From everything I see in the Bloomberg article, there would have been a lot of reason to prosecute Yu, but not the bank, as as soon as they saw anything suspicious they acted on it.
But what did the prosecutor do instead? He gave Yu a plea deal to try and indict the bank. Which went no where.
Also from the Bloomberg piece - "But in the wake of the financial crisis only one bank in the whole country has, as an institution, been criminally indicted for mortgage fraud: Abacus."
And that bank was exonerated on every charge.
So what it -looks- like, is a DA's office that wanted to get a high profile case, leaped at the chance to try and pin something on a bank (a small one, that won't have the legal counsel that a large one would have, and won't risk making real enemies), despite having very little to go on, and they couldn't make anything stick.
Or, sure, it could be that this little bitty bank was into some shady stuff but was so good that even though their plan to play nice with the DA early on by turning over info didn't work, they were still able to recover and convince a jury of their innocence. I'm really inclined toward the former though.
But what did the prosecutor do instead? He gave Yu a plea deal to try and indict the bank. Which went no where.
Also from the Bloomberg piece - "But in the wake of the financial crisis only one bank in the whole country has, as an institution, been criminally indicted for mortgage fraud: Abacus."
And that bank was exonerated on every charge.
So what it -looks- like, is a DA's office that wanted to get a high profile case, leaped at the chance to try and pin something on a bank (a small one, that won't have the legal counsel that a large one would have, and won't risk making real enemies), despite having very little to go on, and they couldn't make anything stick.
Or, sure, it could be that this little bitty bank was into some shady stuff but was so good that even though their plan to play nice with the DA early on by turning over info didn't work, they were still able to recover and convince a jury of their innocence. I'm really inclined toward the former though.