I have some additional reporting on the financial fraud unit that will be co-chaired by Eric Schneiderman, and how he will approach it. But before I get to that, I want to pick up on something that came up when I appeared on Sam Seder’s Majority Report radio program today.
The thing is, and this is something that Seder, a fairly close observer of these matters, didn’t know, is that there’s already a financial fraud task force. In fact, this Unit on Mortgage Origination and Securitization Abuses will be part of said Financial Fraud Task Force. That originated in November 2009, based on legislation from Congress. They have a website and everything. It’s self-described as “the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.”
The task force has had a mandate to investigate and prosecute financial fraud for well over two years. So what has been done? They’ve done some work on insider trading. And they’ve gone after a number of small fish who engaged in penny-ante mortgage fraud schemes. Has one Wall Street banker at the top been prosecuted? No. And in general terms, most of the civil fraud prosecutions have ended with these no-fault agreements, where the guilty party doesn’t have to admit “alleged” wrongdoing and can just buy their way out of the problem. This is the practice that Jed Rakoff rapped the SEC for partaking in.
But more important than that, who is on the Financial Fraud Task Force? The same people who will be co-chairing the Unit on Mortgage Origination and Securitization Abuses with Eric Schneiderman. Take a look at the heads of the working groups on mortgage fraud and securities and commodities fraud:
The Mortgage Fraud Working Group, co-chaired by Ben Wagner, U.S. Attorney for the Eastern District of California, Tony West, Assistant Attorney General for the Civil Division, Michael Stephens, Acting Inspector General for the Department of Housing and Urban Development, Sharon Ormsby, well as representatives of the Federal Bureau of Investigation and the National Association of Attorneys General.
The Securities and Commodities Fraud Working Group, co-chaired by Preet Bharara, U.S. Attorney for the Southern District of New York, Lanny Breuer, Assistant Attorney General for the Criminal Division, Robert Khuzami, Director of Enforcement for the Securities and Exchange Commission, and the David Meister, Director of Enforcement for the Commodity Futures Trading Commission.
West, Breuer and Khuzami are all co-chairs on the Unit on Mortgage Origination and Securitization Abuses. What’s more, they all had duties in these working groups substantially similar to this new fraud unit. And they did nothing of consequence.
Maybe the inclusion of Schneiderman will change that. I’m told there’s a bit more to that story, though I’m not ready to publish anything yet. But these are the facts of the matter. Three of the five co-chairs of this panel have a history of dragging their feet on enforcement against the banks in precisely the same areas that this panel will allegedly investigate.



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So what, DD, is your best guess as to Schneidermann’s motivation. I mean, he was being hailed as hero on the left, doing quite well politically by all signs. What does he get out of this either on the issue or career-wise?
Did he decide that being an opponent of Obama in an election would hurt his career?
Ditto davidmizner. Pardon me for being skeptical, but I’m wondering what carrot Schneiderman was offered by Obama LLC and he will modify the investigation he’s conducting for New York, i.e., will he stop pursuing criminal charges. Waiting on California and Nevada AG’s change of plans.
I’m in agreement with davidmizner and Arbusto. As Pres. Plutocrats Puppy has stated he believes Wall Street acted “unethically but not illegally” this new “unit” will undoubtedly be a Paper Tiger that, at best, will find some low hanging fruit that can be extolled on MSNBC as proof that he is doing something. As for Schneiderman, it gets him national exposure, but shows him to be an unserious careerist.
I’ll be placing my call to Harris’s office later today. Perhaps I can articulate my concerns in such a manner as not to force the nice receptionist person into years of therapy…
fox-chicken coop
Likeliest explanation for near-zero broadcast reporting about the Financial Fraud Task Force: fear of fumfering.
Can you say Kabuki? The fleecing of the sheeple continues unabated.
So what’s the justice department for, window dressing ?
Window coverupping?
As the good ol’ TX girl used to say, I was born at night, but NOT last night….what another fraud.
I was watching SOTU last nite with 5 gents in their 50′s who have owned property/homes and they were surprised that this wasn’t part of the bailout. I can’t wait to tell them this makes #2. ” Fool me once, shame on me. Fool me twice, er, ah…We won’t be fooled by fools: don’t fool with me, fool! ” Bush II
It astounds me how quickly FDLers will turn on their heroes. Without the least bit of evidence, you folks have taken to accusing Schneiderman (“Justice Democrat”!) of being naive, corrupt, stupid, or some permutation of the three. No wonder you couldn’t find anyone to primary Obama! Who could possibly meet the expectations of this bunch of feckless cynics?
Unless you are a facts denier you can’t be astounded that FDLer’s have adopted a hope for the best but plan for the worst philosophy regarding actions by our elected officials and their appointees.
p.s. Sometimes being a “feckless cynic” is just good sense.
Perhaps somebody who doesn’t jump onto a meaningless commission, then sit in the President’s box in the biggest staged event of the year? But I guess that’s too much to ask. Maybe we’d like, um, evidence.
You remember evidence, don’t you? Where are the prosecutions? Why is this being pushed back into a commission to do something sometime later on after the election?
o’s actions speak so loudly i can’t hear any lies he’s spouting.
He’s had three years and now a new committee and another few years and ALL the statute of limitations will have run out .
WTF do we pay eric to do except shut down dangerous Medical MJ dispensaries . Name a big time anyone this clown locked up.
Definition of a committee- a group of people who singly can do nothing but together can determine that nothing can be done.
The problem is that dealing with this administration is like stepping into quicksand – it rapidly makes you disappear into the muck. Maybe that won’t be true of Schneiderman – will wait to see.
And RTFH! (Read The Fucking Headline!) There’s already a financial fraud task force. There’s no need to make a new one (with most of the old crew on it) except to shuffle around the players.
We’ve seen this before. We’re tired of being played. It’s getting very, well, boring, frankly, not to say insulting. For goodness sake, I can fake better orgasms, and I’m a gay bottom.
Washington never changes for the better it seems. Republicrats and their owners don’t see a need to. They simply wait out and stall the concerned citizens. Then b.s. them to death. Why fix it if it ain’t broke; for the power brokers, that is. The healthcare fiasco proved this to anyone with a pulse and who could fog a mirror. Capitulate before engaging. Repeat.
In the land of HopeyChangey, the cynic is King.
The strategy of temporarily placating the masses with crumbs and obfuscation can work for a long time, but eventually, the logical result is that the anger of the oppressed will come to the fore, and will be unrestrained and unlimited. When that happens, the stains of oppression will be washed clean with the blood of the arrogant oligarchs. That is what history tells us.
You have your poet going today!
I see plenty of evidence. Schneiderman has spent the last year standing up to the administration and the banks, and he’s refused the shitty deal that was offered. I think that tells us a lot more about the man than the fact that he sat in the President’s box during the SOTU, but, then, I can’t avail myself of the crystal ball so many here have that shows Schneiderman is a possibly corrupt simpleton who’s allowed himself to be used to bolster the president’s populist cred. Unfortunately for me, I have only his past actions by which to judge him.
I will have more on all of this tomorrow. Still doing the reporting.
Some sage advice from Lily Tomlin, the value of which gets proven virtually every day in American politics: “No matter how cynical you get, it’s almost impossible to keep up.”
I will be astounded if Mr. Schneiderman investigates, charges and prosecutes any of the main culprits in this fraud that caused our current financial situation. I hope he does.
Fine. Then go by his past actions.
He hasn’t done anything significant except talk tough. Others, like Masto in Nevada have indicted people.
This is yet another classic Obama move.
This arrangement stinks. My instincts together with the few available facts are telling me Schneiderman sold out.
The evidence you miss is he could have been named head of the committee if o wanted results.
I had neighbors who used to say awful things about the Irish girl who stayed out all night, Patty O’Chairs.
That’s mighty tasty kool-aid you’re drinking there troll.
Ouch…took me a minute..;) Thanks
I said from the very beginning that I believed Schneiderman was another faux reformer along the lines of Eliot Spitzer, who talked tough but always settled for fines and never went for criminal prosecutions. I said that I’d believe him when he perp-walked heads of financial firms and then successfully prosecuted them. (As opposed to indicting, then tanking the case.) Face it: he wants to be governor, and he played all of us. Chicken shit Fucker.
Can you guess who said this, Masoninblue? What’s the AG done in the last four months to so sully your opinion of him?
Nice catch! Love being remembered.
But that was my point. He talked tough, but didn’t indict anyone. Back in September when I said that, he looked like he meant business. But then he didn’t do anything and now this.
So you think the lone dissenting voice in this thread is the kool-aid drinker? I’ll just note that you have no response to anything I’ve written, only silly name-calling.
I never metaphor I didn’t like lol.
Being the lone dissenter doesn’t make you right. Got anything else to bolster your credentials? Like, maybe you’re related to TBogg, or something? :-(
Didn’t you mean to say the Injustice Dept?!?
Neither does parroting the conspiratorial, permanently betrayed FDL party line.
No, but knowing the history of your President’s actual performance record gives one a leg up that seems to be denied to Obamabots. And the fact that TBogg, the premier Obamabot around here, saw fit to ban me from his blog rather than address my arguments on that point, kind of makes the point that Obamabots are as blinded by tribal loyalty as any Rethug.
Excepting the fact that Schneiderman’s character and actions have exactly nothing to do with “[my] President’s performance”, you have a point. TBogg and I are in league to keep you from expressing yourself. I personally asked him to ban you from his blog. MUAHAHAHA! Feel my Obamabot wrath, peon!
P.S. I think it’s really cute how you FDLers keep recycling the same Obamabot/Obot/(O|0)[a-zA-Z ]* “insults” the PUMAs came up with in ’08. Nothing says “my position deserves to be taken seriously” like a tired variation of the president’s name. Everyone gets it! You don’t like Obama. You don’t need to write like tweens to prove it.
The point is there’s no point in trying to reason with an Obamabot. Their brain shuts down after they blurt out, “Lesser evil,” as though that was some kind of reasoned analysis that left no room for further discussion. Which it is not. All that’s left after that is to note how they delight in presenting themselves as terminally obnoxious assholes, like you just did. Marinate in your ignorance.
The Obamabot demons that inhabit your addled head have left you incapable of participating in even the most basic discussion. If you weren’t so monomaniacal, you would have noticed that I haven’t defended Obama at all. Keep arguing with your demons, though. It makes for fascinating reading.
Really? So, you don’t plan on voting for Obama? Declare yourself, or fuck yourself. If I’m wrong, I’ll apologize.
I usually consider it a waste of my time to engage anyone as misinformed as you are, and my labeling you as a “troll” appears to be remarkably accurate.
So there’s already a Financial Fraud Task Force?
Website and everything?
Yeah. Uh huh. That’s what I thought.
That’s why I was kind of confused when the announcement was made during the SOTU, as if it were something brand new.
Thanks for the clarification.
President Obama has been hearing a groundswell of angry discontent from Democratic progressives like myself over his willingness to let the banks and their officials off the hook for their criminality. It’s now only ten months until the election, and he has ten months to show us this isn’t just a meaningless act to keep the Democratic party faithful quiet. If he doesn’t follow through, and if we don’t see some indictments within the next couple of months, we might go looking around for a good Democrat with the guts to do what the hell needs to be done.
Obama has been a profound disappointment so far. Let’s see if he’s now going to deliver.
It might be that the only reason to vote for Obama is the absolute shockingly low level of talent that Republicans have displayed so far.