance has been met with harsh criticism that he pushed the boundaries in his aggressive pursuit of a “lowest hanging fruit” family-run bank that fills a necessary void by catering to the Chinese American minority community. To date, Abacus Bank remains the only financial institution criminally prosecuted in connection with the 2008 financial crisis. Ultimately, after a five year investigation by the DA and four-month long jury trial, Abacus Bank was found not guilty on all charges. Prosecutors alleged that Abacus and nineteen of its employees had systematically defrauded the Federal National Mortgage Association (Fannie Mae) by allowing borrowers to lie about their income and assets on the government-sponsored mortgage company's proof-of-employment forms. The media was treated to a spectacle as the indicted Chinese-American Abacus employees were handcuffed, chained together, and marched by law enforcement down the narrow hallway of the New York City courthouse in front of cameras. Nevertheless, on May 31, 2012, the New York County District Attorney's Office (DA) announced criminal charges against Abacus Bank in a 184-count indictment. Abacus avoided the fallout of the crash because it never invested in mortgage-backed securities, nor did it ever originate any subprime mortgages. Abacus Bank also was not an institution that required financial assistance from the government in the wake of the burst of the housing bubble. Abacus Federal Savings Bank (Abacus Bank or Abacus), a family-run community bank based in NYC's Chinatown catering primarily to Chinese immigrants, was not amongst these failed institutions. The financial crisis resulted in 489 bank failures from 2008 through 2013. When the housing bubble burst, hundreds of billions of dollars in losses in mortgages and mortgage-related securities shook markets as well as financial institutions around the world. In the fall of 2008, interest rates, easy and available credit, scant regulation, and toxic mortgages culminated in the collapse of the housing bubble and ultimately, full-blown financial crisis. The CIT Group, Fleet Bank, Goldman Sachs & Co., Nations Bank, Salomon Brothers, etc.Excerpted From: Chloe Chung, Asian American-owned Banks Do Count: No Wrongful Jailing of Abacus Bank, 25 Asian Pacific American Law Journal 79 (2021) (452 Footnotes) (Full Document) Western Union Represented bidder in $1.3 billion bankruptcy court sale of nation’s largest money transfer and telegram business.īank of America, Bank of Boston, BT Securities, Chase Manhattan Bank, Directed investigation of former management that uncovered a major Ponzi scheme, leading to substantial civil judgments and numerous criminal indictments and convictions. Towers Financial Served as chapter 11 trustee and senior operating management for this company that securitized portfolios of health care receivables, performed debt collection services, and operated an off-shore reinsurance company. Nationar Represented the New York State Superintendent of Banks in connection with the seizure and disposition of the business and assets of one of the nation’s largest clearing banks, resulting in full payment of all creditors. operations and the financial obligations of U.S. Lloyds of London Represented Lloyds in connection with the restructuring of its U.S. ![]() Advised these and numerous other financial institutions regarding asset values, lending formulas and the restructuring process in scores of financing transactions and chapter 11 cases in the manufacturing, wholesale and retail industries. To review case histories, simply click on company names in right column.īank of America, Bank of Boston, BT Securities, Chase Manhattan Bank, The CIT Group, Fleet Bank, Goldman Sachs & Co., Nations Bank, Salomon Brothers, etc. With years of experience viewing transactions from the perspective of both the lender and the borrower, we are uniquely capable of serving the needs of each. Abacus professionals have a long history of working with the financial services industry, both as advisors and as senior operating personnel. ![]()
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