Yves Smith reminded me of something I wrote last March, when I was hilariously writing about a “rushed” foreclosure fraud settlement.
The master settlement agreement with the tobacco industry in 1998 eventually got the agreement of 46 AGs, with the other four coming aboard later. That would be similar to the necessary outcome here; to become the official position of the National Association of Attorneys General, at least 38-41 of the AGs would have to sign on. And even that has no binding force to supersede state law.
It looks like we’ve already gone below that threshold, according to new reporting from Loren Berlin. A group of approximately 14 AGs met in Washington to set an alternative course to the settlement, the talks of which have consistently missed deadlines and failed to move forward. Leading those talks are the Justice Democrats who have been critical of the settlement and who have worked on their own investigations and lawsuits in their states.
The participating attorneys general, from states including California, Nevada, Delaware, Massachusetts and New York, discussed how they could possibly join together to investigate and potentially file lawsuits against abusive mortgage lenders and servicers. Principals or representatives also attended from Hawaii, New Hampshire, Missouri, Mississippi, Maryland, Kentucky, Minnesota, Oregon and Montana.
“This past Tuesday, a group of like-minded Attorneys General met in D.C. to discuss ongoing and future investigations into the mortgage finance and foreclosure industries,” said Delaware Deputy Attorney General Ian McConnel.
“The talks weren’t just about investigations,” said a source with knowledge of the discussions. “They were also about the attorneys general offices feeling uninvolved in a process by which their federal colleagues have been negotiating on their behalf.”
This is a total mutiny from Tom Miller’s sideshow, which increasingly has been run by the Obama Administration and not the AGs. That sideshow has been falling apart; just yesterday we learned that the main Administration point person for the settlement, Thomas Perrelli, plans to step down in March.
These discussions are not taking place with the participation of the mortgage servicers. In other words, they are not negotiations. They are strategy sessions. They involve the AGs which have been the most aggressive in holding the banks accountable – Martha Coakley, Catherine Cortez Masto, Beau Biden, Eric Schneiderman, Kamala Harris – and a group of others (so far, all Democrats, though there are rumors that the Republican AG from Colorado may be involved) who want to benefit from their wisdom as they consider their own investigations. And that’s the right move. The banks will never provide a good deal as long as nobody actually investigates them to determine the depth of the fraud. The banks have all the leverage with a desperate coalition led by the Administration and Tom Miller. With a Schneiderman/Biden/Coakley coalition, the law enforcement officials have the leverage.
So if these 14 AGs bolt from the Miller-led settlement talks, you’re down to 36 AGs. And that’s only from one side of this. There are wingnut AGs like Ken Cuccinelli and others who will not abide by the banks having to pay a cent in penalties. Yves notes that four of these Republican AGs wrote a letter to that effect back in April. Because the talks were collapsing from the left, the revolt on the right was largely ignored. But if Miller does ever get it together, he will have to contend with them as well. And remember, a settlement would be perceived as a win for the Obama Administration, and we’re in an election year. I’d be surprised if more than a handful of Republican AGs, most of whom are political animals with designs on higher office, participate in such a spectacle.
Which means that the Miller-led settlement talks, as I’ve been saying for a while, probably don’t even have a MAJORITY of AGs at this point.
The fact that Schneiderman found $1 million in his budget to support foreclosure legal aid suggests that he is not preparing for a world with a settlement. He’s preparing for a fight. And more and more AGs are joining him. The vaunted “settlement” has become irrelevant.



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Bend over, banksters. ;-)
Signs posted in Seattle:
http://freewayblogger.blogspot.com/2012/01/signposting-in-seattle.html
If you want to speak out politically, there’s no better way to do it.
So, O’bummer decided long ago to just go ahead and let the banks have all our houses….I guess it was down payment on the deficit, which never goes down.
something’s very rotten in Denmark ( Amerika)
I gotta wonder what their plans are for destroying communities and cities; who are they selling the land to and why? I hear Las Vegas is practically a ghost town now
I don’t know; I’m thinking that the opposition from the right will disappear if the banksters so desire.
I wish. There are still plenty of cards to play. The banksters aren’t going to give up on their “global settlement”, not as long as Obama needs their campaign donations.
If I’m a bankster, I’m gonna hold the US economy hostage. All BofA or Citi would have to do is revalue their real estate holdings to market reality and both become so insolvent that the Fed has to act. Yes, it’s a nuclear option, but as a bankster my personal money will be safe.
And we know that Obama submits to blackmail.
Boxturtle (Plus, he REALLY wants to bailout the banks as long as he can keep his fingerprints off it)
Our Republican president would be thrilled with that outcome.
I wonder what their plans are for AFTER the destruction. The entire idea is for the banks and the banksters to get more money and keep more money. With no buyers, what will they do? Prey on each other?
Boxturtle (Oh, wait…)
Vegas is practically a ghost town, but with a casino center catering to foreigners.
$1 Million ain’t much, but it’s a start.
Settle this, bitchez!
Geez, BT, I was playing the optimist for a moment, just to see what it would feel like. OK, if you insist, I’m back in reality now. You’re right.
Maybe Obama will assassinate these uppity AG’s. Don’t they know that if we don’t legalize fraud the banks stand to lose money?
Let’s not count our chickens before they hatch.
Let’s not cross our bridges before we get there.
Let’s not unwrap that condom before dinner.
You’re right, dinner can change everything lol.
the bankster bitches aka bank owned politicians should be known as bb’s and called that at every turn. reinstate glass-siegal. also its is about time clinton. the heritage foundations favorite deregulator takes some heat for being the traitor he was and is
He is soooooo good at that reality thing, isn’t he? (Including in-between the parentheses.)
It’s very interesting how few sources of news there are about this issue which involves millions of Americans and billions of purloined dollars–and even fewer that come close to your level of knowledge and analysis, David. Many, many thanks!
Yes he is, both in and out of the parens. You’re pretty good yourself, don’t think I haven’t noticed. ((fatster))
Jeez you guys, get an eroom.
Don’t be jealous. ((MaryCh)) There. ;-)
Thanks…and it’s not even lunchtime!
I would like to donate to Schneiderman fraud found.
Obama’s already got Holder in place. The man whose claim to fame is representing/defending the paramilitary operations financed by United Fruit that murdered union leaders opposing their interests in Colombia. I’m sure that Holder and friends at “Justice” can spare the time from facilitating the importation of drugs and the prosecution of medical marijuana dispensaries.
Wow! I never had a Friday the 13th made me nearly as smiley as this one. Many thnx!
And here’re a few more {{{Mary}}}.
Thanks for reminding me that it’s Friday the 13th. Now I’m definitely staying home tonight lol.
Stop it – I’m gonna need a patch and a nicorette after that!
Terrific reporting, David, on a vital topic.
“Leading those talks are the Justice Democrats who have been critical of the settlement and who have worked on their own investigations and lawsuits in their states.”
What ‘Justice Democrats’ might these be? I read it at first as Democrats at the DOJ, and wondered.
You have to wonder about the other AG’s who are not jumping ship. I think the question that needs to be asked of them is: Who is telling you what to do, or not? Those answers may be very surprising.
But they don’t desire, and would be happy if AGs blew this up for them. The right-wing AGs are the banks’ ace in the hole. They didn’t expect any Dem AGs to have a spine, however.
No way! Prosecute those bastards!
Sorry, sometimes I don’t give full context to continuing stories. They would be Eric Schneiderman, Martha Coakley, Catherine Cortez Masto, Beau Biden and Kamala Harris, all of whom are mentioned here.