The very first day I joined the full-time staff at Above the Law, I wrote a story about the Manhattan DA’s decision to prosecute Abacus, a small, family-run bank serving New York’s Chinese immigrant community. We’d hear all about how this tiny bank’s actions were “emblematic” of the fraud that triggered the housing crisis. But while “emblematic” usually means something is a perfect example of broader behavior, we know from experience that prosecutors across the country weren’t willing to take that statement to its logical conclusion. As it turned out, Abacus — the only bank to face criminal charges arising out of the housing crisis — became an emblem of a lack of prosecutorial will.
As it turned out, Abacus was acquitted on all charges. As its attorney, Kevin Puvalowski, put it at the time, “right case, wrong bank.” While banks were bundling terrible mortgages together and pawning them off as well-rated gold, Abacus sold mortgages people were still paying off every month. Abacus even boasted one of the lowest default rates in the country.
Tonight, Frontline will air Abacus: Small Enough To Jail, an in-depth look at the Abacus prosecution from Hoop Dreams director Steve James. The film airs on PBS at 10 p.m. Eastern/7 p.m. Pacific and will be available for livestreaming here. I’ll be live tweeting the film tonight as well (along with others using the hashtag #frontlinePBS) if you want to follow along. I’m @JosephPatrice if you aren’t already following me.
Earlier: Which Bank Deserves Criminal Prosecution? The Smallest One, Obviously!
Joe Patrice is an editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news.