Ilyse Hogue takes a look at the missing task force on securitization abuses, which has done almost nothing since coming into being and announcing a few subpoenas a couple months ago. According to the liberal group CREDO, investigators for the task force have not yet been deployed.
CREDO’s petition asking President Obama to staff up the task force well beyond the original promise has already yielded over 100,000 signers and over 1,100 calls to Obama For America headquarters, and I’m told CREDO has not even contacted all their members yet. This level of engagement is an indication that others like me who tune back in to find expectations unmet will have a strong response. Notably, a response that has the potential to trump queasiness progressives have about criticizing a Democratic president in an election year. But also a responding audience that clearly wants to use the instruments at hand to create a win for all involved.
One unintended consequence of the establishment of the task force is that many Americans felt like they could rest easy that justice was underway. Part of this feeling stemmed from the clear engagement of President Obama in his State of the Union address and part stemmed from the reputation of strength and integrity of the chair of the body, New York Attorney General Eric Schneiderman. Given the massive entrenched interests of the banks and the hyper-partisan political landscape, though, it appears that allies in government will need a strong outside consituency to make progress on this issue. Not doing so would be a huge missed opportunity for our economy and millions of Americans still waiting for relief.
Um, there was nothing “unintended” about that consequence. It was the entire purpose of the establishment of the task force, at least from the Obama Administration’s perspective. Before then, they faced a united coalition of activists seeking justice for the largest consumer fraud in history. Afterwards, they had several progressive groups high-fiving their conduct, others moving on to find the one Bush-era official upon which to heap scorn, and basically a demobilization of the space. This allowed them to perform the foreclosure fraud settlement, which we can see as more inadequate with each passing day. And because the united front lost focus, the Administration has space to waver on the task force.
That coalition is being rebuilt. Tracy Van Slyke of The New Bottom Line writes in to say that they will build on CREDO’s criticisms this week and next. “We will continue to hammer on the investigation in different ways over the next few months,” she writes. For what it’s worth, I contacted a number of people on the Administration and the New York Attorney General’s office side of things, and none of them gave me any reaction to CREDO’s charges.
I think at some level, we’re looking at a case of “too little, too late.” There’s still seven months until the election, and that’s seven months of leverage if this coalition is willing to go there. But they’ve already lost one set of leverage with the settlement, and the task force can parry questions with the usual talk of an “ongoing investigation.” Meanwhile, the statutes of limitations slowly and gradually run out. And we’ll hear about how very hard it is to bring prosecutions against the banks.
So despite the fact that the foreclosure crisis is very likely to continue, despite the fact that mortgage servicers still screw their customers on a daily basis, despite the fact that they may not even be able to follow new servicing standards set up by CFPB, there still isn’t an independent activist movement that has shown itself able to force a reckoning and real accountability for rampant and ongoing financial fraud.
UPDATE: And just as I write this, I get the New Bottom Line’s latest, called “The Case of the Missing Mortgage Fraud Task Force.” An excerpt:
It’s been 77 days since the President announced in his State of the Union address the creation of a Mortgage Fraud Task Force that would go after big banks to “crack down on large-scale fraud and protect people’s investments.”
But almost three months later, finding any evidence of progress on the President’s promise amounts to a mystery that would leave Nancy Drew scratching her head.
We know shortly after the State of the Union, a plan was proposed to hire 55 federal agents for this large scale investigation. But to date, we don’t know who most of these investigators are and when they are going to start their work. But maybe the biggest mystery of all, is why have only 55 investigators been assigned to this case?
I believe NBL and CREDO are sincere, actually. However, I think there are plenty in the “Campaign for a Fair Settlement” coalition who will remain silent and sit on their hands in an election year.




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There are “had” times ahead, DDay, for certain …
DW
These Veal Pen faux progressive groups weren’t “had”, they were in on the kabuki from the beginning. Aside from FDL, NakedCap, and Corrente, I don’t think anybody has really been on this subject with principle and accuracy.
And we’ll hear about how very hard it is to bring prosecutions against the banks.
Especially when you aren’t interested in trying.
Par for the course for President Drone Strike.
But watch him go after journalists and whistle-blowers like the Furies of Hell.
~
Did anyone really believe that the Task Force was charged with anything but delay, delay, delay?
New York Attorney General Eric Schneiderman was pulled out of NY to stop any investigation that was not under Place Holder.
Mission Accomplished.
And since that’s the only time the President gives a rat’s ass what they think …
The Veal Pen seems to have transitioned seamlessly from “Obama wants us to Make Him Do It” to ohnoes!11!scaryrepublicansandwhataboutthesupremecourt??
Sitting this one out, thanks.
Having Schneiderman go was really the key. He’s sitting on top of the national epicenter of this mess – Wall St.
AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen David Dayen:
I followed up to the New Bottom Line’s web site and called Obama(bots) for America…after a bit of a wait I got a very harried operator who took my call for Demarco’s resignation and I also told her I was a long time Democratic Party activist and wouldn’t be givin a dime to OFA or the SuperPac and further, I wasn’t alone and that there are a whole bunch of us out here who are plenty pissed off and won’t be carryin’ any spears for Barry if he doesn’t put the squeeze on the banksters before November. The volunteer took it all down (at least she slowed me down a couple times to get it all) and took my demographics. This is the first time in months that I’ve had anything like a real response from OFA…maybe the White House operatives are gettin worried, I know that there is one White House operator who’s a bit stressed.
KEEP THE FAITH AND PASS THE AMMUNITION, ALL THEY HAVE IS OUR MONEY!!
One RingyDingy
Just like having Liz “go.”
It is a Robber Baron economy nouveau, courtesy of Robert Rubin, et al.
JESSE’S CAFÉ AMÉRICAIN here
Go Norske!
If the government and state AGs have agreed not to pursue large scale foreclosure fraud cases as part of the settlement, what exactly is there for any task force to undertake?
It appears that the administration has ignored the complaints and focused instead on clearing bad loans from the banks books through sales of swaths of homes to the banks so that they can rent them back to homeowners. Loan modifications have gone nowhere. The goal of all concerned is to clear these homes while taking the smallest hit, or alternatively, sticking the government with the lion’s share of the losses.
My thought exactly — thank you.
That’s why Rahm Jackass Emmanuel felt comfortable calling liberal fucking retarded. He just let out what he and bo feel about their political chumps!
I’d like to see them reach out to every homeowner who has been victimized and find a way to push out the statutes of limitation, along with providing individual legal assistance for each and every homeowner to sue their bank, servicer, whoever in order to get some sort of recompense.
sigh – not likely to happen, but I have to have those moments to dream of a better way for us to be treated.
It is easy, however, to prosecute and harass whistleblowers.
-stewartm
If you’re going to dream, dream of dead bankers in mass graves. ;-)
Is this the most corrupt, the most vicious administration ever? Is it corrupting and poisoning the rest of the country.
I’m starting to feel like a slow boiled frog. They threw me into cold water and raised the temperature an itty bit at a time. Now I”m nearly done for and I’m just beginning to notice something’s wrong.
Don’t holder your breath waiting for the Feds and AGOs to Harris the banker criminals (wouldn’t want to make them make them madigan) better to eric on the schneiderman of practicality, ’cause following the law would be such a deal miller & put the Dem party between Barack and a hard place with respect to campaign contributions from banker boardrooms .. & getting elected again has to be a higher priority ’cause how else is the prez gonna show what he can get donovan in a 2nd term?
Sorry – my mind wandered to thoughts of the relationship between the Democratic party & the “rule of law” – what I meant to write was …
Don’t hold your breath waiting for the Feds and AGOs to harass the banker criminals (wouldn’t want to make them make them mad again) better to err on the side of practicality, ’cause following the law would be such a deal killer & put the Dem party between a rock and a hard place with respect to campaign contributions from banker boardrooms .. & getting elected again has to be a higher priority ’cause how else is the prez gonna show what he can get done again in a 2nd term?
OT kinda, there is a big pop gun of some sort missing from Fort Lewis reported just today.
David,
You are absolutely right by stating that “However, I think there are plenty in the “Campaign for a Fair Settlement” coalition who will remain silent and sit on their hands in an election year.”
That’s why I went on hunger strike and started chain hunger strike to illustrate the urgency for the regulators to ACT!!!
Hunger Strike!
Rolling Hunger Strike – Stop Illegal Foreclosures
Join us in a chain hunger strike to demand the banksters be held accountable for systematic foreclosure fraud against hundreds of thousands of homeowners. On April 6, 2012, Donna Vieira ended her 16-day hunger strike. Tim Nonn (Occupy Petaluma) is continuing the hunger strike, to protest the lack of prosecution of the banks for foreclosure fraud. Tim began on April 6 and will end his leg of the hunger strike on April 13.
We invite others to participate in the rolling
hunger strike by signing up for one or more days. If you are interested in participating, please email Donna (donnazao@comcast.net) to be placed on the schedule of hunger strikers.
Join with members of the Occupy Movement by standing in solidarity with the millions of homeowners who have already been foreclosed or are facing foreclosure. The banks have been given a license to steal our homes by the government. We must demand accountability and criminal prosecutions for these massive crimes that are wrecking families’ lives and our communities.
(Pictured above in SF AG’s office: Tim Nonn second from the left and Donna Vieira second from the right, along with supporters from Oakland and Sacramento.)
For more information, please visit these websites:
No Justice Zone (Donna Vieira)
http://www.nojusticezone.com/Home_Page.html
Occupy the No Justice Zone
http://occupythenojusticezone.blogspot.com/
Occupy Fights Foreclosures
http://www.occupyfightsforeclosures.org/
Occupy Our Homes
http://occupyourhomes.org/
End
Obama: “This is the sort of thing we do during an election year, none of this matters.”
Open mike?
ooops.
NOT A SINGLE VOICE WAS RAISED TO HALT THE OPENING OF THE FLOOD GATES …. Ha Ha Ha Ha
https://sites.google.com/site/nationalvictimscoalition/
It’s amazing Weidner NOR any of the Foreclosure Lawyers or their Chasers / Runners Not One endorsed or encouraged the Intervention Hilarious Stuff Huh
I KNEW EXACTLY But all the BS Occupiers and BS Progressives They are Full Of ….. BS https://sites.google.com/site/nationalvictimscoalition/
NOT A SINGLE VOICE WAS RAISED TO HALT THE OPENING OF THE FLOOD GATES …. Ha Ha Ha Ha
https://sites.google.com/site/nationalvictimscoalition/
It’s amazing Weidner NOR any of the Foreclosure Lawyers or their Chasers / Runners Not One endorsed or encouraged the Intervention Hilarious Stuff Huh
I KNEW EXACTLY But all the BS Occupiers and BS Progressives They are Full Of ….. BS https://sites.google.com/site/nationalvictimscoalition/