In a mildly sourced report by the Huffington Post about ‘private’ conversations between a handful of senators and the Attorney General of New York, who is also a co-chair of President Barack Obama’s task force investigating the frauds carried out by the nation’s largest banks against investors in mortgage backed securities, groups including retired teachers and civil service employees, Eric Schneiderman conveyed that he is concerned that his concerns about the public’s growing concerns that the enforcement work group is nothing more than a toothless and supine act of public relations kabuki to cover for the inaction on the part of both federal and state law enforcement officials who, after more than five years, have yet to charge a high level employee of any of the nation’s most powerful banks with crimes that led to the collapse of worldwide banking system, are communicated.
Schneiderman’s critiques come as the statutes of limitation for the crimes committed by the nation’s largest financial institutions in the lead up to the new depression have, in most case, run out extinguishing regulators’ ability to prosecute the criminals.
One of the senators who met recently with Schneiderman, the retiring senator from Michigan, Carl Levin, was concerned to tell the Huffington Post that Schneiderman “expressed similar frustrations that the public has expressed,” and another senator, who was concerned to maintain anonymity, said that Schneiderman “was very clear” that he wanted to convey his “frustration”.
Schneiderman’s appointment to co-chair the Obama created work group on mortgage backed securities was announced to great fanfare during Obama’s State of the Union address in 2012, four years after the onset of the new depression and during a time in which the US Treasury and the Federal Reserve had given America’s largest private banking companies trillions of tax payer dollars, nearly interest free loans and 100 percent guarantees on trillions of dollars of worthless securities and debt held by the private financial companies. In the speech, Obama was keen to express his concern for the millions of Americans who became homeless and jobless due to the illegal actions of these privately run companies (although the president has gone on record stating his personal belief that “no laws were broken” in the run-up to the new depression).
Consumer groups and organizations that serve communities of dispossessed homeowners advised the Huffington Post of their concerns about the appalling track record of the mortgage securities workgroup with regard to enforcement actions, spoke “on the condition of anonymity” because of their concerns about “jeopardizing their relationships” with the state-federal workgroup. Many homeowner service agencies have received millions of dollars generated out of non-prosecution agreements reached between federal and state regulators and the nation’s largest financial institutions that involved enforcement entities absolving private parties from criminal actions for the payment of “contributions” and fines.
A review of the mortgage securities enforcement work group’s web site today (April 24, 2013) relates that Schneiderman is joined on the task force by Obama’s hand-picked Assistant Attorney General to lead the Criminal Division of the US Justice Department, Lanny Breuer. Breuer resigned from government service to work for a Washington DC law firm that defends banking companies and finance companies in January 2013.
In the whirlwind of concerns related by the Huffington Post in its ‘news’ story, no mention of concern was iterated for the more than 3 million families estimated to have been foreclosed upon between 2008 and early 2012, at the time that Obama appointed Schneiderman to head the mortgage securities working group.
cross posted at the demise