Fans of Economic Recovery Need Not Worry About Banks Being Penalized for Law Breaking

The NYT reported that a new round of lawsuits could potentially cost banks hundreds of billions in damages and penalties from fraudulently marketing bad mortgages. The piece warned readers:

"Depending on the final price tag, the costs could lower profits and slow the economic recovery by weakening the banks’ ability to lend just as the housing market is showing signs of life."

Actually it is quite unlikely that the outcome of these suits would have a noticeable effect on the housing market. T...