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An Indecent Proposal: AGs, GCs and NPEs

“A life without risk is no life at all.”

A special partner was needed to provide a special solution. If you can get beyond the idea that the underlying bargain in that movie was illegal, an argument can be made that there is a bargain that should be crafted between state attorneys general and general counsel—to come together to rein in NPE abuses.

Over the last 10 years, the relationship between state attorney generals and general counsel in Fortune 500 companies has been acrimonious (perhaps this is the understatement of the century). The acrimony is the result of litigation and disputes filed by state AGs, which have resulted in fines and penalties that may well exceed $50 billion. For instance, the largest settlement ever in which, “The nation’s five largest mortgage servicers have agreed to a landmark $25 billion settlement with a coalition of state attorneys general and federal agencies. The settlement addresses past mortgage loan servicing and foreclosure abuses and fraud, provides substantial financial relief to borrowers harmed by bank fraud, and establishes significant new homeowner protections for the future,” according to the National Association of Attorneys General (NAAG) website.

Lloyd M. Johnson Jr.

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