One thing I’ve observed about Eric Schneiderman since he became the New York Attorney General is that he goes about his work. He doesn’t show up in the media, he doesn’t write op-eds for the New York Times. He makes his arguments in court, as befitting the state’s top prosecutor. The New York AG position has been a high-profile one for a long time, from Andrew Cuomo to Eliot Spitzer and even before that. But Schneiderman is more concerned with his mission than with press clippings.
So when he was pressured by the White House and then booted off the executive committee “investigating” foreclosure fraud, I didn’t really expect him to run to the media. Instead, he let his constituents know he was planning to keep working for them.
In an email to campaign supporters today, which came with the subject line “Standing Up For You,” he wrote:
“You might have been following the latest developments related to the national settlement of the mortgage probe, including this story in today’s Huffington Post about our tough fight for a comprehensive resolution to this crisis.
“Let me tell you directly: I am deeply committed to pursuing a full investigation into the misconduct that led to the collapse of America’s housing market, and to seeking a resolution that gives homeowners meaningful relief, allows the housing market to begin to recover, and gets our economy moving again.
“Our ongoing investigation into the housing crisis cannot be shut down to accommodate efforts to settle quickly and give banks and others broad immunity from further legal action. If you have any thoughts or concerns about this critical issue, please contact me at 1-800-771-7755, or send a message via Facebook or Twitter.”
Pretty simple and humble. And inclusive, allowing for public comment. I’m sure Kathryn Wylde will be the first to call.
Meanwhile, Americans for Financial Reform, the coalition that worked on the Dodd-Frank Act, put together a letter to the executive committee of AGs working on the foreclosure fraud settlement with the banks, along with HUD Secretary Shaun Donovan and Thomas Perrelli, the lead at the Justice Department on the issue. In the letter, signed by over 35 progressive organizations, faith groups, unions and housing advocacy groups, they urge that any settlement “leaves open the path for further needed actions to hold lawbreakers accountable.”
Abuse, fraud, conflicts of interest, and lawlessness have been endemic at every stage of the mortgage origination, pooling, securitization, and servicing and foreclosure process. This chain of misconduct by many of the nations’ largest financial companies is at the root of the foreclosure avalanche, of the failure of existing programs to resolve the problem, and a fundamental cause of the broader economic crisis that has cost millions of jobs and is compounding the foreclosure problem now. In turn, failure to resolve the foreclosure crisis is worsening our economic situation, and making it harder to create jobs.
As settlement discussions between the Attorneys General, the federal agencies, and the mortgage servicers continue, we want to reiterate our view that pressure for an immediate settlement must not outweigh the more important need for a settlement appropriate to the vast scale of the laws broken and the harm done. We understand that industry is pressing to limit relief and for overly broad releases; they must not be allowed to succeed. To the extent that institutions or individuals committed illegal acts, there have to be consequences for breaking the law that are in proportion to the seriousness of the violations.
The kind of settlement they’re talking about is the kind I might support: one narrowly tailored on robo-signing, with mandatory principal reductions, restitution for borrowers who were wrongly foreclosed upon, an overhaul of the servicing process, and without the liability release extending to “securities claims, fair housing claims, chain of title claims or claims regarding servicers’ use of MERS.” But of course, this is precisely the kind of settlement the banks would never accept.
So in the absence of that, we need a full investigation of the criminal lawbreaking by the banks, and a process that holds them accountable for it. And that doesn’t just include a payoff. That appears to be the commitment Schneiderman is making, and I applaud it.




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There is only one reason Schneiderman might not cave: if he’s come to the conclusion that the time is ripe for a Teddy Roosevelt/trust buster, Ferdinand Pecora type to parlay fame from those endeavors into candidacy for the Presidency in 2016.
Otherwise he’ll milk this for all the PR he can get, then fold, just like Kucinich and Sanders and Foolsgold did.
Good for you David. But it looks like Buffett may have gone long on Shaun Donovan.
Good for him!
I really don’t understand working towards a “settlement” with these criminals. THROW THEIR ASSES IN JAIL.
Hate to be cynical, but given what we have seen so far, I tend to agree. he will fold and nobody will be prosecuted or at least nobody at the top.
Uncle Warren bailed out BofA today, but he did that after his little chat with Obama this week and O promised his losses would once again be backstopped by the tax payer. Buffet is a fraud and his calls for rich people to pay more taxes is just a dog and pony show. How much has he not paid due to “favor the rich” tax plan in the last 40+ years. Why does he not just write a check. Nope he is too busy finding other ways to suck off the taxpayers teet, and O is helping him.
No shit! WTF is this settlement business? People were robbed of their homes and life savings. This should be a RICO prosecution.
God, it just like the telecom immunity Obama whipped for.
I really think they want to kill everyone but the billionaires.
I don’t care if Elliot Spitzer is one of the fallen. Schneiderman should appoint him as a special investigator.
I think there’s plenty of evidence for a RICO prosecution and Schneiderman and the other AGs are privy to it. Why not the RICO prosecution?
I don’t know folks,lots of pols say a lot of things then head south.
Wait till Barney Frank calls Eric Schneiderman & TALK to him,we will see what happens then.
As it stands now I am inclined to believe Eric Schneiderman will come off his current position.After all, when almost the whole Democratic party leadership is beholden to the bankers this guy will be persuaded to let bygones be bygones.
I agree with you. As far as I’m concerned, politicians are the lowest form of human? life. They really are parasites. The only good news this week is Bill Moyers is coming back with a new series. He’s one of the few people who I admire.
He knows where a lot of the bodies are buried. At least, where to look.
If the only reason Schneiderman might not cave is because he’s concluded that the time is right for a Pecora-like display, then by all means let us all help him to that conclusion!
You know Schneiderman is the object of Obama trash talk on the Vineyard. Too bad Obama never was what we thought or he pretended to be.
Good for him. If he is serious, though, I hope he doesn’t get Spitzered.
I hope he is VERY careful crossing the street. You just can’t trust those banksters.
Gooosh! keep going….Buffet is a fraud.There is nothing virtuous about this guy Buffet,to get that rich you have to screw over a lot of people.Now he is going to make sure he screw ordinary Americans once more.
C’mon BP. The story is about how he DIDN’T cave. This is a rare instance of a public official doing the right thing. If and when his efforts come to naught be sure you don’t accuse him of “caving” if in fact he was defeated. All of Western Capitalism is arrayed against him.
I think Schneiderman`s the real article for two reasons: the first has been stated above, that the time is ripe for trust-busting. The second is more interesting. Schneiderman has figured out a way to defeat the PTB by not fighting on their prepared battlefield — the MSM — but in the courts, where he holds the cards and the lethal weapons (subpoena). His e-mail to his supporters is the tip. He knows he is in for a vicious counterattack, and he wants to protect his base, unlike Obama, who sold his down the river for dubious gains among people who really aren’t that much into him. Schneiderman may have found a chink in the PTB armour.
Backbone! There are millions that were screwed by TBTF banksters and their minions. They will be happy to back Schneiderman’s play. He is AG off one of the biggest economies in the world that regulates the banksters and their securities scams on the great casino. I might settle for a tax on every trade and making the homeowners and investors in the mortgage based securities whole. Too many families lost their homes and their home equities and their are big implications for the Bush family and friends. Other lost their retirements and pensions. Rico is but one law. He should roll up the three rating agencies as well. I hope congressional committees will assist and other state AGs will join.
Hope you are right Knut.
Lets hope Knut.. I am sure sick and tired watching the .00001% ripping off the masses.. This will eventually spiral into violence as the 99% see no way forward to have a chance at a decent like for themselves and their future generations of their family…
AG of New York state standing for justice, because Obama won’t. Sad commentary on these times.
I choose to believe that Schneiderman is doing what lawyers were trained to do, fight. The more that he is pushed, personally, the more likely he is to get his back up as it appears he has. We can’t be so cynical as to believe that everyone, even those within the government, state and/or federal, is a complete fraud. Certainly we are all in agreement with him, even if, as workingclass says and correctly, All of Western Capitalism is arrayed against him.
So be it. Go hard, Schneiderman.
good point. Obama is a trained lawyer too, and he fights like the best I’ve seen.
It was the Bush SEC director Christopher Cox that oversaw the wilfull destruction of the global economy. He was asked to testify in congress and was very quiet. From a red county that went bankrupt investing in junk bonds of AZ investor Keating (Google Keating five that McCain saved), who was instrumental in the S&L debacle that destroyed a lot of people who lost their homes myself included.
He folds like the sellout he is making backdoor deals like a Tammany Hall political machine of NYC. Except he is from the Daley Chicago machine.
so it appears.
Obama is standing on shifting sands, right now, up in M. V.
And why not?
When billions of people are irrevocably harmed by the Corporate Financial sector who after Citizens United are now people with those rights and liabilities the people of the world who are now suffering from Austerity policies should be sending Scheiderman bouquets. That the banks were bailed out of some of their bad investments by Bush/Obama/Paulsen/Geithner/Feederal Reserve is not lost on those who no longer have a job or a retirement.
Since Schneiderman became Attorney General on January 1st, 2011 he has indeed been a straight arrow with an interesting list of things done in his first 7 months of activity:
Says he has launched a plan to root out fraud and return money illegally stolen from New York taxpayers at no additional cost to the state via a new “Taxpayer Protection Unit” specifically designed to go after corruption in state contracts, pension fund rip-offs, and large-scale tax cheats.
Says the Medicaid Fraud Control Unit is very active.
Actually sued a Pennsylvania power plant emitting dangerous sulphur dioxide into New York, took on several tobacco companies for illegally selling cigarettes online, and shut down fake immigration services companies scheming to defraud victims of the Haiti earthquake.
But what he has not done is go after the folks that committed mortgage fraud over at Countrywide, instead preferring to back the hedge funds in their attempt to claim injury on their January 2011 purchase of Countrywide MBS securities and thereby make a small fortune at the expense of BofA shareholders.
I will be interesting to see just how much of a straight arrow he really is.
You can be that cynical – I can understand why when one looks at “global” results of National and some state government, so to say.
But it depends on the people in actual governance that an individual meets. I know some terrific attorneys, in fact a retired one from CO who was just fantastic in fighting the Feds over a really shitty ICE raid up in Longmont. I’m actually sad Morris isn’t in his role anymore.
I have a lot of local State examples because I’ve really worked at knowing who the people are and what they do. There’s a lot of creeps, but they’re not all creeps.
We still have the Bush appointees in the AG DOJ who are on the wrong side of these issues. Their is a great corruption in the courts as well as the rule of law is trumped by political power bought by the Oligarchy.
With all due respect, Kelly, I think that even so-called “well meaning” people at the local, state, and federal level must be judged on what they accomplish. If they get stymied by their superiors, they’re still just worthless.
The only thing that matters is results.
No one disagrees that achievement of results is imperative and the final measure.
But failure to achieve is different from “fraud.”
For example, just because myself and other activists, including FDL haven’t achieved results yet doesn’t make us frauds. And there are activists in government too. I’ve met them. Sadly few, but I’ve met them.
We can disagree, but I maintain the difference between fail and fraud is a distinction with a difference.
You’re not from NY are you?
Just because Obama has a law degree doesn’t mean he ever practiced law. He is a rank amateur when it comes to fighting–street or otherwise. He taught a Constitutional Law class, which is a first year course. That does not make him a constitutional scholar like some people maintain. That makes him a professor, at the most. Unfortunately, he has no fire.
He apparently did do some private practice before becoming a professor, but I certainly agree, I would not hire him to represent me. I can just imagine him coming back to me wanting me to pay for the damage the other guy did to me! I stand by my remarks, however, that lawyers—practicing lawyers— are by nature and by training fighters. There are some good government employees, or else why do we want government to regulate? Why do we want it to look out for the public good? Where do the good things that we often see around us come from if not from the brains and work of public employees. I will believe in the NY AG until and if he proves otherwise.
Obama’s private practice apparently had a few slum Landlords – I always found that amusing!
Obama’s old boss, Judson Miner, at the firm of Davis, Miner, Barnhill and Gallard (now known by only the last three names) that hired Obama, said there were 30 cases to which Obama contributed in some way during his time there, full time for three years and seven years “of counsel.”
Yep, its a RICO crime wave for sure but, its not going to ever be handled that way. The “Suckas” got what they deserved is how the banksters see it and the rest of the elite. That’s why were always hearing the whole BS line about Fannie and Freddie and its the fault of all those dumb bastards that swallowed the obvious BS we were selling. It happens, these swindlers were selling the American dream and people were buying weren’t they. The housing market was never going to fall again homes were going to be worth millions! I heard it daily for yrs. from some of my friends all getting rich they thought. When it fell apart, not a word from any of them about it since. Most of them still have their jobs at least. I never bought into the BS never took the loans but I lost mine when their dream crashed. Now some of them blame me, oddly enough. Weird isn’t it?
This AG has got it right. Ethically, he can do his job without any blowback because he knows the people are with him. Politically, he can only win. So he has no real reason to back down, regardless of his motivation. On the political and ethical front, he should be advising Obama, not sure if Obama would understand the “ethical” part, probably would understand the “political” part.
Bloody BeachP, always get’s the best lines, to the point, and spot on:
“Otherwise he’ll milk this for all the PR he can get, then fold, just like Kucinich and Sanders and Foolsgold did.”
I mean really what can you add to that?
I will say that an investigation, like a real one actually interviewing people and examining paperwork would REQUIRE them to continue and no settlement will be reached because of the seriousness of the crimes discovered.
Thus NO investigation will be done. In fact it CAN NOT be done.
It will NEVER be done.
There is nothing wrong to aspire for higher office after doing their current job honorably and what they stated they are going to do during election cycle.
I hope remaining 49 attorney generals, take this as an example to emulate, think along these same lines and have a race to the top in ensuring accountability.
Thank you.
Good info.
Or a small plane.
David – I want to get in touch with you.
We just got approved for a HAMP modification (mind you, after being denied a couple of times and it taking a year and a half).
I want to send you the ‘Agreement’ which, and I’m not a lawyer, but it seems shady and I’m not sure it’s legal.
We signed it, we want this deal to be over with.
But it seems like we’re signing rights over to an entity who basically admits they don’t have a right to.
Please contact me, I want to show/give you our ‘final docs’
Alussing@yahoo.com
Spitzer would be great but my dreams would come true if they would just turn Patrick Fitzgerald loose on the banker pondscum.
Your statement is true for the sham investigation being conducted by Miller on behalf of the formerly-50 AG settlement. It’s been reported that they have taken NO depositions and issued NO subpoenas. How can they possibly know what to ask for in renumeration from the banks if they haven’t even begun to actually investigate the nature and extent of the loss?
Your statement isn’t true, however, for a tiny number of AGs including Schneiderman, Coakley, Biden and the lady in CA. They are using the tools of criminal investigation to dig into the dirt that happened throughout the mortgage origination/securitization/foreclosure process. Schneiderman must be asking some pretty tough questions and/or getting close to some pretty embarassing history to have this much pressure put on him to shut up.
I’m not a New Yorker but I sent him a letter of support today, anyway.
Stopping by again late, but thanks for the props. You get some pretty good ones in yourself, from time to time. Usually enjoy your comments, and often learn a little as well.
No, but I’ve been there on business plenty over the past 20+ years and have several close friends there. Not sure what your point is, though. Are you inferring that I’m wrong, or that I’m right and Schneiderman will cave?
Or Wellstoned.
I’d rather see someone like Mike Papentonio instead of a republican.